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| Schwarzenegger Issues Threat to Obama "Bailout CA or I Will Eliminate Cash Welfare" | |
| 2010-05-25 | |
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| Posted by:gorb |
| #15 GMTFOOH Took me a while. Q: How do you get gorb to laugh in the evening? A: Tell him a joke in the morning. |
| Posted by: gorb 2010-05-25 22:52 |
| #14 GMTFOOH My sentiments exactly. |
| Posted by: Ebbang Uluque6305 2010-05-25 12:58 |
| #13 California's big problem is not welfare but public sector salaries and pensions that have inflated beyond any reasonable ability to pay them out, combined with hostile tax policies that have driven employers away. |
| Posted by: rjschwarz 2010-05-25 11:45 |
| #12 been hammered is manufacturing and other sectors outside of high tech I believe that Intel has stated that it is not building any more fabs in CA. Right now it seems Arnold is holding onto the chain that keeps the Dems from cluelessly raising taxes on evil businesses. This may well change when voters' welfare is threatened. So any business that isn't leasing is probably feeling threatened, and therefore won't invest in CA in a very committed way. |
| Posted by: gorb 2010-05-25 11:19 |
| #11 Yet that still leaves Social Security, as the second head of the monster. So how can that be killed, assuming the same backdoor approach? Easy. Nationalize IRA's 401K's, and Private retirement accounts. |
| Posted by: Deacon Blues 2010-05-25 10:44 |
| #10 I have a sneaking suspicion. Even an economics dumbass can see that massive government largess is a disaster. But how do you kill the beast? Right now, the big three largess programs are SS, Medicare and Medicaid. Medicare is the fastest growing, so it is the biggest threat. One of the big elements of Obamacare is that it strangles Medicare, forcing both the public and doctors out of the Medicare system. And it is doing so right now. But if Obamacare is then overturned by the courts, Medicare will still have been gutted. *In effect*, this will have the same result as "means testing", that was tried sometime back, but was politically impossible. But assuming that Obamacare is thrown out, the government will have a lot more breathing room as far as critical spending goes. Yet that still leaves Social Security, as the second head of the monster. So how can that be killed, assuming the same backdoor approach? |
| Posted by: Anonymoose 2010-05-25 09:56 |
| #9 The Democraps just proposed 5 billion in new taxes....GMTFOOH. |
| Posted by: HammerHeaded2Florida 2010-05-25 09:53 |
| #8 The picture's not all bleak. California still has a flourishing tech sector, including much of the world's cutting-edge biotech (clustered in San Diego and the Peninsula part of the Bay Area). What's been hammered is manufacturing and other sectors outside of high tech, which is to say, the sectors that used to provide the bulk of middle-class employment, both directly and indirectly. Many of these folks-- educated, earning decent incomes, paying hefty taxes-- have cashed out their housing windfalls and have left the state in the last two decades for neighboring western states. There's been some immigration by educated asians and others during this time, but nowhere near enough to offset the drag of the fleeing middle-class native Californians. And of course a healthy private sector manufacturing base has been replaced with an expanding, unproductive public sector employment base-- well-paid but essentially takers, not makers, of wealth. At the same time, the low end of CA's social pyramid has swelled, with up to ~3 million additional unskilled, uneducated Mexican immigrants arriving since 1985. This influx is a huge drag on the state's budget-- probably on the order of $10b annually in net outlays. In short, CA has exchanged a broad-based educated middle class for a relatively small increase at the top of the income pyramid and a huge increase at the very bottom. In due course CA's social structure, schools and employment distribution will come to resemble Mexico's. Mexification, here we come. |
| Posted by: lex 2010-05-25 09:39 |
| #7 Welfare may be a problem in California but there are other problems too. High taxes and regulation have driven out their economic base. Public unions benefits are breaking the bank in California, other states, and the Federal government. See link Public Union Collapsing California If things keep going the way they are, California will have an economy based on people buying and selling dope. |
| Posted by: JohnQC 2010-05-25 08:55 |
| #6 I thought the whole point of economic stimulus was to put money in the hands of people who would spend it right away Stim money > patronage cronies and unions > reelection funds They did. Now they've found out that while the reward money kept the always faithful on the rolls, it seriously alienated the swing vote who don't always vote party and are critical to reelection this cycle. |
| Posted by: Procopius2k 2010-05-25 08:38 |
| #5 I'm confused. I thought the whole point of economic stimulus was to put money in the hands of people who would spend it right away, and not invest it. Why wouldn't Zero want to hand wads of cash to every state (well, every blue or purple state), not just California, to distribute to instant spenders? |
| Posted by: Glenmore 2010-05-25 07:50 |
| #4 And the problem is? |
| Posted by: Nimble Spemble 2010-05-25 07:06 |
| #3 When addicts finally hit the wall they hit hard. And they don't mind using the children as coersion to get what they think they have to have. |
| Posted by: BrerRabbit 2010-05-25 06:59 |
| #2 As I've noted before, slashing welfare is the only way out of the sovereign debt crisis (bar inflation/hyperinflation) for California, Greece and all the rest, because its the only way to reduce government expenditure and increase economic activity and hence taxes. |
| Posted by: phil_b 2010-05-25 04:20 |
| #1 I've seen this movie before... Ah this: |
| Posted by: OldSpook 2010-05-25 00:12 |