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Old 12-25-2010, 06:39 PM
 
7,150 posts, read 10,897,373 times
Reputation: 3806

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I'm amused ... been waiting a few days for someone on this Forum to pick up on the Op-Ed from the LA Times, Dec. 20th ... and not a peep. Did no one see it but me? Or are the statistics not favorable for argument against the state of the State? Surely some of the disappointed citizens (and ex-patriots) posting here can creatively refute much of this? Or is California going to remain a great -- perhaps the greatest -- state after all?

California's demise is greatly exaggerated - latimes.com
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Old 12-25-2010, 07:21 PM
 
1,011 posts, read 1,016,654 times
Reputation: 467
Let's just say that there is not a single mention of the enormous budget deficit in this article penned partly by the Treasurer of California (clearly an unbiased commentary) Is he proposing issuing more public debt then, to fill in this deficit hole, since he spent a few paragraphs defending CA's debt payment history?
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Old 12-25-2010, 08:14 PM
 
Location: SW MO
23,593 posts, read 37,475,357 times
Reputation: 29337
Consider the source. That's all!
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Old 12-25-2010, 09:24 PM
 
Location: RSM
5,113 posts, read 19,763,289 times
Reputation: 1927
Quote:
Originally Posted by wellyouknow View Post
Let's just say that there is not a single mention of the enormous budget deficit in this article penned partly by the Treasurer of California (clearly an unbiased commentary) Is he proposing issuing more public debt then, to fill in this deficit hole, since he spent a few paragraphs defending CA's debt payment history?
It doesn't even matter that he's the treasurer. It matters that he's a politician. Treasurers in California are elected. I'm not going to listen to a politician about the future of this state because politicians spin everything positively when their party is in control, and his party will have absolute control of this state after inauguration day.
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Old 12-25-2010, 09:45 PM
 
Location: San Luis Obispo and Santa Barbara Counties
6,390 posts, read 9,683,178 times
Reputation: 2622
Quote:
not a single mention of the enormous budget deficit
1% of GDP is hardly enormous.

In 1945 US deficit was 120% of GDP, cured within a few years, by a Democratic Administration.
Darned pesky facts again.

I think, the enlightened state of Missouri, a state some have left California for, because of the sad state of the California economy, is running about 9.28% of GDP
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Old 12-25-2010, 10:42 PM
 
5,113 posts, read 5,971,685 times
Reputation: 1748
Quote:
Originally Posted by nullgeo View Post
I'm amused ... been waiting a few days for someone on this Forum to pick up on the Op-Ed from the LA Times, Dec. 20th ... and not a peep. Did no one see it but me? Or are the statistics not favorable for argument against the state of the State? Surely some of the disappointed citizens (and ex-patriots) posting here can creatively refute much of this? Or is California going to remain a great -- perhaps the greatest -- state after all?

California's demise is greatly exaggerated - latimes.com
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Old 12-25-2010, 11:22 PM
 
119 posts, read 379,556 times
Reputation: 59
Those of us whom do not have the chance and privilege to live in California or those whom once lived there and had to live for all sort of reason(s),hate and /or are resentful of California because of not being there anymore.Imagine being in hellish Montreal (a real sh_thole)right now as i am!!
So in order to cope with our sorry lives we hope and wish the worst for California specifically the L.A./So Cal area.However the reality of California's situation is far from being as dyer as the haters wich it would be.The following article provide a very informative and illuminating report on Cali's reality:

the-truth-about-california: Personal Finance News from Yahoo! Finance
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Old 12-25-2010, 11:29 PM
 
2,093 posts, read 4,697,746 times
Reputation: 1121
Quote:
Originally Posted by nullgeo View Post
I'm amused ... been waiting a few days for someone on this Forum to pick up on the Op-Ed from the LA Times, Dec. 20th ... and not a peep. Did no one see it but me? Or are the statistics not favorable for argument against the state of the State? Surely some of the disappointed citizens (and ex-patriots) posting here can creatively refute much of this? Or is California going to remain a great -- perhaps the greatest -- state after all?

California's demise is greatly exaggerated - latimes.com
Snort.

This, written by the same man who oversaw California's budget since 2008, when things started going downhill.
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Old 12-25-2010, 11:31 PM
 
Location: Out in the Badlands
10,420 posts, read 10,827,692 times
Reputation: 7801
Quote:
Originally Posted by wellyouknow View Post
Let's just say that there is not a single mention of the enormous budget deficit in this article penned partly by the Treasurer of California (clearly an unbiased commentary) Is he proposing issuing more public debt then, to fill in this deficit hole, since he spent a few paragraphs defending CA's debt payment history?
Fiddling while the Titanic sinks?
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Old 12-26-2010, 12:24 AM
 
1,011 posts, read 1,016,654 times
Reputation: 467
Quote:
Originally Posted by .highnlite View Post
1% of GDP is hardly enormous.

In 1945 US deficit was 120% of GDP, cured within a few years, by a Democratic Administration.
Darned pesky facts again.

I think, the enlightened state of Missouri, a state some have left California for, because of the sad state of the California economy, is running about 9.28% of GDP
Debt to GDP ratio is a useless metric. Use Public Debt to Public Revenue (taxes and debt sales) Same applies to the state's budget deficit.

You can't pay down public debt or the state's budget deficit with "GDP". GDP is the output of the private enterprise in the state. It is also highly mobile and relocates fast. You first need to 'extract' public revenue from it. GDP is private. "GDP" is not a public bank account the state can freely draw on.

You can:

1. increase tax rates so that you extract more public revenue from the said existing GDP base which is private wealth, while risking decreasing this base who don't like higher taxes and move out to more conductive to business states, and you'd lose revenues in the sales taxes on purchases in the state since the discretionary income would fall

2. improve conditions for the GDP to grow so that your existing (or even lower!) tax rates provide higher public revenues, i.e. decrease taxes and regulations for businesses and individuals so that they become more economically active and increase their output i.e. the above GDP and thereby tax collections. Here you can also decrease income taxes on the middle class and collect more revenue in the form of sales taxes, or vice versa. It gets more complex, but hopefully you the idea.

3. issue public debt, i.e. sell CA bonds (which we've been doing hand over fist), and hope there are people out there to pay cash for it still trusting CA to pay it all back with interest.

Last edited by wellyouknow; 12-26-2010 at 12:51 AM..
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