Wednesday, February 1, 2012

Making of a Third World State


I live in a geographical area that millions of people around the world think is a slice of paradise on earth.  California has one of the largest economies in the world and is  probably the most innovative technology area in the world - the birthplace of the information technology industry and several other industries such as bio-technology that are transforming the way we live, work and play.  In addition, southern California has a climate that is probably the best in the world and the sun shines probably 300 days a year and you can live comfortably near the coast without the need for heat or air conditioning.  Sounds like a place out of the movies - surfing, boating, hiking, biking all years round .........also a celebrity heaven if that sort of thing excites you.

Unfortunately, it is going broke.  It was announced yesterday that the state will run out of funding in 45 days.  How could this happen?  There are a number of factors at work but government mismanagement would have to be the prime culprit.  California government has been dominated by the democratic party for the past thirty years.  Its decline can be traced to the first administration of the current governor, Jerry Brown in the 1970's, when government grew in the numbers of employees and in business unfriendly regulations.     I have written in this blog previously of the state's decline in detail and it is a story of liberalism gone amok among the palm trees.   In my family's social circle of friends almost everyone works for the government as teachers, bureaucrats, police officers, etc.  It is estimated that California has absorbed 10-20 million illegal aliens in the past twenty years most of whom remain un-assimilated into society but are a significant budget factor in health care, schools, roads, etc.  I don't blame the illegals for trying to have a better life but when a state is bankrupt and many of its native people are unemployed, how can you handle millions of people using roads and other government services that must be paid for by the taxpayer?

Liberalism or socialism is based upon the principle that you can take money from the rich and middle class and redistribute (through government) and give to the poor.  Unfortunately, for California many middle class and rich people are moving out of the state.  People are voting with their feet.  Onerous regulations and high taxes are forcing companies to move to other states or offshore production.  The tax base therefore is dwindling as well as potential jobs.  Additionally, the government payroll is never cut with hundreds of thousands of bureaucrats doing jobs not required or that could be better performed in the private sector. The public schools in most areas are abysmal while teachers are among the highest paid in the country.

Yesterday, the government released the urban areas in the US with the highest unemployment. When people think of this current recession ongoing since 2008 they immediately think of Detroit, MI or another Rust Belt area.  Eight of the ten cities below are in California and one other Yuma, AZ is on its extreme southeastern border.  Unfortunately since so many people who vote in California are either ideological liberals, government workers or recipients of the largess of the taxpayer, the same liberal politicians are reelected and the downward spiral continues.

California is on its way to becoming another Mexico with enclaves along the Pacific coast of wealthy and self absorbed people surrounded by millions sinking into poverty and inland areas destined to have high unemployment for years to come.    

The state is so ideological to the left that President Obama is guaranteed to win the state in the next election even with the statistics below.

Highest unemployment rates December 2011

El Centro, Calif. 26.8
Yuma, Ariz. 23.1
Merced, Calif. 18.7
Yuba City, Calif. 18.1
Visalia-Porterville, Calif. 16.2
Fresno, Calif. 16.2
Modesto, Calif. 16.1
Stockton, Calif. 15.9
Hanford-Corcoran, Calif. 15.3
Ocean City, N.J. 15.1

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