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Quote by: Technosoul "if we do not invest in our self then no one else will want to invest money here" (meaning private businessmen). |
Guess who they'll be the slave labor for this? Yes, the private sector. Oh well, we already lost a ton of companies to other states/countries. Who cares if a few more leave?
Schwarzennegar is guity himself of helping this problem. Instead of truly making cuts after Gray Davis left, he encouraged people to override the California State Constitution and take out long term loans, at high interest rates as well. The California State government is bankrupt and once people realize they aren't getting their money back, there won't be any more suckers willing to pay to help support it. I'll be interested in seeing what happens when they simply stop being able to pay people with borrowed money. Likely they'll say it's an emergency and expect ever more resources be thrown into the black hole of Sacramento.
http://www.pacificresearch.org/press...5-12-08aa.html
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This locked California into obligations that were only sustainable with the tremendous tax-revenue growth of the late 1990s. Predictably, the influx dwindled after the dot-com bust but the obligations remained, leaving the state with massive annual deficits. Papering over these deficits with substantial borrowing was the second mistake.
Instead of making needed spending cuts to balance the budget, bonds were sold for fast cash. While Wall Street bailed California out, the state continued to sink in fiscal quicksand. By 2003, the $38 billion shortfall pushed the state to the brink of insolvency. Not surprisingly, creditors lowered the state’s bond rating to just above junk bonds. Though the credit rating has improved,
it remains last among the 50 states. These poor ratings mean California must pay billions more in interest.
..."
I just saw another article claiming that the same idea of borrowing our way into prosperity is going to be attempted for these projects as well.
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Quote by: Zeebadee I think Arnold is just pissed that the people of California didn't pass his initiatives so he's going to give them exactly what they deserve. He's going to finish off what Gray Davis started and totally bankrupt the state. |
Ummm... what initiatives has he supported that
didn't get passed? He's been given most everything he's asked for. Admittedly the legislators here might oppose him on many things but he's simply bypassed that and had initiatives passed to change the state constitution instead. I don't see how anyone can not blame a lot of this debt on Schwartzeneggar himself. He's the dang governor. He could simply veto everything the legislation hands him until they agree to cut spending but he hasn't done that. He was elected by popular forces to stop this spending spree and now he's the one proposing the stuff! The media jumped up in support of him as soon as it was realized that McClintok would likely have been governor if Schwartzeneggar hadn't jumped into the fray under the Republican banner.
I can't guarantee McClintok would have followed through on everything but he's been a strong proven fiscal conservative (but truly rather libertarian ... he supported decriminalizing marajuana for example) in the legislature for over 25 years and Republican support was consolidating around him quickly before the Schwartzennegar campaign blitz by media. You could hear the agonizing pain from many conservatives here for almost a month over whether or not to fall behind Arnold instead.
Something I thought that was extremely heartening though, was that McClintok, during a very large televised debate in CA that included Arnold, was seen as having very significantly won the debate by a large majority of viewers. Arnold simply hijacked his platform and said he'd leave McClintok as a consultant. I seriously doubt that after over 25 years battling it out in Sacramento that McClintok would have swung into proposing long term debt and new public programs like Arnold has.
(Yes, as is obvious, I'm still a bit upset over how the Davis recall turned out
)