California Leads Nation in Green Economic Suicide

You do not have to look as far away as Europe to see how irresponsible spending can lead to economic collapse. California, where Gov. Arnold Schwarzenegger has declared a state of emergency as state debt has ballooned to more than $20 billion, provides a good example right here at home.

With the governor cheerleading on the sidelines, state air regulators made a bad situation worse last week. As reported in the Los Angeles Times, California regulators voted to cap greenhouses emissions of the state’s major industries and establish the nation’s first broad-based carbon trading program. An enthusiastic Schwarzenegger said, “We have led the nation in developing green policies … And we have seen our green economy grow as a result.”

Gov. Schwarzenegger failed to mention that the state has one of the nation’s highest unemployment rates and has lost manufacturing jobs to states with more business-friendly regulatory environments.

The adoption of a cap-and-trade system for carbon emissions is just one more nail in the economic coffin for California’s economy. The results will be higher energy bills for California households, the exodus of more businesses from the state, and an immense opportunity for corruption as state regulators parcel out emission allowances.

Tax payers from around Michigan and the nation should remind their congressmen about the economically irresponsible acts being taken by California regulators when the state seeks the inevitable bailout from Washington. Destructive economic policy decisions made in California should stay in California. The other states should not reward bad behavior.

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