Posted on 01/12/2009 1:14:39 PM PST by SmithL
Under the Capitol dome in Sacramento, Democratic and Republican lawmakers battle in a state budget quagmire, trading charges of obstruction or constitutional end runs. The fed-up governor warns of a financial "Armageddon."
But in Huntington Beach, Molly Logan has more pressing problems.
Her sales at Logan Surfboards took a 30 percent wipeout from 2007 to 2008. She is undercut by imports from Vietnam and Thailand, "where they have no environmental regulations and cheap labor."
While lawmakers fight over a proposed sales tax hike to bail California out of billions in debt, Logan said, "I'm much more concerned about my Roth IRA plummeting. I'm more concerned with the national economy. Right now, it's frightening, frightening."
Gov. Arnold Schwarzenegger is to deliver his State of the State message Thursday in hopes of galvanizing public opinion to pressure lawmakers to agree on a budget to keep California's government from going broke.
But his challenge comes as many Californians are too busy and too worried about effects of the larger national economic calamity to be consumed with details of budget wrangling in Sacramento.
Sacramento lobbyists, state worker unions and advocates for health, education and welfare may think of little more than the state's financial mess. Yet the Capitol isn't being overwhelmed by calls or letters from average Californians demanding a budget.
In Sacramento, the action movie-star governor furiously warns of the costs of inaction on a budget deficit that could reach $40 billion over 18 months. Lawmakers fight over taxes, state worker furloughs and slashing cuts for schools and services.
Outside the capital, they will draw little notice – or scrutiny – until they actually make decisions and act or let state government go belly-up.
"Certainly voters are aware of the (state budget) problem," said California Field Poll Director Mark DiCamillo. "But it hasn't...
(Excerpt) Read more at sacbee.com ...
Could it be, perhaps, because most people know the warnings are lies and hype, and that if the government shut down, it really wouldn’t impact anyone too much?
Imported surfboards...amazing. There is something very very sick in the USA. Environment rules ruining a little surfing biz. SICK!
They’re out enjoying the good weather./s
They wreck their economy and then wail about their wrecked economy.
Arnold needs to join Jesse Ventura on history’s ash heap.
So most of think a little fiscal chaos might be a good thing. Thin the herd.
If the budget was simply rolled back to the 2004-05 level, no deficit.
Note that the proposed current budget is 40% higher.
In 4 years.
Why should the people of California care whether their budget deficit is 14 billion or 400 billion when the people they elect to solve these problems only talk of one solution, raise taxes? Arnold and the Dems must know that raising taxes will not solve anything or restore any sort of public trust in government.
People get blase’ to the constant forced panic of government going broke and the everyday call that “vital govt. services” will be cut in their blackmail scheme to get the voters on board with parting with more of their money so people like their governator can waste it on another “green” initiative or some such other nonsense. If all you hear is the harpy’s call, eventually you tune it out.
More taxes = less money in people’s pockets to spend = less spending = less business = less jobs = less taxpayers = more public burden for healthcare/food stamps etc = bigger deficit which somehow equals the need to raise taxes.
California Death Spiral:
1. Business forced out by high taxes and regulation
2. High income owners and employees leave with business.
3. Entitlement programs grow in scope.
4. Unemployment increases due to 1 & 2.
5. Number of people claiming benefits grows.
6. Spending grows to cover costs of 5.
7. Gov’t raises taxes some more to cover costs of 6.
8. RETURN to 1. and run through spiral again.
Eventually you will have a big state full of people who have mandated themselves Nirvana. Nothing can be made in California, not even surf boards. But the envirnoment is squeeky clean. Everything is paid for by Govt. But there are not enough people paying the taxes.
FedGov will probably bail them out this time. But it will only put off the inevitable.
It’s hard to pull out of a death-spiral. Ask John John Kennedy! Cali seems unable to.
The best advice: if you are anywhere much over the average LEAVE NOW. House prices will continue to decline, as wages decline, as business leaves.. etc.
When it all falls apart, the same people still won't understand why. They'll just point their blame at someone else and hate them.
Ignorance leads to superstition. Economics is no different than any other subject.
Dem grievance group politics are having their inevitable effect. The cost of 10 million illegals, mostly not paying taxes but using services, due to the bleeding heart stupidity of government and the criminal malfeesence of the state politicians (Davis, some corrupt judge) who refused to litigate to enforce Prop 187 - the last hope of Cali.
So, now, there is no hope. I look forward to the crash and burn. Hopefully the rest of us can learn something from it before it's our turn.
The "Illegals get the in-state rate" is the perfect litmis test for "IS MAY STATE AS STUPID AS CALIFORNIA". Sadly, many fail the test and must answer YES!
This was all predicted by a Russian lady about 50 years ago, what was that book again .. something about "Atlas" ?
The voters in 94 knew that 187 was their stopgap against state bankruptcy.
The Dims killed it....now the chickens come home to roost.
Didja read the article by Dan Walters pointing out that with an illiteracy rate of 23% (the illegals again), and declining foreign trade shipping, California doesn't really have much of a future?
The illiteracy rate is probably higher then it was in 1880. The big population rush then was mostly mid-westerners who were at least grade school educated.
The majority population in L.A. will soon be primitives from the Mexican highlands, who don't even read in their own language...which isn't even Spanish in many cases, but some Mexican indigenous tongue.
IOW, it's a state with the profile of a Third World disaster area.
“Could it be, perhaps, because most people know the warnings are lies and hype”
Then ‘most people’ would be wrong. CA is in deep yogurt.
“In retrospect, lighting the match was a mistake. But I was only trying to retrieve my tax refund.”
This surfboard shop story is telling for another reason. We have been concerned at how we have exported so much of our manufacturing to other countries. And one reason that nobody talks about is touched on by this surf store owner — ENVIRONMENTAL regulation. We have done a lot in the last 30-40 years to clean up our environment and clean up industrial pollution, however, these laws also encouraged the export of industry to places with no enviromntal laws and low wages.
How many EPA regulators are in Saigon inspecting the surf factory there?
I am beginning to feel like Hank Reardon. But we have no John Galt to save us.
“Environment rules ruining a little surfing biz. SICK!”
I used to build surfboards. The only thing I used that I can figure the EPA would say anything about is dust from shaping the foam blanks, fiberglass resin, acetone, and MEK.
I can’t really see it being very hard to comply, but I agree with you. OSHA, EPA, CARB and others are making it hard to compete.
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