Posts Tagged ‘Welfare State’

Texas vs. California Roundup for February 6, 2013

Wednesday, February 6th, 2013
  • CalPERS: the pension fund that ate California. A tale filled with lies, waste, and outright corruption that’s even worse than I thought (and I thought it plenty bad).
  • Via the indispensable Will Franklin comes this eye-opening comparison of welfare in California vs. Texas. “As you can see, California is practically in a quadrant unto itself, indicating a lot of people receiving a lot each in welfare benefits. Meanwhile, Texas is situated precisely in the opposite corner of the graphic, indicating that a low percentage of Texas’ residents are receiving welfare, and among those who are receiving welfare, they’re receiving smaller benefits than those living essentially anywhere else in the country.” Read the whole thing. And get a gander at the chart.
  • Jerry Brown gets voters to approve a measure that cuts California public employee union pensions a tiny, weensie bit. The result? “California Public Employees’ Retirement System is essentially going to defy the order that pensions will be calculated based on base pay by declaring enhancements and bonuses are part of base pay.” And some unions are suing to opt out. And Brown isn’t even willing to defend the reforms in court.
  • “The highest-paid 10 percent of Southern California Edison employees earned at least $418.8 million in combined total compensation during 2011, and charged at least $11.8 million to their expense accounts, according to a report the public utility filed with the state. SCE’s most recent annual report showed 19 executives and other SCE employees received more than $1 million in total compensation during 2011, and at least 130 others received $300,000 or more in total compensation.”
  • Judge in Stockton bankruptcy: Sure, it’s OK to screw bondholders. Go right ahead.
  • Professional athletes are leaving high tax states like California for low-tax states like Texas and Florida.
  • At least Texans know how much they owe.
  • Here’s the official Texas state document on local debt. Texas cities, alas, haven’t been nearly as frugal as the state legislature has been.
  • Speaking of not being as frugal as they could be, here’s the place to search Texas pension funds. I might delve more into these two links when I have time.
  • Texas Public Policy Foundation on keeping Texas competitive.
  • And if you haven’t kept up with Dwight’s updates on the Bell corruption trial, you really should.
  • California: Completely Screwed

    Tuesday, January 29th, 2013

    Instead of going out and doing the heavy lifting myself on a Texas vs. California update, Victor Davis Hanson [[Corrected. – LP]] has done another of his California is totally screwed pieces, and it’s a cornucopia of facts on California’s decline.

    A few tidbits:

  • Salinas just named an elementary school after a serial cop killer
  • Racist Latino gangs are now driving black families straight out of Compton
  • “Hundreds of thousands of the working and upper-middle class, mostly from the interior of the state, have fled — maybe four million in all over the last thirty years, taking with them $1 trillion in capital and income-producing education and expertise. Apparently, they tired of high taxes, poor schools, crime, and the culture of serial blame-gaming and victimhood.”
  • “One of every three welfare recipients lives in California.”
  • Read the whole thing.

    David Cameron Suddenly Remembers He’s a Tory

    Wednesday, January 23rd, 2013

    Well well well, maybe David Cameron has some cobbles after all.

    Cameron has generally presided over the “wettest” Tory administration the UK has seen since Neville Chamberlain, but today he delivered a veritable pipe bomb of a speech on the future of the European Union.

    First, the problems in the Eurozone are driving fundamental change in Europe. Second, there is a crisis of European competitiveness, as other nations across the world soar ahead. And third, there is a gap between the EU and its citizens which has grown dramatically in recent years. And which represents a lack of democratic accountability and consent that is – yes – felt particularly acutely in Britain.

    Also this:

    If Europe today accounts for just over 7 per cent of the world’s population, produces around 25 per cent of global GDP and has to finance 50 per cent of global social spending, then it’s obvious that it will have to work very hard to maintain its prosperity and way of life.

    While Obama is certainly doing his best to make sure America’s portion of that last figure increases (driving down Europe’s share as a side effect), what Cameron is saying here is both obviously true and absolutely unacceptable to the Euroelite: The European cradle-to-grave welfare state is unsustainable.

    And this:

    People are increasingly frustrated that decisions taken further and further away from them mean their living standards are slashed through enforced austerity or their taxes are used to bail out governments on the other side of the continent.

    Cameron basically stood up and pointed out that the Emperor has no clothes.

    Still more:

    More of the same will not secure a long-term future for the Eurozone. More of the same will not see the European Union keeping pace with the new powerhouse economies. More of the same will not bring the European Union any closer to its citizens. More of the same will just produce more of the same – less competitiveness, less growth, fewer jobs.

    “Hey dumbasses: stop digging!!”

    And still more:

    I want us to be at the forefront of transformative trade deals with the US, Japan and India as part of the drive towards global free trade. And I want us to be pushing to exempt Europe’s smallest entrepreneurial companies from more EU Directives.

    These should be the tasks that get European officials up in the morning – and keep them working late into the night. And so we urgently need to address the sclerotic, ineffective decision making that is holding us back.

    That means creating a leaner, less bureaucratic Union, relentlessly focused on helping its member countries to compete.

    In a global race, can we really justify the huge number of expensive peripheral European institutions?

    Can we justify a Commission that gets ever larger?

    Can we carry on with an organisation that has a multi-billion pound budget but not enough focus on controlling spending and shutting down programmes that haven’t worked?

    And I would ask: when the competitiveness of the Single Market is so important, why is there an environment council, a transport council, an education council but not a single market council?

    And here we have a Tory Prime Minister actually sounding like…a Tory! Who would have thunk it?

    Thatcher or Reagan he’s not, but this is bold stuff given the Eurocentric tenor of post-Thatcher UK governments.

    Oh: He also wants a referendum on EU membership by 2017.

    Reactions from the Eurocratic elite has been predictable: How dare Cameron slander our magnificently robed Emperor? And naturally all of them focus on the referendum than his substantive critique of the increasing collectivist, bureaucratic and unsustainable EU.

    Good show, Cameron old boy, good show. (Golf clap)

    Texas vs. California: January 22, 2013

    Tuesday, January 22nd, 2013

    Another quick roundup of Texas’ economic strength, and California’s blue state decline:

  • California isn’t just running out of money, it’s running out of children.
  • Thanks to more honest accounting rules, six more California counties are now officially bankrupt.
  • Despite which, pension funds are still in denial.
  • If Jerry Brown is skeptical about making government bigger he has a funny way of showing it.
  • Namely, he continues to kick the can down the road.
  • And he’s still handing out outsized benefits to public employee unions.
  • Texas is adding jobs across all income groups, and has more jobs than when The Great recession began. California hasn’t broken even.
  • The Texas economy is outpacing other U.S. states because “it has the financial strength of Germany and the cost competitiveness of China.”
  • Texas vs. California: First 2013 Roundup

    Friday, January 4th, 2013

    Judging from the Fiscal Cliff votes, the United States appears to be eager to follow in the footsteps of Greece and California, rushing to unsustainable spending, crushing debt loads and inevitable bankruptcy, rather than following the lead of Texas and the Red State model of debt-free limited government and free enterprise. So let’s see where the two states are, shall we?

  • Via Reason comes a link to the website Pension Tsunami, which contains much of interest for those charting California’s decline.
  • One method California cities are using to continue funding their heroin outrageous pension spending habit is issuing Pension Obligation Bonds, where they sell bonds to pay for pension obligations and then invest them. Indeed, some that got burned by the tactic in the 1990s (like Oakland) are trying again. “Bonds issued in 1997 were, on average, underwater in 2007, even before the stock market crash…’That’s like a compulsive gambler telling you that he has to bet it all on red to make up for his past losses.’”
  • Bankruptcy is the best bet most cities have for getting out of their crushing health and retirement obligations to public workers….Government employee compensation, mostly for health and retirement, is at the heart of nearly all the current and looming municipal bankruptcies across the country.”
  • Federal judge to Calpers: No, you can’t rewrite bankruptcy laws to save outrageous union pensions. Not yours.
  • California: Pensions or Police? Pick one.
  • Stockton attempts to pull a Chrysler, attempting to screw its bondholders in a bid to leave outrageous union pensions untouched.
  • While California wonders how to fill it’s perpetual budget shortfall, Texas debates what to do with its surplus.
  • Over at TPPF, Chuck Devore wonders why Californians don’t stage a tax revolt. “In the meantime, Texas will be more than happy to receive into its welcoming arms people who want to work hard, invest, and create jobs.”
  • Want a glimpse of California’s future? Spain is running out of pension fund to raid.
  • The Real Apocalypse

    Friday, December 21st, 2012

    I hope you’ve been enjoying your mythical Mayan Apocalypse.

    But there’s a real, slow motion apocalypse that’s been going on all around you, and nobody is panicking about it, at least not in the open. I’m not talking specifically about the fiscal cliff, which is only a symptom of the problem rather than the problem itself.

    The real apocalypse is out-of-control federal spending, and the tsunami of debt it’s creating. And I don’t feel “apocalypse” is too strong a word. Excessive debt destroys economies. When the money printing presses run unchecked for years on end, hyperinflation is the inevitable result.

    The only reason we’re not suffering from hyperinflation right now is that Europe is sucking worse than we are. The Spanish economy is failing. The Greek economy has already failed. Were it not for that, it’s likely our huge budget deficits and the Fed’s printing presses would have already caused the Euro to replace the dollar as the world’s reserve currency. And, as Mark Steyn is fond of pointing out, Germany’s economy is big enough to bail out Greece and Spain. No one’s economy is big enough to bail us out.

    Obama and the Democratic Party has wagered our future on the proposition that they can run trillion dollar deficits for years on end without destroying the value of the American dollar. If they’re right, they deserve to win, since everything we know about economics is wrong, and we can just print dollars until we’re all rich.

    But the fundamental laws of economics haven’t been repealed. A reckoning is coming, and it’s going to destroy savings, economies and lives. And professional politicians, the Democratic Party, lobbyists and their mainstream media enablers would prefer to talk about anything else but the looming catastrophe. No wonder they want to talk about gun control and “the war on women.” Anything to keep the con game going until they’ve sucked the body politics dry. Just keep that deficit spending heroin coming.

    The only question about that reckoning is exactly when it’s coming, and exactly how bad it will be. If we’re lucky, it will only be as bad as Argentina 2001. If we’re not, then we’re talking Weimer Germany 1921-23.

    Get ready.

    Texas vs. California: 12/12/12 Edition

    Thursday, December 13th, 2012

    This was supposed to go up last night, but there was a glitch. Ten hours late sounds about right for California…

  • California leads the nation in outrageous pay and benefits for unionized state employees. Including $822,302 a year for a single prison psychiatrist.
  • Calpers to taxpayers and bond-holders: DROP DEAD. We’re getting ours, jack.
  • Since California has hiked tax rates tax revenues have decline. Those unwilling to learn from the Laffer Curve are doomed to live through it.
  • Living in California means not being able to afford police.
  • The bankrupt California city of San Bernardino has had 45 murders this year.
  • Bankrupt Stockton has had 68.
  • And Los Angeles is shuttering courthouses because they can’t afford them.
  • The Blue State Suicide Pact.
  • Movie and TV production is leaving California.
  • “Why would you leave $25 million on the table?” Oh gee, I don’t know, but maybe because you have to pay back $34 million on your risky $2.5 million loan? Math, liberal! Do you speak it?
  • California Blue Shield wants to hikes rates as much as 20%. How’s that ObamaCare working out for you?
  • People are still leaving California…and Texas is the most popular destination.
  • Texas was once again the destination of choice for more people moving within the United States as a whole, with some 515,000 people moving here in 2012. (Hat tip: Push Junction.)
  • Texas Public Policy Foundation’s Mario Loyola talks about how unions become sanctioned government cartels.
  • Speaking of TPPF, they linked to this Dallas Fed report, which shows that the Texas economy continues to hum along. “Texas added 22,900 jobs in October, lowering its unemployment rate in October to 6.6 percent, down from 6.8 percent in September and 1.3 percent below the national average of 7.9 percent.”
  • Texas Vs. California: 13 Days Before the Election Roundup

    Wednesday, October 24th, 2012

    With the election less than two weeks away, time for a roundup of how the champions of their respective political models (Texas for Red States and California for Blue States) are doing:

  • Why is gasoline so expensive in California? Because Californian politicians have made it that expensive. (Hat tip: Dwight.)
  • California is getting ready to shovel more benefits to public employee union members. Because retiring at age 50 with 90% of their salary just wasn’t enough.
  • Bankrupt San Bernadino stops paying into the CalPERS pension fund. (Previously.
  • Moody’s: “we expect…more bankruptcy filings and bond defaults among California cities, reflecting the increased risk to bondholders as investors are asked to contribute to plans for closing budget gaps.”
  • It’s all part of California’s Fifty Shades of Golden electoral masochism. “Not surprising, the most productive of California’s citizens are leaving in droves. For those who want to prosper, the safeword is “Texas.'”
  • The guy from California who under-reported unemployment to make the numbers look better? Obama donor. This is my shocked face.
  • California has actually carried out some pension reforms (like capping annual benefits at $132,000), but its pension plans are still underfunded by $165 billion.
  • California got $411 million in the National Mortgage Settlement. So how much of that actually went to help people with their mortgages? None of it. “Think of California’s persistent budget deficit as a great white shark devouring every source of cash in its path.”
  • Might California voters finally be reaching a tipping point against big government? Answer cloudy, ask again later.
  • Texas continues to add jobs.
  • Moreover, they’re not low wage jobs either:

    The total personal income (TPI) in Texas reached $1.07 trillion dollars in the second quarter of this year, according to the U.S. Bureau of Economic Analysis. That’s an increase of 71 percent from the state’s corresponding total 10 years earlier, $626.7 billion.

    Here’s another way of looking at it: Texas accounted for 8.02 percent of the nation’s TPI this year, up 1.10 percentage points from 6.92 percent in 2002.

    That’s nearly five times larger than the runner-up, Florida, which increased its share of national TPI by 0.23 points in a decade. Just four other states registered gains better than a tenth of a point.

  • Texas has the best unemployment rate among the five biggest states, at 6.8%. California, at 10.2%, has the worst.
  • Texas’ tort reform has attracted medical specialists to the state at a rate outstripping population growth.
  • Texas added 262,700 private sector jobs over the last year.
  • And Dwight, as usual, has more on the goings-ons in Golden State locales like Oakland and Bell.
  • (Hat tips for many Texas items: WILLisms’ Twitter feed.)

    Help Me, Elspeth Reeve, You’re My Only Hope!

    Monday, October 1st, 2012

    Let’s talk about the ObamaPhone video, shall we?

    The video is both funny (the woman is an idiot with a comical voice) and politically useful (displaying, as it does, a sense of entitlement to government handouts).

    So, naturally, some liberals are crying racism. Here the general case of “some liberals” is best exemplified by Elspeth Reeve. If that name rings a vague bell at the back of your mind, its probably because she’s most famous for violating journalistic standards by improperly fact-checking the articles by her husband, Scott Thomas Beauchamp, when he was smearing American troops in Iraq in a series in The New Republic.

    Reeve has certified the ObamaPhone video as 100% racist:

    The racism comes in when Drudge, Rush, the people who giddily retweeted the link, do a mental calculation that if enough people would just see this video they would support Romney, because it plays on the same racist stereotypes that are usually trotted out this time of the election cycle. The video posted on Drudge and played on Limbaugh was a black lady who has all the standard visual cues of being poor — messed-up teeth and skin, her waistline, her yelling. Oh, and if cues aren’t enough, she talks in racial terms: “Everybody in Cleveland, all the minorities got a phone. Keep Obama president, you know, he gave us a phone, he’ll give us more.”

    Let’s dissect that a little. When Reeve says “do a mental calculation…because it plays on the same racist stereotypes ” what she’s saying is that she can read people’s minds, and she knows their intent is racist. And then she admits that the subject of the video talks in racial terms. So instead of putting the onus for bringing race into the discussion on the subject of the video herself who brings it up, she puts it on conservatives she can tell are committing thoughtcrimes because of her amazing telepathic powers.

    Unfortunately, those of us without Elspeth Reeve’s extra-sensory perception are left at a loss to figure which amusing videos, at least those whose subjects happen to be black, are in fact racist. Given that I happen to be a white conservative living in Texas (and therefore someone already with a -5 on saving throws against liberal accusations of racism), obviously I need help in determining such things.

    So where else can I go except the source itself? Help me, Elspeth Reeve, your psychic powers are the only hope I have for determining whether an amusing video that involves black people is racist or not!

    Help me out here, Elspeth: Is Afro-Ninja racist?

    How about this black woman saying Obama is going to pay her mortgage? Is that racist?

    How about Obama stumbling around while answering a question? Is that racist?

    How about Obama talking about visiting all 57 states? Is that racist?

    How about black comedians dealing with racial issues. Is that racist? (NSFW warning applies to the language in the next few videos.) Is Dave Chappelle playing black white supremacist Clayton Bigsby racist?

    How about Richard Pryor and Chevy Chase’s word association test?

    How about Clevon Little in the famous sheriff-welcoming scene from Blazing Saddles?

    Help me out here, Elspeth. Put your psychic powers to work. Which of these are racist, and which are merely funny?

    Related posts by:

  • Patterico
  • Stacy McCain
  • I Own the World
  • All American Blogger
  • Dear California: You Know That Money Will Be Wasted, and You Know Those Tax Hikes Will Be Permanent

    Friday, September 28th, 2012

    I’ve got another Texas vs. California piece coming around on the guitar, but I thought there was enough here to warrant a separate post.

    Hold on to your hats, but it seems that California voters might, just might, be catching on that the Democrats who run California’s state government are wasting their money.

    I will now wait for the indignant shouts of incredulous outrage to die down.

    Support for Gov. Jerry Brown’s plan for billions of dollars in tax hikes on the November ballot is slipping amid public anxiety about how politicians spend money, but voters still favor the proposal, according to a new USC Dornsife/Los Angeles Times poll.

    Well, I did say “might.”

    The findings suggest that voters are leery of sending more cash to Sacramento in the wake of a financial scandal at the parks department, spiraling costs for a multibillion-dollar high-speed rail project to connect Northern and Southern California and ill-timed legislative pay raises.

    If voters aren’t willing to stop spending for a $100 billion train to nowhere that everyone know will never be completed, and which would lose even more money every year if it was, when will they?

    Brown’s measure would temporarily raise income tax rates on high earners for seven years and boost the state sales tax by a quarter-cent for four years in a bid to avoid steep cuts in funds for schools and other programs.

    Note that word: “temporary.”

    Anyone with even a passing knowledge of the way politics actually works knows that there’s no such thing as a “temporary” tax hike. The only thing that prevents Democrats (and establishment Republicans) from spending every cent of every tax collected and more is booting them out of office. Raising taxes simply ensures that they’ll spend all the new revenue and additional money they don’t have on top of that. And with the fiscal tsunami California is facing from bloated government, spiraling debt, and gold-plated public employee union pensions that will bankrupt the state, those “temporary” taxes will never be repealed. Ever.

    And two or four years down the line, the next Democratic governor will be asking the voters to approve another “temporary” tax hike…