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Unleash Prosperity Hotline
Issue #1233
03/31/2025
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1) The Not-So Golden State

We don't like to always pick on California (OK, we actually do!), but the latest jobs data by state illustrate just what has gone wrong in the Golden State, and much of the rest of blue state America. They have become overly reliant on government for growth.

Here's a picture that's worth a thousand words:

Over the past two years, our largest state has lost almost 200,000 private sector jobs and gained almost half a million direct and indirect government jobs. Once the capital of innovation and tech, California is in danger of becoming a functionary of big government. Sad.
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2) With Friends Like This...

The Trump administration and many conservatives were overjoyed that United Auto Workers President Shawn Fain endorsed Trump's 15% auto tariffs as "a way to bring back auto jobs (sic)."

That goodwill lasted about 48 hours until Fain rushed on to Face the Nation on CBS yesterday to trash as “deplorable” Trump's sensible executive order to stop federal workers from unionizing.
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Fain shouldn't be mistaken as a friend of blue collar workers. He has been one of the most vocal opponents of right-to-work laws that give employees the right NOT to join a union.

Militant unions like UAW are what drove thousands of manufacturing jobs out of Michigan to right-to-work states like Alabama, South Carolina, and Tennessee.

Republicans need to understand that there is a big difference between the interests of union workers and union bosses.
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3) California’s Little Engine That Can’t

Here's the latest in yet another saga of California failure.

The Daily Caller News Foundation reports on MSN (Microsoft News) that the California Legislative Analyst's Office has testified to the Legislature that the California High Speed Rail project needs another $7 billion in public funding by summer of 2026. Unless the funding is obtained, construction on the project could stop in 15 months.

In 2008, California voters were told that the San Francisco to Los Angeles high speed rail line would be in operation by 2020, providing travel in less than three hours between the two cities, for a cost of $40 billion.

Our forthcoming study on this boondoggle by Wendell Cox, shows that the costs of the line have risen to as much as $128 billion and the only construction activity has been on a Merced to Bakersfield segment, with both ends being far from the promised terminals in San Francisco and Los Angeles.

Meanwhile, the Trump Administration is wisely considering the cancellation of $4 billion in federal funding that has not been spent. Don’t throw good money after bad.
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4) Our Deregulatory-in-Chief

In case you missed it from this weekend's Wall Street Journal, which concludes Trump has reached "a new high water mark" for deregulation:

President Trump is following through on his pledge to usher in one of the most sweeping deregulatory drives in modern U.S. history, moving swiftly to slash environmental rules and bank oversight, remove barriers to cryptocurrencies, and reverse the Biden administration's restrictions on energy production...

Trump's deregulatory moves are widespread: The Securities and Exchange Commission is backing away from Biden's climate-related disclosure rules; the Federal Deposit Insurance Corp. rolled back a Biden-era policy that had stepped up scrutiny of large bank mergers; and the Interior and Housing and Urban Development departments are aiming to streamline regulations to spur the construction of housing on millions of acres of federal land.

Taken together, Trump's moves are setting "the new high water mark in terms of the deregulatory agenda," said Travis Fisher, who served in the first Trump administration and is now the director of energy and environmental policy studies at the Cato Institute, the libertarian think tank. He added that Trump is "moving more boldly than Ronald Reagan."

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We wonder why the financial markets aren't reacting to this bullish trend?
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5) Let America Build Again

One reason Elon Musk is a force of nature is his optimism that the U.S. can still accomplish great things. Just witness his prediction that humans can land on Mars in seven to 10 years. That kind of can-do attitude is rare in bureaucratic America entangled in red tape.

It didn't used to be that way. The Empire State Building was built in just over a year. NASA landed on the moon only seven years after a US astronaut first went into orbit.

These days, plans for new subways in New York or high-speed rail in California are measured in decades.

How did America go from a nation of builders to a country strangled by red tape?

A new video by our friends at Kite & Key Video explains the red tape that snarls almost any project now.
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6) Not Steve Moore, Maryland Governor Wes Moore

We had to do a double-take when we saw this sign at the GOP headquarters in Maryland… then we remembered the governor of Maryland is progressive Wes Moore (no relation) who has proposed the biggest tax increase in decades.

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