Is There Hope for Califrancia?

Howard Hyde is author of "Pull the Plug on Obamacare," available in Kindle and paperback editions from Amazon.com. More information, bibliography, table of contents and notes are available at his website: http://www.hhcapitalism.com/p/obamacare.html.


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Progressives, liberals and/or Democrats in California may be breathing a sigh of relief, having dodged a bullet on November 2nd, preserving their control over the Sacramento mansion and their representation in the halls of D.C. Almost the entire county got washed clean with the anti-Obama-Reid-Pelosi tea-party backlash, but apparently since even tsunamis can’t travel across continents, so this one evaporated in the deserts to our east before it could reach our shores.

The relief will be short-lived. Yes, they have the power, but it is the illusory power of a Doctor Frankenstein over his monster. The Golden State is still bankrupt to the tune of $500 billion in unfunded pension liabilities and $70 billion in general obligations, hemorrhaging cash and productive citizens, and sporting one of the highest unemployment rates in the nation. The reflexive policy mix of the progressives to resolve these issues – higher taxes, more regulation of politically unfavored entrepreneurs, politically correct environmental programs, larcenous public employee pension benefits – will only make it worse. We are driving toward a day of reckoning that only Greece could envy, and we just dropped a brick on the accelerator.

Economic environments such as states compete for talent, capital and tax revenue the same way commercial businesses compete for customers and sales revenue. Lose your customer base, go bankrupt. Beyond a certain point, the closer any tax rate gets to 100%, the less the activity being taxed continues to be engaged in, resulting in lower overall revenue; that’s the Laffer Curve. Ignore this ‘mere theory’ at your peril.

California is one of the most beautiful, richly naturally endowed places in the world, with an unmatched offering of beaches, mountains, harbors, fertile soil, lakes, and redwood, pine and sequoia forests. Yet increasing numbers of productive people find it more tolerable to live in the barren deserts of Arizona and Nevada than subject themselves to the lordship of Sacramento’s political class.

A generation ago, California boasted the 6th most productive economy in the world, as compared to other nation states; now we’re number 8 and headed lower. Those who think California has some kind of birthright to economic glory that can never end should study Argentina: 100 years ago number 10 in the world but for at least the past 50 years, an unstable basket case.

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  • JBBooks

    Ahhh, California- the breakfast cereal state. Take out all of the fruits & nuts, all you got left is the flakes….

    • eric

      since my previous post was deleted, in response to jbbooks, that stupid comment will reward you with a very nice black eye and rear-end whippin if muttered in Cali. easy for you to say online. whimp.

    • http://www.mysapce.com/freddawes1776/ Fred Dawes

      I have lived here in san diego for many years take out all the people from other states who have moved here over the last 40 years and you would have a real great state, its you monkeys from mexico and the east "coast" and the midwest and the south who have F-UP OLD Cal. the reason why brown is in office now is Big money from other states. in fact most of this country has nothing but monkey Nuts and monkey Fruits, and talk about flakes just look at the midwest ( obama country ) bush country bill country. and who was the last president who didn't F US? AND WHERE WAS WE FROM? OLD CAL. aND BY THE WAY IF YOU HAD THE MONEY YOU WOULD BE HERE IN 0NE DAY.

  • Spider

    The Dems / progressives are now in complete control of our once great state with the election of Jerry Brown and passage of a law to repeal the required two thirds vote for a state budget. Since over two thirds of our legislature is Dem / progressive no Republican input will be needed for any budget. (What ever you do don't let this happen in your state) There is only one problem for the Dems: the public empoyee union pension system is set to implode in two years which will bankrupt the entire state. Who are the Dems going to blame? George Bush – maybe the tooth fairy. And what will they do when this happens? I would almost enjoy watching this unfold if it weren't for the pain this is going to cause the hard working people who live here.

  • USMCSniper

    Governer Moonbeam Jerry Brown will save all of California by raising taxes and with early release of 50% of convicts.

  • Michael

    The truth is you axe out the weather factor and all Califorina has is debt in the billions 50% of which has been generated by "Illegals". They voted back in the very same politicians responsible for that debt. It is "Insanity" to the NTH degree.
    American Christian Infidel
    Michael Canzano

  • NStahl

    Well, when California implodes it can be split up into several smaller successor states. For example, the northern counties can be merged with Southern Oregon counties to form the State of Jefferson. The San Fran bay area counties can become the State of Pacifica. Los Angeles can become its own state. The remaining counties would form a rump California. Pacifica and LA would be goose-stepping progressive cess pits while Jefferson and (rump) California would have the chance to recover from the leftist policies which have run the current State of California into the ground.

    • MMcFM

      We in the conservative counties of California would prefer to split the Los Angeles Basin into the state of LaLaLand, and the San Francisco Bay Area into the state of Californicate. The rest of the state, which votes Republican could then call itself 'the Golden State' and welcome businesses with job through tax breaks, and the lower cost of living. We could have a Republican Legislature, Republican Senate and House members, and a Governor who is one of our own, who shares our values. It sounds like Paradise to me.

      • http://www.mysapce.com/freddawes1776/ Fred Dawes

        LA Is MEXICO CITY West

  • brett

    Being a California native of 48 years and a pre forced busing baby, I have seen the decline of this once great state. We now have a handful of movie libs, a generation of educationally bereft, and immigrants who take pride in scamming the hard working people of this state, not to mention the unions ,who have sucked our state dry morally and financially. I'm getting very close to hitchin' up the horses and moving. It is going to be an ugly day when Moonbeam goes to Washington with his hat in hand. Time to buy up oceanfront proerty in Arizona. 'Go East young man!'

  • jaythehistorian

    The anti-illegal immigration organization FAIR came out with a report on the cost of the resident criminals aka illegal aliens aka "undocumented".. FAIR estimated the cost to state and the Federal governments annually of resident criminals is $100 billion. Approximately 70% of the cost falls on the state and local governments. If California were rid of these criminal parasites, they would reduce their deficit significantly. California would also stop the loss of productive residents and of jobs if the very possible goal of no illegal aliens within California was reached. The pathetic fool, who possesses at most average intelligence ,who currently resides in the WH, is clearly taking his orders on this subject from the tin-horn dictator in Mexico City.

  • Spider

    You are right the last census showed a net loss in population from California. So much in fact we will lose a congressional seat. But that is only half the story. The census also showed nearly all of those coming into the state are hispanic, read "illegals" and the ones leaving are successful high earning whites. This shows how bad the outflux is because the "net" loss outweighs the thousands of illegals coming in. Our state will indeed be left to the "parasites" who will keep voting more and more benifits for themselves at the expense of less and less productive people.
    They come here for the great welfare bennifits and the free houses courtesy of Barney Frank.

  • http://www.shugartpoliticalaction.shugartmedia.com/index.html Tar_n_Feathers

    Heard on the Dennis Miller show: The only difference between California and the Titanic is that no one on the Titanic voted to hit the iceberg.

    • Skater geezer

      California voters should be subjected to a mandatory IQ test. Those with IQ below 65 shoud be disfranchised.

  • Popcorn

    I read that California is now borrowing 40 million dollars A DAY to pay unemployment and other gravy train entitlement welfare type programs. The Golden State is deeply tarnished. The deficits and debts are in the billions. The state is run by super liberals who now only need a majority vote to increase taxes and more spending, more ruinous anti business and anti manufacturing restrictions and regulations. The libs have created "sanctuary cities" for illegal alien criminals and have rolled out the red carpet for illegals thereby. California has lost millions of jobs too. The state population is at crisis levels, but let's not think about that. The fruitcake left is entrenched–watch it further the decline and fall of this once wonderful land of orange groves, aerospace industry, great cities and beaches, parks and forests….NOW LOOK AT IT!!! The gangs, the crime, the trash and over crowded cities…..it's very sad.

  • Armando

    Waht can I say. I cry for you California.

  • M Rob

    All working people who pay taxes should move out of the state of CA and leave the chips fall where they may. Let them wallow in their own cesspool and then maybe they can rejoin with the Mexican cesspool next door – believe me the rest of the country could care less what happens to CA – you reap what you vote for.

    • Spider

      Not all of us voted for this catastrophie. I am one of the people that the Dems / progressivs consider a natural resource to be exploited for polotical power.

  • Bud

    If the state of California do some changes then possibly the state wouldn't be so bad off. Sugguestions: All people pay state and federal taxes. Public assistances for only the citizens and legal. Everyone pays into Social Security including the undocumented and illegals. The illegals and undocumented cannot collect any Public Assistance nor Social Security until they become a legal citizen and their children do not become citizen even tho they were born in the US therefore they aren't eligible for any public assistance nor Social Security either. Legal Minor children must have their legal adults apply for any Public Assistance and Social Security Benefits and all unearned and earned income and property limits must not exceed certain limits. Also that all people that apply or receives Public Assistances must do Community Service unless totally disabled and or handicapped proven by Medical Doctors. If they are disabled or handicapped they must pay back Public Assistances over time. This should handle a lot of the dead beats that just sit either drink or do drugs.

  • Guy Forester

    Another problem is that there was a news article a few weeks ago that California with 12% of the US population has 33% of the welfare costs in the US. As for the previous comment that in 2 years we will be broke when the pension stuff comes due, well we are broke now. The only good news is that when the reality of this hits home, the clowns in office won't escape the blame. Unfortunately, the stupid electorate, especially the dead people and illegal immigrants will vote for the same criminals all over again. You and I that used to care about what went on and kept voting, working and paying taxes will be blamed. Kind of like when Hitler led Germany into ruin and then said the German people let him down. First chance I get, I am out of here. I used to love this place, but not any more.

  • Ali

    When I was a kid, everyone wanted to visit or live in California. Now, I see ads run here on the East Coast with Gov. Schwarzenegger and Maria Shriver almost begging us to visit. What a come down!

  • pagegl

    For the most part, California is wasted on Californians. I was born there, I went to high school there (back when its educational system was one of the better in the US), and there is no way I would go back except to visit and that is becoming less likely every day. Now, if we could just get the liberal Californians who have moved to Texas to go back we might improve both places. Well, one for sure.

  • Patriotrick

    Look on the bright side of this situation. If the state implodes as some predict the final undeniable example of Lib policy failure will be there for all to see!

  • http://alipac.us VivaLaMigra

    Gee, when California goes Belly Up, will the worthless feds decide it's time to do something to secure the border? All of the libtards who pandered to illegals can go back to Mexico with them….. if they're so concerned with "Hispanic" people,…well, there are 120,000,000 of 'em down there.. Oops, I forgot…there are only 105,000,000 actually in Mexico..the other 15 million are illegally in the US!

  • Jimi

    Ah, please keep it up! You are all doing what I wanted. Talk down California and pack up and LEAVE!

    I voted for Brown because he will sink California quickly. Too much dealing and can kicking down the road from Arnold.

    My goal is for the rest of the job producers to leave. Then the state revenues will drop to nothing. Then the welfare checks/WIC/housing and all the other goodies will end overnight. THEN the poor will leave. It’s their turn as most of the job producers have alrady left or are packing the moving vans.

    My goal is for 10~15 million to just leave my beautiful state. Don’t let the door hit you on the way out. AZ, NV, UT, OR, WA are all nice and still offer illegal aliens bennies. I suggest you all pick one and go there. GET OUT OF MY STATE!