by John Seiler | August 2, 2011 3:56 pm
The 2011-12 budget passed by the Democrats in the Legislature and signed by Gov. Jerry Brown just a month ago projected $4 billion in extra revenues.
Ain’t gonna get it.
It was a delusion then and it’s an even bigger delusion now. Despite — or because of — the deal raising the federal debt ceiling, the economy is crashing again. Here’s the summary of today’s economic news from a Reuters article:
* S&P 500 turns negative for year
* S&P closes below 200-day moving average
* Global growth fears weigh on stocks
* Dow off 2.2 pct, S&P off 2.6 pct, Nasdaq 2.8 pct
In California, as nationally, the problem is leaders who don’t understand economics. That includes Democratic President Obama, Republican House Speaker John Boehner, Democratic Gov. Jerry Brown, every Democrat in the state Legislature and most Republicans in the state Legislature and the U.S. Congress.
About the only politician who knows what’s going on is Rep. Ron Paul.
The problem at the federal level is that the government keeps inflating the currency, spending wildly, regulating wildly and borrowing wildly. There’s no way that a country that raises its debt ceiling above $14.3 trillion is going to do well.
At the state level it ‘s the same, except the state can’t print its own currency.
So calamity naturally is ensuing. The Democrats in the Legislature, most of whom come from small-town union or government backgrounds, actually believe that the foundation of society is government programs and regulations. So — hey! — increase spending and regulations and everything will be hunky-dory.
Wild pensions for retirees? They’re deserving folks who should be paid by raising taxes on all those greedy businesses and rich people. And who’s rich? Why, according to the state tax code, anyone making $50,000 a year, where the top tax rate of 9.3 percent kicks in.
Gouge and waste — that’s the philosophy that’s bringing the state and nation to ruin.
August 2, 2011
Source URL: https://calwatchdog.com/2011/08/02/crash-state-revenue-will-be-dropping/
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