In a post about the winners and losers of last week's elections, John Fund cites a statistic that should scare Californians who just rejected Arnold's attempts to decrease the stranglehold of unions on the state:
For now, the unions are flush with victory and their success in humbling Mr. Schwarzenegger. But their victory may be a Pyrrhic one if it accelerates the flight of California private-sector jobs and capital to other states, taking the source of much-needed government revenue at the same time. Even the most powerful economic engines can rust. Take New York City, which today has the same population it did two generations ago but a total of 30% more government workers. During the same period, the number of Fortune 500 headquarters in New York City has dwindled to 30 from 140. When the unions win too much political clout, the overall economy inevitably suffers.
I love Los Angeles, but I worry about the city's long-term viability.