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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: WebFocus
You guys already screwed up our elections by over running Reno and Las Vegas. We have NO JOBS for you here in Nevada.
41 posted on 10/24/2010 11:02:23 AM PDT by ladyvet (I would rather have Incitatus then the asses that are in congress today.)
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To: WebFocus
The Looters and the Moochers have prevailed. The producers (those who are left) can either pound sand or pull up stakes and leave. If our town here in NC is any indication, a lot of them already have.

Unfortunately, many of these refugees have brought the same attitudes with them that destroyed Kalifornia, and they working hard to try the same failed nostrums here, in the hope it will succeed this time.

It won't, and it can't. But it doesn't mean they won't try like hell.

Isn't that the classic definition of insanity?

42 posted on 10/24/2010 11:03:13 AM PDT by Gritty (Liberals want to reshape America in Europe's image: socialist, secularist, multicultural-Paul Belien)
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To: rickb308
I just interviewed with a guy who relocated to Daly City (a few miles south of SF) from Houston within the past year.

We talked about alot of things economic & political and believe me, I was the redneck in that room.

I know many freepers seem to think the liberalism here is somehow genetic (some of the comments crack me up), but truly most of the crazy people I know here are from somewhere else, because it seems most RESIDENTS here are from somewhere else.

43 posted on 10/24/2010 11:03:35 AM PDT by skeeter
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To: Oatka

Nevada is chock full as well. I left California in ‘89 and didn’t look back. With only two interstate highways entering the state from California, and U.S. 395, should be easy enough to have a few Nevada State Troopers close off access....


44 posted on 10/24/2010 11:05:45 AM PDT by Crapgame (What should be taught in our schools? American Exceptionalism, not cultural Marxism...)
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To: WebFocus

California is not only a failed state. it is an epic failed state.


45 posted on 10/24/2010 11:09:05 AM PDT by dogcaller
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To: WebFocus

California is not only a failed state. it is an epic failed state.


46 posted on 10/24/2010 11:09:08 AM PDT by dogcaller
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To: WebFocus

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

Everyone who or who’s family has come here in the last 100 years, go back where you came from!!!

Mhy wife and my families have been in So. California for over 150 years and aren’t going anywhere.


47 posted on 10/24/2010 11:12:00 AM PDT by dalereed
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To: VanDeKoik

“Just give the SW coast of the dump back to Mexico “

It was never part of Mexico!!

before it became an independant country it was comprised of Spanish land grants.

3 days after it became an independant country it joined the US.


48 posted on 10/24/2010 11:15:28 AM PDT by dalereed
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To: dalereed

I won’t leave the coast, no matter how bad it gets.


49 posted on 10/24/2010 11:19:19 AM PDT by skeeter
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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.

The question is which state will be the tipping point for another Sept 08' - Econ Collapse?

NY? CA ? or MI? as "Porkulus" money balancing the budgets goes away?

Will it be their Union Pension Liabilities and the new FASB rules associated with it ( Look for the post here from "RedState" it was a dilly )?

If the GOP takes the house and senate, can you imagine the chaos at the stand off as these states fall in to Chapter 11? Can you see Obama trying to do an end-around via treasury and float them money? Can you say Constitutional Crisis?

50 posted on 10/24/2010 11:20:09 AM PDT by taildragger ((Palin / Mulally 2012 ))
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To: dalereed

Calling it an independent country is a bit of a stretch.


51 posted on 10/24/2010 11:26:24 AM PDT by VanDeKoik (1 million in stimulus dollars paid for this tagline!)
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To: ggwyo

California use to be a liberal, in the old sense of the word, state with a small government and insignificant welfare policy. Then the left coaster, north easterners and Midwest progressives started moving to the state and bringing their welfare statist redistributionist politics with them and THEY absolutely destroyed the state. In addition to that over the last 20 years its illegal immigrant tide from south of the border that has swamped california slowly turning it to a hispanic dominated corrupt cesspool circling the toilet bowl drain.

Californians didnt screw this state, progressive that migrated from around the world and country did.

I know, I was born here 64 years ago and have watched the whole pathetic episode.


52 posted on 10/24/2010 11:26:41 AM PDT by Breto (never accept the premise)
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To: WebFocus

I think that what might drive the powers that be in California positively bonkers is for non-Californians to produce an objective list of what is wrong with California, and what needs to be changed for them to become a functional State again.

Just pointing out the obvious truth, that they refuse to admit.

1) Renounce all the nonsensical pensions, payments and promises. By amending their State constitution, if they have to. Limit all pensions and benefits for all State retirees to $30,000/yr, adjusted only for inflation. No double dipping. From dog catcher to governor, no more.

2) Stop public payment of any monies at all to illegal aliens. Proof of citizenship or legal residency is required for welfare, schooling, hospitalization or more than life saving emergent care, and any other local, county or State cost.

3) Reduce in-State college tuition to $1,000/semester, making up any difference by either cutbacks or raising out of State tuition. This especially means cutting administration and academic salaries.

4) Institute fines, often substantial ones, as an alternative to some first time misdemeanor incarceration. For example, a first time DUI that does not result in injury or accident, could have as an alternative to jail, a $30,000 fine, that cannot be appealed, and is paid to a State administrator. So instead of costing the State tens of thousands of dollars, the public purse would profit from the punishment.

Second offense, or any other harm, and the traditional punishment is used.

5) Use “Joe Arpaio-style” tent jails out in the desert for most inmates, as they cost just a fraction of what “brick” jails cost. This will eliminate the prison overcrowding, and reduce much of the violence and expense found in that system. Plus inmates can serve their entire term, without early release.

6) Relax most of the nonsensical, unscientific, and anti-business environmental restrictions. It’s not hard. Just eliminate the vast number that have no rational basis.


53 posted on 10/24/2010 11:30:09 AM PDT by yefragetuwrabrumuy
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To: yefragetuwrabrumuy

Is it wrong to just think - - let them have Jerry Brown at the helm and sink into a financial avalanche?


54 posted on 10/24/2010 11:31:27 AM PDT by nascarnation
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To: AEMILIUS PAULUS

Post of the year. I live in ny and have a mutual situation.


55 posted on 10/24/2010 11:34:18 AM PDT by GlockThe Vote
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To: WebFocus

#5 - Sales Tax:

“The city of Chicago previously had the highest total sales tax of all major U.S. cities (10.75%), which was a major reference point until the rate was decreased to 9.75% as of July 1, 2010.”


56 posted on 10/24/2010 11:36:06 AM PDT by CreviceTool ( Obama is standing above the country above above the world, he is sort of a God = Evan Thomas)
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To: Amerikan_Samurai

Another Bay Area police group could not prosecute rape crimes because they had run out of ‘rape kits’ & because the budget wasn’t signed, they could not get any more on credit.

Over 100 cases were not processed, IIRC.


57 posted on 10/24/2010 11:55:39 AM PDT by ridesthemiles
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To: yefragetuwrabrumuy

5) Use “Joe Arpaio-style” tent jails out in the desert for most inmates, as they cost just a fraction of what “brick” jails cost. This will eliminate the prison overcrowding, and reduce much of the violence and expense found in that system. Plus inmates can serve their entire term, without early release.’

IIRC, Sheriff Joe has very few repeat offenders....less than 10%.

He gives them a dose of hard living that they do not want to repeat. Oatmeal for breakfast. Peanut Butter & Jelly for lunch. Spagetti for dinner. PINK underwear that keeps them from taking it home when they leave. Women & men on the chain gangs breaking up rocks.


58 posted on 10/24/2010 12:02:25 PM PDT by ridesthemiles
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To: WebFocus
"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."

All they ever think of cutting when the SHTF are the public services such as schools(which need to be cut), law enforcement and the freebies like welfare. The reasoning behind this is when people see what is being cut they will scream for more taxes. This has worked in the past but is not working as well in todays economic mess. There are many things to cut in education besides teachers, administrators are thick as fleas and need to be weeded out, useless classes can be cut from the higher education and even from the lower elementary and HS level grades.

Pensions for retiring state employees can be cut or eliminated and they can all be put on SS, that includes elected officials.

They never make the hard choices, depending on the tax payers to bail them out time after time.

59 posted on 10/24/2010 12:18:18 PM PDT by calex59
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To: WebFocus
Thread # 459 begging people to leave California to move to their states....

lol...

How about we don't and say we did?

60 posted on 10/24/2010 12:32:01 PM PDT by dragnet2
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