Friday, November 7, 2008

It's the economy stupid!

The US economy is suffering and even more so in California. California is faced with dramatic budget over runs and Californian’s are too stupid to recognize it. Citizens in this state voted for more spending and tighter restrictions on business, what morons. The Sacramento scene was not changed for the better by the voters. The same people that got us into this mess and exasperated it are back. We could have had more conservatives to do what is necessary but we failed. We failed to present the facts and that our candidates are the solution.

I have warned our candidates and their supporters and the CRP that the huge economic disaster we are facing is not recognized by the people. Our job has to be to bring out the severity of the situation and then present solutions. We must hammer home the severity of this crisis and that it is up to the people to make the changes to fix things and prevent future bankruptcy of our state.

The reason for the state’s revenue being down are two fold. First the unnatural inflation of property values was not checked. Property values went up, revenue went up, and Sacramento was spending more and more. When the unnatural boom tanked and property values dropped revenues dried up and our deficit loomed to unimaginable heights. Plus Sacramento’s anti-business laws have chased companies to leave our state in droves and kept new ones from setting up businesses. This anti-business attitude of Sacramento has to stop and stop now.

At the moment there is precious little that can be done about property values. Even with the down turn in values, very few people can afford to buy houses. Prudent formula for being able to buy a house is, it can not cost more than three times a house hold’s income. This means that to buy a very small house (about $200,000.00) one needs an income of $66,666.67.

We can do something about the business climate in California. By ending the ridiculous restrictions off shore drilling building new refineries, California will be able to raise huge amounts of revenue from the oil industry. Environmental restrictions are the biggest barrier to the expansion of business. We need to get realistic about this. The only people that can live in pristine ocean view mansions are those that have more money than they know what to do with. They (like B. Streisand and other spoiled rich brats) don’t care if California becomes barren. They can afford to have their eggs and other things shipped in from other states and other countries. The rest of us can’t. Our gas costs more because we have to have special formulated gas and diesel (twice a year). Our cars cost more (and will even more in the future) because of the emission doodads that California demands. That needs to stop. We must make it easier for new business to move to California. We must give business incentives to pack up from other states and move here. We have to get rid of the many (and duplicate) licenses now required of small businesses. Reduce the state sales tax expense of living here by removing sales tax from fast food and all labor. These measures will actually result in greater revenues and more prosperity.


We must repeal automatic escalation of funds for existing projects. All on going projects must be reviewed and funds allocated based on expected revenues. We must stop issuing bonds, except for emergencies, for new projects. If revenues can’t cut it, we can’t have it. Operating costs must be cut. There are plenty of unnecessary expenses the can and must be cut. We should start with legislator’s perks.

I am interested in your opinions and solutions to our economic mess

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