It's always fun to fact-check Krugmans ass. Krugman truly believes that California is in the current fiscal shape it is due to tax cuts. One of the main reasons the state is in economic disarray is it's completely over-regulated. The California version of EPA, DTSC, is bloated to the point of exploding. I left there two-years ago, and granted they may have trimmed it somewhat, but I sincerely doubt it. Businesses, buoyed by NAFTA, fled across the border. Business can't compete in that state, especially if they manufacture hazardous materials or must dispose of hazardous waste.