The Mama's and Papa's had a great hit in the 1960's extolling the virtues of life in the Golden State - "California Dreaming"

California's population swelled over the years because of it's sunny climate and "hip" lifestyle.  It was once said that if Christopher Columbus had discovered America from the West Coast, we would have never moved further east than the Rocky Mountains.

The "free love" crowd found a permanent home in the San Francisco Bay area.  The movie and recording industry likewise migrated to the warmer LA area .

But now, the migration has reversed. More people are moving out of the state, than into it.  In fact, from 2006 to 2007, California lost a net total of 268,000 citizens.  That was the largest migration of any state in the union.  The migration away from California would have been even greater, but for the arrival of nearly 200,000 foreigners.    Statistics for all the states can be found here.

The problem is the incredibly burdensome taxes (income and property) along with the rules and regulations that make starting a business so difficult.  For a taste of that, check out this article: Ridiculous

California was a liberal nirvana for decades.  Nearly every social program every dreamed of was enacted here.  Now the chickens have come home to roost.  The new businesses needed to offer employment and tax revenue are leaving the state.  The declining tax base creates a further burden on an already bloated governmental system.  Financially failing pension systems will require even more taxes from the citizens to meet their obligations.  Higher taxes will drive even more people from the state, thus exacerbating the problem.  In some sense, the state's financial picture is best viewed as a death spiral.

The state of California offers clear insight into the "nirvana" that Nancy Pelosi has envisioned for us. 

As Speaker Pelosi offers her remedies for the country, I'm reminded of the phrase, "Physician Heal Thyself".  The dreams of California have certainly become today's nightmare.