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Kept rising as though there weren't a recession at all. since 2007, public employee pay is up 3% more than private sector pay. >> glenn: look at this. trying to remember the numbers off the top of my head. it's 40,000 is the average pay for the average american. if you work for the government, average pay is $70,000. >> right. >> glenn: you're saying they're increases, even that big increasekre spread, increas still 3% more. >> they are. that's just wages but the government employees to better with the non-wage benefit. generous healthcare plans and that's expensive for taxpayers. that involve...

It's part of their own making. >> glenn: how come nobody is looking at states like texas, which texas is still growing. i have mean it's got its problems but it's still growing. business is flocking there. you have people practically jumping out of windows to get out of new york city because i mean, seriously, to do business in new york city, it's insane. the same thing that is happening in california. you've got the unions and everything else. why aren't we looking at texas and saying here is an example of where it works? >> well, good question. i think every state needs to ask itself as they...

This coming. tell me why the rest of the country should bail california out. >> they shouldn't. i think that's a perfectly legitimate reaction. the legislature has taken one of the ten biggest economies in the world and managed to saddle up with the highest sales taxes, the highest income taxes, the highest car taxes that are around and they've still driven it to the verge of bankruptcy. the reality is today to buy insurance against default in california's economy is the same right that it is to buy insurance against the default in kazakhstan. it's totally ludicrous. >> glenn: my gosh. >> yeah...

Districts are so safe here it's very hard. the ship moves slowly in california. >> glenn, you can get institutionalized class warfa warfare. we saw it in oklahoma where they supported dramatic increase in personal income tax rate and corporate rate to pay for social programs. to them it was don't tax me, tax the guy behind the tree. as long as you have a system that allows that -- and california's referendum system allows that in spades. year in and year out. they've been able to pass massive spending programs. and pay for it through targeted tax increases on the highest income californians. a...

>> glenn: i think the rest of the nation looks at california as the rest of the world looks at the united states and says you know what? you got problems. drill for oil. you have resources there. drill for oil. >> absolutely. >> glenn: stop telling the rest of the world how we're supposed to live. you're complaining, california complains about, you know, the price of gasoline, et cetera, et cetera. of course you're complaining about gasoline. the way you have to refine it and everything else there. it's an insane practice. i mean, you know, you're never going to be able to fix a problem until ...