According to the California-based demographer and urban affairs professor Joel Kotkin, a conservative Democrat, California is becoming a failed state because its politics and its economics are badly screwed up.
California used to be more like Texas—a jobs magnet. What happened? For one, says the demographer, Californians are now voting more based on social issues and less on fiscal ones than they did when Ronald Reagan was governor 40 years ago. Environmentalists are also more powerful than they used to be. And Mr. Brown facilitated the public-union takeover of the statehouse by allowing state workers to collectively bargain during his first stint as governor in 1977.
But wait! I thought Thomas Frank told us that only conservatives in states like Kansas voted on social issues, often against their own economic interests. So liberal Californians do it too. Imagine that. More:
Mr. Kotkin also notes that demographic changes are playing a role. As progressive policies drive out moderate and conservative members of the middle class, California’s politics become even more left-wing. It’s a classic case of natural selection, and increasingly the only ones fit to survive in California are the very rich and those who rely on government spending. In a nutshell, “the state is run for the very rich, the very poor, and the public employees.”
The economic Third-Worlding of California.



Speaking to two issues raised in the article: Housing and Energy.
Kotkin points out that California’s housing market is warped due to local restrictions on density and building, but then claims that attempts to remove those restrictions so that higher buildings with more density can be built are the cause of the housing problem and engages is a bit of class warfare to boot. Both statements cannot be true. Perhaps he needs to read Matthew Yglesias’ very good book on the topic The Rent Is Too Damn High.
Kotkin also points out that there’s lots of oil left in the ground, but seems ignorant to the fact that it costs more to extract and refine what’s left than it did to extract and refine what we’ve already pumped. Near my home is an oil field that was busy in the early 1970s (OPEC embargo) and then stopped pumping through the 80′s and 90′s, and is busy pumping again. That oil field was found nearly 100 years ago, and there’s surely oil down there, but it costs much to refine that oil and so when the price of oil is low no-one pumps it, and when the price of oil is high the pumping goes on 24/7. No new permits were required, what was needed was simply a price that justified the costs of refining the oil.
The truth is that the cost of oil will continue to increase, and at some point not so far down the road renewables will be less expensive than oil. Investing in infrastructure to be ready for that day is what most old-school conservatives would call “prudent.”