Monday, June 22, 2009

Death of California

There is an old saying that says, "As California goes, so goes the nation." California has long been a beacon of success as a state with an economy putting to shame the economies of most nations. Americans have flocked to California, over the years, for the promise of making a better life for themselves.

The promise of California Gold is no more.

Since the end of Ronald Reagan's governorship in California, the state has rarely seen a Republican Governor, and in the cases of Wilson and Deukmejian, it is hard to tell if the Republicans were any better than the Democrats. Nonetheless, the state has been under liberal control for decades. California ranks among the highest in tax rates, spending on education and welfare programs, and the financial habits of the state mirrors what the Democrats are doing right now in Washington.

Based on the similarities of Obama's and California's systems, it is safe to say if you wish to see what the United States economic outlook is under the Obama Administration, one needs to look no further than California.

Broken promises, runaway taxes, and out of control spending has led to a state with failed programs, and a bankrupt economy.

California is on the brink of economic collapse, and the Obama Administration has clearly indicated to California not to expect a bailout.

The economy in California is suffering from a $24.3 billion shortfall, and unless the state can save itself, the Obama Administration will probably give in, and pick up California's shortfall. Meaning, to save a state run by a bunch of liberals that have spent too much of the taxpayer's money, and not managed the state economy very well at all, taxpayers from other states will have to pay out their nose to save the state under the direction of an Obama Administration that has spent too much money, has not managed the national economy very well, and is directing the United States towards economic collapse.

California asking the Democrats in charge of the Federal Government for help is like a kid in school asking another kid in class, who happens to have the worst grades in class, if he can copy his test answers.

Nearly six years ago Gray Davis was recalled for mismanaging California's economy. The third place finisher in that vote was Tom McClintock (of whom I voted for in that special election). The winner was Arnold Schwarzenegger, who promised to end Sacramento's corrupt devotion to big government schemes, abolish the recently raised car tax, and end unsustainable deficit spending in California.

During the last half dozen years, Tom McClintock, a State Senator at the time, gave plenty of sound, conservative fiscal advice to Schwarzenegger, of which Arnold abided by none of it. Instead, like the liberals before him (after all, Arnold is married to a Kennedy, so what did we expect? The "R" for Republican means nothing, in the Governator's case) he continued to spend and spend and spend. Under Schwarzenegger's watch, there have been major spending increases in education, transportation, law-enforcement, infrastructure, and social programs. The budget has ballooned from approximately $100 billion to $145 billion in five years. Despite a whole slew of tax increases, the deficit has persisted at an unmanageable size. And now that it has all caught up to him, he wishes to increase taxes even more, including schemes like tripling the already high car registration tax, and increasing the sales tax with plans of it reaching double digits in the near future. The result of raising taxes will be a further deepening of the economic disaster in California, and as is already happening, a mass exodus of businesses and taxpayers out of the state.

High public spending cannot be maintained, and should not be maintained. Tell me: Is the higher spending on education raising the grades of our kids? Is the higher spending in the war on poverty eliminating poverty? These things are not resolved by soaking the taxpayers. The problem isn't the money, it is the method used. Liberal tactics, as is coming to fruition in California, is a recipe for disaster.

Borrowing and spending is what caused the crisis, and more borrowing and spending is not the solution.

If the federal government decides, ultimately, to loan billions to California to "temporarily" save her, it would not only be an unconstitutional and irresponsible move, but it would further increase our national debt, devalue our dollar, and foster inflation. In other words, an intervention on California's behalf will increase the burden felt by all Americans.

Drastic slashes to spending, and massive reductions in taxes - especially in relation to regulations and taxes against businesses - is the only way to save California's dying economy. . . and it may be, I fear, too late. We've let the Liberal Left have their way with California's budget for way too long, and the damage may be irreversible for generations.

And remember, the Democrats are doing in Washington what California has been doing for decades.

-- Political Pistachio Conservative News and Commentary

By Douglas V. Gibbs

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