I live in California. I really hoped I could find some common ground with you with this post, but it eludes me. The economy in California is among the strongest in the nation. If it were its own country it would be in the top 10 in the world for GDP. There is absolutely no chance of California imploding.

Further, two times in this post you said that the cost of government regulations gets passed on to consumers. That simply doesn’t happen. Consumers pay what the market will bear irrespective of the cost of production. If the cost of production is too high goods won’t get produced, but the producers have no ability to pass those increased cost onto consumers.

Your example about high house prices in California demonstrate that you don’t understand California housing. The reason house prices are so high here is a combination of high wages and limited supply. Local municipalities simply don’t approve enough new housing to meet the demand. This has nothing to do with the cost of production. The high wages are a testament to how strong the economy in California actually is.