california near bankrupt

  1. 10,543 Posts.
    lightbulb Created with Sketch. 2
    June 30, 2003
    Bankrupt California

    It seems California has gotten itself into a little pickle. The state has managed to compile a $38 billion budget deficit, and is now looking at problems on an unprecedented scale.

    The current political struggle is a unique one. The Democrats control the Governer's mansion and both houses of the legislature, but can't get their new budget passed because it requires a two-third majority which they can't muster. At the same time, the Republicans are leading a campaign to get Gov. Davis recalled.

    The Democrat budget proposes tax increases to close the gap, while the Republican budget proposes massive cuts in government spending. Like any good Democrat, the California Democrats propose to tax their way out of the problem. So what happens ten years from now when spending again outpaces income? Hey, let's tax them again! That's exactly what the Republicans are saying has to be stopped right here and now:



    "He and his allies have gotten the last three budgets they wanted and we're nearly bankrupt," said James L. Brulte, the Republican leader in the state Senate, who has threatened to work against the reelection of any GOP colleague who sides with Davis in the budget battle. "Somebody has to stand up and say enough is enough. That's what Republicans in California are doing."



    California is finding out why you can't setup a welfare state, disguise it as a capitalist state, and remain viable for very long. The folks paying for all the government programs will pack up and take their business elsewhere, leaving the government holding the bag.
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.