oh you know who they'll blame alright, the evil 1% for running out of money...
Posted on 11/11/2012 8:27:52 AM PST by Kaslin
On Tuesday voters in California went the wrong way on three propositions.
The main check on Sacramento excess has been a constitutional amendment requiring a two-thirds majority of both houses to raise taxes. Although Republicans have been in the minority for four decades, they could impose a modicum of spending restraint by blocking tax increases. If Democratic leads stick in two races where ballots are still being counted, liberals will pick up enough seats to secure a supermajority. Governor Jerry Brown then will be the only chaperone for the Liberals Gone Wild video that is Sacramento.
The high Democratic turnout in moderate and right-leaning districts helped the party pick up three seats in the senate and four in the assembly.
So now Californians will experience the joys of one-party, union-run progressive governance. Mr. Brown is urging lawmakers to demonstrate frugality and the "prudence of Joseph." As he said the other day, "we've got to make sure over the next few years that we pay our bills, we invest in the right programs, but we don't go on any spending binges." That's what all Governors say. Trouble is, merely paying the state's delinquent bills will require tens of billions in additional revenues if lawmakers don't undertake fiscal reforms.
With no GOP restraint, liberals can now raise taxes to pay for all this. [$200 billion in unfunded liabilities, the California State Teachers' Retirement System in need of $10 billion annually for the next 30 years to amortize its debt, $73 billion in outstanding bonds for capital projects and $33 billion in voter-authorized bonds, etc.]
They'll probably start by repealing Proposition 13's tax cap for commercial property. Democrats in the Assembly held hearings on the idea this spring. Then they'll try to make it easier for cities to raise taxes.
The greens want an oil severance tax. Other Democrats want to extend the sales tax to services, supposedly in return for a lower rate, but don't expect any "reform" to be revenue neutral. Look for huge union pay raises and higher pension benefits.
The silver lining here is that Americans will be able to see the modern liberal-union state in all its raw ambition. The Sacramento political class thinks it can tax and regulate the private economy endlessly without consequence. As a political experiment it all should be instructive, and at least Californians can still escape to Nevada or Idaho.
Law of the Funnel in Action
Big government and absurdly strong unions destroyed Greece and Spain. Expect no less for California.
Many large California corporations that can flee, will flee. Those stuck in California will see massive tax hikes (with many more to come) just so public unions and administrators can collect absurdly high salaries and benefits that most citizens can only dream about.
Please see the Law of the Funnel for a description as to what just happened.
Here is a headline news story that I found interesting for reasons I will explain following: Economists cut U.S. Q4 growth forecasts.
Economists expect the economy to grow at an annual rate of 1.8 percent in the current quarter, down from the previous estimate of 2.2 percent growth, according to the Philadelphia Federal Reserve's fourth-quarter survey of 39 forecasters.Given exports were recently revised up and imports revised lowered, I expected economists to think GDP would come in higher. It would have been interesting to see their reasons. Hurricane Sandy perhaps?
While that left estimates for gross domestic product for the year unchanged at 2.2 percent, growth in 2013 looked modestly weaker with economists forecasting 2 percent, down from 2.1 percent.
Over the next three quarters, growth was seen averaging 2.1 percent, down from earlier expectations of 2.2 percent.
The unemployment rate was forecast to come in lower than expected, averaging 7.9 percent in the fourth quarter from the previous estimate of 8.1 percent. The monthly unemployment rate released by the government was 7.9 percent in October.
Still, unemployment was seen stuck at 7.9 percent in the first quarter of next year, and holding at 7.8 percent in the second and third quarters.
Economists raised their forecasts for inflation this quarter with the headline consumer price index seen averaging 2.3 percent, up from earlier estimates for 2.0 percent. For the year, CPI was expected to average 1.9 percent, up from 1.8 percent.
Let it collapse... See who they blame.
...The high Democratic turnout...”
Successful Progressive efforts to turn out 120% of the Democrat vote in right-leaning districts may result in a Democrat super-majority. /s/
IMHO
“Let it collapse... See who they blame.”
Bush?
If they could just get enough money from us, they could solve all our problems.
Now they can.
Sometimes I think Republicans in the California legislature should abstain from every vote - no matter what it is. Let the whole thing go down in Liberal flames.
What happen when you run out of rich people?
They bought it, they own it.
the sooner California and hopefully Illinois collapse, the better. I hope they collapse HARD!!!!!!!
we’re not gonna bail ‘em out?
The wind turbines will turn themselves off, as soon as maintenance is missed... after a few minutes.
Dear California Conservatives,
Like East Germany of the past, please get out of California before they put up a fence to confine you and more importantly, your wealth, as property of the State. Texas will be glad to accept our liberty adhering brothers and sisters emigrating from a dictatorship.
Yours in Liberty,
Lechien Rouge
You simply change your definition of "rich people."
“the sooner California and hopefully Illinois collapse, the better. I hope they collapse HARD!!!!!!!”
I am a Californian and I completely agree. Actually, in a perverse way, I am glad the RATs now own California, because it will cause the financial crash to happen sooner. Cities and Counties are already going into bankruptcies, and they will multiply. It will be interesting to see if the State tries to bail them out. The PE pension system assumed in it’s model back in 2000 that the DOW would be at 28,000 by now and that their investments would bail them out. OOPS!
oh you know who they'll blame alright, the evil 1% for running out of money...
You got it. When the U.S. becomes a third world country, $50K income a year will be considered 'rich'.
Obama will bail them out and Ben will print more money. Same with New York.
Cut off the state and let it float out to sea
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