While there is no certainty that the federal government will involve itself in the financial disaster that California politicians have created, given the rest of the financially insane and irresponsible behavior of Congress and the Administration, it would not surprise me at all if they did. What has happened to California is just the predictable result of trying to create socialistic programs without regard for how to pay for them. Now that they have run up enormous deficits in the billions of dollars, they want the rest of the country to help them pay for it. Further, this financial bailout would only address the current deficit and would not deal with the problem that is creating the deficit in the first place.
This scenario becomes even more bizarre since they are talking about asking the federal government for money that the Federal Treasury doesn’t have either. Californians want the federal administration to borrow more money to pay for their debt because California can’t get the loan on their own. The federal government is already borrowing hundreds of billions of dollars just to pay the interest on their own current debt and now some in Congress are considering borrowing even more to pay for debts of one of the sovereign states. That would mean that all of us, in the other independent states, would have to be taxed to pay for those debts run up by the people of another state while receiving nothing for it. This is so outrageous, crazy, and beyond any logical economic explanation that it is hard to conceive that some are seriously considering it.
People ought to watch the California situation closely, because it is a wonderful model for all the things that go wrong with socialistic programs and why they don’t work. When people’s compassion leads them to spend everyone else’s money on benefits for which they are unwilling to be taxed, the bill must come due at some point. The longer this imbalance is prolonged, the more magnified the problem becomes. There is only one solution to the problem. Government must stop spending. Taxing more won’t solve the problem either, because when taxes become excessive both business and citizens will leave the state. This has happened in a number of states over the last few decades. It has even happened to entire countries.
Having said all of that, why then does California and the Federal Government continue down this crazy path? You can form your own conclusions, but all signs seem to point to the lust for political power and control. Governments always seem to suffer from this disease. The only solution is for the citizens to take that power back, remove those who are trying to steal power from the individuals, and vote for representatives that support their beliefs in limited government, personal responsibility, and freedom of choice. We will see if that message begins to sink in before the 2010 elections. Those individuals and states who are unwilling to take personal responsibility for their own lives must suffer the consequences.
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It seems all we have in Washington are idiots. These people are suppose to know what they are doing and if they do not, they can get people to advise them that do know what is going on. Some many liberal (Democrate and Repulican) have the Motto, " If it feels good, do it" and hang the consequences. I had to pay a lot of taxes last year and do not think I can take and increase. Reagan cut taxes and over the next four years, tax revenue doubled to the Federal treasurey. California is one of our most liberal states and almost ran all of the big buisness out of the state. With so many give away programs, people lose incentive and productivity goes down.
ReplyDeleteThe Health Plan is going to cost another $1,000,000,000,000 over the next 4 years. How are we going to pay for it. How will you feel when they start rationing health care, and you do not get the care you need because some buricrate decides you do not qualify. It is said, the government that can give you everything, can take away something, which they will surely do at some point in time. We need to take back our constitution and get rid of all our elected offical in Washington and start over beginning with term limits.