Posted by
rycK on Sunday, February 17, 2008 12:56:07 PM
As California Goes Broke: Prepare to Bail Them Out with Your Higher Taxes.
The history of the leftist world is the continuing saga of how society should be changed, presumable for the better, by attacking capitalism and usurping wealth with high taxes or revolution or outright confiscation.
In every instance, starting with the French Revolution and continuing on to the Russian Revolution, we see that the leftists have resources that seem to reside in the capitalist encampment. They have nothing of their own but fury, abuse and the psychotic quest to control society.[1] They can seethe and gurgle with a myriad of brilliant plans to cure the evils of society, many of which are their own creations.
The leftists, and their lower-scoring liberals in the US and parts of Europe that were not bombed to oblivion, have ruined the Russian society with phony government, secret police, and a malice toward success that is demonstrated by their collectivist[2] hallucinations. The enigma here is that they cannot be successful with any wealth they have squeezed from others. We can list manifold failures such as the French Revolution, Russian Revolution, The Chinese Revolution, Spanish Revolution, and Mexican Revolution and in the US we have The New Deal, Fair Deal, War on Poverty, The Great Society, HUD, welfare and so on and so forth. We read only failure here.
Not only do have these episodes of first grunting and then grabbing the money and assets of others failed to produce a better society, the lingering effect of failed social programs is to continue to suck tax monies down a black hole into nothingness. Once consumed, the Maw of the Beast rises up with a bigger hunger. We saw that in the phony Ponzi Scheme [3] [4] known as Social Security where the non-existent ‘trust fund’ is vacant because Congress spent the money and left some old, soiled IOUs in the box. That money is gone and the system will go broke by 2020 or so depending who you talk to.
In the enduring chronicle of how not to run a society we now must mull over the case of California. It seems the good governor of the GoldenState must make some cuts in the budget. [5] This latest event is merely one in a long sticky string of financial disasters in California, a soon to be Soviet State in the best traditions of Rosa Luxemburg, who brought social bliss upon Munich for a while. NYC went down this path when they continued to barrow and barrow and barrow and then expected the Federal Government ,under Gerald Ford to bail them out so they could barrow some more. They were forced to cut spending and lay off people and a partial cure was forced upon them by Reality.
It is also interesting that in places where leftists control things there is a rush to leave as in California. By reverse economic logic, the vacancies are immediately occupied by ‘the poor’ as we saw in Philly, Mexico City, the ugliest social culvert in the universe, Baltimore City, Detroit, Brooklyn and other social dumps. Here there is the eternal quest for tax money to coddle the criminals and others who insist on living the life of crime, or on drugs, or to benefit from largess of the other citizens. Most such liberal enclaves persist like a tumor until something like Katrina takes down one of their magnificent edifices and exposes the human wreckage.
So, today, we must learn all about the salvation of California by Arnold and he and the vaunted Assembly will do so by cutting the budget. That will bring splendor and prosperity upon the state:
“California Gov. Arnold Schwarzenegger on Saturday signed six budget-cutting bills that will close the projected $3.3 billion shortfall in the state budget this fiscal year, but warned that more spending cuts would be needed.”[6]
This is so wonderful and responsible. Economic bliss is seen just beyond the horizon. But wait! There is more:
“The spending cuts were approved by the Democratic-led California legislature on Friday and will take a combined budget shortfall for California's current and next fiscal year, which had been expected to top $14 billion, down to just over $7 billion.”
"I respect the fact that it is not exactly what I proposed," Schwarzenegger told reporters as he signed the bills into law. "There is much more to come. This is only the beginning," he said.”[7]
Only half a loaf??!!
Well, what about the state law that compels the politicos to balance the budget??
“Fitch Ratings last month warned that California was at risk of a credit rating downgrade if state officials failed to address budget shortfalls promptly. Standard & Poor's reduced its outlook on California's general obligation bonds from positive to stable last year.”
Gee whiz. Won’t lower credit ratings mean that they will have to barrow at higher interest rates?? Yes. Isn’t New York and New Jersey going through such a process now?[8] [9]
Does anybody see a pattern here? Do the leftists just drool, spend, drool, spend more and then beg and howl for higher taxes??
Where are the new taxes that Arnold must employ to balance the budget?? Oh, are people leaving California because of the high taxes?[10] Are they moving businesses out of places like California, Oregon, Philly, Michigan, etc. so they can avoid crushing taxes?? Is it then true that those places will simply have to raise taxes again and again. Liberalism is working.
The leftists, as given in the New York Times, know that raising taxes does not disturb the economy. [11] [12] [13] [14]
So, why not raise taxes Arnold??
The Marxists and their tax zombies will always vote for that.
rycK
Comments: ryckki@gmail.com
[2] http://en.wikipedia.org/wiki/Collectivism
[4] “A Ponzi scheme is a fraudulent investment operation that involves paying abnormally high returns (" profits ") to investors out of the money paid in by subsequent investors” http://en.wikipedia.org/wiki/Ponzi_scheme.
[6] Schwarzenegger Signs Budget Cuts. Ibid.
[7] Schwarzenegger Signs Budget Cuts. Ibid.