California Is Too Big To Fail

Opinion by Gilbert Mercier, NEWS JUNKIE POST

California has a $24 Billion budget gap, if this monumental problem is not addressed in July the Golden State will be effectively bankrupt.

If California was a country it would be the 8th largest economy in the world, one out of every eight Americans lives in California. The stated holds 55 electoral votes. It is also America’s bread basket for fruit & vegetable crops. President Obama should keep that in mind before refusing Federal financial help to the State, or he could have a bad surprise when he runs for re-election in 2012.

According to a statement made last week, the Obama administration is not willing to help. It appears they do not want to set a precedent because they have other troubled states begging for bailout money from the Federal government.

The real problem of California is a systemic one, namely the legislative structure. The Golden State has to come up, urgently, with a massive legislative structure reform. What makes California practically impossible to govern is the 2/3 majority needed in both Houses of the State legislature to pass a budget or raise taxes. This predicament means that the state is in constant gridlock unless the Democrat majority, some Republicans, and of course the Governor Schwarzenegger agrees. The problem is that they usually don’t agree on much of anything. The Democrats drag their feet on budget spending cuts, and the Republicans block any tax increases.

The only way out of this crisis is to do both: Cut spending and increase tax revenue.

What is even more disturbing is the lack of solidarity towards California from other Americans. A recent Rasmussen poll found that 66% of voters nationwide opposed the Federal government guaranteeing California’s loans. 48%, in the survey, even went further by saying it would be better to let California go bankrupt than to hand the state a Federal bail out.

Letting California collapse financially should not even be an option for anyone, especially not for President Obama. In the long term, when he seeks re-election in 2012, if he doesn’t win California he will not win the White House. Just something to think about before he says “no” to some form of Federal bailout help for the Golden State.

Arnold Schwarzenegger as Mr. Universe

Arnold Schwarzenegger as Mr. Universe

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6 Responses for “California Is Too Big To Fail”

  1. Vote -1 Vote +1nic miller
    says:

    So let me get this straight;
    California views the rest of the country, especially the Mid/Mountain West, as a bunch of ignorant gun loving rednecks. Deride us for being intolerant, selfish uneducated morons. Trash us for not supporting gay marriage, welfare, government in general, etc.
    Your politicians promise you the moon and attempt to provide support for every Tom, Dick, and Harry who is too lazy to get a job. Spend untold amounts of money on special interest programs for every group that has ever so much as had their toes stepped on.
    And now you expect the rest of us to pay for your mistakes and sins?
    You must be crazy. Californians made the mess. Californians can clean it up.
    And maybe next time you talk about the rest of the country, you won’t hold your head so damn high. Pull your head out of your rear and realize the rest of the country sees California for what it is; the biggest cesspool in the nation. There is a reason a majority of the rest of the country voted not to extend financial aid to California, the same reason many in the Mid/Mountain West and sout voted against the initial round of bailouts. We are tired of bleeding heart liberals fork out cash to anyone and everyone and then acting surprised when they can’t deliver on their financial obligations.
    America is built on a tilt and everything loose slides to California.
    Some country bumpkin from Missouri by the name of Mark Twain said that over 100 years ago and amazingly it stills holds true.

  2. According to the New York Times yesterday, the states with the highest percentage of people who watch porn on web pages are Southern states; and the states with the highest divorce rates are Southern states.

    California puts a lot more money into the U.S. Treasury than it gets back. And, as the article says, California is easily the biggest food producer of any state. That comment above merely shows how true the article is.

  3. Vote -1 Vote +1carly davis
    says:

    As a native Californian, I’m disgusted with the welfare state that California has become. Over 40% of the residents of Los Angeles are on welfare, and other cities don’t fare much better. Cradle-to-grave welfare has become the norm, and free services to illegals is galling. Many of the residents of the “real” California–the center of the state and east are tired of supporting everyone and everything on ever shrinking paychecks. But the coast of California–from San Francisco on south–is the heart of the liberal California that the rest of the country perceives as what California is about.

    I fully supported the Governor’s original budget to cut social services, particularly to the illegals and to people caring for their own family members, as well as career welfare receipients, but the liberals will never let that happen.

    So the plan apparently is to just keep taxing the people that still have jobs until either the people or the jobs are gone.

  4. Vote -1 Vote +1paul
    says:

    The answer to California’s problems are pretty clear. – these will fix our problems in the golden state.
    a. re-write the constitution so no 2/3 majority is needed
    b. call for special election to oust Swartzenegger who powergrabbed during a special election of his own.— who apparently has no problem cutting services for childrens’ welfare, school programs, mentally ill. (shame on him)
    c. increase taxes on automobile registrations, put toll fees’ on highways so the biggest users’ pay more – that is only reasonable isn’t it
    d. tax the wealthiest at a higher rate – we all know it is the right thing to do…

  5. Vote -1 Vote +1Gomes
    says:

    Paul above me is an asshole

  6. Vote -1 Vote +1mike
    says:

    They need a million jobs quickly. They are the Tech Capital of the world. They produce an incredible ammount of food. Where are all the tax dollars going? We need work at home options for those who do government work. They can save on light bills by the billions. It’s not such a crazy idea. Workers would be happy. Anyone with a laptop can work from home. The city phone numbers can be forwarded to a cell phone instead of an extention. It’s better than any more job losses or forclosures. California could head the way for job creation.
    If you have a good idea you should post it. We need all of these creative minds to come up with some new ideas.

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