Near Bankruptcy, California is running out of options. Now that 37 million Californians are each on the hook for an additional $1,108 in taxes as a temporary fix to cover this year’s $41 Billion deficit, it’s time for a reality check.
Then Democratic Assemblyman Joe Canciamilla told the Contra Costa Taxpayers last year that California Bankruptcy was inevitable if the California Legislature did not make fundamental changes to budgeting, spending, and revenue.
Well folks, the Legislature hasn’t, and California will. Bankruptcy is the next stop on California’s trip to the twilight zone of Socialism in One State.
But isn’t this a typical problem of every State so stop pointing at California, right?
Wrong.
When comparing California to other States like New York—$685 per capita deficit—”There’s good reason why most states won’t fall down the fiscal black hole where California now dwells,” says Steven Malanaga in Real Clear Markets. “[California] is a state whose politicians, public sector unions and advocacy groups have been living in a fantasy world of overspending, investment-deadening taxation and job-killing regulation.”
Malanga says that “Looking out over the state’s prospects and examining the budget deal that legislators have put together (jerry-rigged as it is with revenue gimmicks and unrealistic projections), the only question is who will be begging Washington for more money sooner, the banks, the auto companies or the Terminator?”
There are only two solutions to the problem. California should declare bankruptcy or allow the state to default on its debt and let its lenders start dictating the terms of California’s budget reforms
California is bankrupt in more ways than one. Economically without a doubt. And its leadership is bankrupt as well; with its tired old politics and slogans about change, and the demonization of those who urged caution and less spending.
Look where change got us.