Everywhere you go these days you hear about the financial troubles confronting the government of California. Recently my cousin, who lives out west, sent me an interesting and revealing email that exposes part of California’s fiscal problem, and that is massive abuse of their generous welfare programs. Take a look at the attached video for part of the answer to the financial chaos on the West Coast.
The new Governor of California, Jerry Brown (D), who has been called Governor Moon Beam, has a near impossible task on his hands, because the State legislature is so dependent upon unions and welfare crowds continuing to support them it will be extremely difficult to make the necessary cuts in appropriations without causing uproar from the recipients of California’s lush welfare programs and excessive pension plans.
Problems facing California are identical to those facing many other state governments, and none of them can continue passing the buck to the next administration. As people and corporations flee states where taxation continues to climb they find themselves in a Catch-22 dilemma. Tax revenues are bound to decrease as citizens and corporations leave the State. Unemployment will increase, and home prices and sales will correspondingly drop.
Ultimately the citizens of these financially desperate states actually are responsible for permitting this condition to occur. The prescription necessary to solve their financial problems will be bitter, and the medicine must be taken for years to come.