Late news from California in the L.A. Times:
"Lawmakers reject budget fix; state could begin issuing IOUs next week
The core piece of a Democrat-backed package designed to fill the $24-billion gap flops. Last-ditch talks between party leaders and Schwarzenegger expected."
The inability of the California legislature to stop spending other peoples money is something the whole country should be watching. Even facing the prospect of the state's bills being paid by IOUs as early as next week; the politicians of the Golden State won't stop the bleeding.
California is about to discover that all of their social spending will dry up when they run out of other people money.
America, are you watching?
Sure it would be nice to guarantee universal healthcare to every citizen in America at no cost to them. Hey, it would be nice if we gave them sub-prime loans so they can "qualify" for homes that always increase in price.
WAIT. We already did that last one and it shook the world's economy to the core. Maybe we should rethink this idea of creating new entitlements.
I submit there are three groups of supporters for the California democratic solution of hiking up taxes being proposed.
These include:
1.) The legislators themselves. This is all about bringing home more bacon to their districts than they pay in to Sacramento. Roman emperors used to do this with bread and circuses. Of course the unwashed masses are going to love you (and re-elect you!) if you keep them supplied with freebies. The Romans had an advantage over the Californians though. When the Roman treasury ran low they could go conquer another part of the world and bring the loot home. I wonder if state lawmakers are thinking they can plunder Arizona next?
2.) The unwashed masses. Sorry for the disrespect implicit in the description of this constituency, but how else to view a group asking for more than what they are willing to pay for? They prioritize their lives in the manner they see fit, and if that means car payments take precedence over family healthcare costs, well let someone else pay! They are like the consumers who choose to eat out but don't have the money to pay. Why didn't they stay home for dinner and live within their means? It is a mystery that would have baffled our forefathers.
3.) Citizens of the great states of Arizona, New Mexico, Oregon, Utah, Texas and many others, should be big supporters of ever higher taxes in California. The California state income tax already takes an additional 10-11% out of the pockets of a very productive and talented workforce. Those jobs will be moving out of state soon unless California uses part of the higher tax revenues to post the National Guard at the border like the East Germans used to do. The California legislature's abdication of any semblance of fiscal responsibilty will be a boon to neighboring states.
You can only give away other peoples money until you run out of other people's money to give. Then what?
Then perhaps it's time to gather as many fruits and berries as you can, and look for a dry cave to live in.
At least the climate in California is good.
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