I think the point morekaos is trying to make is that California could be great in all aspects, not just weather/location.
If California took a more moderate approach to taxes and operating business environment it would be in a much better place - kind of like a business that maintains lower profit margins but makes it up on volume (think In-N-Out).
It would probably run huge budget surpluses every year. But as we know, politicians can’t help themselves and will do anything to maintain power and here we are. The state tends to luck out just by the sheer size of the population. There are so many people here that there are always up and coming businesses that help the CA economy grow (or maintain its size) but then when they become a mature business the tend to leave the state.
