It is not Proposition 13 or greedy bankers, but the many layers of growth control laws that are the main instigator of the prolongation of California's economic recession since 2007. And with the recession has come state and local government budget deficits, pending municipal bankruptcies, an un-closable funding gap in the state public pension system and misplaced calls to reform Prop. 13.
What makes up the popular image of California is not just its weather and beautiful natural resources but its real estate. It once used to be said, "You can't lose on California real estate because the prices only go up." And the reason that real estate values seemingly always went up was because of California's unique mix of population growth controls.