Posted on 07/11/2012 5:17:00 AM PDT by Cincinatus' Wife
THE LATEST UNEMPLOYMENT NUMBERS show the economic recovery stalling. But as weak as the national economy is, it’s nothing compared to the condition of some states whose policies are guaranteed to scare away jobs and investment.
Call it the European Disease: Run up spending and debt, raise taxes in the name of balancing the budget, and then watch as jobs flee, deficits rise, and credit ratings fall.
Chief Executive magazine has just come out with a survey of 650 corporate CEOs on the business climate in their states.....
...California was dead last in attractiveness to business for the eighth year in a row, while Texas came in first for the eighth consecutive time.
[SNIP of GOOO-OO-OOD reading]
.....If there’s a line out the door at a Carl’s Jr. while employees are seen resting, it’s because they aren’t allowed to help: Break time is mandatory.
“You can’t build in California, you can’t manage in California, and you are taxed to death,” says Puzder. “In Texas, it’s night versus day—which is why we built 300 new stores there last year.”
.....good news for states that have the courage to implement real reform. For years, Louisiana’s policies were hostile to business and caused the state to lose population every year. But...Bobby Jindal has aggressively moved to change that. In 2006, in the wake of Hurricane Katrina, the Chief Executive survey ranked Louisiana 47th in business climate—on the same level as Massachusetts. Now the state has moved up to 13th place, rising from last year’s 27th place—an astonishing turnaround.
.....Asked by Chief Executive exactly why he thinks it so important to reduce business costs in his state, Governor Walker replied: “I’ve never seen a store get more customers by raising its prices, but I’ve seen customers knock down the doors when they cut prices....
(Excerpt) Read more at spectator.org ...
I truly don’t know how a small business owner can hope to make a go of it in socialist California. God bless their persevering souls.
http://www.sacbee.com/2012/07/10/4622910/third-calif-city-votes-to-declare.html
......”San Bernardino became the third California city in that small span to choose Chapter 9 bankruptcy protection with a City Council vote on Tuesday night.
The Southern California city of about 210,000 people will also become the second largest in the nation ever to file for bankruptcy. Stockton, the Northern California city of nearly 300,000, became the biggest when it filed for Chapter 9 on June 28. The much smaller city of Mammoth Lakes voted for bankruptcy July 3.
San Bernardino’s City Council directed the city attorney to make the move during a meeting where administrators explained the dire fiscal circumstances and urged them to choose the bankruptcy option.
“We have an immediate cash flow issue,” Interim City Manager Andrea Miller told Mayor Patrick Morris and the seven-member City Council, according to the Los Angeles Times.
Miller said the city is facing a budget shortfall of $45.8 million. It has already stopped paying some vendors, and may not be able to make payroll over the next three months.”.....
“Gov. Jerry Brown has backed away from his earlier call for legislators to put a pension-change measure on the November ballot, although the administration is continuing to push for statutory changes.
In an email to The State Worker, Brown spokeswoman Elizabeth Ashford said, “There won’t be pension changes on the November ballot. But we’ll get the reforms done, you can count on that.”............................
Miller said the city is facing a budget shortfall of $45.8 million. It has already stopped paying some vendors, and may not be able to make payroll over the next three months.”.....
If I was a vendor/business in California my policy would be cash on the barrelhead before doing business with any level of government. They, (Governments big and small), may have a hard time declaring bankruptcy. But as a small business I can be wiped out by their non-payment for goods and services and I don’t have any recourse except bankruptcy.
Several cities are going bankrupt.
Will the bankrupt state bail them out?
Will the state, in turn, ask the fedgov to bail them out?
These are the first dominoes.
Hope you have your garden planted...
My own state of Maryland is running millionaires to other states like it was a contest to see how many they can force to move.
Martin O’Malley wants to be President after bankrupting Maryland he wants to take a shot at bankruptiong America.
Just in case there is anything left after we get rid of Obama.
From California Dreamin’ to California Demon. And too much “Dreamin’” will always lead to disaster.
Beware Texas, as soon as they reach critical mass they will turn Texas into California. They're already trying to do it here in Arizona.
....”According to the story in the Los Angeles Times, one resident “blasted the city’s elected leaders for allowing the financial crisis to grow unabated and wasting millions of tax dollars on transit projects and other non-essential services.”
A description that could be applied to the entire state which seems to have a special weakness for expensive transportation project like a high speed rail project that will move anyone still living in California from one bankrupt city to another.”
http://www.weeklystandard.com/blogs/california-failing_648407.html
“Martin O’Malley wants to be President after bankrupting Maryland he wants to take a shot at bankruptiong America.”
You have identified one of the facts about these socialist governors that, on the surface, seems to defy logic. Actually, this is evidence of what systems folks call a “reinforcing loop”. If you raise taxes on and otherwise punish the hardest working people, they leave or simply don’t get a chance to succeed in the first place and so the proportion of the population that is hard working and successful is reduced. This results in a higher proportion of the population who vote for anti-success politicians. Over the years, governors who are the worst for their states’ economies will receive higher and higher popularity ratings and greater proportions of the vote. Those governors then use their popularity as a ticket to national office, e.g., the Presidency. This is a flaw in the system that actually rewards bad decision makers.
Of course, this can translate to the level of a nation, such as Greece.
...but they’ll be able to ride from one bankrupt city to another in speed and style!
I wonder who will get the first massive FedGuv Inc. bailout, CA or IL ? which is more connected to the White Hut?
Business owners are leaving the state...
“The problem is the parasites are fleeing to other states and ruining the very politics that allowed their new hosts to thrive.”
I’ve said it before and I will say it again. California’s problems had their genesis with the the migration of liberals here from the East Coast. East Coast Liberals are like locusts, they eat everything in sight and then they move on. Since California is on the Pacific Ocean, they have no choice but to back track to the states that they passed over to get here in the first place. Hawaii is not an option since the Japanese Liberals have already staked their claim there. And yes, if I were Texas, I would be very worried. Just look at Austin if you have any doubts. Where did the big Silicon Valley companies put their plants, in Austin!
Excerpt:
In some areas of the United States you would never even know that an economic crisis is happening, but in other areas things are clearly falling apart very rapidly. There is a very serious shortage of decent jobs in most parts of the country, and we are seeing clear signs of societal breakdown in many of our major cities.
During the last recession, millions of Americans lost their jobs. Because a lot of them did not have much money saved up, many of those unemployed Americans also quickly lost their homes.
In the end, some of them ended up living in their vehicles.
And living in a car can be absolute hell. The following is from an ABC News report....
Three children -- one suffering second-degree burns -- were taken into protective custody Monday after they were discovered living with their parents in a "filthy" car in a Walmart parking lot.
Police were called to the parking lot Monday morning in Mount Dora, Fla., where they found the family of five living in a 1987 Cadillac Coupe de Ville full of clothes and garbage. Police told the Orlando Sentinel that days-old chicken bones were strewn about the car, along with a spoiled carton of milk and a bottle of tequila.
Other families try to make the best of it that they can. The following is one touching example from a recent 60 Minutes report....
This is the home of the Metzger family. Arielle, 15. Her brother Austin, 13. Their mother died when they were very young. Their dad, Tom, is a carpenter. And, he's been looking for work ever since Florida's construction industry collapsed. When foreclosure took their house, he bought the truck on Craigslist with his last thousand dollars. Tom's a little camera shy - thought we ought to talk to the kids - and it didn't take long to see why.
Pelley: How long have you been living in this truck? * * *
Thank you for the post ex-Texan.
It’s an important post with graphic information of what Obama and his czars have wrought (with intent to cripple the country).
I left in 1997.....I saw the writing on the wall.
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