California Crisis Previews Our Own

by Ryan on January 29, 2010

in Economy

News came out today that California is going to have to cut up to $9 billion from its budget or be broke by March, leaving them with no money to run the government until April when a fresh load of taxes start coming in.  The constitution in California makes each proposition have the power of a state constitutional amendment, essentially meaning that there’s a lot of waste which the government is legally bound to fund unless repealed.  It’s a mess no one seems willing or able to take-on full force, so it’s especially ugly compared to other states.

Unfortunately, this where the future of our nation may be headed.  First of all, I believe that the biggest bailout in US history will be the approaching bailout of California — a state which will be deemed “too big to fail” and will require the 49 other states to flip the massive bill.

But the larger issue which ALL of us will have to deal with is the impending Entitlement Crisis, in which California is mired at the moment.  Every sane person believes we must trim down government, but no one is willing to say what they will cut.  When anyone makes a suggestion, they are either rhetorically shouted-down or everyone starts whistling past the proverbial economic graveyard.  Nationally, the day of reckoning is coming:  Social Security and Medicare are still able to sit up but are nonetheless on life-support; a major attack or war could easily slam down the accelerator to bankrupting the nation; a potential new health care entitlement will send us into an imminent debt death-spiral.  There’s no one left to bailout the United States herself.  Where does that leave us?

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California Failing, and National Sercurity « Budos World
January 30, 2010 at 5:21 pm

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