The world knows of California’s unemployment, spending, and budget problems. With over $1 trillion in public debt, the Golden State’s fiscal situation is surely challenging. Amazingly, a giant gift was laid at California’s doorstep in the form of abundant oil fields accessible by fracking. Rather than promote the budget-soothing jobs and the tax revenue that comes with it, California Democrats have lined up to stop it.
California is the land of misplaced priorities, highest-in-the-nation taxes and even higher regulations. Recently, the California Public Policy Center, relying primarily on official reports prepared by the State Controller and State Treasurer, determined that “the outstanding debt owed by California’s state and local governments, using responsible actuarial assumptions, is almost certainly in excess of $1.0 trillion.”
That $1 trillion in debt compares to a state economy of approximately $2 trillion and a state budget of about $100 billion. Much of that debt is unfunded pension and medical liabilities for government employees – a problem that is getting worse, not better.
To make matters even worse, California’s reported unemployment remains among the highest in the nation. It is important to remember that the unemployed pay fewer taxes and use more government benefits. The best way to reverse that dynamic is with a growing economy.
So what is California to do? Apparently kick a gift horse in the mouth.
Here’s a couple of quick videos that the Cali Democrats should watch:
Safe, clean, effective, cheap and plentiful. Unlock it.