Tag Archives: California

Slash California’s $54 Billion Deficit by Enforcing Immigration Laws, by Joe Guzzardi

Gavin Newsom locked California down, destroying businesses, jobs, and tax revenues, has repeatedly disparaged Trump, and refuses to enforce immigration laws, but now he wants a bailout from the feds. From Joe Guzzardi at theburningplatform.com:

California’s Department of Finance announced that the state faces a mammoth $54 billion COVID-19-created deficit which will, going forward, put the state’s countless public services at risk. Gov. Gavin Newsom projected an 18 percent unemployment rate, a 21 percent drop in new housing permits and a 9 percent decline in personal income.

The grim statistics are worse than at any time during the Great Recession. Newsom described the newest economic forecast as “jaw-dropping,” with COVID-19 wiping out California’s $16 billion rainy day fund and General Fund revenues projected to decline over $41 billion.

Gavin Newsom, 2007, San Francisco

State officials anticipate that K-12 schools, community colleges, health care and social service programs are in jeopardy unless California gets a federal bailout. California’s critics who claim Newsom’s over-reaction to COVID-19 contributed to the deficit – Newsom is the first governor to demand that all his 40 million residents stay at home – nevertheless credit the governor with moxie for petitioning the feds for billions in emergency funding. This is the same Newsom that has sued President Trump’s administration more than 60 times, and has at various times called the president “a bully,” “a joke and a racist.”

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Welcome To The Third World, Part 31: California Makes Its Case For A Bailout, by John Rubino

California lawmakers are trying to make it look like they’re cutting expenses so they can run to Washington for a bailout. However, they’re not touching the biggest expense—state pensions—which tells you all you need to know about the sincerity of their effort. From John Rubino at dollarcollapse.com:

Just a few months ago, California was running surpluses and spreading the wealth around — at least to its affluent voters and public sector employees — as if the good times were here to stay.

Fast forward to the present and it’s all over. Tech stock IPOs – a huge source of capital gains tax revenue for the home of Silicon Valley – have evaporated. Those “unicorn” companies – not yet public but worth over a billion dollars each – are doing “down rounds” that value them as the risky start-ups most of them are. The formerly booming housing market has ground to a halt. And thousands of service industry businesses like restaurants and nightclubs have closed permanently.

But the state government still has to pretend to balance its books, so now comes the tragicomedy of negotiations between the governor and state legislators over where to find the needed $50+ billion. Here’s how the Associated Press covers it in an article bafflingly titled California lawmakers agree to close $54.3 billion budget gap:

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Triumph of the Woke Oligarchs, by Joel Kotkin

California is one of the epicenters of coronavirus craziness (New York is the other). Both states are destroying their blue-collar work forces. From Joel Kotkin at realclearenergy.org:

Like the rest of the country, although far less than New York, California is suffering through the Covid-19 crisis. But in California, the pandemic seems likely to give the state’s political and corporate elites a new license to increase their dominion while continuing to keep the middle and working classes down.

Perhaps nothing spells the triumph of California’s progressive oligarchy more than Governor Gavin Newsom’s decision to off-load the state’s recovery strategy to a task force co-chaired by hedge-fund billionaire Tom Steyer. A recently failed presidential candidate, Steyer stands as a progressive funder. He is as zealous as he is rich. Steyer sometimes even found the policies adopted by climate-obsessed former governor Jerry Brown not extreme enough for his tastes.

Some conservatives wistfully hope that the pandemic will push the climate crusaders to the side. In California, at least, the corporate aristocrats, the governmental apparat, and the progressive nonprofits have  the momentum to impose their ultra-green vision on the state’s residents. Steyer may have made much of his fortune on fossil fuels, including coal, but now, approvingly described as “a reverent Christian,” the Bay Area mogul seems to be eager to repent, both through his political largesse and as operator of a fulsomely organic ranch down the coast from his San Francisco manse.

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Government Outlaws Freelance Work, by John Stossel

This is almost a dog bites man story: laws end up hurting the people they were ostensibly meant to help or protect. From John Stossel at townhall.com:

Government Outlaws Freelance Work

Freelance jobs are “feudalism,” says California Assemblywoman Lorena Gonzalez.

She persuaded California’s legislature to pass a new law reclassifying freelance workers as employees. That means many people who hire them must now give them benefits like overtime, unemployment insurance, etc. Politicians said it would help freelancers a lot.

Of course, much of the media agreed. Vox called it “a victory for workers everywhere”!

Sigh. Young reporters just don’t understand that stifling economic freedom always creates nasty side effects.

Actually, more understand now, because they got a very personal lesson. Once the bill passed, Vox media cut hundreds of freelance writing jobs.

When Gonzalez was asked if she felt bad about that, she sneered, those weren’t “real jobs.”

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Heavyweights Prepare to Duke it Out on Immigration: Trump v. Sanctuary State California, by Joe Guzzardi

Just another sign of impending secession, devolution, and dissolution: the argument between California’s state government and the feds. From Joe Guzzardi at theburningplatform.com:

sanctuary

In his State of the Union address, President Trump made clear his disgust with sanctuary state California. During the Trump administration’s first three years, the Department of Justice was unable to convert its multiple threats to California and other blatant sanctuary havens to withhold funding. In March 2018, then-Attorney General Jeff Sessions traveled to Sacramento to address several hundred California law enforcement officers. Sessions defended the White House’s lawsuit against California’s sanctuary practices, and correctly noted that federal law is the nation’s “supreme law.” Former Gov. Jerry Brown quickly demonized Sessions, and accused him of waging war against California.

The first round went to California as the state blatantly ignored warnings, and the feds failed to use its full power to force Brown and his equally contemptuous AG Xavier Becerra to comply. Under California’s permissive laws, the state – home to an estimated 2.5 million illegal aliens – protects illegal immigrants by limiting state and municipal cooperation with Immigration and Customs Enforcement.

 

Californians Flock To Texas As Corporations Seek Cheaper Pastures, by Tyler Durden

For many businesses in California, moving to Texas has become a no-brainer. From Tyler durden at zerohedge.com:

Around 700,000 people left California last year, with more than 10% moving to Texas.

According to a new report by Yardi Systems, over 86,000 people abandoned the Golden State. In terms new Texas residents overall, ex-Californians constituted around 15%, according to the Dallas Morning News.

The influx of Californians should come as no surprise, as businesses have been migrating out of the high-tax, high-crime, heavily regulated statefor cheaper pastures.

Chairman and founder Charles Schwab noted that one of the drivers behind the move from California was that “the costs of doing business here are so much higher than some other place.”

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Truckers, Beware – CA Wants You Gone, by Kelli Ballard

California makes it still harder to business in a state that already has a horrible business climate. From Kelli Ballard at libertynation.com:

California used to be the dream place to live and work. With its range of landscapes, beaches, mountains, pleasant weather, and fertile soil, people flocked to the Golden State to make a better, more enjoyable life for themselves and their families. In days past, “California or bust!” could be seen on the sides of wagons as people rushed West to seek their fortune in gold. Now, however, it seems more accurate to say “Leave California or bust!” as many independent contractors find out that new Assembly Bill 5 (AB 5) could put thousands of owner-operated truckers and other drivers, such as those for Uber and Lyft, out of business.

Another one of Gov. Gavin Newsom’s schemes to come under fire, AB 5 makes it hard for companies to justify hiring independent contractors. In an op-ed for the Sacramento Bee, he wrote:

“Contributing to this imbalance is the misclassification of workers, where companies eager to save on labor costs identify workers as ‘independent contractors’ rather than employees. Workers lose basic protections like the minimum wage, paid sick days and health insurance benefits. Employers shirk responsibility to safety net programs like workers’ compensation and unemployment insurance. Taxpayers are left to foot the bill.”

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California Approves $3.2 Billion Bond For High Speed Train To Nowhere, by Tyler Durden

Never let common sense and money stand in the way of an mass transit pipe dream. From Tyler Durden at zerohedge.com:

The high speed train is dead, long live the high speed train.

Less than a year after California Gov. Gavin Newsom brought California’s dreams for a LA to San Fran bullet train crashing down, when he said in February that he is ending the state’s hugely expensive and hopelessly quixotic high-speed rail line fiasco (which would have been completed in 2033 at a staggering cost of $77 billion), California is about to unleash another high speed train project, and this one is even more idiotic.

The California Infrastructure and Economic Development Bank (IBank) has authorized a $3.2 billion tax-exempt, fixed-rate revenue bond issuance to help DesertXpress Enterprises, an affiliate of Virgin Trains USA, build a high-speed train from Victorville, California, to Las Vegas. The new XpressWest service, at speeds of up to 180 miles per hour, will take about 90 minutes one way.

There is just one problem: Victorville, located in SoCal’s high desert, is quite literally in the middle of nowhere.

 

California’s Housing Nightmare Is Only Getting Worse, by Tyler Durden

California has only its Democrats to blame for its housing woes. From Tyler Durden at zerohedge.com:

When historians look back on contemporary California, one thing they’ll be bound to make note of is that the state’s developers bet on the wrong model.

Endless, suburban sprawl is coming back to haunt California in ways both major and minor. In densely populated communities across the state, traffic is horrible thanks to underdeveloped public transportation (this is especially true in LA). Most residents have accepted that deadly, devastating wildfires are just part of the deal now – bound to recur endlessly until the state’s population shrinks to the point that it no longer intermingles with the state’s vast swaths of woodland.

But it’s not just the apocalyptic images of fiery doom that have some of the state’s residents rethinking their decision to settle in California. The wildfires have had all kinds of ancillary effects: In parts of the state, PG&E is essentially shutting down large portions of the power grid in disruptive distributed blackouts intended to lower the fire risk.

 

California Dems Show Us the Future. Run For Your Lives, by Ann Coulter

Many people, with good reason, are voting with their feet on California’s future. From Ann Coulter at anncoulter.com:

In this column, I will prove that Democrats: 1) Don’t care about “Russians,” (Ukrainians?) or anyone else interfering with our democracy; and 2) they also don’t give a crap about guns.

Let’s begin by looking at the Democrats’ Platonic ideal of a democracy: California!

California is wholly controlled by the Democratic Party. The governor is a Democrat. The lieutenant governor is a Democrat. The attorney general, secretary of state and treasurer are Democrats. All these positions have been held by Democrats since the governorship of Arnold Schwarzenegger (who was a Democrat). The state Senate is just under two-thirds Democratic, while the assembly is more than two-thirds Democratic. Both U.S. senators are Democrats, as are 46 of 53 members of Congress.

And what a paradise they’ve created! For the last several years, with a direct pipeline to the fifth-largest treasury on the planet, California has been waging war on decent people in favor of drug addicts, the mentally ill, criminals, the homeless and transgenders.

In the last century, every great thing started in California: surfing, jeans, Disneyland, tax revolts, McDonald’s, movies, car culture, the Grateful Dead, right on red turns, Merle Haggard, skateboarding, Apple computer and the last two elected Republican presidents not named “Bush.”

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