Why should the people of California care whether their budget deficit is 14 billion or 400 billion when the people they elect to solve these problems only talk of one solution, raise taxes? Arnold and the Dems must know that raising taxes will not solve anything or restore any sort of public trust in government.
People get blase’ to the constant forced panic of government going broke and the everyday call that “vital govt. services” will be cut in their blackmail scheme to get the voters on board with parting with more of their money so people like their governator can waste it on another “green” initiative or some such other nonsense. If all you hear is the harpy’s call, eventually you tune it out.
More taxes = less money in people’s pockets to spend = less spending = less business = less jobs = less taxpayers = more public burden for healthcare/food stamps etc = bigger deficit which somehow equals the need to raise taxes.
California Death Spiral:
1. Business forced out by high taxes and regulation
2. High income owners and employees leave with business.
3. Entitlement programs grow in scope.
4. Unemployment increases due to 1 & 2.
5. Number of people claiming benefits grows.
6. Spending grows to cover costs of 5.
7. Gov’t raises taxes some more to cover costs of 6.
8. RETURN to 1. and run through spiral again.
Eventually you will have a big state full of people who have mandated themselves Nirvana. Nothing can be made in California, not even surf boards. But the envirnoment is squeeky clean. Everything is paid for by Govt. But there are not enough people paying the taxes.
FedGov will probably bail them out this time. But it will only put off the inevitable.
It’s hard to pull out of a death-spiral. Ask John John Kennedy! Cali seems unable to.
The best advice: if you are anywhere much over the average LEAVE NOW. House prices will continue to decline, as wages decline, as business leaves.. etc.