The State of California Needs to Enter Rehab."

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The State of California Needs to Enter Rehab."
<HR style="COLOR: #d1d1e1" SIZE=1><!-- / icon and title --><!-- message --><!-- message -->2012 Libertarian Presidential Hopeful Wayne Root Says 20,000 California Government Employees Losing Their Jobs is Not a Disaster- "It's a Start in the Right Direction."

Root Says, "The State of California Needs to Enter Rehab
."


Las Vegas, NV-February 17, 2009-California's budget crisis and legislative standoff has brought the state to what the politicians call the brink of disaster. Wayne Allyn Root, 2008 Libertarian Party Vice Presidential Nominee and 2012 Libertarian Presidential hopeful, doesn't understand why California laying off 20,000 government employees is called a "disaster." Root says, "This is a crisis caused by too many government employees in the first place. Government has grown too big, too powerful, too bloated. 20,000 people losing their jobs is certainly a terrible thing under normal circumstances. But 20,000 government employees being laid off in California is a good start. It's moving in the right direction. The biggest danger to California's future is NOT earthquakes or global warming- it is bankruptcy and state default on debts of over $40 billion. Government debt is the true crisis that threatens to destroy the future of the children and grandchildren of California citizens."
Root described the tragedy of out-of-control government employee union spending: "Bloated government employee salaries, pensions and health care benefits are drowning California (and America) in debt. We have expanded government too fast. We have hired too many government bureaucrats. We have given far too much power to public school teachers unions and government employee unions. Unions destroyed Detroit; the state of Michigan; and 'The Big 3' automakers. Unions have wrecked our public school system. Now government employee unions threaten to turn all of America into one big Detroit. Unfunded liabilities for government union employees have buried California under an avalanche of debt. We must end the cycle. Spending more and hiring more government employees cannot prevent bankruptcy- it can only hasten the looming disaster."
Root described California's problem: "Increasing the size of government isn't the solution, it is the problem. California pays their government employees the highest compensation in the nation, and spends the most money on education in the nation. The results of this spending addiction are no coincidence- the state of California has the highest budget deficit; among the worst public schools (despite spending the most money); and the lowest bond ratings among 50 states. California is on the brink of economic Armageddon because of out-of-control government spending. Too many public employees, being paid far too much, are a centerpiece of this crisis."
But Root points out that the federal government has the exact same problem. "We presently have a $5 trillion dollar unfunded liability disaster looming over American taxpayer heads from the cost of retirement for federal government employees. In private industry the way to survive this economic downturn is clear- cut budgets; lay off employees; cut salaries; and reduce benefits. Why should government be any different? Why is a 'privileged government class' treated differently than all of us in the private sector? Instead of Obama's plans to dramatically expand government and hire hundreds of thousands of new federal employees and public school teachers, and give raises to millions of state and local government employees, we should be going in the opposite direction."
According to Root the solution is clear: "We must cut our losses now and save our country from bankruptcy by laying off public employees; instituting hiring freezes; cutting government budgets drastically; rescinding guaranteed pay increases; reforming overly-generous pension plans; and if possible, eliminating retiree health benefits altogether. Government employees should be living under the same rules as the rest of us. Government employees should be suffering and sacrificing just like the rest of us. Government employees must live within their means- just like the rest of us. The days of paying California civil servants 40% to 60% higher compensation and pension packages than private sector employees are over. That is what got us into this mess in the first place."
Root calls the loss of 20,000 government jobs sad and unfortunate. "I don't like to see anyone lose their job. Each job loss is a personal tragedy. But unfortunately government jobs are the albatross that is sinking our economy. The loss of 20,000 government jobs in California is a good start. We either cut a few government jobs, or we all go under. We need many more layoffs and cuts in government to stave off the bankruptcy of the state of California. While private industry is cutting budgets and employees, government must also deal with its spending addiction. The same rules apply to government. The state of California needs to enter Rehab."
Root compares government layoffs to the 'Black Box' in an airplane disaster. "If it takes an epic financial crisis to finally cut a measly 20,000 government jobs in California, then this crisis may yet turn out to be our 'Black Box.' When a plane crashes, something good can come out of a tragedy because of the black box. What we learn from that black box can save millions of future lives. Because of the black box, those plane crash victims did not die in vain. They are instead turned into heroes by what we are able to learn from the black box...
California needs to learn a valuable lesson about its spending addiction. We must do more than cut the annual increases in spending. We must cut the actual budget. My bet is that if California lays off 20,000 government employees, the average citizen won't even notice they are missing. This crisis will subside and we'll find out that we can survive just fine without all these layers of government bureaucrats. As a matter of fact, we may find that our lives actually improve. We need to get back to the American values of personal responsibility, self-reliance and individualism. If it is to be, it is up to me, NOT government."
Root compares capitalism to government. "Capitalism only had one bad year. Government has lost money in virtually every department, every year since inception. President Obama wants CEO's to be held accountable and responsible for their losses and waste. Well I agree. But I think it's time government played by the same rules as business. If they did, the President and our Congress would all be in prison for defrauding the American taxpayers. It's time for change. Let's hope the 20,000 government employee layoffs in California are merely a good start in the right direction."

Wayne Allyn Root was the 2008 Libertarian Vice Presidential candidate. His new book will be released by John Wiley & Sons this Spring entitled, "The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts." The book is available for pre-sale at Amazon.com. Wayne also happens to be Barack Obama's college classmate (Columbia University Class of '83). For more of Wayne's views, commentaries, or to watch his many media interviews, please visit his web site at: www.ROOTforAmerica.com

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<TABLE class=tborder id=post2162217 cellSpacing=0 cellPadding=3 width="100%" align=center border=0><TBODY><TR vAlign=top><TD class=alt1 id=td_post_2162217 style="BORDER-RIGHT: #2b295e 1px solid">Beck Slams California Tax Hike Proposition, Calls for Real Budget Cuts



May 19, 2009 - 10:56 ET
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As Californians go to the ballot box to vote whether or not to increase their taxes, government leaders in Sacramento are trotting out "the usual human shields" - kindergarteners, firefighters, policemen and nurses to frighten people into voting.
The ballot initiative, promoted by California Gov. Arnold Schwarzenegger, has little to no chance of passing according to the Los Angeles Times. But that did stop the governor from using fear tactics, as Fox News Channel's Glenn Beck pointed out on his May 19 program.
"What's their plan to turn the state around? They have one?" Beck said. "Yes - the Governator, he proposed $15 billion in cuts. Wow. And he warned that if his, if his propositions failed, California will need to release 40,000 prisoners out on the streets."
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powdered milkman
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i've lived there for 40 years and as a homeowner for the last 18.........i wouldn't live in any other state or neighborhood.......i know it has its problems but so do all of them
 

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Yesterday, voters overwhelmingly sent a message to Sacramento to clean up government waste and stop coming to us, the taxpayers, to provide a "rainy day" fund and bail out funds to balance our State budget. Interestingly only 17% of registered voters actually went to the polls. California is in deep financial trouble but the state must prioritize and downsize and spend funds where appropriately needed.
 

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The thing that pisses me off is OUR federal tax dollars being used to bail out California.

We all contribute to the bloated teachers union, the fire fighters in SF making 150K per year, all the handouts to illegals, etc. etc. etc.

Why should people in responsible states have to pay for the California entitlements?
 

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The thing that pisses me off is OUR federal tax dollars being used to bail out California.

We all contribute to the bloated teachers union, the fire fighters in SF making 150K per year, all the handouts to illegals, etc. etc. etc.

Why should people in responsible states have to pay for the California entitlements?



Same thing you have heard starting from Bush's last few months up until now. XYZ is to big to fail. Insert the state of California in this case.
 

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REVOLUTION: The First Shot of the Tax Revolt Begins in California!
Wednesday, May 20, 2009, 03:34 PM
Tax and Spend Propositions Go Down in Flames Despite Out-Spending Opponents 10 to 1

The People That Pay All the Taxes and Create All the Jobs Are in Revolt.

The model for America: NEVADA where the state constitution bans income taxes.

By Wayne Allyn Root, 2008 Libertarian Vice Presidential nominee

Whatever revolution that starts in California, always spreads to the nation. In arguably the most liberal state in America, California taxpayers sent a message to the nation on Tuesday: “We’ve Had Enough and We’re Not Going to Take It Anymore!” California voters shocked the political establishment by rejecting a slew of propositions meant to save California from a massive, unsustainable $15 to $23 billion-dollar budget deficit, by taxing and spending some more. All the tax and spend propositions went down to a resounding defeat, despite a $30 million spending campaign. Perhaps these big government proponents should have instead saved the $30 million and applied it to the deficit. The results were remarkable considering that proponents of “tax and spend” out-spent the opposition by 10 to 1.

Even more telling, the only proposition that passed will ban salary increases for politicians if the state is running a general fund deficit. The results prove that California is once again at the epicenter of a seismic tax revolution. With voter turnout low, the results also prove what I’ve been predicting for months now- the only people who care about taxes are the 20% of taxpayers who pay them all. That is the group that will rise up in revolt. Since California starts most of the trends in this country, and leads the nation in taxes, I think it is safe to say that the sleeping giant has awakened.

As the author of the new book, “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts! I’ve seen this political revolution brewing for 2 years now. It came to a head with the election of Barack Obama, the king of “tax and spend.” The straw that broke the camel’s back was Obama’s response to the worst financial crisis of our generation: massive spending programs; multi-trillion dollar bailouts; handouts disguised as “tax cuts”; and record-setting waste and pork disguised as “economic stimulus.” Guess where all that money came from? The taxpayers. But not just any taxpayers- it came from one special group. The top 20% of American taxpayers who pay virtually all the taxes and create all the jobs. Obama’s plans are killing the proverbial “golden goose.” Obama’s tax and spend plans are a declaration of war on the private sector, small business owners and the investor class. Obama’s plans will wipe out the upper middle class of America- the heart and soul of our taxpayers, job creators and investor class.

California’s taxpayers have spoken loud and clear. The Obama national tax and spend plan is a carbon copy of the California plan the voters just rejected in a landslide. California has not gone bankrupt by mistake. The record is clear: California leads the nation in government spending; education spending; spending on illegal aliens; spending on entitlements and handouts; and spending on government employees. California has the highest paid teachers in all of America, yet its education system is among the worst. California student test scores are the 2nd lowest in the nation, and dropout rates are among the country’s highest. What has all this spending produced? California has built the biggest deficit in the nation and the lowest bond ratings among 50 states. All that tax and spend has clearly led to BANKRUPTCY.

Yet California leads the nation in taxes too. California proves the lie of Obama’s plans: You can’t spend your way out of bankruptcy. You can’t tax to death the only people that pay all the taxes and create all the jobs- in the middle of a depression. You can’t burden our economy with irresponsible and unsustainable levels of debt. You can’t enslave our children and grandchildren to big government and big taxes for generations to come.

I believe a seismic political revolution has begun. The private sector, upper middle class taxpayers, and small business owners- the groups that can and will lead this revolution- have woken from a giant slumber. The honeymoon is over for Obama. For Schwarzenegger, a political career is over. “The Governator” destroyed a potentially brilliant political career by listening to his out-of-touch liberal Kennedy-clan wife. The man preached the politics of Reagan, but practiced the politics of McGovern and Obama. California’s results prove that Obama’s policies are a prescription for disaster.

The answer is obvious. Tax less and spend less. Stop punishing the successful taxpayers, business builders, financial risk-takers and job creators. Reward those key members of society. Stop expanding government. Stop hiring government employees. Stop paying government employees more than those that toil in the private sector. The model for America is the centerpiece of my new book, “The Conscience of a Libertarian.” The model is my adopted home state of Nevada. It is no coincidence that in the past decade Nevada has gained over one million new residents and countless new businesses, while our neighbor California has lost over one million taxpayers. The citizens are voting with their feet (and their assets). They are escaping from high tax California and moving in droves to low tax Nevada.

Yes the good news is that the political and tax revolution has begun. But for those of us who pay all the taxes, the hard work has just begun. There is a long battle in front of us. It is a battle we must win- for the sake of our children and grandchildren. We either take our country back, or lose it forever.


Wayne Allyn Root was the 2008 Libertarian Vice Presidential candidate. His new book will be released by John Wiley & Sons this July entitled, “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts.” The book is available for pre-sale at Amazon.com. For more of Wayne’s views, commentaries, or to watch his many media interviews, please visit his web site at: www.ROOTforAmerica.com

capt.photo_1242803363340-1-0.jpg

LET THE CUTS BEGIN...
NEW CALIFORNIA TAX REVOLT...
 

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Same thing you have heard starting from Bush's last few months up until now. XYZ is to big to fail. Insert the state of California in this case.

So if the government is going to fine/break up Microsoft, ATT, railroads, (maybe google), banks for being too big to fail...

What about Cali?

Split it up to Northern Cali/Southern Cali
or 3 ways
LA
SF
the rest

OR

Tell them no fucking bail outs.
 

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So if the government is going to fine/break up Microsoft, ATT, railroads, (maybe google), banks for being too big to fail...

What about Cali?

Split it up to Northern Cali/Southern Cali
or 3 ways
LA
SF
the rest

OR

Tell them no fucking bail outs.


Of course not, they vote Democrat
 

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The ideal situation would be to break it into 3 parts
SF ( hyper liberal)
LA ( liberal)
Rest of state ( conservative)

That would at least break out some of those electoral votes... plus, it would only be a matter of time before SF and LA degraded into a state of bankrupcies, crime and then rubble.


but then the liberals would move on to San Diego, Sacramento and all the other cities like the locusts that they are... destroying everything in their path.
 

Honey Badger Don't Give A Shit
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lol

San Francisco and the surrounding 100 mile radius is the biggest US financial hub west of Dallas

No one's going anywhere
 

Life's a bitch, then you die!
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Georgiaboy/mplastered, Congratulations! You have officially been added to punter’s Christmas card list. :):)
 

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Not to worry, the next big quake will eliminate California and all will be well.
 

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Victory for Liberty in California Special Election

on May 21, 2009



By: Dr. Vince Mamo
Voters overwhelmingly defeat Proposition 1A that would have increased taxes by 16 Billion dollars during a recession.
California’s Governor Arnold Schwarzenegger’s promise on replacing Gray Davis was to oppose new and higher taxes. Contrary to his platform, California’s deficit has skyrocketed to over $20 billion dollars, placing the state in a position to be unable to pay income tax refunds, pensions, and other obligations of the state. Continuing in this fashion, politicians placed Propositions 1A-F on the table for California that would have raised taxes to create a rainy day fund.
The response to Propositions 1A-F has definitely shown that the glitter has started to fade from the eyes of the constituents. Propositions 1A-E were defeated by over 60% on each measure. The only proposition to pass was 1F (with over 74%), which limits legislators pay increases when the budget is not balanced. The people understand that they can no longer trust government with being fiscally responsible. How else can revenues of the state grown by 167% in the last 20 years, while deficits soared. California is one of the highest taxed states in the nation, yet is still going bankrupt. This can only be explained by the fact that government spending has nearly tripled in the same time frame.
It is this libertarian idealism that has really shown through in this last election. If people are accountable for themselves, so too must be government. Education on government spending and taxes is what is moving the people. More than anything people were complaining about the size of government and that it was too bloated, a core tenet of the Libertarian philosophy. The spending has got to stop. As voiced by Edmund Jenks: “Well, it isn't so much the we are not being taxed enough money to run the Government, it is more about that they are spending way too much money to run the Government!” It is truly not only a victory for the Libertarian Party of California, but a voice calling out for all other party members across the country to listen to the party of reason.


 

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May 29, 2009

<TABLE width="95%" border=0><TBODY><TR><TD align=left width="80%">Obama Should Tell California to Drop Dead
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During the height of New York City’s financial crisis in the 1970’s, President Gerald Ford had the good sense to turn down Mayor Abe Beame’s request for a federal bailout. The refusal prompted the famous New York Post headline, “Ford to City: Drop Dead.” More than 30 years later, as California Governor Arnold Schwarzenegger makes a similar plea to Washington, I hope President Obama will show similar restraint. Unfortunately, given Obama’s recent string of unwise economic decisions, it’s hard to imagine that his judgment will suddenly improve.

A federal bailout would spare California from having to make spending cuts needed to bring its budget into balance. The matter has become urgent since California voters rejected several tax-hiking ballot initiatives. Rather than taking the vote as a signal to dramatically curtail spending, the state turned to the feds. If they get a free pass, the politicians can avoid fixing any of their past mistakes or preparing California for the future.

California, like many states, expended its bureaucracy as the nation’s bubble economy inflated. When condos flipped like hamburgers and homeowners flush with equity spent like lottery winners, extra tax revenue flooded into Sacramento. However, instead of saving the money for a rainy day or paying off prior debts, the state government simply ballooned its spending. Now that the bubble has burst, and revenues are severely depleted, it is time for California to reconsider its excesses.

Governor Schwarzenegger’s claim that a federal guarantee is not a bailout is ludicrous. No one in the private sector will lend California any money because the state can’t pay it back. Just like AIG and GM, its needs federal help to stay solvent. And although the Federal balance sheet is in far worse shape than California’s, there is one crucial difference: Washington has a printing press, and Sacramento does not. With the ability to pay off debts with newly created funds, a federal default is not a concern.

However, if Obama comes to the rescue, none of the needed cuts will be made. Instead, California will continue to operate its bloated bureaucracy and will be in constant need of more bailouts. In other words, if Schwarzenegger gets his bailout, look for him to utter his famous line – “I’ll be back.”

But it’s not just Schwarzenegger who will be back, but governors from all the other states as well. After all, if the Federal government bails out California, by what right can they deny similar aid to other states? The bailout will send a clear message that states do not need to cut spending.

Similar to the reckless behavior that resulted from federally guaranteed mortgages, federal guarantees on state debt will counteract the market’s attempt to force states to act responsibly. As the market accurately prices-in the heightened risk of default, California faces staggering increases in its borrowing cost. Under normal circumstances, this pressure would force the state to act prudently now to diminish the risk of a future default. However, by allowing California to evade the “bond market vigilantes,” the stage will be set for much bigger losses.

The moral hazards created by state bailouts are tremendous. With federal guarantees given to profligate states, those states that had shown greater fiscal responsibility will face higher interest rates –as their bonds lack a federal guarantee. This creates the perverse incentive for all states to act irresponsibly.

Just as government-guaranteed mortgages lead the market to make overly risky home loans, federally guaranteed state obligations will set the stage for yet another crisis.

Federal backing of California bonds would effectively turn them into Treasury bonds, with the added appeal of being exempt from California state income tax. Therefore, the Treasury will be at a competitive disadvantage when it looks to issue its own debt to Californians. If it then has to guarantee the bonds of all the other 50 states, why would any Americans buy Treasuries when they can get identical credit quality on better terms from the states? The only real buyers left would be foreigners, who are already queasy about the Treasuries they own.

The need to make good on state and federal obligations will further depress the appeal of all U.S. dollar-denominated debt. As a result, as real buyers flee the market, the Fed will have to run its printing presses even faster to pick up the slack. This will set into motion a self-perpetuating spiral of money printing and Treasury sales with a predictable result: hyperinflation.

In the meantime, by redirecting credit to California that otherwise would have gone to more credit-worthy borrowers, the government will worsen the credit crunch for the rest of the country. Since there is only a finite supply of credit, money borrowed by California will no longer available to other borrowers. The effect is a less efficient allocation of capital that further undermines national productivity.

The only rational policy choice for Obama is to send Schwarzenegger packing. If he does, California will have no choice but to cut spending or default on its bonds. My guess is that, with their backs to the wall, the California legislature will choose the former. However, even if they default, at least the losses will be borne by those who freely assumed the risks. With a bailout, the losses will be shouldered by those who were not even parties to the transactions. If we go this route, we can all say “hasta la vista, baby” to our prosperity.

For a more in depth analysis of our financial problems and the inherent dangers they pose for the U.S. economy and U.S. dollar denominated investments, read Peter Schiff’s book "Crash Proof: How to Profit from the Coming Economic Collapse".
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