Golden state observations

Here are some thoughts of mine after spending a week in Northern California:

• First off, I would be remiss not to mention this letter from Gov. Schwarzenegger to the legislature.

• When flying in to Sacramento I looked out the window and saw what looked to be rice paddies. Rice doesn't seem a natural fit for California given how water-intensive the crop is, and its presence is in large part due to unnatural causes: hundreds of millions of dollars in taxpayer subsidies.

• It's amazing how much of the economy in certain counties in NorCal is dependent on growing marijuana. One local with ties to a prominent law enforcement official said the police department avoided laying off three officers because of the money received from one bust that netted over $1 million. Others say the trade is the only thing that enables many people to make their mortgage payments, with even little old ladies getting in on the action. When it's harvest time new trucks appear on the roads and the liquor flows freely at area bars. Money from the trade is the only thing keeping many businesses around.
  

• The widespread growing of marijuana is partly a response to the terrible economy and the need for additional income. Locals speak of unemployment rates of 30 percent in some areas and even shanty towns. Remember, in terms of economic freedom California ranks #48 according to the Mercatus Center.
  

• Indeed, one woman, a Wyoming native, said she was moving back to Wyoming in part because of the high taxes. She said her after-tax pay was higher in Wyoming six years ago than in California now even with a higher gross income.
  

• At one restaurant the servers had little PDA-type devices which enables them to place orders on the fly and even process credit cards. That's more information technology than many doctors have at their fingertips. Of course, at a restaurant you are the customer while at many clinics and hospital it is the insurance company.

• Speaking of insurance companies, returning to Washington-Reagan/National last night I saw a big poster from UnitedHealthGroup advertising their support for health care reform. Unsurprisingly they are all for an individual insurance mandate. Just another example of big government and big business working together.