To Hell With California!

Governor Schwarzenegger is coming to you, in whatever state you live in, for a handout.  He calls it a loan, but I doubt they even have the ability to pay it back.

From the LAT:

SACRAMENTO -- California Gov. Arnold Schwarzenegger, alarmed by the ongoing national financial crisis, warned Treasury Secretary Henry M. Paulson on Thursday that the state might need an emergency loan of as much as $7 billion from the federal government within weeks.

The warning comes as California is close to running out of cash to fund day-to-day government operations and is unable to access routine short-term loans that it typically relies on to remain solvent.

California spends money like a drunken sailor.  The state is decidedly leftist in its outlook.  When the Democrats in the legislature and their Dear Leader, Grey Davis, spent every dime they could get their hands on and then some. When Californians realized they were in a crisis condition, they got rid of Davis.  Arnold turned out to be not much better at controlling the spending.

 They've done all they can to run industry out of the state.  The state's once huge aerospace industry is almost gone.  The C-17 is the last large airplane to be made there and that production will end in a few years and then it will be gone.  Abusive taxation and wanton spending is continuing to drive industry out of California.  This is anecdotal, but I personally know of one large trucking firm that left CA for Nevada because of taxes.  I can imagine they aren't the only ones.

And California isn't the only one. Here in WA, we are facing a 3.2 billion dollar shortfall and climbing.  The Democrats have spent us damn near into oblivion.  The Governor (Queen Christine GregFraudoire) has ads touting our $700 million "rainy day fund". 

Memo to the Queen:  That rainy day is now a Cat 5 Hurricane and building!

My point is this.  States like CA and WA are not fiscally responsible.  When times are good and the tax revenues roll in, they spend it faster than a jet engine sucks fuel.  When the good times end, they demand more in taxes to cover their excesses.  The problem is that they start to realize that they can only squeeze so much out of us.  Their initial threats is to cut public safety and schools.  They never even suggest cutting any of the social spending they've initiated and put in place. 

At some point, people need to understand that government money does not spring from some mysterious, bottomless well.  It comes from the rich and the poor and everyone in between.  You cannot tax anyone into prosperity, but you can sure as hell tax them into poverty. 

Before we lend California one dime, we should get some kind of guarantee that they will work toward fiscal responsibility.  I understand this loan is to cover them for the short term and they do it every year at this time.  On the other hand, they need to figure out how to do this without borrowing money every year.  Cut back, set aside enough to cover these things and don't spend more than you can afford.

Like that will ever happen. 

VW

Comments

[BobF]

If they quit giving hundreds of millions away to illegal aliens and welfare recipients, they would have the money.