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California's Greek Tragedy
Wall Street Journal ^ | 03/13/2012 | By MICHAEL J. BOSKIN and JOHN F. COGAN

Posted on 03/13/2012 6:18:37 AM PDT by SeekAndFind

Long a harbinger of national trends and an incubator of innovation, cash-strapped California eagerly awaits a temporary revenue surge from Facebook IPO stock options and capital gains. Meanwhile, Stockton may soon become the state's largest city to go bust. Call it the agony and ecstasy of contemporary California.

California's rising standards of living and outstanding public schools and universities once attracted millions seeking upward economic mobility. But then something went radically wrong as California legislatures and governors built a welfare state on high tax rates, liberal entitlement benefits, and excessive regulation. The results, though predictable, are nonetheless striking. From the mid-1980s to 2005, California's population grew by 10 million, while Medicaid recipients soared by seven million; tax filers paying income taxes rose by just 150,000; and the prison population swelled by 115,000.

California's economy, which used to outperform the rest of the country, now substantially underperforms. The unemployment rate, at 10.9%, is higher than every other state except Nevada and Rhode Island. With 12% of America's population, California has one third of the nation's welfare recipients.

Partly due to generous union wages and benefits, inflexible work rules and lobbying for more spending, many state programs and institutions spend too much and achieve too little. For example, annual spending on each California prison inmate is equal to an entire middle-income family's after-tax income. Many of California's K-12 public schools rank poorly on standardized tests. The unfunded pension and retiree health-care liabilities of workers in the state-run Calpers system, which includes teachers and university personnel, totals around $250 billion.

Meanwhile, the state lurches from fiscal tragedy to fiscal farce, running deficits in good times as well as bad. The general fund's spending exceeded its tax revenues in nine of the last 10 years

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events; US: California
KEYWORDS: aliens; california; corruption; democrats; greece; liberalfascism; taxes

1 posted on 03/13/2012 6:18:50 AM PDT by SeekAndFind
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To: SeekAndFind

So, what does Governor Moonbeam do?

READ ON:

After running a $5 billion deficit last year and another likely deficit this year, Gov. Jerry Brown’s budget increases spending next year by $7 billion and finances the higher spending with income and sales-tax hikes.

Specifically, he’s proposing a November ballot initiative raising the state’s top income tax rate to 12.3%, making it the nation’s highest, and raising the basic state sales tax rate, already the nation’s highest, to 7.75% from 7.25%.

You don’t need to look across the Atlantic to see a Greek tragedy unfolding. It’s right here in our mainland.


2 posted on 03/13/2012 6:21:00 AM PDT by SeekAndFind (question)
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To: SeekAndFind

Don’t worry we will bail them out. Lot of rich contributors to the Grand Emperor.


3 posted on 03/13/2012 6:26:39 AM PDT by cp124 (Government is value subtracted.)
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To: SeekAndFind

It will be interesting to see if a Republican controlled House or Senate votes for the bailout that is sure to be proposed. These liberal fools have bankrupted the countries wealthiest state and remain arrogant.


4 posted on 03/13/2012 6:27:03 AM PDT by allendale
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To: SeekAndFind

And me boycotting Hollywood. Now I have guilt.

Naw. Just kidding. :-)


5 posted on 03/13/2012 6:27:39 AM PDT by cuban leaf (Were doomed! Details at eleven.)
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To: SeekAndFind
Time to pay the piper for the “Age of Aquarius.”
6 posted on 03/13/2012 6:32:35 AM PDT by Huskrrrr
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To: SeekAndFind
California's done.

There aren't enough rational people with stones to stop and reverse the madness.

Producers will have no choice but to leave.

7 posted on 03/13/2012 6:34:36 AM PDT by Navy Patriot (Join the Democrats, it's not Fascism when WE do it. (plagiarized))
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To: SeekAndFind

if Barry is re-elected the bailout campaign starts on January 21


8 posted on 03/13/2012 6:49:37 AM PDT by Buckeye McFrog
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To: Navy Patriot

RE: Producers will have no choice but to leave.

The only problem is this — LIBERALS ALSO LEAVE.

Just look what’s happening to New Hampshire when liberals from neighboring Massachusetts start to make it their home...

It’s called IDEOLOGICAL CONTAGION.

They wreck one state with their ideology, find it unlivable and then move on to a more conservative state and then vote the same way.


9 posted on 03/13/2012 6:52:18 AM PDT by SeekAndFind (question)
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To: SeekAndFind
California is hoping to end its Greek tragedy with a federal bailout as a deus ex machina.
10 posted on 03/13/2012 7:15:32 AM PDT by The Great RJ ("The problem with socialism is that pretty soon you run out of other people's money" M. Thatcher)
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To: The Great RJ

I agree.

I expect federally guaranteed state bonds for Ca, Il, and NY.

Of course the fedgov is broke too, but it will prolong the charade a few years.


11 posted on 03/13/2012 7:17:57 AM PDT by nascarnation
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To: SeekAndFind

“They wreck one state with their ideology, find it unlivable and then move on to a more conservative state and then vote the same way.”

*****************

This is just exactly what illegal aliens do except instead of trashing a state, they trash their country then move to another country (ours) and are now starting to trash our country...

.


12 posted on 03/13/2012 7:28:40 AM PDT by flatfish
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To: The Great RJ

RE: California is hoping to end its Greek tragedy with a federal bailout as a deus ex machina.

And what sort of deux ex machina will play out if the Federal Government runs out of money too?


13 posted on 03/13/2012 7:31:20 AM PDT by SeekAndFind (question)
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To: SeekAndFind

The Californians used to make fun of the people coming from other states to California. They called them “Okies” after the people leaving Oklahoma because of the dust bowl. Now we have “Calies”. These are people leaving California because the glorious liberal/socialist experiment there has failed. Too bad Steinbeck isn’t around. He could write a book called THE GRAPES OF FAILURE about the Calies leaving.


14 posted on 03/13/2012 7:54:58 AM PDT by blueunicorn6 ("A crack shot and a good dancer")
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To: SeekAndFind

“RE: Producers will have no choice but to leave. The only problem is this — LIBERALS ALSO LEAVE.”

I think you have uncovered a cycle in societal evolution. First, we were nomadic hunter gatherers who traveled to wherever there was sustenance. Then structured societies, villages, and cities evolved as people became more productive—able to produce enough for not only their own families but to trade to others. Then, after 10,000 years or so, the nomads finally sucked out more than could be produced. The result—California and liberal places where the people now leave to roam to other places that are more productive than the places they defiled. Full circle.


15 posted on 03/13/2012 8:08:36 AM PDT by iacovatx (If you must lie to recruit to your cause, you are fighting for the wrong side.)
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To: Navy Patriot

“California’s done.”

Oh please, go play that tune somewhere else! If California is indeed “done” as you say, then the USA is also “done.” Sure glad back when this country was founded, most who were here weren’t like you. Navy Patriot? what BS. I am from a Navy family and we’ve never been “cut and run” types like you! There are plenty of good decent folks still here in California. The balance of power is in the single digits, just like the rest of the country.


16 posted on 03/13/2012 9:39:13 AM PDT by vette6387
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To: vette6387
vette6387 said: "The balance of power is in the single digits, just like the rest of the country."

I don't think that matters. I don't see the majority which has driven Kalifornia to the brink changing their votes until they are driven by starvation.

I just saw Hilary Clinton claiming that there is a concerted attack against women, that women are being told what to wear, etc. This is the liberal response to conservatives not wishing to have the government force productive people to pay for other people's contraceptives.

The lies of the liberal establishment won't stop, even when the starvation begins. Their lies will simply become irrelevant when the food runs out.

The fall of Rome is an historical fact. It was not reversed by wise people convincing others that there was a better way.

17 posted on 03/13/2012 10:34:34 AM PDT by William Tell
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To: allendale
So far our "Tea Party" Congress has proved to be just as statist as the Left Democrats before it. They just want to put a "Republican" label on the national decline.The government right/duty of unlimited detention or assassination of incơnvenient American Citizens is a Republican law voted for by Tea Party electees.

We have no friends in Washington. The power possibilities there are too much and almost all new Congressmen and Senators succumb to getting rich quickly and wielding power regardless of the principles and promises they rode in on.

The nation has reached a critical mass of wealth that supports a near majority of bread-and-circuses dependent people (who vote) and probably cannot go back. Totalitarian despotism is the near future. I suspect many of us will look back in a few years wondering why we didn't get out while we still could.

18 posted on 03/13/2012 1:20:58 PM PDT by arthurus (Read Hazlitt's "Economics In One Lesson.")
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To: SeekAndFind
They wreck one state with their ideology, find it unlivable and then move on to a more conservative state and then vote the same way.

They move to the new state to breathe the freer air and get away from the crime and settle down then say, "This place (Colorado, New Hampshire, etc.) is almost perfect, It just needs a few more services..."

19 posted on 03/13/2012 1:24:19 PM PDT by arthurus (Read Hazlitt's "Economics In One Lesson.")
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To: arthurus

No...No more services...

Get real


20 posted on 03/15/2012 4:48:28 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: SeekAndFind

California, lol.


21 posted on 03/15/2012 4:52:44 PM PDT by Lancey Howard
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