Move over, New Jersey, you're getting a run for your tax money as the nation's most dysfunctional state from the once great mecca of commerce and finance known as New York. Politics in the Empire State has become a carnival of spendthrifts, sexual miscreants and the all-purpose ethically challenged.

In the latest sign that the Apocalypse is upon Albany, New York Governor David Paterson announced yesterday that he won't seek election to a full term in November only two weeks after he had announced that he would. Mr. Paterson,...