If growing an economy were as simple as expanding government spending and increasing deficits, then California would be the leader in global economics.
Whether it’s highway funds or solar subsidies, for every new construction job politicians claim will be created from government spending, they neglect to disclose that the money to pay for the government-created jobs is taken from the private economy. Which causes the loss of at least an equivalent number of jobs as those they claim to create.
‘Stimulus’ Spending Healed Nothing
Moving money around from one part of the economy to the other does not expand the economy. And taking from the private sector does not create more jobs — it only creates more dependency on government.
To prevent further defiling of our state by career politicians, supporters of the free market must insist on policies that support long-term growth for California. And demonstrating to the people why big government does not bring economic growth, should be first on the list.
It would be easy if all we had to do was throw a bucket of water on the wicked politicians, and watch them melt. Dorothy had it easy compared to today’s citizens. Because politics in California is a big business, and does not involve the recognition of individual freedoms or the defense of liberty. Nor does it support the entrepreneurial spirit any longer.
Meltdown Warnings
The warning signs of an economic meltdown were all there. Economists accurately predicted what could and would go wrong if politicians and governments did not make substantial spending cutbacks and provide tax relief.
Some states embraced the necessary moves, and others continued toward a Greece-like meltdown.
Instead of cutting tax rates and government spending, California Democrats ramped up spending, passed more regulations and sneaky tax increases, creating a worse economy for the state. The increase in government spending, expansion of subsidies, and welfare and entitlement programs has only created a loss of growth for California: Stagnant wages, job losses, high taxes, a total lack of competitiveness with other states and a loss of economic standing.
While politicians claim that they inherited a failing economy from predecessors, against sound warnings they defiantly ramped up government spending, insisting millions of jobs would be created.
History is the Best Teacher
In 1981, President Ronald Reagan inherited a stagnating economy, suffering under 70 percent marginal income-tax rates. Then Reagan cut the top tax rate to 28 percent, thereby creating a surge in business investment. America enjoyed the strongest 25-year economic boom in the country’s history.
But California politicians ignored the historical economic success of Reagan. And in doing so, it became more evident than ever, that it was business-as-usual with career politicians despite dire warnings.
To Cut or Not to Cut
Whether or not politicians admit that cuts are the only way to save our cities, states and the nation, taxpayers recognize this. It’s not rocket science; it’s tough love. Even Germany and Canada recently recognized this dilemma, and appropriately cut welfare programs in order to begin reforms.
In the United States, Wisconsin Gov. Scott Walker has instituted real reform through collective bargaining restrictions, while other states’ liberal governors continue to pray at the altar of the labor unions. California’s governor, Jerry Brown, talks a tough game in front of the television crews, but always concedes to the unions which are responsible for putting him in office.
Throughout history, reformers have recognized that talk is cheap and easy, while real government reforms may make them unpopular with those receiving entitlements.
Risking unpopularity, Walker’s reform is ground breaking: he stopped the automatic union dues deductions from workers’ paychecks. And when he did, most workers chose not to make the payments.
Government Green is Wilting
Under the guise of an economic boost, politicians embraced the man-made global warming hysteria. And while most of these same politicians couldn’t possibly believe that the earth is dangerously warming because of man, those in power recognized it as a fantastic way to expand government, and subsequent control over the people.
The only thing more politically correct in California than saving the Delta Smelt is anything to do with the environment. Environmentalists and complicit politicians threatened that, unless citizens gave up selfish driving habits, such as driving to work, life as we know it would end. They demanded that we cut back on selfish energy usage, such as running appliances, and heating and cooling our houses. They told us to live in smaller urban spaces, and take public transportation.
While conservation is very important, the people have not embraced the ridiculous and unsustainable demands made by global warming zealots. So, in order to force the green agenda, legislators have been passing freedom-reducing legislation at breakneck speed, while increasing state spending on solar, wind and other energy programs. Despite the exposure of the Solyndra scandal, the clean-energy racket continues. But most know that it is merely a political gravy train and not about clean air, or smart growth. We just don’t know how to stop it.
Going Green Alone
While California continues to promote ending global warming alone, Canada announced last week that next month it will formally withdraw from the Kyoto Protocol, aimed at fighting and preventing global warming.
Likely to follow Canada are the three provinces left in the Western Climate Initiative.
Thousands of new emails have been exposed yet again, from the same ‘Climategate’ characters previously discredited through emails exaggerating the extent of global warming. Caught privately admitting to one another that the evidence is nowhere near as a strong as they’d like it to be, this confirms that the man-made global warming hysteria is not about science, and is instead merely about political activism, power, control and money.
But California’s politicians have so much invested already into the global warming scam, they will go down with the ship before they admit that it’s a ruse designed to control the state’s citizens, and take more taxpayer money.
Meanwhile, California is melting, all right, but not from the heat.
(Katy Grimes is CalWatchdog’s news reporter. Grimes is a longtime political analyst, writer and journalist. This article was first posted on CalWatchdog.)
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