Archive for the ‘Welfare State’ Category

Texas vs. California: Cali Goes Batshit Insane Edition

Tuesday, August 25th, 2015

California has long had a tenuous grasp of what the rest of us regard as consensus reality. But two new pieces of legislation suggest they’ve gone off the deep end into full Victimhood Identity Politics land:

  • First, they decided that police shootings wouldn’t be subject to the grand jury process, because what’s a little things like two centuries of due process and the fifth amendment to the Constitution when there are policemen to be railroaded to satisfy black protesters?
  • They also decided to purge the words “illegal alien” from state statutes, because what’s mere law when there’s political correctness to be pandered to?
  • Of course, that’s not all that’s new on the Texas vs. California front:

  • “California taxpayers paid out big bucks to state workers in 2014. How much? More than the Gross Domestic Product of 100 countries, according to new data published by the State Controller’s office. In 2014, more than 650,000 state employees earned a total of $32 billion in wages and benefits.” It gets better: “Nine hundred sixty-nine state employees earned more than the President of the United States.” Added irony:

    The lowest paid average workers represented agencies focused on the environment, women and people with disabilities. According to the state’s 2014 payroll data, the average salary for the 11 state employees at the California Commission on Disability Access was just $15,213 per year, slightly more than the $14,494 average salary paid to the four employees at the Commission on the Status of Women.

  • There is no California. Only Zuul…
  • Texas unemployment rate: 4.2%. California unemployment rate: 6.2%. (Hat tip: WILLism’s Twitter feed.)
  • Los Angeles’ new minimum wage has wrecked hotel employment. Or maybe just non-illegal alien employment… (Hat tip: Moe Lane.)
  • Why Public Services in California Decline Even As Revenues Rise. “Until California’s leaders address the three elephants – retirement, healthcare and corrections costs — that are crowding out public services and causing unproductive tax and fee increases, citizens will continue to suffer and inequality will continue to grow.” (Hat tip: Pension Tsunami.)
  • Chuck Devore on what makes Texas friendly to business: less red tape and lower taxes.
  • Voters to San Jose City Council: We want pension reform! San Jose City Council to voters: Get stuffed! (Hat tip: Pension Tsunami.)
  • TV’s CHiPS never seemed to be involved in ethics scandals the way the current administration is, including no-bid contracts to European companies. (Bonus: it’s also suitable for Dwight’s Art Acevedo watch.)
  • California’s “Green Jobs Initiative” spent $297 million to create 1,700 jobs.
  • More on the same theme, and Tom Steyer wasting $29.6 million of his own money pushing it, from City Journal.
  • California’s SFX: from billion dollar company to bankruptcy.
  • Greek Update: Tsipras Out, New Party Formed, Snap Elections Coming, Debt Payment Made

    Friday, August 21st, 2015

    “Prime Minister Alexis Tsipras resigned on Thursday, hoping to strengthen his hold on power in snap elections after seven months in office in which he fought Greece’s creditors for a better bailout deal but had to cave in.”

    Turns out promising free ice cream, only to deliver expensive rotted cabbage, wasn’t popular with Greek voters.

    Nor were his actions popular with members of his own party, 25 of whom have broken off to form the new National Unity Party, who will evidently return to the “demand free ice cream and insist others pay for it” strategy Tsipras abandoned in the face of the sinister force know as reality.

    On the plus side, Greece just used it’s new bailout fund to make a debt payment to the European Central Bank for the last batch of money it borrowed to prop up its unsustainable welfare state.

    We’re in that happy honeymoon period after Greece gets more money and before Eurocrats are shocked, shocked that Greece’s economy is still a festering pile of fail that all those and promised economic reforms haven’t actually been implemented.

    Give it another six to nine months…

    Greece: Dispatches from the Boned

    Thursday, August 13th, 2015

    So I haven’t done a Greek update in a while, since after Greece caved into the inevitable (Newsflash: broke people generally do not have leverage over those lending them money), it was all over but the shouting. Now that Greece and its creditors supposedly have a third bailout deal inked, and Greece settles into its clearly defined misery, let’s take a look at exceptionally bankrupt Greece these days, shall we?

  • Via Zero Hedge comes former Greek finance minister Yanis Varoufakis’ detailed review of the bailout agreement. It’s a mixture of self-serving lies (trying to distance his own Syriza party from the horrific economic mess they made acutely worse) and brutal truths (about just how screwed Greece is by the agreement).
  • Speaking of Varoufakis, it looks like he’s going to be up on hacking charges…for preparing emergency plans to float the drachma.
  • Oh: He also says the latest bailout deal won’t work. He’s not wrong…
  • Greece’s economy miraculously grew in the second quarter. But that was before the full effects of the crisis were reflected…
  • Greece’s tax revenues have collapsed.
  • Greece’s manufacturing sector fell off a cliff in July. Funny how that happens when your banks are closed and you can’t pay for goods.
  • Greece faces two years of recession. That part’s probably true. But that primary budget surplus? Yeah, not so much.
  • “Greece’s banks just made the mistake of being banks in Greece.”
  • After all that? Greece still isn’t fixed.
  • To add a cherry on top, Greece’s refugee crisis continues to grow. Because it’s still safer to live in bankrupt Greece than the Middle East…
  • LinkSwarm for August 7, 2015

    Friday, August 7th, 2015

    Time for the traditional Friday LinkSwarm!

  • Unions represent the main political obstacle to just about every kind of reform: School choice. Entitlements. Pensions. Health care.” (Hat tip: Pension Tsunami.)
  • Since the 70th anniversary of the Hiroshima bombing is upon us, time for a classic reprint: “Thank God for the Atomic Bomb.”
  • Illegal alien pulls gun on police in Pearland, lucky to still walk among the living. (Hat tip: SooperMexican.)
  • Side effect of Seattle’s minimum wage law: workers asking for fewer hours so they can keep getting government money.
  • Once again Dwight is on the DefCon beat.
  • “As I dug the bodies of several women out of the rubble, one of the other rescue workers asked if I’d heard that Cecil the Lion was killed. I froze in shock, dropping part of what I assume was once a human arm on the ground. ‘Not Cecil the Lion!’ I exclaimed. ‘Not him! Truly, is there no innocence left in this world?’ I cried harder than when we discovered my brother was gay and ISIS forced us to throw him off a building.”
  • Why the news media can’t do straight reporting on guns:

    The news, like Hollywood, became trapped in creating and fawning over celebrities. Getting Anderson Cooper publicized became more important than breaking the big story. When you have celebrity reporters telling you how they feel about being in Iraq instead of reporting on how our troops are doing you begin to lose perspective. With guns, instead of going to gun ranges, gun-owner’s homes, instead of interviewing women who’d stopped an attacker, and instead of really trying to understand the world such women live in and what they’re going through, they just tell us how they feel.

  • Respectable Dallas Observer liberal Jim Schutze goes to a Social Security office to get a replacement card for the one he lost. Simple, yes? Eh, not so much.
  • Speaking of the Dallas Observer, here’s one of their writers praising the Tea Party. Dogs and cats sleeping together!
  • Oh boy: Via Mark Steyn comes another story from Rotherham involving children with something to offend everyone.
  • St. Louis judge: Mere taxpaying peasants don’t get to vote on stadium subsidies their betters have decided on.
  • A sinkhole grows in Brooklyn. You can’t really expect Mayor Bill De Blasio to deal with this sort of trivia when there are so many cops to insult…
  • Welcome to the era of the $400 textbook.
  • Speaking of cops, a Taco Bell worker was fired for writing PIG on a policeman’s order (Hat tip: SooperMexican.)
  • Just about all Olympic athletes are doping.
  • Texas vs. California Update for August 5, 2015

    Thursday, August 6th, 2015

    Time for another Texas vs. California roundup:

  • Oakland’s monthly rent has doubled in the last five years, but the Oakland police are laying off people and no longer investigate property crimes. (As Zero Hedge notes, average rent is now more than it was in San Francisco in 2012.) How’s that Blue State model of high taxes, high public union salaries, and declining basic services working out for you California?
  • Controlling big budget government programs through ballot initiatives.
  • Only voters can stop California’s union pension crisis. “Government union bosses are desperate to protect their gravy train at taxpayers’ expense. That’s why they are spinning a web of lies about the [ballot initiative].”
  • “With CalPERS’ actuaries demanding a pension funding increase from $3.7 billion to $7.25 billion by 2020, the state must either cut payroll by 30 percent or find a massive new tax source, like overturning Prop. 13.” (Hat tip: Pension Tsunami.)
  • Visualizing California’s staggering pension hole. (Hat tip: Pension Tsunami.)
  • Need to make up the funding shortfall for CalSTARS means cutting into actual teacher salaries.
  • Finally, California beats Texas in job creations. For one month. And by some 6,000 jobs.
  • The Green Behind California’s Greens: A handful of superrich donors have created the illusion of a grassroots environmental movement.”
  • Cloud Computer company LiveOps is moving from Redwood City, California to Cedar Park.

    “Thanks to our low-tax, low-regulation environment that allows all businesses to thrive, the State of Texas has become the national leader for technology job creation, and we continue to attract tech companies from around the country and around the world,” [Governor Greg] Abbott said. “On behalf of the State of Texas, I am pleased to welcome LiveOps to the Lone Star State as the company seeks to transform cloud-based customer service. With their help, the State of Texas can, and will, continue to lead the nation in job creation within the technology sector.”

  • Bra-maker Fashion Forms is relocating from Ventura, California to Austin.
  • California-based Relativity Media files for bankruptcy. Forbidden Kingdom was pretty good. Skyline was a pile of crap…
  • Add California to the list of Democratic Party controlled polises trying to kill Uber.
  • The War on Photography continues apace in Northern California.
  • Facebook is opening a $1 billion data center in Ft. Worth This means they’ll be able to ignore your “Most Recent” setting and tag you in sunglasses spam ten times faster…
  • Puerto Rico Defaults

    Tuesday, August 4th, 2015

    While not unexpected, this certainly isn’t good news for the global economy. “The commonwealth paid a mere $628,000 toward a $58 million debt bill due Monday to creditors of its Public Finance Corporation. This will hurt the island’s residents, not Wall Street. The debt is mostly owned by ordinary Puerto Ricans through credit unions.” That’s like Johnny Boy paying $10 on his $2,000 debt in Mean Streets.

    It doesn’t help that Puerto Rico has the U.S. minimum wage and relatively generous welfare benefits. “Less than half of working age males are employed, [and] 35 percent of the island’s residents are on food stamps.”

    There are plenty of free market solutions to Puerto Rico’s problems, but those are precisely the ones the Obama Administration won’t let be enacted…

    Not Just Greece

    Wednesday, July 22nd, 2015

    Via ZeroHedge comes renewed information of a point I’ve hit home again and again: Thogh Greece is an extreme outlier on unsustainable welfare state spending in Europe, it’s also the canary in the coal mine, as toxic debt continues to rise all across Europe, with several countries exceeding a debt-to-GDP ratios of over 100%, including “Greece (168.8%), Italy (135.1%) and Portugal (129.6%).” Post-bailout (and bail-in) Cyprus is still over 100% as well, as is Ireland, though Eurostat didn’t have Irish DGP numbers, though supposedly the ratio should be trending down. And Spain and France are hovering just under 100%.

    To my mind the great mystery is how Belgium’s debt-to-GDP ratio now tops 111% with such a fat cushion of Brussels Eurocrats to sit on.

    The problem is not Greece’s only. The problem is that the western liberal welfare state, as currently constituted, is economically and demographically unsustainable.

    I’m sure I’ve driven this point home to regular readers of this blog, but I’ll continue driving it home until our leadership class is actually willing to do something about it…

    Fragments of a Greek State

    Tuesday, July 14th, 2015

    The self-inflicted destruction of Greece has been accomplished, but they’re still going to be picking up the pieces for years, if not decades. And there’s no guarantee the heavy manners Germany and the troika are imposing will actually be enough to rescue it.

    So, enjoy a random collection of Greek headlines, since I don’t quite have time to pen a piece on The Greater Meaning Of It All:

  • So Greece is going to get bailed out (again), but the actual mechanisms, and who will do the bailing, are far from clear.
  • And Greece needs $25 billion just to get through August.
  • “In the End, Greece’s War on Debt Is A Morality Problem. A majority of Greeks simply do not believe debt must always be repaid.” And how did that idea work out for them? (Hat tip: Ed Driscoll at Instapundit.)
  • Stratfor says that the Greek referendum backed Germany into a corner, and forced them to come down twice as hard. “The leading power of Europe will not underwrite defaulting debtors. It will demand political submission for what help is given. This is not a message that will be lost in Europe, whatever the anti-Greek feeling is now.”
  • Former Greek finance minister Yanis Varoufakis is not at all happy, saying the agreement makes Greece a “vassal of the Eurogroup.” Hey Yanis: You and the rest of the Greek ruling class are the one who baked the gypsy pie with your reckless spending to prop up your bloated welfare state. You’re just upset that Greeks, not Germans, are the ones having to eat it…
  • Greece may even have to sell some islands and ruins.
  • How Germany Beat Greece In Liar’s Poker.” By having all the cards and not being hopelessly in debt, perhaps? More:

    Many observers are wondering how the left-populist renegades of Greece’s Syriza party, which rose to power in January on the promise of delivering relief from austerity and renewed its mandate with a massive victory in the July 5 referendum, managed to negotiate a bailout deal on Monday that is substantially worse than what was available to Greece before Syriza took office.

    That would be because they were idiots who lied to voters about what they could accomplish.

  • Actual Time headline: “Why European Leaders Don’t Believe Greece’s Promises to Change.” Uh, because they’re not morons?
  • Greece Surrenders to Troika

    Monday, July 13th, 2015

    After six months of jerking around European negotiators, Greece’s far left Prime Minister Alexis Tsipras finally reaped the fruits of his labors: caving in to austerity measures far worse than the ones Greek voters rejected a week ago in exchange for more loans.

    The EU demanded real, demonstrable, non-fake, under-heavy-manners austerity from Greece, rather than the fake kind they were used to pretending to follow:

    For those who missed today’s festivities in Brussels, here is the 30,000 foot summary: Europe has given Greece a “choice”: hand over sovereignty to Germany Europe or undergo a 5 year Grexit “time out”, which is a polite euphemism for get the hell out.

    As noted earlier, here are the 12 conditions laid out as a result of the latest Eurogroup meeting, which are far more draconian than anything presented to Greece yet and which effectively require that Greece cede sovereignty to Europe, this time even without the implementation of a technocratic government.

    1. Streamlining VAT
    2. Broadening the tax base
    3. Sustainability of pension system
    4. Adopt a code of civil procedure
    5. Safeguarding of legal independence for Greece ELSTAT – the statistics office
    6. Full implementation of automatic spending cuts
    7. Meet bank recovery and resolution directive
    8. Privatize electricity transmission grid
    9. Take decisive action on non-performing loans
    10. Ensure independence of privatization body TAIPED
    11. De-Politicize the Greek administration
    12. Return of the Troika to Athens (the paper calls them the institutions… for now)

    Greece must also hand over €50 billion in assets to an escrow fund it can’t control.

    Just think: If Tsipras hadn’t been such an ass, Greece could have reached a far-less onerous deal to continue the farce another year or so, and probably before their banks started running out of money.

    It seems that Yanis Varoufakis’ ideas about game theory don’t work when one side holds all the cards and the other is dead broke. Who knew?

    Greece and the EU Compromise to…Kick The Can Further Down the Road

    Friday, July 10th, 2015

    It looks like we have an actual, honest-to-God compromise, in that Greece, in exchange for not having their economy collapse and descend into anarchy and cannibalism, will pretend to implement real reforms, while the Troika, in exchange for those promises, and not being blamed for the impending global recession, will give Greece still more loans, write down some previous loans, and pretend this actually fixes the problem.

    So expect to see another round of this dance in six months to a year.

    Germany caved on debt relief. Greece?

    A cursory look at the “new” Greek proposal to creditors suggests PM Alexis Tsipras may have sold out the referendum “no” vote in a final, desperate attempt to avert an economic catastrophe and the collapse of the country’s banks which will be cut off from ELA as of Monday morning in the event Brussels and Athens do not come to terms over the weekend.

    And indeed, the austerity outlined in the latest proposal is more severe than the version voters rejected last Sunday. Among the proposals evidently agreed to: No retirement until age 67 or 40 years of paying into the system. Caveat: Pension reforms don’t actually kick in until October, so they’re still kicking the can down the road on that as well.

    Also: “Greece will succeed in transferring bonds currently held by the ECB to the European Stability Mechanism.” If the ESM is truly the euro’s firewall, then they’re about to get an infusion of crappy Communist-era Soviet concrete…

    Other Greek crisis tidbits:

  • Earlier Greece had floated their totally serious compromise proposal that didn’t cut any pensions.
  • Faced with impending national bankruptcy, Greece’s ruing left-wing Syriza Party concentrates on the essentials: investigating reporters who opposed them. (Hat tip: National Review.)
  • People in Latvia and Lithuania sneer at spendthrift Greece.
  • Greece demonstrates 150 years of socialist failure.
  • Greek event timelines.
  • Greece probably wouldn’t do as well after a Grexit as Argentina did after their default.
  • The sneaky return of Drachmas? Of course this was before the latest agreement. But wouldn’t it be hilarious if Greece got one final big bailout, then turned around and pulled off a Grexit anyway?
  • UKIP head Nigel Farge had some advice earlier in the week:

    Not in 100% agreement, but there’s a lot of bracing truth in there. But the problem, of course, is that Tsipras, as all Socialists do, does indeed want to have his cake and eat it too…