July 14, 2009

California: Not Broke Enough!

Now is the time at SDA when we juxtapose!

San Francisco Chronicle - California will report its June job totals later this month. Thursday's bleak federal numbers suggest that the state unemployment rate, already at 11.5 percent, could head higher.

Business Wire - "A new study released today found that small businesses in California will pay an additional $49,691 as a result of the California Air Resources Board’s implementation of AB 32."

It's not a recession. It's suicide.

Posted by Kate at July 14, 2009 12:08 PM

Anthony Watts agrees

Maybe California is secretly run by the New York Times.

Posted by: Fred at July 14, 2009 2:16 PM

California is the US equivalent of the canary in the coal mine...What Barry is doing at super speed to the Republic will soon result in what is happening to Arny's left coast fruitcake state.

Liberalism is a mental desease.

Posted by: Right Honorable Terry Tory at July 14, 2009 2:29 PM

A bleak assessment in the Business Journal for sure.

I can't see this movie having a happy ending what with job losses, increasing taxes, and decreasing services? And not just in CA but the entire USA as well as in most of Europe. Add in a natural proclivity to protect jobs by raising tariffs, thereby accelarating further job losses and it'll be like throwing salt on gaping wounds. It's going to hurt.

Ian Bremner in an essay in last month's Foreign Affairs argues that the world's best hope is for the US to lead by example and return to its embrace of free markets. I agree but I don't see that happening either.

Posted by: PhilM at July 14, 2009 2:29 PM

Holly wood has exported it's production to Canada etc. for sometime now....
I can't help but wonder if, when the Hollywood latte liberals (like Matt Damen) get hit by 95% tax.....will they still hate Sarah Palin??????

Posted by: sasquatch at July 14, 2009 2:33 PM

Its not suicide Kate. Its chickens. Really smelly, really ugly, giant 500lb chickens. Coming home to roost.

My, there certainly are a lot of them.

Posted by: The Phantom at July 14, 2009 2:41 PM

California is doing on a State level what Obama is doing on a Federal level.

Posted by: Fred at July 14, 2009 2:46 PM

Check out Sarah Palin's op-ed, "The 'Cap and Tax' Dead End”, in today's Washington Post. (Sorry, ridiculous as it is, I'm still unsure how to post a link.) She’s thrown down the gauntlet to Obama re energy and his green plans. This is war!!

(In the comments at the WaPo, the lefties are kvetching that Sarah could not possibly have written this article. And they think “TelepromtObama” writes his own stuff? As we know, leftism is a psychological disorder.)

Posted by: lookout at July 14, 2009 2:48 PM

Sasquatch, you know very well that if Ahhhnold and Barry conspire between them to jack Hollyweird taxes to 95%, it will be Sarah Palin's fault.

And Bush's fault, don't forget Bush.

Posted by: The Phantom at July 14, 2009 2:49 PM

Interesting post from Fred's link.

From the book “The end of Prosperity” (a must read) is a description of a US Senate hearing in 1989 in which Senator Bob Packwood asked crystal ball gazers at the Joint Committee on Taxation to estimate the revenues from a 100% income tax rate on incomes above $200,000. (We all know that would be zero, at least it would be from me).

But these government yahoos plugged it into their computer models and replied, in the first year revenues would be $104 billion, 2nd year it was $204 billion and in the 3rd year $232 billion. “Enough to balance the budget.” Packwood was flabbergasted by the response. “Clearly no one will pay all their money to the government”.

This one scenario alone tells us how much disconnect the government bureaucrats and politicians understand about the economy and the human element of risk, reward, work and capital. Because they don’t understand, they will not even stop after they run the economy 6 feet into the ground.

Posted by: Dave at July 14, 2009 2:59 PM

In a related juxtaposition...The LAPD were soliciting donations to cover security expenses at the recent MJ memorial service while Awnie was sending out IOU's to California welfare recipients.

I'll pay you baack!


Posted by: syncrodox at July 14, 2009 3:10 PM

"... The public employees are paid better than their private sector “employers,” not including the estimated and not-yet-funded liability of $200 billion for pensions. ..."

The estimated $200 billion California unfunded pension liability is terrifying , or should be to those living in California.

The population of USA is roughly 303 million , of whom an estimated 61 million pay taxes , or roughly 1 out of every 5 US citizens. The population of California is roughly 33 million .

If the figure of 1:in:5 is used as a rough estimate of the number of taxpayers in California ... it might be higher as California is a welfare state ... that means every California taxpayer ( 6.6 million) will eventually be called upon at some time to pay the $200 Billion , of which each taxpayer's tax obligation due to the unfunded pension liability will be about $30,000 ! Depending on the interest rates and the amortization periods ... say 20-30 years at 5% , this will add another $150 to $250 per month cost for the California taxpayer ... but it could be more if California needs the money at a faster rate as more civil servants retire !

The problem is California doesn't have the money , and is currently writing IOU's , so to try and float a loan or bonds to cover the pension fund will be next to impossible at reasonable rates.

In addition , the union's demands will not moderate which will only make the cash situation worse.

Personally I don't see any via option for California other than to declare bankruptcy and radically restructure the civil service pensions.

California has essentially created a tax ponzi scheme.

Posted by: Brian at July 14, 2009 3:12 PM

Yeah, suicide - where the dead guy stabbed himself in the back 67 times.

Posted by: mojo at July 14, 2009 3:25 PM

"We support the state’s efforts to curb greenhouse gas emissions,"

If they're going to agree with this stupid theory, it sounds silly to complain later about the impact. First, put down the kool-aid.

Posted by: omnipotent percy at July 14, 2009 3:29 PM

Wow, talk about putting words into someone else's mouth.

Posted by: allan at July 14, 2009 3:45 PM

so what poopu?

Posted by: george at July 14, 2009 3:57 PM

ah 'tis true. and the article is dated today.

how the wannabe has fallen.

Posted by: curious_george at July 14, 2009 3:58 PM

A call to Arms of the State Militia & Lockout/Lockdown for Bankruptcy is the only option for California

This call to Arms, of every State Militia, that have their Sovereign rights co-opted by Federal (DC) Communist policies like Cap & Trade, EU Governance, UN interference

Posted by: Slap Shot at July 14, 2009 4:11 PM

Like an alcoholic they have to hit the very bottom before they can start on the road back up.

Posted by: Western Canadian at July 14, 2009 4:25 PM

Lookout,try running your mouse over the address bar on the page that you want to link to. Then right click 'copy'. The next time you comment,right click 'paste' and the link should appear.

Posted by: wallyj at July 14, 2009 4:39 PM

P & cg First it is CNN so who cares. Second maybe she will start a third party. Third look at the number..way too high. bambam only got 53% of the vote and he is a god no less. The media got him elected and they will go to the ends of the earth to prove they were not wrong. Once common sense overtakes the leg tingling I think he is one term toast.

Posted by: speedy at July 14, 2009 4:43 PM

If California is running at 11.5% unemployment of registered American citizens who are entitled to benefits, what is the rate for the undocumented, alien worker? There are millions of the latter who must not be working. Scary California, Halloween has come early and they need 'Jason' to slash his way through the mess that is California`s debt and over taxation of its citizens.

Posted by: fernstalbert at July 14, 2009 4:56 PM

The question isn't whether Palin is qualified to be president now. The question is if she'll be qualified in 2012 or 2016.

Posted by: djb at July 14, 2009 5:09 PM

If Palin isnt qualified then whats the big negative fuss about? Somebody is afraid of her.The same people under estimated Reagan and they dont want to do it again.

Posted by: spike 1 at July 14, 2009 5:24 PM

I've always wondered why those on the left vilified Palin so.

You'd think that if she was the worst possible candidate for the Republicans that they'd be filled with glee and want her to run as she would surely be this enormous liability.

Didn't happen.

Yeah, she's not perfect but everything they say about Palin pretty much applies to the President, and in spades.

Just change the name from Palin to Obama and, frankly, most of the criticism becomes far more appropriate.


A resident of America's Hat.©

Posted by: Dumbass White Guy at July 14, 2009 5:42 PM

Democracy: ensuring you get exactly the government that you deserve since 1000 BC.

Posted by: Kevin Lafayette at July 14, 2009 5:50 PM

Sara will be the next POTUS
Probably the same day they hang the usurper from Kenya.
In a wild party where everyone is armed and free.
But thats just a guess.

Posted by: FREE at July 14, 2009 6:07 PM

Well,Hmmmm, Uhhhh, you could say that California Politicians spend just like drunken sailors.

But. Drunken Sailors only get paid once a month.

Posted by: Ratt at July 14, 2009 6:18 PM

DaWG pretty much nailed it. The Left must be pretty scared to make such a big deal of Palin.

I'd love to see a Democratic ticket of (click at your own risk) Rosie O'Donnell and Michael Moore.

Palin would be no worse than the any of the Presidents of the past 20 years and would be a considerable improvement on some (IMO, Bush 43 was the best).

Posted by: SDH at July 14, 2009 6:23 PM

"Well,Hmmmm, Uhhhh, you could say that California Politicians spend just like drunken sailors.

But. Drunken Sailors only get paid once a month."

Drunken sailors spend their own money. They earned it.

Politicians are like socialists . . . they spend other people's money

Posted by: Fred at July 14, 2009 6:29 PM

In the not too distant future G.W. Bush will be viewed as one of the best along with R. Regan.

Posted by: Rob C at July 14, 2009 6:34 PM

Possibly the small business owners will be able to apply for a grant/bailout from the feds for their survival. Of course,they will have to sign over part of their ownership to the feds ,only fair.I believe that is how it works in ... BTW,I thought this is a thread on California's woes,try to ignore the shrieks from the children's table,they only want attention.

Posted by: wallyj at July 14, 2009 7:04 PM

Obama will get a second term, because when the vote draws near, he will give away free money to voting blocks he needs. Like the LPC, he knows that works every time.

So he wins. Yippee. By that time, being POTUS will be like being Captain of the Titanic.

Posted by: Shaken at July 14, 2009 7:10 PM

Unless something unforeseen happens, Obama won't have any money to spread around in 2012.

He can't afford what he's already spent.

Posted by: SDH at July 14, 2009 7:21 PM

SO if cali goes bankrupt, could Rush Limbaugh buy it?

Posted by: Gord Tulk at July 14, 2009 7:31 PM

Politicians are like socialists . . . they spend other people's money
Posted by: Fred at July 14, 2009 6:29 PM"

well Fred just pegged it big time. ALL politicians are socialists at heart; they ALL spend *other* people's money.

shades of grey, shades of grey . . . .

very insightful Fred; can I use that?

☺ ☺ ☺ ☺ ☺ ☺ ☺ ☺

Posted by: curious_george at July 14, 2009 7:56 PM

"very insightful Fred; can I use that?

☺ ☺ ☺ ☺ ☺ ☺ ☺ ☺ "

use away my friend . . .

Posted by: Fred at July 14, 2009 8:08 PM

A tribute to Margaret Thatcher.

"California Nightmare (Degraded Itself Into a Laughably Leftist Socialist Commie-Think Nightmare)

California has so degraded itself into a laughably leftist socialist commie-think nightmare that it has, as all socialist commie-think countries always do, finally bankrupted itself.

As Margaret Thatcher, erstwhile UK prime minister, once said, "The problem with socialism is that you eventually run out of other people’s money." Hahaha! Exactly!"

Posted by: maz2 at July 14, 2009 8:42 PM

wallyj, thanks for the tip. I did what you said and I've tried it and it worked!

Here's the link to the Sarah Palin op-ed in today's Washington Post:

Posted by: lookout at July 14, 2009 9:10 PM

The thing is if Sara takes a big stand about global warming now, in 2012 when we have freezed for several winters, she can say, I told you back in 2008 it was bull and I was laughed at.

It worked for Obama with the Iraq War! Everyone who is voting for that monstrosity is committing electoral suicide. People will have lived under the bill and seen how onerous it is, and if sunspots have anything to do with it, they will be experiencing below normal temperatures.

Posted by: Another Kate at July 14, 2009 9:37 PM

You're welcome.

Posted by: wallyj at July 14, 2009 10:09 PM

lookout, if you're feeling really adventurous, you can also try using HTML tags to post a link. This comes in handy if you're trying to post one of those ridiculously long links that might "break" the page.

It's really easy.

Check out HTML tags and scroll down to HTML links.

Posted by: Colin from Mission B.C. at July 15, 2009 12:37 AM

In 1996, we traveled to California. My Dad had a brand new Mercury Station wagon, with air cond. that was quite rare back then.

We were caught in an underpass traffic jam. Keep in mind that most cars didn't have AC back then, so most people shut their engines off. The air got so bad, some people were nauseating on the shoulder of the highway. Even insiode our new wagon, the air stank of gas and diesel exhaust.
At 8:00 PM in July, the smog was so think, you couldn't see the next set of traffic lights a block away.

I don't know what it's like today, but I think some of you should take a trip there before you make unfounded comments. they have every rught to be concerned.

Posted by: Smoky the Bandit at July 15, 2009 1:01 AM

PS: Sorry, that should read 1966--not 1996!

Posted by: Smokey the Bandit at July 15, 2009 1:03 AM

You said: we traveled to California. My Dad had a brand new Mercury Station wagon, with air cond. that was quite rare back then.
We were caught in an underpass traffic jam. Keep in mind that most cars didn't have AC back then, so most people shut their engines off. The air got so bad, some people were nauseating on the shoulder of the highway. Even insiode our new wagon, the air stank of gas and diesel exhaust.
At 8:00 PM in July, the smog was so think, you couldn't see the next set of traffic lights a block away.
I don't know what it's like today, but I think some of you should take a trip there before you make unfounded comments. they have every rught to be concerned"

I say:
What are you, some sort of leftard apologist for the uber monkey Obama?

Posted by: bartinski at July 15, 2009 1:29 AM

California is pushing absolutely insane regulations on the trucking industry including:

- NO idling more then 5 minutes, $300 fine min.

- Having to install DPF's on reefer trailer, at a cost of $4000 each

- Soon having to install DPF's on older then 2007 model year trucks, at a cost of around $15,000, never mind the drop in fuel mileage and reliability

- Forcing all carriers to have aerodynamic trucks, regardless of application. These trucks are not suitable for many applications.

- Wide base single tires, which many jurisdictions(especially Canada) have heavy restrictions on

- "Boat tails" at the rear of trailers, which are illegal in Canada due to length laws

I could go on... basically it boils down to California is soon going to be a "no go" zone for trucks.

They can have it. Many firms are looking at having terminals right on the Nevada side, and a switching operation there.

Posted by: allan at July 15, 2009 2:26 AM

From The Economist:

Not that Californian government comes cheap: it has the second-highest top level of state income tax in America (after Hawaii, of all places). Indeed, high taxes, coupled with intrusive regulation of business and greenery taken to silly extremes, have gradually strangled what was once America’s most dynamic state economy. Chief Executive magazine, to take just one example, has ranked California the very worst state to do business in for each of the past four years.

By contrast, Texas was the best state in that poll. It has coped well with the recession, with an unemployment rate two points below the national average and one of the lowest rates of housing repossession. In part this is because Texan banks, hard hit in the last property bust, did not overexpand this time. But as our special report this week explains, Texas also clearly offers a different model, based on small government. It has no state capital-gains or income tax, and a business-friendly and immigrant-tolerant attitude. It is home to more Fortune 500 companies than any other state—64 compared with California’s 51 and New York’s 56.

Posted by: KevinB at July 15, 2009 3:33 AM

California will be a vacuum in the near future, exponentially sucking up more dirt and shit to drag America into its third world liberal dreamland.

The wealth will leave along with industry and the dried up farmlands, the gangs will eventually fully rule the streets. The remainder of the US needs to prepare for mass migration from California, and much higher food costs. Canada seems to have taken a step in the right direction requiring visas from Mexican nationals this week. It won’t help of course, but it’s a step in the right direction.

I wonder what Rodney King has to say about all of this, Just when life was looking so up with his Hollywood appearances as of late? Damn.

Posted by: Knight 99 at July 15, 2009 4:05 AM

"It's not a recession. It's suicide."

That is spot on.

To add insult to injury the Dems in Washington, propose paying for their health care scheme by slapping a 5% income tax surcharge on the incomes of the top 2%. In other words small business owners across America will be taking the big hit.

The next question would be: Will the resulting balance sheets of small businesses be financially strong enough to lead the US out of the current recession?

Their game plan seems to be something like this: First strangle the golden goose, and then jump off the cliff.

Posted by: MikeM at July 15, 2009 5:47 AM

According to a recent article in the Economist, there are really two Californias: the liberal, tree hugging, hybrid loving crowd living in the coastal area between LA and San Fran while the other is the farming, industrious, self-reliant crowd living everywhere else. A splitting-into-two-state argument has been going on since 1851. Understanding that there are fundamentally two distinct groups helps in understanding CA politics.

Posted by: PhilM at July 15, 2009 7:29 AM

PhilM: Not only California politics, but US/Canadian also.

Posted by: Nemo2 at July 15, 2009 8:02 AM

via dalton mcslippery... the californication of ontario.


Posted by: neo at July 15, 2009 12:28 PM

one more time. when the freerloaders at the teat exceed those who actually produce wealth the freeloaders cease to exist. death. they will aqll cease to exist. a society can't keep feeding those who do not produce. we will look after those who are infirm and elderly but if you are twenty and healthy get your ass in gear.

Posted by: old white guy at July 15, 2009 5:38 PM

BC in five to ten years.... their always behind the trends set by Cali....

Posted by: OMMAG at July 15, 2009 9:19 PM

Darnit ... They're....

Posted by: OMMAG at July 15, 2009 9:20 PM

You can call Schwarzenegger a R.I.N.O. if you want, but several years ago he pushed strong ballot measures which would have restrained spending. The labor unions fought against him and won. His political capital was extremely damaged after that point.

Now he is running tough ads telling the people of California that he will veto any tax increases, will veto any budget which doesn't cut the deficit, demanded spending cuts, and refusing to kick the can down the road with debt.

That sounds pretty damned Republican to me. It's about time somebody stepped up and said what needed to be said.

He's taking a lot of flack from the Demon Rats who are blaming him for cuts to education, health care for children, and police and fire departments. He's standing firm as a rock unwilling to compromise the slightest bit. His popularity will dwindle, but his strategy with money pouring down the black hole of the budget every day, the fire is on the feet of the Demon Rats to make radical spending cuts. They simply don't have enough votes to raise taxes anymore.

I live in CA now and I'm getting raked over the coals in taxes, but this budget crisis is the best damned thing that ever came down the pike. People are actually questioning the high costs of labor and benefits for the public sector unions. This is unprecedented in CA politics which has always voted them everything they asked for.

Burn, baby, burn! I smile at every vacant piece of commercial real estate and laugh at every uptick in the unemployment rate. I'm patiently awaiting CA bonds reaching junk bond status.

Posted by: POWinCA at July 17, 2009 3:35 AM