On reading my post of yesterday, a friend emailed asking why CA is so broke. After emailing her I decided to post my answer here.
Why is CA so broke?
And it is $35B or $117B in debt? The $35B number comes from a guy who publishes the CA newsletter I linked to. In GOP circles (I met him @ a GOP meeting) he’s referred to as ‘Dr Doom’. But the $117B number came from a think-tank – also linked… not sure it really matters any more than it matters if the hole for your coffin is 3′, 6′ or 12′ deep – you’re still dead.
Why? In 1977 Governor Brown – last time we hired this idiot – legalized public sector unions by signing the Dills Act. Before then – no deficit. Since then – deficit. That’s why what Gov Walker and Gov Daniels are doing and have done is so important. Public sector unions in non-Right-to-Work states force everyone in that public sector (cops, teachers, firemen, prison guards, etc.) to join the union. Then union dues automatically are withheld by the State (who writes the paycheck). The dues then goes right into the Union political action committee, which immediately bankrolls Democrat politicians, who then give the unions a raise and a better pension and better healthcare in order to get their votes. Then the unions campaign for the Dem politicians, the union members vote them in to office, they give the union a raise… etc., Vicious cycle. Our prison guards make over $100K; high school grads… and in CA that’s not saying much…. $100K. We have over 100,000 public sector employees with pensions of over $100K. I’ll never have a $100K pension. And I have to put my kids through school – AND theirs…. And I can get fired if my work is not merit-worthy, and laid-off if my company goes bankrupt, and I have worked for three startups in my career, one of which did go bankrupt and I was laid off, in addition to being laid-off by IBM after 16 years there when they decided to stop focusing on my industry – digital content (movies and music) at the studio level.
States going bankrupt is purely because of public sector unions, and public sector unions are purely about corruption and vote-buying. Remember – what Scott Walker did was not reject public sector unions – he prohibited automatic dues withholding by the state, making the union voluntary. THAT is why there’s a recall against him and THAT is why they are trying their best to defeat him. In the private sector, unionism is down to around 7%. No reason to think, with RTW (right-to-work) laws and no state withholding of public sector dues, that public sector unions would be any higher than 7%, right? The unions leaders LIKE being millionaires without having to work. That’s what they are fighting for. They certainly have done nothing to protect jobs… especially of women, who have lost 93% of the jobs lost in this recession… but will still vote Dem….
Public sector employees already have Civil Service protecting jobs. Unionism in the public sector is pure corruption. It’s not about tenure or working conditions or hours. It’s pure corruption. Even FDR was against public sector unions, understanding it was pure corruption. But JFK figured out the withholding pass-through of public dues to Dem pols and so made it legal, through an Executive Order overturning the Federal ban on public unions (so much for democracy). Then various state government Dem pols figured it out and today states are going bankrupt all over the place. And it is purely 100% about public sector employees and the corruption of state withholding of union dues to fund Dem politicians. Christie going after public sector unions, Daniels going RTW, Walker ending automatic dues withholding are not sexy, but they arguably are the most important political battles going on in America. It’s nothing more nor less than taxpayer funding of the Democrat Party. So you donate to the GOP because you like their policies, but you also support the DNC through taxes paid for public sector employees – even though you may disagree with their policies. This also is why Obama has increased public sector jobs during the recession while those of us paying the bills are losing jobs by the millions – public sector employees vote Dem. It’s all about power.
See – Democrats cannot win any more on ideas. They have not had a new idea since 1932. Take a look at the recession that Obama and Pelosi have extended and turned into a near-Depression. How did they do that? Well, they inherited a mess (and I’m not going to go into how it was created, but it started with CRA and equal outcomes but then both sides helped it along.) Once in a ditch, what did Dems do? They implemented Keynesian stimulus programs. Just as did FDR. What happened when FDR did this, spent tons (literally) of money? Well, 1937 was the year his Secretary of the Treasury, Henry Morgenthau, told FDR, “We have spent more money than anyone has ever spent and nothing is working.” 1937 also was the year the NY Times labelled “a depression within the Depression.” We are talking four YEARS into FDR’s administration… four YEARS of Keynesian stimulus. The poor performance of the economy was a result of these same Keynesian policies – same ones Krugman swears by and that Obama and Pelosi and Reid have doubled-down on. And the result has been exactly the same: extending the Depression – and concentrating more power in DC. Every european nation not stupid enough to follow Keynes exited the Depression YEARS before America did. By using Keynes’ stimulus policy, FDR extended and made worse a bad economic situation – the same thing Obama and Pelosi have done. But he did concentrate more power in DC, as has Obama – his goal – and the goal of today’s Democrats.
But the Obama/Pelosi/Reid recession really is worse than what FDR did – so far. FDR did not buy major sectors of the economy or just give money to union voters (see above), which is all Obama has done. He understands that enriching union voters and unions enriches the Democrat party. The average voters think he’s just helping along the working guy. Nope – he’s helping ensure a Democrat majority… this is ALL about politics. This is ALL about turning America into a Euro-socialist country.
(FDR, however, threatened to pack the Court; Obama hasn’t done that …. yet. The Constitution does not specify the number of Justices in SCOTUS; FDR wanted to add a few who agreed with him in order to gain a majority after SCOTUS overturned some of his early unconstitutional legislation to combat the Depression through tyranny – Executive Orders replacing legislation, unelected federal bureaucrats telling people what prices they could charge and how to run their businesses (if this sounds familiar – it’s exactly the same as the healthcare debate and Obama’s comment that if Congress doesn’t do what he wants, he’ll just go around Congress… Democrats are totalitarians, root and branch). We’ll see if Dems pursue court-packing when SCOTUS overturns Obamacare this summer – my guess is that they will.)
If Democrats gave a rat’s ass about the working class we’d have better education (see below) and lower energy costs (high energy costs are HUGELY regressive, hitting the working class far harder than anyone else … Democrats don’t care). But the working class continues to vote for them as long as they redistribute my money to their pockets. Welfare, food stamps, long-term unemployment, anti-poverty programs ALL are nothing but vote-buying. Anti-poverty never works, and we have spent over $13T on it from 1964 to 2008, lowering the poverty RATE from 10.8% (1965) to 10.7% (2008, pre-recession) – in absolute numbers millions more Americans are in poverty now than BEFORE anti-poverty programs spent your kids’ future…. and now our deficit is… $16T).
Democrats also have not won a national race since 1960 without getting at least 85% of the Black vote. So they keep Blacks in poverty and bad schools and play the race game (Blacks were moving in to the Middle Class more quickly BEFORE the Great Society than since, btw). All major urban school districts in America have been owned by the Dems since 1945. If Dems actually cared about good education, we’d have good education. But they think the purpose of schools is to ensure jobs for teachers – who are public sector union employees… see above…
Democrats have owned all major urban City Councils since 1945… and every inner city is worse-off than it was then. Where do Dem voters live? A logical case CANNOT be made that Dems care about inner-city residents. They have been proving for 66 YEARS they do not care.
Democrats cannot win without fraud – why they HATE voter ID laws. The GOP has to win bigger than the margin of cheat. JFK won a race against Nixon in 1960 that was closer than Gore-Bush in 2000. (Nixon cared enough about America that, when advised to litigate the election, he refused, saying that America didn’t deserve that, unlike Gore, a modern-day Democrat who cares about nothing so much as power. And I’m not a pro-Nixon guy – I gave my Final Exam speech in college Speech class in the Spring of 1974 on why Nixon should be impeached.) Dead people all over Cook County, IL (Chicago) voted for JFK, often multiple times. His dad bought the votes of the entire United Mine Workers union in W. VA. Everyone knew this. (Interesting side note – do you know where the Kennedy family money came from? Joe Kennedy – JFK’s dad – ran whiskey from Canada during Prohibition. Do you know where FDR’s money came from? He didn’t have enough to fund a presidential campaign, so he got it from his father in law, who made it running opium in China.. even AFTER it became illegal. The money of the two most famous Dem politicians of the 20th Century came from crime. Who is hurt most by crime? The working classes…) This is just like the recall signatures in WI against Walker – Howdy Doody. Mickey Mouse. Goofy. All these and more are on the recall petitions. And the judge tasked with reviewing them and deciding if there were enough valid signatures for the recall? A Democrat, who signed the recall petition (and didn’t recuse himself from the review), refused to invalidate Mickey Mouse, and refused to set a recall election date allowing time for a real review of the signatures: Democrats are corrupt, period. They cannot win without cheating AND THEY KNOW IT.
Basically, there are NO current Dem policies that are geared toward better education, higher living standards (ie more wealth in society), lower energy costs. ALL current Dem policies are geared toward totalitarianism. It is true that many of what we today take for granted are the results of Dems, however. We would not have any of the following without Liberals in the 1960s and 1970s: Clean Air Act, Clean Water Act, seat belts, air bags, crash bumpers… But Classical Liberals – the kind of which Daniel Patrick Moynihan (D, NY) was an excellent – and may have been the last – example, are the antithesis of today’s Democrat Party. Liberalism is the celebration of the individual against the State. That’s today’s GOP. It is certainly NOT the party of Pelosi/Reid/Obama.
Progressivism – Democrat’s current ideology – is founded on the idea that We the People are just too stupid to be able to deal with the complexities of the modern world so need to be ruled by our betters. This is the FOUNDATION of Progressivism. Evidently we’re too stupid to manage ourselves but smart enough to pick from our own ranks one person (too stupid to manage his/her own affairs) who is smart enough to run ALL our affairs… The fascinating thing to me is the numbers of people voting for someone who tells them they’re too stupid to vote (and, of course, the logic of accepting the vote of one who agrees that he/she is too stupid to vote by voting FOR a candidate telling them they are too stupid to vote… their votes should, by their own logic, be invalidated).
Anyway, Progressivism has been tried many, many times. It turned Detroit from the wealthiest per-capita major city in America in the 1950s to the poorest major city in America now, a city in which perfectly good houses cannot be sold for $500 (five hundred dollars; not a typo), in which housing is being bulldozed-under to provide more farmland, in which the dropout rate is 75% and the illegitimacy rate 85%. But they have “living wage” laws,”social justice,” strong unions and stronger public sector unions. Heard of the USSR? Progressivism – redistributing the money. East Germany? Ditto. In the 19th Century there were a few “Progressive” communities tried in the US – share and share alike, the produce of your sweat equally-shared, including by those who don’t go out to the field and sweat – they ALL failed. During the Depression one of FDR’s brain guys formed a “utopian” Progressive community and they bused a bunch of starving people there… it failed. When the Pilgrims first landed they tried Progressivism – equal sharing of everything…. and were starving to death when they decided, nope, let’s try private property. America was born from the ashes of failed Progressivism. Progressive policies have destroyed everything they have touched throughout history, culture and geography. Simply, there are NO historical examples of Progressivism doing anything other than destroying living standards, wealth, education, the environment, families, cities, lives and hope. NO HISTORICAL EXAMPLES OF SUCCESS for the policies for which half of America votes… and now we’re back to bad education… and public sector unions.
Well, you asked about why CA is broke and I’ve gone rather far afield… sorry about that. America is just too important to me and my kids to let the Left continue to destroy it. And that, unquestionably, is the goal of the Left… and of Obama.