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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

Why leave when my business is good, husband has a great job making great money. Both kids educated and making great money too. House is about paid off and looking forward to raising conservative grandkids right here in beautiful southern California. If more of us hard working people stay maybe we can make a difference. The rest can leave.


81 posted on 10/24/2010 5:37:04 PM PDT by blkmontecarlo
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To: WebFocus

My visit to Seattle last April showed a 3 fifths majority toward lunacy. These are my kindred. They are not well read at all. Some were San Diagans.


82 posted on 10/24/2010 5:39:13 PM PDT by eyedigress ((Old storm chaser from the west)?)
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To: dragnet2

RE: Not true....

No matter how hard they try, the year around near perfect weather is worth a fortune to us, and is one thing they cannot change.


I think that was his point. You’ll stick with the high unemployment, high taxes, bad schools, illegals, burdensome regulations and a bankrupt pension system BECAUSE of the good weather.

Wonder how long this will last... after all, Tijuana has great weather too...


83 posted on 10/24/2010 5:51:22 PM PDT by SeekAndFind
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To: SeekAndFind
You’ll stick with the high unemployment, high taxes, bad schools, illegals, burdensome regulations and a bankrupt pension system BECAUSE of the good weather.

Just like you, except the weather.....Yep!

Ya see, unlike where you live, we've got weather worth a fortune to us....Ice, fridged cold and hellish humidity?

Not us, never again! Thanks anyway!!

What's the U.S. now? 13 trillion in the hole? And you're worried about Cal?

lol

84 posted on 10/24/2010 5:59:36 PM PDT by dragnet2
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To: dragnet2

RE: Ya see, unlike where you live, we’ve got weather worth a fortune to us....


Makes me wonder what kind of conditions should occur before people turn their backs even with the good weather.

Many parts of Mexico have just as good a weather as California and they’re LEAVING in droves.


85 posted on 10/25/2010 7:10:18 AM PDT by SeekAndFind
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To: SeekAndFind
Ya see, unlike where you live, we’ve got weather worth a fortune to us....

Makes me wonder what kind of conditions should occur before people turn their backs even with the good weather.

The U.S., where you live, is now 13 trillion in the hole, and ya have a college campus Communist for President....So you tell me.

86 posted on 10/25/2010 9:16:30 AM PDT by dragnet2
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To: blkmontecarlo

I have a feeling that the California Department of Tourism isn’t going to be rushing to buy those photos from you. They don’t make your point. And even if the exposure and composition were better they still would resemble any shore scene anywhere in the U.S., other than the palm tree.


87 posted on 10/25/2010 9:29:24 AM PDT by steve86 (Acerbic by nature, not nurture)
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To: steve86
And even if the exposure and composition were better they still would resemble any shore scene anywhere in the U.S., other than the palm tree.

Oh sure...Name a place in the U.S. where ya can ski in the mountains in the morning, take a drive through the high desert, and then go to beach in the afternoon...


88 posted on 10/25/2010 10:08:06 AM PDT by dragnet2
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To: dragnet2

Has nothing to do with my comment.

And I know how drive times have increased in California....


89 posted on 10/25/2010 10:22:29 AM PDT by steve86 (Acerbic by nature, not nurture)
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To: steve86

As if drive times have not increased *everywhere*....lol


90 posted on 10/25/2010 10:30:39 AM PDT by dragnet2
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To: dragnet2

Drive times have greatly *DECREASED* where I live since I was a kid — eastern Washington State. Was 55 mph on two-lane roads with slow trucks — now 70 on freeways. If you think the freeways are congested take a look at a web cam and wait 30 seconds or so for a vehicle to come by.


91 posted on 10/25/2010 10:38:00 AM PDT by steve86 (Acerbic by nature, not nurture)
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To: steve86
I think you're up in rain country...We have friends up in Washington and Portland, OR....Went to visit the ones in WA a few years ago...In the middle of summer, we could see and smell mold all over and around their home, due to the amount of never ending rain.

We simply like the sun, great year around weather, where we can do things outdoors without being crapped on by the weather all the time....Life is too short... We like golfing in December, BBQ'ing in February while wearing shorts, gardening in November etc....Then with mild summers with little or no humidity, close to beaches and deep sea fishing??

I'll tough it out here thanks!

92 posted on 10/25/2010 10:40:53 AM PDT by dragnet2
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To: steve86
Speaking of eastern Washington, we were there about 7 years ago heading from the Spokane area into Coeur d'Alene on a trip to see my wife's brother in a rental car....What a mistake...Got caught in a storm with sideways blinding snow and murderous road ice....I think I aged 10 years on that trip....

We got home 4 days later to 78 degrees and clear sunny skys...My Orange trees were loaded and NEVER looked so darn good!!

93 posted on 10/25/2010 10:49:38 AM PDT by dragnet2
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To: Amerikan_Samurai

But I bet he’d respond instantly to any report of “vigilantes” taking care of those crimes.


94 posted on 10/25/2010 10:50:19 AM PDT by Little Ray (The Gods of the Copybook Heading, with terror and slaughter return!)
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To: dragnet2

No, we get 6 inches precipitation per year (arid Columbia Basin). Cascade range stops most rain. No mold here — it won’t grow. There are a few small cactus. High temp 117 while I have been here.

I like California weather and geography also — never said I didn’t.


95 posted on 10/25/2010 10:59:57 AM PDT by steve86 (Acerbic by nature, not nurture)
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To: steve86

Yep, east of the Cascades ya lose all the Pacific Ocean influence, that’s why it gets so much colder on the east side. Wet on the west side, cold on the east.


96 posted on 10/25/2010 11:07:59 AM PDT by dragnet2
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