Thursday, May 21, 2009

Buying California

California is insolvent, on the verge of bankruptcy. Beloved California, home of celebrities, creativity, beautiful weather . . . champion of political ideas and policies I despise. California was pushed to insolvency by numerous bad economic decisions. $3 billion was handed over for embryonic stem cell research in 2004. Home to sanctuary cities; paying for the education, health care, and incarceration of illegal immigrants in the state accounts for $10.5 billion per year (Rush Limbaugh). Placing moratoriums on new homes in order to save open space caused home prices to artificially skyrocket, leading to massive devaluation in the current housing slump. Banning the clearing of underbrush in the forest areas of California has contributed to the increase of forest fires, along with the increase of damage caused and money spent in fighting these fires. Refusing to allow new electric power plants causes loss of electric power for citizens every summer. Some of the highest taxes in the nation are required to feed this massive welfare state. All of these problems, added to a "soak the rich" tax structure and an unfriendly business environment, has sent the "rich" out of the state, thus decreasing the income for the state. And now you and I will pay for the failure of all of these policies and ideas imposed by politicians we did not vote for.

Rush Limbaugh has an excellent article out. It is well worth reading; but, because it is so long, I will summarize some of the key points. To emphasize: I highly recommend reading the entire transcript.

Summary of Transcript: Tuesday night, California voters voted no to five different ballot initiatives asking for more taxes. They voted yes to putting a freeze on state legislators' salaries. Immense excitement ensued for conservatives nationwide pleased that Californians are finally telling Governor Arnold Schwarzenegger no to more taxes and a poorly run state. The problem, Limbaugh points out, is that the next likely step is for Obama to step in and "bail out" the state. That would lead to the billions worth of debt being absorbed by the rest of the nation in the form of higher federal income taxes. So the Californian voters voted no to an increase in their state taxes, but will most likely end up paying higher federal taxes along with the rest of the states. Limbaugh points out the states of New York and New Jersey are currently in almost as precarious a situation. If California is "bought" by the federal government, then New York and New Jersey are sure to follow in these footsteps.

If the federal government is to "bail out" the state of California, what does this mean for state's rights? If the federal government owns 3 or 4 states, what are the rights of these states, and what does that mean for the rights of the remaining states? Is it the end of federalism (state's rights and a decentralized government)? Do we no longer even have states? This would definitely ease Obama nicely into further socialism. Would Obama be in charge of California? And if the rest of the nation is footing the bill for California, then would we all get to vote in all future Californian elections? I would sure like a vote in some of their decisions. I would love to get a chance to vote for their next governor, if they were to get another one. I closely followed the 2003 election in which Schwarzenegger became the governor. He was definitely not the candidate I would have voted for. But now I must pay for his decisions.

The fate of California must be watched closely, for it may hold dire consequences for our entire nation.


  1. Thanks Shari. Very interesting!

  2. Here's a real life example of how nuts California has gotten. I've worked for an online retailer for the last 6 years. Our policy has been to extend terms to all government agencies (e.g. public schools, state and municipal governments, federal agencies, the military, etc.) with little or no credit check. However, during the last quarter of 2008, we started seeing unpaid invoices piling up for government entities from the great state of California (I guess they ran out of money--probabally spent it all on pre-printing gay marriage applications). So, to protect ourselves, we had to start requiring all government customers from California to pay immediately for their orders with a credit card or wait until we could cash their checks before shipping their merchandise. You know there's something wrong when companies have to start treating an entire state like a dishonest, delinquent, fly-by-night crackpot of a corporate customer.

  3. Wait. Didn't federalism end in 1988? :)