Just sold my last CA property

[poorgradstudent]

California’s consitution needs to be rewritten. Anytime the public can mandate spending with a simple majority but needs more than a majority to approve a tax increase, you’re headed for fiscal disaster. Prop 13 was a well intentioned problem maker, and CA has so many mandated spending programs the general fund has no real flexibility.

It will be interesting to see if Arnold can reform the prison system. Those on the right would love to break the union, and those of us on the left would like to see a shrinkage of the prison-industrial complex. There’s definitely room to cut spending in a way that has broad public appeal.

[briansd1]

[quote=peterb]
Global wage arbitrage for most employment sectors is alive and well. High unemployment and tapped-out credit lines in both the private and public sectors means that everything has to recalibrate downward.[/quote]

Of course, we are not Greece but recalibrating downward is what is happening in Greece. They no longer have their own currency so they can’t devalue to become competitive again, so they have to recalibrate downward.

In America’s case, the Dollar is the world’s reserve currency so strength is built in (can’t easily devalue).

So to be economically competitive, we need to recalibrate downward.

I believe the government needs to get rid of waste and reallocate existing revenue to what makes us more productive — health care, education and training. End the wars, “declare bankruptcy” on the ridiculous unfunded pensions to non-productive retirees, etc…

As EconProf would confirm, high asset prices can only be sustained by underlying productivity.

[briansd1]

[quote=peterb]
Global wage arbitrage for most employment sectors is alive and well. High unemployment and tapped-out credit lines in both the private and public sectors means that everything has to recalibrate downward.[/quote]

Of course, we are not Greece but recalibrating downward is what is happening in Greece. They no longer have their own currency so they can’t devalue to become competitive again, so they have to recalibrate downward.

In America’s case, the Dollar is the world’s reserve currency so strength is built in (can’t easily devalue).

So to be economically competitive, we need to recalibrate downward.

I believe the government needs to get rid of waste and reallocate existing revenue to what makes us more productive — health care, education and training. End the wars, “declare bankruptcy” on the ridiculous unfunded pensions to non-productive retirees, etc…

As EconProf would confirm, high asset prices can only be sustained by underlying productivity.

[briansd1]

[quote=peterb]
Global wage arbitrage for most employment sectors is alive and well. High unemployment and tapped-out credit lines in both the private and public sectors means that everything has to recalibrate downward.[/quote]

Of course, we are not Greece but recalibrating downward is what is happening in Greece. They no longer have their own currency so they can’t devalue to become competitive again, so they have to recalibrate downward.

In America’s case, the Dollar is the world’s reserve currency so strength is built in (can’t easily devalue).

So to be economically competitive, we need to recalibrate downward.

I believe the government needs to get rid of waste and reallocate existing revenue to what makes us more productive — health care, education and training. End the wars, “declare bankruptcy” on the ridiculous unfunded pensions to non-productive retirees, etc…

As EconProf would confirm, high asset prices can only be sustained by underlying productivity.

[briansd1]

[quote=peterb]
Global wage arbitrage for most employment sectors is alive and well. High unemployment and tapped-out credit lines in both the private and public sectors means that everything has to recalibrate downward.[/quote]

Of course, we are not Greece but recalibrating downward is what is happening in Greece. They no longer have their own currency so they can’t devalue to become competitive again, so they have to recalibrate downward.

In America’s case, the Dollar is the world’s reserve currency so strength is built in (can’t easily devalue).

So to be economically competitive, we need to recalibrate downward.

I believe the government needs to get rid of waste and reallocate existing revenue to what makes us more productive — health care, education and training. End the wars, “declare bankruptcy” on the ridiculous unfunded pensions to non-productive retirees, etc…

As EconProf would confirm, high asset prices can only be sustained by underlying productivity.

[briansd1]

[quote=peterb]
Global wage arbitrage for most employment sectors is alive and well. High unemployment and tapped-out credit lines in both the private and public sectors means that everything has to recalibrate downward.[/quote]

Of course, we are not Greece but recalibrating downward is what is happening in Greece. They no longer have their own currency so they can’t devalue to become competitive again, so they have to recalibrate downward.

In America’s case, the Dollar is the world’s reserve currency so strength is built in (can’t easily devalue).

So to be economically competitive, we need to recalibrate downward.

I believe the government needs to get rid of waste and reallocate existing revenue to what makes us more productive — health care, education and training. End the wars, “declare bankruptcy” on the ridiculous unfunded pensions to non-productive retirees, etc…

As EconProf would confirm, high asset prices can only be sustained by underlying productivity.

[patientrenter]

[quote=briansd1]……I believe the government needs to get rid of waste and reallocate existing revenue to what makes us more productive — health care, education and training….[/quote]

We already spend way too much on health care. We spend about twice as much as most other developed economies with longer life expectancies than us. What we need most out of health care is dramatically lower spending, not more.

[patientrenter]

[quote=briansd1]……I believe the government needs to get rid of waste and reallocate existing revenue to what makes us more productive — health care, education and training….[/quote]

We already spend way too much on health care. We spend about twice as much as most other developed economies with longer life expectancies than us. What we need most out of health care is dramatically lower spending, not more.

[patientrenter]

[quote=briansd1]……I believe the government needs to get rid of waste and reallocate existing revenue to what makes us more productive — health care, education and training….[/quote]

We already spend way too much on health care. We spend about twice as much as most other developed economies with longer life expectancies than us. What we need most out of health care is dramatically lower spending, not more.

[patientrenter]

[quote=briansd1]……I believe the government needs to get rid of waste and reallocate existing revenue to what makes us more productive — health care, education and training….[/quote]

We already spend way too much on health care. We spend about twice as much as most other developed economies with longer life expectancies than us. What we need most out of health care is dramatically lower spending, not more.

[patientrenter]

[quote=briansd1]……I believe the government needs to get rid of waste and reallocate existing revenue to what makes us more productive — health care, education and training….[/quote]

We already spend way too much on health care. We spend about twice as much as most other developed economies with longer life expectancies than us. What we need most out of health care is dramatically lower spending, not more.

[bob2007]

If I read EconProf’s original post and intent correctly, I think he has the right idea (sorry if I am missing your point).

CA needs to run completely out of money and break the pension funds and unions before it can recover. Most companies (other than local services) are trying to find ways to move revenue generation out of CA, so that the inevitable tax increase will not destroy them. The best scenario is to find a way to live here and not pay huge taxes to CA.

Once the revenue generators are gone and not paying taxes, the only people left will be gov’t employees who pay tax on what the gov’t pays them. That will be the death spiral. Hope it happens as soon as possible. No ex city employee is worth $100k * 20 years = $2M, and many are higher than that.

To avoid any political slant I will point out that I am an Independent, and really don’t like either party. This is strictly an economic issue.

[bob2007]

If I read EconProf’s original post and intent correctly, I think he has the right idea (sorry if I am missing your point).

CA needs to run completely out of money and break the pension funds and unions before it can recover. Most companies (other than local services) are trying to find ways to move revenue generation out of CA, so that the inevitable tax increase will not destroy them. The best scenario is to find a way to live here and not pay huge taxes to CA.

Once the revenue generators are gone and not paying taxes, the only people left will be gov’t employees who pay tax on what the gov’t pays them. That will be the death spiral. Hope it happens as soon as possible. No ex city employee is worth $100k * 20 years = $2M, and many are higher than that.

To avoid any political slant I will point out that I am an Independent, and really don’t like either party. This is strictly an economic issue.

[bob2007]

If I read EconProf’s original post and intent correctly, I think he has the right idea (sorry if I am missing your point).

CA needs to run completely out of money and break the pension funds and unions before it can recover. Most companies (other than local services) are trying to find ways to move revenue generation out of CA, so that the inevitable tax increase will not destroy them. The best scenario is to find a way to live here and not pay huge taxes to CA.

Once the revenue generators are gone and not paying taxes, the only people left will be gov’t employees who pay tax on what the gov’t pays them. That will be the death spiral. Hope it happens as soon as possible. No ex city employee is worth $100k * 20 years = $2M, and many are higher than that.

To avoid any political slant I will point out that I am an Independent, and really don’t like either party. This is strictly an economic issue.

[bob2007]

If I read EconProf’s original post and intent correctly, I think he has the right idea (sorry if I am missing your point).

CA needs to run completely out of money and break the pension funds and unions before it can recover. Most companies (other than local services) are trying to find ways to move revenue generation out of CA, so that the inevitable tax increase will not destroy them. The best scenario is to find a way to live here and not pay huge taxes to CA.

Once the revenue generators are gone and not paying taxes, the only people left will be gov’t employees who pay tax on what the gov’t pays them. That will be the death spiral. Hope it happens as soon as possible. No ex city employee is worth $100k * 20 years = $2M, and many are higher than that.

To avoid any political slant I will point out that I am an Independent, and really don’t like either party. This is strictly an economic issue.

[Author]

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