Folks, we’re talking about the #1 and the #8 economies on earth. Broke. Tapped out. Indigent. Though both economies have their unique reasons for failure, generic economic malfeasance is universal.
Not to oversimplify, but the U.S. as a whole went down due to greed, corruption and bufoonish mismanagement assisted of course by Washington. Yes, the ones that we hired to watch out for us while we conducted the business of our daily lives. We left it up to our elected representatives to keep the republic intact and sound the alarm if anything went awry. Clearly they’ve failed at this, and if enough voters are paying attention something can be done about that in 2010. Washington is part of the problem, not the solution.
Barack Obama isn’t making things any better by finishing off what was once one of the greatest economies known. What happened to the U.S. could have been averted, but even if not, we still could have recovered with a sound fiscal plan. Yes, that plan would naturally have to debated. Instead we got a ram-rod stimulus bill and biggest deficit in history. Even Obama admits, “We’re out of money”. He still has plans to spend (how is a good question), with questionable rosy economic predictions to validate his ludicrous spending spree. Incredibly, he’s still talking amnesty, with “debate” coming later this year. We’ve seen the kind of debate the current lopsided Congress engages in.
With millions of Americans out of work and the fed just printing another trillions dollars of worthless money, the pain is about to get more acute.
It’s already acute for the hapless citizens of California. Facing a 20+ billion dollar deficit, the state now has no choice but to make drastic cuts. Ahhnold has already proposed cutting off welfare and insurance for those who can’t afford it. That’ll knock out plenty of illegal aliens, but unfortunately, Americans will be caught up in the net. California doesn’t distinguish between the two. That is actually one of the problems in the state. Spending on services for illegal aliens range from $10-13 billion, and there are more takers on the way. Combine this with the number of tax paying Americans leaving the state, and the deficit now is sure to balloon.
In fact, California just passed a budget for this fiscal year that cut services and raised taxes substantially. This was to offset a $42 billion dollar deficit. Now it’s only 20+. The socialist policies that have chipped away at the state for decades has come back to haunt.
Now, painful cuts are inevitable. This could have all been avoided, but the socialists in Sacramento have fouled the once great state to possibly, the point of no return. California is not likely to return to its former glory in our lifetimes, but hopefully the 8th largest economy will not drag an already crippled U.S. economy down with it.
I’ll throw out my suggestions over the coming days and weeks, but I can put it all in a nutshell: Nobody is too big to fail. We can rebuild.
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