California has an admitted budget deficit of $73 billion + HERE! Texas has a declared surplus of $32 billion + HERE!

Now, let’s just see how that breaks down – California’s population is 39.24 million and declining HERE! Texas’s population is 29.53 million and growing HERE!

Now, let’s break down the debt per person, or the surplus per person. California’s, each man, woman, child and whatever else you can think of, owes $1,860+ which means the average family of four owes $7,440+, and to finance that, the government will need to sell bonds at interest, so that amount will continue to grow.

In contrast, Texas surplus per person is $1,164+ or for the average family of four, a surplus of $4,656+.

What does this mean? In California’s case, the weight of the debt (and interest on the debt) will cause a lower standard of living along with the government being forced to compete for more private sector money including income taxes, property taxes, fees and excises! For Texans, it means lower taxes and lower cost of living which has already translated into the largest property tax reduction in Texas history.

Beyond that, it means that California’s government will have to answer to the debt (bond) holders which will likely put a clamp on much of the government’s activities that are unproductive, but niceities such as parks, recreation, beaches, and who knows what else?

So, where do you want to be?

Pensiamento Peligroso