California is now so burdened with debt the state fissured along the San Andreas fault, cracked, then fell into the Pacific Ocean. California is so deep in red ink state residents will never be able to surface for a breath of fresh air.
There are some clear factors leading to this demise of California, a demise slowly spreading across America as well. Illegal aliens, during fiscal 2008, cost taxpayers in California 13 billion dollars. Multiply this by 50 for the cost of illegal aliens across our America. An exasperating problem is cost of state worker unions such as teachers, DMV workers, Caltrans, fire departments, police and others. Salaries are about the highest of our nation and retirement benefits are the highest; many state worker union retirees are collecting $500,000 per year, yep, a half-million bucks. For very many cities, retirement benefits consume up to 75% of a city budget. Average is around 40% to 50% of a city budget.
Between illegal aliens and unions, this consumes 70% to 80% of the state budget. This left liberal entitlement problem is a nationwide problem.
Environmental regulations suppress about 500 billion dollars a year in business, about a half a trillion dollars lost to business being taxed into closure or taxed out of the state of California. Over the past 5 years more people and businesses have left the state than are moving in. Roughly 5 million residents have left, tens of thousands of businesses have left the state, both because of a left liberal oppressive tax system.
Early this year, Republicans inflicted the most massive tax increase of national history upon California residents and businesses. State tax revenues instantly fell 40% or more. Those Republicans are actually left liberal RINO types working in concert with Democrats.
California, fiscal year 2008, a $24 billion budget shortfall. Taxes go up by $14 billion and fiscal 2009 will yield a $21 billion budget shortfall. Democrats and Republicans are already talking about a need to increase "revenues" which is a politically correct term for "taxes".
Interesting this illegal alien $13 billion taxpayer cost is more than half of the budget shortfall.
California state government refuses to make any significant budget cuts. However, those Sacramento boys are quick to effect massive tax increases.
California is a perfect, absolutely precise model of a left liberal tax and spend economic policy. This is exactly the economic policy being effected by Obama and Capitol Hill, with little to no effort by Republicans to stop this. Only difference is Obama can print as much money as he wants, until now. Our national debt is so massive, it is beyond comprehension. Past couple of days Obama is telling America, in effect, "I cannot print anymore money."
America is at the economic breaking point. There is no more magic money. All of our tax money is gone, and gone is a trillion dollars borrowed from China. Job losses continue to skyrocket, consumer spending continues to plunge, another wave of foreclosures is about to hit, and Wall Street is reporting handsome profits.
Well, good for Wall Street. I am certainly relieved to know those boys are doing just fine.
Not only is Obama talking about his money printing machine being broken, he is now warning about a "double dip" recession. Other words, America is about to be slammed down again, just like left liberal economic policy model, California.
Nonetheless, Obama and Pelosi are pressing ahead with a trillion dollar health care circus, are marching right along a multi-trillion dollar global warming boondoggle.
Oh, sorry, I am being politically incorrect, a "climate change" boondoggle.
California portends what is about to happen to America. This economic disaster is the end result of a left liberal tax and spend economic policy. Environmentalists ain't helping either.
Ignoring financially irresponsible Americans, our current Great Depression II is the fault of both Democrats and Republicans. There is no real difference between Democrats and Republicans, almost all are left liberal tax and spend addicts, almost all are simply corrupt.
And our Great Depression II is about to become much worse.
Time for a change, yes? Come 2010 and 2012, we are to make this change by booting out left liberal tax and spend junkies, both Democrat and Republican. Past time for us to sweep clean Capitol Hill then elect true patriotic Americans to office.
If we do not, well, we can talk about this while we wait in a national Soup Line.
