Monday, February 23, 2009
California Is Verging on Fiscal Insolvency - WSJ.com
Catch 22!
It's not going to be easy to break this cycle.
The first goal should be to stop it from getting worse.
France, California, and now, the entire U.S. aren't getting the message...
It's not going to be easy to break this cycle.
The first goal should be to stop it from getting worse.
France, California, and now, the entire U.S. aren't getting the message...
These paragraphs are from an article by Matthew Kaminski in the Wall Street Journal:
"The French have long experienced the unintended consequences of a large public sector. Ask them about it. As the number of people who get money from government grows, so does the power of constituencies dedicated to keep this honey dripping. Even when voters recognize the model carries drawbacks, such as subpar growth, high taxes, an uncompetitive business climate and above-average unemployment, their elected leaders find it near impossible to tweak the system. This has been the story of France for decades, and lately of California."
'California is in a French-like bind: unable to afford a welfare-type state, and unable to overhaul it. "The people say they want all these programs, then there's nothing they want to pay for,' says Hector De La Torre, a Democratic assemblyman. 'The schizophrenia in the legislature reflects the peoples'.'"
