The major difference is that California has an even bigger budget deficit than its Balkan cousin.
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At 11 percent, California has the third highest unemployment rate in the nation, behind only Nevada (12 percent) and Rhode Island (11.1 percent). The budget is a mess, and Governor Brown is proposing to address the problem with a method — raising taxes — that has already been tried and failed (unlike in New Jersey, where Republican Governor Chris Christie has balanced its budget without raising taxes). As the Wall Street Journal noted, California’s tax receipts are more than 20 percent below prior projections while “state tax collections were up nationally by 8.9% last year…and this year revenues are up by double digits in many states.” It’s no wonder the Navajo Nation has a higher bond rating than the once-great state of California.
So JPMorgan makes a $2 billion mistake — less than 7 percent of their 2011 earnings — with their own money, and senators are calling for hearings. The California’s governor’s office raised its 2012 budget deficit projections — namely their overspending of public money — almost 50 percent, from $9.2 billion to $16 billion, an error of almost eight percent of the state’s total budget, in four months, yet those same members of Congress remain as silent as a Trappist monk.
The California budget mess is playing out in the news today. It will be a difficult fight for economic rationality in a state that has largely accepted, to quote Arthur Brooks, European-style “learned helplessness” instead of the historically American goal of “earned success.”
If you enjoy this movie, take heart, there will soon be a sequel: Illinois’ state budget website says that “Illinois faces a budget shortfall of more than $11 billion… Spending growth consistently exceeds revenue growth [and it is] getting worse each year.”
A man of faith in a godless age is hitting Americans where it hurts.
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
In Britain, defending your property can get you life.
The debacle of this president’s administration is both a cause and a symptom of the decline of American values. Unless Congress impeaches him, that decline will go on unchecked. An eminent jurist surveys the damage and assesses the chances for the recovery of our culture.
It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
The American Christmas, like the songs that celebrate it, makes room for everybody under the rainbow. Is that why so many people seem to be hostile to it?
Was the President done in by the economy, or by the politics of the economy?
H/T to National Review Online