Thursday, January 17, 2013

California, Unsaved, Speeds Toward a Wall of Debt

Scanning all the news articles, I thought things were better.  But Forbes really has its head about it.

This touches on perhaps the biggest challenge to the state’s fiscal health: Democratic supermajorities in both houses of the state Legislature, combined with Democratic control of all constitutional offices. With Republicans now irrelevant, Democrats can raise taxes and ramp up spending at will, meaning that the cycle of artificially produced fiscal crises will speed up, with a legislative majority committed to the endless growth in government and the protection of public-employee pay and privilege at all costs.

Until California’s leaders tackle the state’s enduring debt issues and view the private sector as the generator of economic growth, rather than as a means to fund government, California’s next fiscal crisis will always be just around the corner.

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