The Bankrupt Leading the Bankrupt

Artist drawing of California High Speed Rail stop

Commentary by John Ransom - If the world without a strong American economy struggles, so too does an America without a strong California economy.  he Golden State, which once represented the promise of America, is mired in swampland of broken promises, graft, political stupidity and liberal fantasy. And if California represents the very best government that liberals can give us- and it likely does- then this country had better take a deep breath and step away from progressive math.  Because, it just doesn’t add up.  California has a government that is structurally unable to support its’ addiction to runaway government spending- like DC; they have “balanced” their budget based on the fantasy that the federal government will bail them out with increased taxes- like DC; they have municipalities in thrall to public sector unions- governments choosing union benefits over investor rights- like DC did in the GM bankruptcy.  “Step right up, ladies and gentleman, and buy a bond. Don’t worry. It’s safe. If we can’t pay, we’ll just declare bankruptcy. And hit you for another loan.” Which leads us to California governor Jerry Brown, who is genderless in our eyes, because really he is just an overgrown child. Hs state is facing a budget shortfall of about $16 billion.  His solution?  Raise taxes to close the gap and then spend $68 billion on a high speed train to nowhere.  The initial spur of Brown’s high-speed fantasy will go from Madera to Bakersfield, passing through Fresno, Selma and the mighty metropolis of Delano.  Yeah and if you said “Where?” you are not alone. No one outside of California’s Central Valley understands the project.  Oh, never mind that the state will likely never be able to raise the money for the entire project. Just go ahead and spend the $6 billion in initial construction costs, including $1.8 billion in pork barrel spending, and $3.2 billion in federal funds. So now Governor Brown can have a high-speed rail project in the same way that Obama supports the Keystone Pipeline. As long as neither actually goes somewhere, nor does something useful, we can leave the rest to a bailout for another day. Bankruptcy doesn’t seem to be so much of a possibility as it is a feature of California’s government, economy and public ethics.  It’s the bankrupt leading the bankrupt. Read more

The Bankrupt Leading the Bankrupt