Right now California is in denial over its fiscal mess. Arguments have been debated over furloughs of state government workers, but little has been said over the pension time bomb ticking away that is set to explode.
Today an op-ed in the Los Angeles Times covered California’s $500 billion unfunded pension system and how Sacramento has failed to summon the political courage to tackle this explosive issue. Sacramento summoned the political will to create this problem, but is denial to solve it, because Sacramento has been high jacked by union special interests groups. If nothing is done which currently is the case programs will be reduced or eliminated and taxes raised.
In previous blogs I have written how states are a threat to the U.S. from their fiscal irresponsible spending and solutions or lack of thereof to solve the mess they created.
The nation will never be able to immerge from this economic turmoil unless California the largest and the most populous state starts enacting fiscal prudent economic policies. Currently businesses refuse to operate in California as economic policies that emanate from Sacramento have a chilling effect on the business climate.
Does anyone wonder why California with the largest auto market in the nation doesn’t manufacture any automobiles, the Toyota plant in Fremont just recently relocated operation to Texas leaving thousands unemployed.
California is ranked as one of the worst state to operate a business, the worst state to retire in and almost last in the quality of its education. In almost every measurable category California is dead last or rank near the bottom, but ranked the highest in government spending.
Having been born and raised in California I am saddened to see this once prosperous sate decline to the depths of economic misery. Only continued misery ahead!
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