I’ve almost exhausted my interest in California’s suicidal fiscal policy. How many times, after all, can you write about politicians over-taxing and over-spending to the point of economic ruin?
But everyone has a cross to bear in life, and (if you allow me to mix my metaphors) griping about bloated government is my Sisyphean task.
So here’s a good cartoon about the bankruptcy of Stockton, California. I assume the California egg is supposed to be Governor Brown, but that’s not important. The obvious lesson is that the entire state will follow Stockton into collapse unless there’s a dramatic shift in policy.
As explained in this video, the main problem with state and local governments such as California and Stockton is that there are too many bureaucrats and they are paid too much (this cartoon makes the same point in a more amusing fashion).
But to be more specific, what’s killing them are the promises for retiree pensions and health care.
Interestingly, the federal government also is heading toward a fiscal cliff because of promises to spend money on retirees, but the nitwits in Washington have created entitlements for the entire population and not just for a privileged class of bureaucrats.
So the moral of the story is that as goes Stockton, so goes California. And as goes Greece, so goes America.
P.P.S. Here’s a great Chuck Asay cartoon about California.