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California Is Broke - 19 Reasons Why It May Be Time For Everyone To Leave the Golden State For Good
The Economic Collapse ^ | 10/23/2010 | Michael Snyder

Posted on 10/24/2010 10:06:20 AM PDT by WebFocus

Back in the 1960s and 1970s, there was a seemingly endless parade of pop songs about how great life was in California, and millions of young Americans dreamed of moving to the land of sandy beaches and golden sunshine. But now all of that has changed. Today, millions of Californians are dreaming about leaving the state for good. The truth is that California is broke. The economy of the state is in shambles. The official unemployment rate has been sitting above 12 percent for an extended period of time, and poverty is everywhere. For many Californians today, there are very few reasons to stay in the state but a whole lot of reasons to leave: falling housing prices, rising crime, budget cuts, rampant illegal immigration, horrific traffic, some of the most brutal tax rates in the nation, increasing gang violence and the ever present threat of wildfires, mudslides and natural disasters. The truth is that it is easy to understand why there are now more Americans moving out of California each year than there are Americans moving into the state. California has become a complete and total disaster zone in more ways than one, and an increasing number of Californians are deciding that enough is enough and they are getting out for good.

Sadly, the state of California is facing such a wide array of social, economic, and political problems that it is hard to even document them all. It is really one huge gigantic mess at this point.

Just consider the following facts about what life is like in the state of California today....

#1 Official Unemployment in the state of California was 12.4% in September - one of the highest rates in the nation.

#2 The number of people unemployed in the state of California is approximately equivalent to the populations of Nevada, New Hampshire and Vermont combined.

#3 Not even state government jobs are safe in California these days. Last month, government agencies in California slashed a total of 37,300 jobs.

#4 California has the third highest state income tax in the nation: a 9.55% tax bracket at $47,055 and a 10.55% bracket at $1,000,000.

#5 California has the highest state sales tax rate in the nation by far at 8.25%. Indiana has the next highest at 7%.

#6 Residents of California pay the highest gasoline taxes (over 67 cents per gallon) in the United States.

#7 Even with all of the taxes, the budget deficit for the California state government for the current year is approximately 19 billion dollars.

#8 According to an article in the Wall Street Journal, California's unfunded pension liability is estimated to be somewhere between $120 billion and $500 billion.

#9 20 percent of the residents of Los Angeles County are now receiving public aid.

#10 Budget cuts are making life very difficult in many California cities. For example, Oakland, California Police Chief Anthony Batts says that due to severe budget cuts there are a number of crimes that his department will simply not be able to respond to any longer. The crimes that the Oakland police will no longer be responding to include grand theft, burglary, car wrecks, identity theft and vandalism.

Things have gotten so bad in Stockton, California that the police union put up a billboard with the following message: "Welcome to the 2nd most dangerous city in California. Stop laying off cops."

#11 According to one survey, approximately 1 in 4 Californians under the age of 65 had absolutely no health insurance last year.

#12 California's poverty rate soared to 15.3 percent in 2009, which was the highest in 11 years.

#13 California's overstretched health care system is also on the verge of collapse. Dozens of California hospitals and emergency rooms have shut down over the last decade because they could not afford to stay open after being endlessly swamped by illegal immigrants and poor Californians who were simply not able to pay for the services they were receiving. As a result, the remainder of the health care system in the state of California is now beyond overloaded. This had led to brutally long waits, diverted ambulances and even unnecessary patient deaths.

#14 California home builders began construction on 1,811 homes during the month of August, which was down 77% from August 2006.

#15 Earlier this year, it was reported that in the area around Sacramento, California there was one closed business for every six that were still open.

#16 The "lawsuit climate" in California is ranked number 46 out of all 50 states.

#17 Residents of California pay some of the highest electricity prices in the entire nation.

#18 Over 20 percent of California homeowners are now underwater on their mortgages.

#19 Large tent cities have been springing up all over the state of California. Just check out the following shocking video news report....

http://www.youtube.com/watch?v=cRLupIRhrmg

So why doesn't the state government of California just fix many of these problems? Well, the truth is that it simply cannot. The state government is flat broke. Earlier this year, Bob Herbert of the New York Times described California's massive budget problems this way....

"California has cut billions of dollars from its education system, including its renowned network of public colleges and universities. Many thousands of teachers have been let go. Budget officials travel the state with a glazed look in their eyes, having tried everything they can think of to balance the state budget. And still the deficits persist."

So is there any hope that all this can be turned around?

Is there any hope that the economy of California will recover?

Or will California continue to experience a rapid decline?


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: broke; california; debt; pension
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To: unkus

Same with Texas. We’re out of land. Visit, leave your money & then go home! (Oh, btw, Freepers are still welcome) :-)


21 posted on 10/24/2010 10:31:53 AM PDT by rickb308 (Nothing good ever came from someone yelling "Allah Snackbar")
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To: Alberta's Child

I have these thoughts on my mind, but someone stole my thunder on that site, but the analysis on what ails California applies to my state of NY as well.


1) Too many illegal immigrants,

2) Hostile business climate,

3) Overbearing ‘liberal’ government with burdensome
regulations,

4) Ridiculous coddling of government bureaucrats
(inflated salaries and pensions),

5) Gargantuan public school bureaucracies that
siphon away from the ‘classroom’ and to ‘administrators’.

6) Highest tax burden in the nation.

Solve these problems and you save California.
How to solve them you ask ?

1) Illegal Aliens:

ENFORCE THE LAWS OF OUR COUNTRY !!!

Pass a law like Arizona’s SB1070 that allows
police to question people about their
immigration status (IF they are detained for
some other lawful reason).

Problems : 2 – 6 These are tougher. The ONLY way to change
the regulatory/business/tax climate is to drain
the cesspool in Sacramento and start over ( this applies to Albany in NY State also).

The people of Kalifornia/Commiefornia will have
to hold a constitutional convention to wipe the
slate clean and start over, preferably as part
of a state government default that will allow
the state to get out of it’s ridiculously
inflated state employee pension obligations.

Come November, if we still see OLD guys like Jerry Brown and Barbara Boxer in charge ( the same people who helped get Kalifornia in the mess it’s in in the first place), we have to conclude that California is HOPELESS and the people there just want to continue on the road to 3rd world hell.


22 posted on 10/24/2010 10:31:54 AM PDT by WebFocus
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To: Amerikan_Samurai

Bring it! Double dog dare you. :-)


23 posted on 10/24/2010 10:33:30 AM PDT by rickb308 (Nothing good ever came from someone yelling "Allah Snackbar")
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To: unkus
Colorado is FULL. Only California FReepers and conservatives welcome here.

So is Arizona. :-)

I left CA in '88, like many others, and never looked back, like many others.

24 posted on 10/24/2010 10:34:09 AM PDT by Oatka ("A society of sheep must in time beget a government of wolves." –Bertrand de Jouvenel)
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To: doingtherightthing

I agree with you. California is one of the most beautiful states in the Nation. Its time to fight for it, like the other 49, but I dont mind letting the people suffer for a bit before “real” Americans come in to save it.

Their experiment with liberalism has failed mightily. Warching them reap what they sow is priceless. Too bad it affects us all.


25 posted on 10/24/2010 10:39:25 AM PDT by Debi911
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To: WebFocus
There's always marijuana.

:-\

26 posted on 10/24/2010 10:41:09 AM PDT by Does so (Government is the only enterprise in the world which expands in size when its failures increase.)
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To: WebFocus
The primary cause for this is the tolerance for perversion, which was nudged to acceptance and finally protection.

The supporting cause was ALL government employees who willingly gave or followed orders to protect the perverts. Had they simply refused, there would be nowhere near this mess.

The silly ballot initiatives were mostly untruthfully presented and were the result of desperate, deceived citizens trying to reign in out of control government employees.

Pretty much the problem is and always has been GOVERNMENT employees.

27 posted on 10/24/2010 10:42:02 AM PDT by Navy Patriot (Sarah and the Conservatives will rock your world.)
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To: WebFocus

This is the major problem. The people keep voting the train wrecks that are moonbeam and boxer.


28 posted on 10/24/2010 10:42:13 AM PDT by Amerikan_Samurai
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To: WebFocus
No matter how bad it gets, California, you must continue to make the illegal aliens feel welcome.

In any other region on the planet the people in Sacramento who created this mess would be running for their lives.

29 posted on 10/24/2010 10:42:21 AM PDT by skeeter
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To: Navy Patriot

Well this is the Liberal Utopia fully realized. Shouldn’t liberals be celebrating in this dump that is Commieefornya?


30 posted on 10/24/2010 10:44:21 AM PDT by Amerikan_Samurai
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To: Debi911
Its time to fight for it, like the other 49, but I dont mind letting the people suffer for a bit before “real” Americans come in to save it.

Some of us natives might want to screen who comes in a little better. After all, Brooklyn sent us Boxer & Philadelphia sent Pelosi to 'save' us in the 60s.

Don't want to make mistakes like those again.

31 posted on 10/24/2010 10:45:15 AM PDT by skeeter
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To: WebFocus

If Jerry Brown becomes governor, California will fall into the economic abyss at an increasing rate. I expect California will be utterly bankrupt within two years with Jerry Brown and he will be begging for a federal bailout.


32 posted on 10/24/2010 10:47:24 AM PDT by The Great RJ (The Bill of Rights: Another bill members of Congress haven't read.)
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To: WebFocus

California is Mexico now.


33 posted on 10/24/2010 10:49:20 AM PDT by donna (The fruits of Feminism: Angry fathers, bitter mothers, fat kids and political correctness.)
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To: WebFocus
The Late Great Golden State
34 posted on 10/24/2010 10:50:25 AM PDT by wizkid (俄)
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To: wizkid
The Late Great Golden State

http://www.youtube.com/watch?v=Ow9FV3xjkew

35 posted on 10/24/2010 10:51:53 AM PDT by wizkid (俄)
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To: righttackle44
Arizona needs signs that say:

"California Liberal Entitlement Loving Demanding Hogs,
Keep Going East or North.

Don't let the sun set with your butt still in the state!"

36 posted on 10/24/2010 10:54:38 AM PDT by SandRat (Duty, Honor, Country! What else needs said?)
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To: Amerikan_Samurai
Shouldn’t liberals be celebrating in this dump that is Commieefornya?

In fact, they are.

It is truly Bizzarro world in CA, more than any other place in the states. Right is wrong, black is white, up is down, you get the drift...

37 posted on 10/24/2010 10:54:47 AM PDT by Navy Patriot (Sarah and the Conservatives will rock your world.)
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To: WebFocus

Every point you make is a winner. My top two would illegals and the government pensions.


38 posted on 10/24/2010 10:56:21 AM PDT by catbertz
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To: unkus

Agree completely. Do NOT CALIFORNICATE Colorado.

We’ve got enough worthless libs in Boulder and Aspen (few, if any of which have real jobs or have earned their money by actual work).

Libs, go somewhere where you’re appreciated - perhaps Iraq or Afghanistan.


39 posted on 10/24/2010 10:58:09 AM PDT by Da Coyote
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To: The Great RJ

“If Jerry Brown becomes governor, California will fall into the economic abyss at an increasing rate. I expect California will be utterly bankrupt within two years with Jerry Brown and he will be begging for a federal bailout.”

California and most other states have already received large bailouts. The federal government has loaned most states unemployment compensation. In addition, stimulus spending has boosted state budgets in Medicaid and education. However, now the reverse effect will magnify state budget problems. The DC rats have dropped many entitlement bombs on the states. Most stimulus spending cam with conditions involving more state spending. The health care bill in particular has onerous unfunded mandates on Medicaid funding and other subsidies.


40 posted on 10/24/2010 10:59:56 AM PDT by businessprofessor
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