California Leads U.S. in Defaults, Price Drop, Slowing Growth

[EconProf]

BobS
Look closely at some of the numbers this article brings out…it shows government officials panicking merely because tax revenues are increasing at a slowing rate.
For example, Sacramento is seeing its property tax revenues going up only 2% this year, so they respond by cutting department budgets by 20%. Where is this money going? Are these scare tactics working?
In another section, the article points out how elsewhere in the rest of California, property tax revenues are going to INCREASE only 6% this year and 3% next year. So…where is the hardship? Governments are so used to tax revenues gushing in at a double digit pace year after year that they have put all their spending on automatic pilot to increase similarly. Apparently they can ratchet up at a double digit pace but not slow down to single digits.
Note the breathless reporting that shows the author of the piece contributes to the atmosphere of panic and gloom and doom. The journalist’s very numbers contridict his/her theme. Yet there is no questioning of why the public sector cannot economize in an intelligent manner, like the taxpayer is forced to do in any downturn. Geez guys, just hold expenditures to last year’s outrageous amount. Do that for two years and we’d have a budget surplus.

[cr]

Good point BobS.

I’ve always been irritated by the fact that when businesses face financial trouble they have to deal with them or cease to exist, (unless of course helicopter Ben is hovering above them) but, oh, not the government.

Businesses cut costs and lay people off, reduce benefits, cut salaries, reduce overhead, dial for dollars, call in a consultant and shift things around.

But the Government (state and Federal) raise taxes, reduce education funding, close state parks and so on, negatively impacting those they are supposed to serve. Those who are only indirectly responsible for the problems because they allow these career politicians to continue to be in office.

There’s something very backwards about our this “democracy.”

[cr]

Good point BobS.

I’ve always been irritated by the fact that when businesses face financial trouble they have to deal with them or cease to exist, (unless of course helicopter Ben is hovering above them) but, oh, not the government.

Businesses cut costs and lay people off, reduce benefits, cut salaries, reduce overhead, dial for dollars, call in a consultant and shift things around.

But the Government (state and Federal) raise taxes, reduce education funding, close state parks and so on, negatively impacting those they are supposed to serve. Those who are only indirectly responsible for the problems because they allow these career politicians to continue to be in office.

There’s something very backwards about our this “democracy.”

[cr]

Good point BobS.

I’ve always been irritated by the fact that when businesses face financial trouble they have to deal with them or cease to exist, (unless of course helicopter Ben is hovering above them) but, oh, not the government.

Businesses cut costs and lay people off, reduce benefits, cut salaries, reduce overhead, dial for dollars, call in a consultant and shift things around.

But the Government (state and Federal) raise taxes, reduce education funding, close state parks and so on, negatively impacting those they are supposed to serve. Those who are only indirectly responsible for the problems because they allow these career politicians to continue to be in office.

There’s something very backwards about our this “democracy.”

[cr]

Good point BobS.

I’ve always been irritated by the fact that when businesses face financial trouble they have to deal with them or cease to exist, (unless of course helicopter Ben is hovering above them) but, oh, not the government.

Businesses cut costs and lay people off, reduce benefits, cut salaries, reduce overhead, dial for dollars, call in a consultant and shift things around.

But the Government (state and Federal) raise taxes, reduce education funding, close state parks and so on, negatively impacting those they are supposed to serve. Those who are only indirectly responsible for the problems because they allow these career politicians to continue to be in office.

There’s something very backwards about our this “democracy.”

[cr]

Good point BobS.

I’ve always been irritated by the fact that when businesses face financial trouble they have to deal with them or cease to exist, (unless of course helicopter Ben is hovering above them) but, oh, not the government.

Businesses cut costs and lay people off, reduce benefits, cut salaries, reduce overhead, dial for dollars, call in a consultant and shift things around.

But the Government (state and Federal) raise taxes, reduce education funding, close state parks and so on, negatively impacting those they are supposed to serve. Those who are only indirectly responsible for the problems because they allow these career politicians to continue to be in office.

There’s something very backwards about our this “democracy.”

[Author]

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