When venture capital funds leave the Bay Area, it is over.
Like all socialist governments, they will end up with the rich elite and those with connections to the leaders who all live in special economic zones, and a mass of people trying to make toilet paper out of the kelp that washes ashore and food out of the garbage of the elite.
gimme my free stuff!
You can’t have much of a discussion about the
impending California meltdown without including
the liberal high tech gurus and the Hollywood
Kingpins who are so proud of their handiwork.
The richer cities will hang on for a while yet but cities like San Bernardino have already disbanded their police dept. and contracted out with the Riverside County Sheriff dept.
This author may be right, but it’s a LONG way from now to failure.
CA is running a SURPLUS of over $10bil this year, even after all the extra spending. That’s on a budget of over $200bil. All debt payments are current and new borrowing is minimal.
State GDP is on fire. You have to hire trucks to haul all the money away.
That said, if they go after tech, ag and aerospace for more...this will go sideways FAST. Tech and aerospace can move.
They wouldn’t be dumb enough to kill agriculture, would they? This state is #1 in the nation in AG. By far.
Sadly, AG is usually the first casualty of communism.
And when it does, it will be capitalism to blame.
I guess, but it’s been 15 years since I read articles about California being on the precipice of an imminent financial failure. Didn’t happen. Some of the same arguments were made back then.
Some things can’t be predicted timing-wise even though you are sure they will happen eventually. When will the Yellowstone caldera erupt?
Got my wife and kids out of Cali twelve years ago. We’re now firmly rooted and flourishing in Texas.
It’s like a whole ‘nother country.
In my city we have 7.25% sales tax. The city just voted in a 1% increase. I’ll be this becomes common.
WTF could possibly go wrong?
CA tax payers have been looted and economically gang raped by these cities, counties and the state.
California’s debt is nearly $428 billion at the time of this comment. California’s spending is more than $576 billion.
http://www.usdebtclock.org/state-debt-clocks/state-of-california-debt-clock.html
California’s in-state revenue is nearly $474 billion.
President Reagan destroyed the old Soviet Union via economics. He did not fire one shot in anger. With the aid of Saudi Arabia the world market was flooded with oil. Oil and natural gas is Russia’s total economy. Their economy thus collapsed.
The same economics will destroy California. You can not spend what “you aint got” when your credit rating goes down the tubes. Just ask Venezuela about credit ratings.
All power and money moves away from cities and toward the state ... controlled by Democrats.
Whee!
The debt bomb explosion will be precipitated by The Biggun
California’s only path to economic survival involves the expulsion of everybody on welfare, starting with illegals. That won’t happen with Democrats in charge.
They will precipitate a crisis and they’ll get a Federal bailout, just like the banks did in ‘08. Bank on it.
The Democrat leaders don’t believe that socialism will make life better for the average California.
The Democrat leaders in California believe that promising socialism will get them elected.
The Democrat leaders don’t care about the average Californian.
The Democrat leaders in California promise socialism so that they can be elected so that they have access to the public treasuries in order to enrich themselves.
To believe that the Democrat leaders promise free stuff to help out people is to believe in The Great Pumpkin.
Eventually, you run out of your grandchildren’s money.