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The Denial Factor
Living Truth Through Denial

California
Our Broken State.

Photo by my daughter
Alexandria Marie M, 8,
while on vacation touring
America, with her first
camera.

The Costly Differences Between Socialism and Capitalism - California Vs Texas

There is a little known laboratory experiment being conducted in the United States pitting
two economic systems against one another. Those systems are Socialism and Capitalism.

This experiment is taking place in two of the largest states in the country, California and
Texas, with California representing the big government, high taxes, Socialist economic
system and Texas representing the small government, low taxes, Capitalist economic system.

The recession has no doubt helped in highlighting the differences between these two systems
and the results of this experiment are coming in loud and clear; Capitalism by a long shot.

Since the conclusion of World War II California's growth has been extraordinary. In 1950
California's population grew from 10.6 million to 36.8 million in 2008. During this period,
the Golden State attracted commercial and industrial expansion of astronomical rates. The
adoption of a Master Plan for Higher Education in 1960 allowed the development of a
highly efficient system of public education in the Community Colleges which included the
University of California and California State University. By creating an educated workforce,
California was able to attract investment, particularly in areas related to high technology.
By 1980, California became recognized as the world's eighth-largest economy. Millions of
workers were needed to fuel the expansion. The high population of the time caused
tremendous problems with urban sprawl, traffic, pollution, and, to a lesser extent, crime.

Accompanying this growth was a liberal, progressivism with labor unions dominating the
public sector and an unquenchable thirst for big government spending. California's budget
has doubled from $59 billion to $120 billion in the decade 1995 to 2005 alone. To feed this
spending binge California has systematically increased taxes on individuals to 9.3% and to
8.84% on corporations. Despite its best efforts to expand its tax revenues, California is
projecting a budget deficit as high as $25 billion. There is even some talk of a $40 billion
deficit, with a total public debt now approaching $500 billion. Its freeways are crumbling,
public sector college tuition is up 30% and unemployment stands at 14.3%, 4.6% higher
than the national average. California's economy is collapsing and citizens are voting with
their feet. From 2000 to 2009 more than 1.5 million individuals have left the state and this
trend is accelerating.

Contrast this to Texas. Texas' economy is booming. Nearly 1 million have moved into the
state from 2000 - 2009. Nearly 145,000 have moved into the state during 2008-2009 alone.
It's fiscal condition is sound. Public employee unions are weak or nonexistent. It's
government is a fraction of the size of California's. Despite its small government, Texas is
delivering superior services. Its teachers are paid less than California's, yet Texas' test scores
are higher than California. Texas has no income tax, a legislature that meets only ninety
days every two years, is building new freeways and boasts an unemployment rate below that
of the national average. Due to population growth Texas is poised to add four more
electoral votes in the 2010 apportionment, while California, for the first time in its history,
will gain no electoral votes.

The differences between the two states is clear. California's high-tax, expensive government
verses Texas's low-tax, low-services government. Or, better put; progressive socialism verses
conservative, free market capitalism. The conclusion of the laboratory experiment between
socialism and capitalism, between California's and Texas' two diverse economic systems is
clear. The results are in. With the debate raging in the U.S. over government expansion,
increased entitlements, which may include socializing health care, and increased taxes to pay
for all of this, we do not need to look beyond our own backyard. Socialism has failed where
capitalism has succeeded. Unfortunately for the citizens of the U.S. we cannot vote with out
feet and leave for another state. We must stay and fight. We must wage the war against
socialism and preserve the American Dream for our future generations. It's a battle worth
fighting. Thanks to the genius of our founding fathers we have the means to wage revolution
in this country, not with bullets or bloodshed but with a more formidable weapon; the
power to vote.

DAVID M MILLIGAN
FOR
PRESIDENT
2012

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