California state legislators have come to an agreement to help ease the state budget shortfall in the form of billions of dollars in budget cuts, the opening up drilling off the Santa Barbara coast to raise up to $1.8 billion dollars, and no tax increases. The Obama administrations needs to stand up and take notice at what got California did to get into this situation. These are some of the contributing factors:
1. Increased government spending on socialist programs
2. Increased taxes to cover those programs
3. No fiscal discipline in the state legislature.
4. Unfriendly business environment with unreasonable climate control legislation.
5. Business leaving the state because of tax burden
Does this sound familiar? Barack Obama's Socialist Agenda has the federal government on the California track for disaster, and the engineer does not have his hand on the break. The outrageous spending he has planned for a health care plan that no one wants, climate control legislation that no one needs, and government power grabs that voters last November were too blind to see. Change we can believe in? No, this was change that anyone with half a brain could see coming. There is nothing new here. This is tried and true democratic politics and socialist manipulation.
California (with the Democrats kicking and screaming) has come to a point that they had to confess that their grand socialism does not work. Now they need to go one step farther, cut taxes. John Kennedy, Ronald Regan, and George W. Bush each found that cutting taxes increases revenue and spurs the economy. Here is another fact, at the beginning of every recession in the past seventy five years has happened with a democrat controlled congress, and this is why. Democrats love big government and that is expensive. Democrats also do not have a clue about the nature of economies. Sam Walton had a philosophy, "pile it high, stack them deep, and sell them cheap". There is an economic concept in that statement. Walton cut prices so that he could increase his customer base thus raising revenue. The same works for government. Cut taxes to spur investment creating jobs and increasing revenue.
California has not had a conservative epiphany, but they have moved a few paces down the right track. America's federal representatives must start looking at that same track and start planning their journey. If we continue down the path of Obama, there may not be a lot of America left in four years when this joke has to end.