Will California Become America's First Failed State?

The Observer:

California may be the eighth largest economy in the world, but its state staff are being paid in IOUs, unemployment is at its highest in 70 years, and teachers are on hunger strike. So what has gone so catastrophically wrong?

Read the whole story: The Observer

Comments

[toolhater]

Reading these comments make me feel like vomiting all over my keyboard. On one hand you've got jerkoffs who refuse to see the correlation between the property tax increase ban and the start of government problems. On the other hand we have people who seem to think that this would be the only solution. If in fact everyone's property tax was adjusted we'd be looking at a 100 billion dollar deficit instead of 20 billion.

[JoshPr]

I predict there will be no reform or change and Obammi will discourage his followers, hence losing 2012. Dems will also lose a lot of seats in the house in 2010.

good articles; http://iamned2.blogspot.com

Obama= fail

[RTIII]

One note josh - do you really HAVE to post this same text on every thread?

JoshPR = fail.
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[James S]

California is a perfect example of when a state become too liberal. The amount of social programs and spending for quality of life issue in the state is what ultimately lead to them being bankrupt. There has to be a some sort of balance of power. You can't have one particular constituency controlling all of the state government.

I hope Arnold's Yard Sale got them something...

[sonoffestus]

CA is an example of what you get when you want services and don't want to pay for them.

[nee]

We pay plenty for our services. We are #1 in income and sales tax and #6 in overall taxes.
CA is an example of what you get when you SPEND TOOOOOOOOOOOOOOO MUCH!

[RTIII]

It's a myth that CA is liberal.
.

[politicky]

That guy doesn't know anything about California.

[tuberider]

"Will California Become a Failed State"? We will convene a subcommittee, re-inactive investigative preliminary analysis fact-finding mission and let you know in 6 weeks. (Billable hours at $775.00 P.H.). Thanks for asking! Tim, Legal Eagles Unlimited.

[rcmfla]

Excuses, excuses. Arnold was the savior of California and he failed. No excuses.

[CaptD]

Yes, CA will bleed it's residents dry while it's Rep.'s grow richer...

[tuberider]

I'd like to quote Hollywood if I may: "Read my lips....".

[RTIII]

That wasn't hollywood, that was George HW Bush.
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[chasedeconomy]

Everything but the little people have become too big to fail

good articles; http://iamned.blogspot.com

Everyday we pay the consequences of Reaganomics

[RTIII]

Right.
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[publius1]

CA is a good example of the failure of direct democracy. CA has tied up so much of its budget as a result of ballot initiatives that would make it very difficult for this crisis not to occur. We have representative government for many reasons. This is one of them. CA needs to stop ballot initiatives. Other states should as well.

[JakeHanson]

With Prop 8 being the most expensive initiative in CA's history. All to deny a minority equal rights based on sexual orientation. Very, very sad that this is how money is wasted.

[RTIII]

Finally a post from someone who truly understands CA's problems.

RIGHT!

The initiative process is appealing if you think your representatives never put the right things on the ballot, but the problem is that it's always all one sided, and never balanced. We should abolish the initiative process...
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[prusso]

California has already failed as far as I can tell.

here is a map of Colorado Unemployment in August 2009 (BLS data)
http://www.localetrends.com/st/co_colorado_unemployment.php?MAP_TYPE=curr_ue

versus Colorado Unemployment Levels 1 year ago
http://www.localetrends.com/st/co_colorado_unemployment.php?MAP_TYPE=m12_ue

[Jimboy17]

Apparently deregulation, tax breaks and free reign free markets really do produce perfect cultures.

[watchTVgetSTUPID]

Just like the Great Lake states were brought low by the transfer of manufacturing to Asia, so now California is brought low by the transfer of electronics manufacturing to Asia. California will not recover. California will follow in the footsteps of Michigan. No jobs to bring money into the state from outside. Very few will be immune from the financial collapse. not teachers, not professors, not construction workers, not state & County & City workers, not Hospitals & clinics & doctors & nurses, not prison guards & cops, not tow truck drivers and restaurant workers. Green jobs will also go to Asia so there is no hope on the horizon.

This year employment in California has dropped 5% while unemployment rate has officially climbed only 2%. Check the government's buerau of Labor Statictics and you can see for your self www.bls.gov

[KIVPossum]

The exodus of jobs from the Great Lake states began with a migration of factories to the south where labor was cheaper.

[tuberider]

Good points. And don't forget the movie business (dollar cost), the music business (paradigm shift-which applies to both) and agriculture: no agua amigo. Like in the OLD west, time to bite the bullet....

[JScott]

I read just a sample of the over 7500 comments and seems like the usual assortment, some live there (like me) some mostly don't some blame dems some blame reps some blame illegal aliens, some blame liberal hollywood, some blame initiative process, some blame (insert cause or interest group here)
I've lived here all my life and there has been these crises before and ya know what CALIFORNIA IS STILL HERE. And seems to me a lot of what the posting writes of is rather dated already---I just read that the State Parks won't have to close because funding was found. I remember when NYC was bankrupt---ya know what IT'S STILL HERE. I remember they wrote off Seattle when the aerospace industry crashed ('will the last one out please turn out the lights I think was a common expression then) IT'S STILL HERE I'd say ya know what, it's premature to write Ca. off, it's happened before, we'll get thru this, won't be easy tho.

[bipolarbear]

JScott: I read something a while back about California and its ballot initiatives. The article implied that taxes for the most part, are voted on in the state. Could it be that the average voter keeps voting for more state services and less and less taxes to pay for them.

This trend is nation-wide, only most states don't put it all on the ballot. But, if the tea-baggers have taught us anything its that Americans want all the services Government can provide but they don't want to pay for it.

[JScott]

Yup , basic problem with governing at any level (local, state, national etc.), would any elected official DARE say the truth and get elected by stressing the link of the goverment services the elected get and the taxes they have to pay to fund them.........NOT ONE elected official would ever ever be honest and do that.......sadly.

[The Professor]

It would seem that there are still a lot of people in CA that have money. Are they aware that they can write a check to CA? Didn't Micheal Moore just rail against capitalism? He could write a big check.

[nee]

The problem isn't in getting the money the problem is that they spend more than they get. No matter what they are given they refuse to stay within a budget.

[The Professor]

I was being sarcastic nee. I really need that sarcasm font.