In Case You've Wondered

My blog is where my wandering thoughts are interspersed with stuff I made up. So, if while reading you find yourself confused about the context, don't feel alone. I get confused, too.

If you're here for the stories, I started another blog: scratchingforchange.blogspot.com

One other thing: sometimes I write words you refuse to use in front of children, or polite company, unless you have a flat tire, or hit your thumb with a hammer.

I don't use them to offend; I use them to embellish.

jescordwaineratgmail.com

Sunday, May 13, 2012

Seven Billion Balloon of Debt

California, which started this year with a 9 billion budget shortfall, now has reached a 16 billion shortfall. The blame is placed on a few things, but what really caught my eye was the fact their revenues were below what they expected.

The revenue shortfall is 3.5 billion this year. My thinking on this is the exodus of taxpaying citizens and businesses from the state impacted the revenue more than anything else. With unsustainable taxes and regulations, many left just to survive.

Another thing is the loss of property value. The bloated, unrealistic housing boom (thanks Barney) left overpriced real estate that  the politicians found as a windfall in taxes, except they spent the money they should have saved. Now, since the value doesn't yield the same taxes, they are left with less than their robust spending habits need to survive.

I imagine you could spend days looking at the problems and analyzing the different facets of the California money pit, but they would all lead to the same conclusion: overspending.  Nobody can spend more than they have and expecting revenue is as foolish as stuffing money into one-armed bandits.

So, for those that live in California, work hard and played by the rules: I feel for you. You didn't have this coming, especially if you're getting to the later part of life and trying to determine how your fixed income will relate to costs in the future. The "free spirit" lifestyle that the California climate attracted has left a state with way too many people enjoying the fruits of your labor. Between politicians, bureaucrats, entitlement pigs and illegal aliens, you've now reached the point that all you made, or will make in the future, isn't enough and they're coming for more. Hopefully, you can escape before the deficit Zombie apocalypse. They may not feed on your flesh, but your personal wealth is at substantial risk.

3 comments:

  1. Balloon artists are entertainers who twist and tie inflated tubular balloons into sculptures. The balloons used for sculpture are made of extra-stretchy rubber so that they can be twisted and tied without bursting.Party Balloons

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  2. A question and a comment coming...wait for it....wait....

    Is that a crane in your profile photo? Hard to see on my computer. My family is in the 'tear it down, build it back up' business. Cranes, steel fabrication, etc.

    Comment: We sold the home my dad built and I lived in for over 60 years, at half it's value. Then we bought a home in another state from a person still mentally living in the 90's.

    Lose/lose situation. Now our home is valued at the 'today's' cost, but we're still paying taxes at the 90's value.

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  3. It's a photo of a 50 ton Tadano all terrain crane, which I was operating when the photo was taken. We were on a dock setting 14 inch steel H-piles to repair a ship fender.

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