Sunday, May 9, 2010

California, Greece & The US - Fiscal Lunacy

California has been voted the 51st worst place to do business, even lower than the District of Columbia, by the CEO's of 650 companies surveyed by Chief Executive magazine. Characterized by the magazine as the Venezuela of North America, it should be no surprise that bankrupt California would rate so low specific to the state's business climate. Texas was rated the number one state to do business; also no surprise. California is the nation's least business friendly, highest taxed and most regulated state in the Union followed by New York, New Jersey and Michigan, which have also been run by Socialists for years.

To make matters even worse, the Socialists that control Sacramento along with RINO Governor Arnold Schwarzenegger, enacted Assembly Bill 32, the Global Warming Solutions Act of 2006, California's version of Obama's CAP & TAX Socialist Scheme. It is estimated that this new law will cost California a million or more jobs as a result of much higher energy cost in the state. In fact, AB 32 will result in $3.7 billion in higher gasoline and diesel fuel costs along with a 60% increase in electricity costs. This legislation will add $50,000 to the cost of a new home and cost $143 Billion for CAP & Trade Auctions. This is a JOB KILLER and will result in even more jobs and companies leaving the state, which will mean even less tax revenues to California that already has a $20 Billion budget deficit.

Like Greece, California is an economic basket case not because of free market capitalism; but because of Socialist Schemes. Public employee unions and their supporters in the legislature have bankrupted the state. Of course, the unions are pushing for even higher taxes to support their bloated salaries and pensions. And, the unions are also pushing for legislation that would prohibit cities from filing for bankruptcy as means of abrogating union contracts.

The business climate in California is so bad that seven California metro areas were among the top 15 national leaders in commercial bankruptcy filings in 2009. California also had twice as many personal bankruptcies as any other state in 2009 when it ranked 11th in bankruptcies per capita. It is no coincidence that business friendly Texas, the world's, 12 largest economy created 70% of the new jobs created since 2008. Texas also gained 848,000 new residents in the past decade while California lost 1.5 million residents. People and companies are voting with their feet to escape the fiscal lunacy in California.

Sadly, Socialist President Obama wants to turn the United States into bankrupt California, or Greece by bringing European style Socialism to the US. And, now American taxpayers will be bailing out Greece through the International Monetary Fund. We definately have to take back our country in 2010 and 2012 by electing Conservatives committed to free market capitalism, limited government, lower taxes and less regulation, real energy independence and health care reform, a strong national defense including the fight against Terrorism, term limits, the right to bear arms, the sanctity of life and family values. Most important, we must elect Conservatives committed to the Constitution as written by our Founding Fathers, not as contrived by our current Socialist President, former Presidents, Congresses or the Courts. To prevent the bankruptcy of the US, we must take back our country. We can do it. We must do it for the sake of our children and grandchildren.

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