The California Budget Crisis

California can't get out of debt by borrowing ["California's Budget Deal a Win for Conservatives," usnews.com].

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California can't get out of debt by borrowing ["California's Budget Deal a Win for Conservatives," usnews.com]. The state needs to do the same thing families do. Stop spending, pay the bills, and get a second job. At the state level that means the politicians should put the future of California ahead of their own interests. They need to make hard and unpopular choices. They need to cut the spending and raise the taxes. By borrowing to fix the problem they and the governor are just pushing the problem down the road to be addressed again next year when it is worse.

Comment by Gary of CA

California, like all city, county, state, and federal governments, has to begin downsizing like the private sector has been doing for the last 10 years in order to stay sustainable. Unfortunately, bureaucracies (all government and public agencies) are designed to grow, not shrink. So they are continually seeking to squeeze more revenue out of the same sources, tap new sources, and cut vital programs and services—which are the very reason they are in existence to begin with. This is not about liberals or conservatives. Taxpayers will be paying a lot more and getting a lot less as baby boomers age, jobs are eliminated and outsourced, and more and more resources go to the wealthy and to support corporate interests. This isn't socialism—we are living in an oligarchy—call it what it is. I feel sorry for our children and the mess we are allowing our "leaders" to make of things.

Comment by Susan Gubernick of OR

Something had to be done. How is it that this is a "big win for conservatives"? These cutbacks are not good for anyone, but when faced with a choice of cutbacks or increased taxes (in a state with already very high taxes) the "Governator" made a choice. The reality is that this is in fact a win for everyday Californians because at least their government is not going to completely collapse. Yes, there will be some short-term pain in the classrooms and on the streets, but eventually the economy will turn and the government will be able to return to normal. Raising taxes would likely drive even more people and businesses out of the state and in the long run hurt more than it would help.

Comment by Chuck Biskobing of GA

The government has a never-ending period in which to back debt. The same cannot be said for individuals and the private sector. Therefore government should be doing the exact opposite as the private sector, spending when the private sector is shrinking and consumers stop spending, and cutting spending and paying off debt when the private sector is expanding. This is how you maintain steady growth and smooth out the boom and bust cycles of the free market. The other advantage is that during economic downturns the government can finance projects with cheap interest rates so taxpayers get more bang for their buck. Financing projects during these times also stabilizes the economy and gives the private sector more confidence to finance their own debt. The problem in all this is that during economic expansion, no one in the government has the discipline to rein in spending and to pay down debt. The moral of the story is that the government should be doing the exact opposite as you, I, and the private sector do, and if it does the same it only contributes to boom and bust cycles making them even worse and destabilizing the market. This is economic principle; it's a lot different then balancing your checkbook.

Comment by Mike of CA

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