Posted by: Debby Durkee | November 8, 2010

California — the Lindsay Lohan state?

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California – the Lindsay Lohan state?

Young actress Lindsay Lohan has been in and out of rehab over the years, but continues to mess up and seems to be blowing her talents in pursuit of an apparent addiction which is aging her before her time. The author of this piece sees a lot of Lindsay in the state she spends a great deal of her time. This is from Alyssia Finley, a former California resident who fled the state because she saw it crashing right before her eyes. From the Wall Street Journal.

Listen up, California. The other 48 states—your cousin New York excluded—are sick of your bratty arrogance. You’re the Lindsay Lohan of states: a prima donna who once showed some talent but is now too wasted to do anything with it.

After enjoying ephemeral highs and spending binges, you suffer crashes that culminate in brief, unsuccessful stints in rehab. This cycle repeats itself every five to 10 years, as the rest of the country looks on with a mixture of horror and amusement. We’d feel sorry for you if you didn’t constantly flip us the bird.

Instead, we’re making bets on how long it will be before your next meltdown. Oh, wait—you’re already melting down.

You’ve racked up nearly $70 billion in general obligation debt, and that doesn’t include your $500 billion unfunded pension liability. Your own analysts predict you’ll face a hole of at least $80 billion over the next four years.

Your government’s run by a brothel of environmentalists, lawyers, public-sector unions and legislative bums. When they’re not taxing or spending, they’re creating regulations and commissions like the Board of Barbering and Cosmetology and the California Blueberry Commission. Many businesses would leave if it weren’t for your sunny climate.

Which may explain why you’re so obsessed with climate change. If your climate changes, no one, including your Hollywood friends, would tolerate you anymore. So you’ve created a law to tax carbon emissions—no matter that it will kill jobs. Snip –

You appropriately give your government low marks—28% approval for outgoing Gov. Arnold Schwarzenegger, 16% for the legislature—yet you continue to re-elect the politicians who got you into this mess. Not a single incumbent state legislator lost re-election this year, including one Democrat who died a month ago (no joke). What’s scarier is that you’ve just given almost all of the keys to statewide offices to Democrats.

Jerry Brown will be your new (old) governor. This is the man who acted as a gateway drug to your spending addiction three decades ago when he gave public-sector employees collective bargaining rights…Snip –

We’ve tried to help you, California. Some spent millions on campaigns to entice you to change your reckless behavior. And you told them to kick rocks.

So here’s our final warning: When you inevitably crash and burn, don’t count on us to bail you out.

Not only did California re-elect Governor Moonbeam, they also elected San Francisco’s mayor Gavin Newsom as lieutenant governor and re-elected Barbara Boxer to the Senate. For those of you in California who are smarter than your elected officials, I suggest moving. The rest of the country seems to be on the verge of getting it. I’m afraid the residents of California are too far gone. Read it all here:

http://online.wsj.com/article/SB10001424052748703506904575592612400443370.html?mod=WSJ_Opinion_LEADTop

We’re actually already bailing out California. This is from the LA Times:

With one in every eight workers out of a job, the state is borrowing billions of dollars from the federal government to pay benefits at the rate of $40 million a day.  The debt, now at $8.6 billion, is expected to reach $10.3 billion for the year, two-thirds greater than last year. Worse, the deficit is projected to hit $13.4 billion by the end of next year and $16 billion in 2012, according to the California Employment Development Department, which runs the program.

Read it all here:
http://www.latimes.com/business/la-fi-jobless-fund-broke-20101107,0,4181722.story

Watch the video – California is committing economic suicide:

http://video.foxbusiness.com/v/4403614/calif-receiving-backdoor-federal-bailout
So, what happens to the country if California goes bankrupt? What can we do to force them to live within their means? Will California drag down the rest of the country? I certainly don’t know the answers, but here are some facts about California that are really disconcerting. According to Investor’s Business Daily:

With just 12% of the U.S. population, California has almost a third of the nation’s welfare recipients. Some joke the state motto should be changed from “The Golden State” to “The Welfare State.” Meanwhile, 15.3% of all Californians live in poverty.

The state budget gap for 2009-10 was $45.5 billion, or 53% of total state spending — the largest in any state’s history.

The state’s sales tax is the nation’s highest, and its income tax the third-highest, the BusinessInsider.com Web site recently noted. Meanwhile, the Tax Foundation’s “State Business Tax Climate Index” ranks California 48th.

In a ranking by corporate relocation expert Ronald Pollina of the 50 states based on 31 factors for job creation, California finished dead last. Snip —

California is home to 25% of America’s 12 million to 20 million illegal immigrants. A 2004 study estimated that illegals cost the state’s citizens $10.5 billion a year — roughly $1,200 per family.

Unfunded pension liabilities for California’s state and public employees may be as much as $500 billion — roughly 17% of the nation’s total $3 trillion at the state and local level.  Snip –

the real political problem lies in Sacramento, the state capital, which is run not so much by politicians as by the unions they’ve sold out to — state employees, nurses, teachers and prison guards.

For their part, politicians have largely ignored the state’s crumbling infrastructure, failing schools and dismal job market. And it’s about to get worse.

Voters also approved a new measure requiring a simple legislative majority to approve a state budget. It previously took two-thirds, giving Republicans far more leverage. Democrats, in other words, will now find it even easier to spend money they don’t have.

Moreover, as its tax base shrivels, the state is lurching ever closer to fiscal insolvency. At some point, it will ask Congress for a bailout, and how likely is that with the new Republican majority?  Snip –

Cypress Semiconductor CEO T.J. Rodgers memorably put it: “The killer factor in California for a manufacturer to create, say, 1,000 blue-collar jobs is a hostile government that doesn’t want you there and demonstrates it in thousands of ways.”

Part of the answer to California’s problems is cutting spending and getting rid of their unions, but with leftists on steroids in charge of their fiscal house, neither is likely to happen. Are they relying on those in the rest of the country to bail them out? The state has become like a wayward son who comes home drunk, broke and throws up in the living room but expects Mom and Dad to open their arms wide, hand him a check and let him continue down his drunken path. Tough love is what is needed at this point. But the U.S.’s drunken son has the ability to set the house on fire as he stumbles toward oblivion. Read it all here: http://www.investors.com/NewsAndAnalysis/Article.aspx?id=552810&p=3

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Responses

  1. Any Californian who voted for a Democrat this last cycle should have their right to relocate revoked for at least 10 years. Like the saying goes, “You break it, you buy it.”


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