The “California Can’t Afford It” Bullshit

I would call this the “California is broke” bullshit, but really, only the state government is broke.

Is the state broke? Are you kidding?

Let’s look at the stats. California had a PCI of 39,626 in 2006. That is the most recent year that statistics were available. Using the year to year growth from 2000-2006 as a guideline, we can extrapolate from 2006 to 2009, and get a California PCI of $43,364. California was the 9th wealthiest state in the nation in 2006.

That means that if California was a nation, it would be the error3

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37 thoughts on “The “California Can’t Afford It” Bullshit”

  1. It’s just that the Whites don’t want to pay for the Blacks and (mostly) the Browns.

    Maybe that’s exactly the problem. You can have univ health care and high taxes (i.e. light socialism) OR unlimited immigration. Not both. Welfare State may work (well, for a while) with a homogeneous population, but not with a pissed off white middle class paying for a bunch of “brown” immigrants or welfare recipients, many of them illegal.

    This will become awfully clear, not only in California, but in Italy and Spain too (where the situation is not as rosy as you paint it).

    Also, more / higher taxes don’t necessarily mean higher revenue for the State, as anyone with a basic understanding of economics might know.

  2. Excellent read Robert, as always. As a fellow Californian, I understand what you mean by the opinions of “out of staters,” as they ALWAYS have opinions on California completely devoid of reality. I also agree with the absurdity of the 2/3 majority vote requirement. It has to go. It has to go now. Unless of course we would all enjoy continuing to be Californians in a stereotypical banana republic.

  3. I think you mentioned living in the central valley so your view of white voting may be reflect you part of the state. The great majority of the coastal counties(where most the state lives) are democrats. I mean how many blacks live in Santa Cruz or Humboldt counties? Orange County was the only coastal county that didn’t vote for Obama. Many inland counties are in the blue zone.

    http://politicalmaps.org/wp-content/uploads/2008/11/2008-election-map-wash-post.gif

    Here in the SWPL coastal zone, I tend to associate whites with voting liberal and green and being gaga over gay marriage. I think our perceptions are shaped by where we are located.

    The things that’s ironic about it all is that the liberal whites with the most money that live in places like Malibu, Santa Barbara and Marin county are the most liberal. Joe six pack in the trailer park outside Bakersfield complaining about blacks and Mexicans stealing his taxes, he ain’t paying anymore taxes than the blacks and Mexicans.

    Btw, I do think the car tax was too much. I was pissed off about paying several hundred dollars to register my car when registering the same damn car one state over would’ve cost 1/7th the fee. If they were going to raise it, don’t raise it average income people, raise it on people buying Hummers, Porches and BMWs. Make it a luxury tax.

    I think you did leave out something important about the fiscal mess in this state. Yes, we have gotten walloped by falling home values, and corporate corruption, but we also got walloped by a state that for years grew its spending at a rate faster than the inflation rate and population growth rate could justify. Even Cruz Bustamente during the special election said it simply, “we spent too much.”

    Thing is, even if we do start raising taxes dramatically on the wealthy, we run the risk of them setting up businesses out of state and then unemployment worsens. Unless other states raise taxes, they can always move their money elsewhere.

    1. This is interesting. What exactly did we spend to much on?

      Can you elaborate for me? K-12 education, where we are 49th in per capita spending in the US?

      University education, where tuition is skyrocketing, 10,000’s of students are being turned away for lack of space and classes are being canceled right and left?

      State parks, most of which are now closed?

      Home health care, which they are now threatening to eliminate?

      Teachers and state workers’ salaries?

      Medi-Cal and Denta-Cal, Denta-Cal of which has just been eliminated?

      I’m kind of curious. Where is it we can “cut the fat” in all of this.

      If you’re paying several hundred for a car tax, your car is worth at last $15,000 to $20,000. Surely you can afford it.

      Taxes on the rich will never be “raised dramatically,” even here, and even if they were, the rich are not going to leave the state.

      That’s another line the out of staters keep saying. They keep saying that the people with money and the businesses are going to leave the state due to high taxes, regulation and environmental rules. But I’ve never heard one wealthy Californian or California businessman ever say he was going to do that. It’s all talk, and mostly coming from out of state.

      I’ve heard of some businesses packing it up for Mexico, but that’s happening all over. The only reason I ever heard anybody say they were leaving the state was one White guy said he was leaving to get away from all the Mexicans.

      I’ve lived in Orange County, Fresno, Madera and the Sierra Nevada foothills. I also lived in Long Beach and Van Nuys for a bit. Down in the Southland, all of the majority White areas pretty much vote Republican, except maybe in LA itself. The White suburbs of LA vote Republican. Even Redondo Beach, Hermosa Beach and Manhattan Beach all vote Republican.

      Not to mention San Pedro and Palos Verdes Estates. Majority White San Diego County and White parts of Riverside and San Bernardino County vote Republican. The desert votes Republican. You mention Humboldt County. The North Coast has always voted Republican. The White suburbs of the Bay Area to the East vote Republican. Even Santa Maria and San Luis Obispo vote Republican.

      The Bay Area has always been liberal, but just how White is it anymore anyway?

      In Fresno, the White areas elect Republicans. The Hispanic areas elect Democrats. It’s like that all over the Valley. The only reason you have these hard right Republicans in the Valley are because they are in majority-White districts. As soon as those districts go Hispanic, they’ll vote liberal Democrat.

      Politics in this state is all about race. Has been for decades now. Dirty little secret.

  4. Dear Robert
    American GDP is around 14 trillion. Since the American population is 300 million, American per capita GDP is over 46,000. You say that PCI in California is a little over 32,000. That would make Californians rather poor beside other Americans, unless PCI is something different from per capita GDP.
    I wouldn’t be surprised if California has one of the most unequal income distributions of all the 50 American states. The rule in the US is: the higher the percentage of blacks and Hispanics, the less equal the income distribution is.
    On the other hand, the more unequal income distribution is, the more taxes the government can collect if there is a progressive income tax. Suppose that the tax rates are 30% for the income bracket between 10,000 and 50,000 and 50% for all income above 50,000. If there are 5 people and they all make 40,000, then together they’ll pay 45,000 dollars in taxes. If 4 of them make 25,000 and the other 100,000, then together they’ll pay 55,000 in taxes even though their joint income is 200,000 in both cases.
    This means of course that California could actually collect more income tax than a state with a more equal distribution of income even if both states have the same tax rates.
    Regards. James
    Regards

    1. Regarding teachers being overpaid, true, I’ve been out of the field for 20 years. But that 20 years have seen increasingly restrictive budgets across the state. I remember when I was a teacher, most people I met would say, “Wow, what a wonderful thing to do, but you don’t make any money, do you?” And the women, over and over, said, “Oh, you’re just a teacher. They don’t make any money.” Then they would take off.

      I don’t know how well teachers are paid these days, but 20 years ago, the feeling in California was that it was a poorly paid job for the effort and education required.

      I know that over in the Silicon Valley, they can’t even find enough police, firemen and teachers to fill the positions because they don’t pay them enough to afford the housing. It’s a real problem.

  5. Picking up on James’ point, the more NAMs live in an area, the higher the property value disparity between neighborhoods. East and West LA are a split worthy of Rio Di Janeiro. In a situation like that, of course the West-ers are going to think “I paid for the right not to live near them. It’s not fair to progressivize my taxes to support them.”

    1. Exactly. Everyone says this is one of the most liberal states in the country, but if you live here, believe me, it feels more and more like a 3rd World country.

      People are always including Blacks whenever they talk about California. But Blacks are really nothing here, they don’t figure into the equation. They’re only 7% of the population. There are 45% fewer Blacks here than in a typical US state.

      So the big thing here is the Mexicans, or the Hispanics if you will.

      The Asians are 10%, but it’s hard to say if they are a net boon or a net bust. A lot of them make good, a lot are in between, and quite a few of them are poor. I don’t know how it all settles out.

      I think the thing is that Whites just don’t want to pay taxes that are going to go to non-Whites, period. No matter if they are Blacks, Hispanics, Asians or whatever. Whites only want their taxes going to their own kind. Even here in the most liberal state in the Union, that’s still the unstated bottom line.

    2. What grates on them (and many non-racist whites) is the apparent bias displayed by the government in favor of blacks and other minorities. This bias animates many whites.

      Funny thing about this is that whites seem to act like non-whites are exempt from paying taxes. Funny, I recall all my employers handing me 1040 forms to fill out.

  6. To Rob:
    I know that over in the Silicon Valley, they can’t even find enough police, firemen and teachers to fill the positions because they don’t pay them enough to afford the housing. It’s a real problem.

    Formerly and somewhat correct for teachers…very incorrect for police and firefighters. Positions for police and especially firefighters always have many more applicants than positions available.

  7. So the big thing here is the Mexicans, or the Hispanics if you will.

    Specifically I would say the ones who are not legal. (or at least the parents..) Jose and Rosa with three (anchor) kids pay very little in the way of taxes but can get taxpayer subsidized food stamps, Medical for the kids, and free education. Tolerable when their numbers are low.. much less tolerable when their kids make up 30% of the school system. I don’t blame them… I blame the people who willfully chose not to enforce the laws on the books.

  8. “I think the thing is that Whites just don’t want to pay taxes that are going to go to non-Whites, period. No matter if they are Blacks, Hispanics, Asians or whatever. Whites only want their taxes going to their own kind.”

    That’s the question. You may have health care and high taxes OR unlimited immigration. Not both. The welfare state may work (for a while) with a homogeneous society, but not when a white middle class feels that it is paying for the “browns”, many of which are illegal immigrants.

    Besides, higher and more taxes don’t necessarily mean higher revenue. And whitey might just decide to close shop or move to another state.

  9. To Rob:

    This is interesting. What exactly did we spend to much on?

    Very good question.. since in 2002 (a recession year for California albeit not nearly as bad as now..) California was third in the nation for spending per capita:

    http://www.ppinys.org/reports/jtf2004/stlocalspending.htm

    This link claims 3rd in the nation (for 2005) for welfare spending per capita:
    http://anepigone.blogspot.com/2009/04/per-capita-federal-welfare-expenditures.html

    Can you elaborate for me? K-12 education, where we are 49th in per capita spending in the US?

    I am finding different data (or perhaps it’s a different way of looking at it…)
    This link shows per capita spending in California as 10th in the Nation and per capita spending on higher education as being 27th:
    http://www.ppinys.org/reports/jtf/educationspending.htm

    1. The “California has the highest welfare spending in the country” is another rightwing lie.

      Notice that says *federal* welfare spending? Ok, now you tell me, how exactly does *federal* welfare spending in California blow a hole in the *state* budget?

      Yes, it had the 3rd highest spending per capita, but it also the 11th highest income per capita. Of course the wealthier the state, the more they will spend, right?

  10. Notice that says *federal* welfare spending? Ok, now you tell me, how exactly does *federal* welfare spending in California blow a hole in the *state* budget?

    Depends upon what you define as welfare…. I know for sure that Medical costs are split between the state of California and the Feds… not sure about TANF, food stamps, and section 8.

    More welfare costs per capita generally means fewer people paying into the system per capita.

    1. Link says per capita federal welfare expenditures. Section 8 is Federal I think. TANF is federal, I think. Food stamps are federal. Whether or not the states can add to that stuff, I’m not sure.

  11. To FrankBD:

    “I paid for the right not to live near them. It’s not fair to progressivize my taxes to support them.”

    Well Frank…. the state of California has some of the most progressive income taxes in the nation.

  12. To Rob:

    Certainly, Singapore, Kuwait, Italy, Spain and Greece can easily afford welfare programs vastly more elaborate than California’s, right?

    Singapore has decidedly lower taxes than the US. Kuwait… umm.. can you say oil..? Also those programs are only for Kuwati citizens, not their many guest workers. Spain and Greece…. both of which have a major budget crises.

    1. What does oil have to do with it? Kuwait gets their income from oil. Ok, big deal, right? I mean, they get it from somewhere. Is it somehow more magical when they conjure money from oil than when we conjure it from wherever we do?

      Yes, and Singapore also has national health care. How do they manage that?

      Spain and Greece’s budget crises have nothing to do with their social democracies. It has to do with the worldwide economic crisis that has blown holes in their economies. There are plenty of states in that income bracket that are doing just fine.

  13. To Rob:

    Spain and Greece’s budget crises have nothing to do with their social democracies.

    I am not arguing against social democracies but I am not for profligate spending either. Spain and Greece got into trouble because they borrowed like crazy and increased their social expenditures and public employees per capita.

    Kuwait:Kuwait gets their income from oil. Ok, big deal, right? I mean, they get it from somewhere.

    Ummm…. it would be very nice if California had as much oil per citizen as Kuwait but we don’t.

    Yes, and Singapore also has national health care. How do they manage that?

    Yes they do.. and they spend a fraction of what the US spends per capita on health care. I would like to know how they do it also and replicate it here.

    Here’s a lefty’s discussion of how much Cal spends:

    http://www.amptoons.com/blog/archives/2010/02/11/california-budget-woes-post

    Big increases for health care spending and the prison budget.

  14. To Rob:

    Section 8 is Federal I think. TANF is federal, I think. Food stamps are federal. Whether or not the states can add to that stuff, I’m not sure.

    It would appear that they can but I have not gotten a breakdown for spending. Much of the spending is also at the county and city level. (San Francisco has GA (General assistance..) a form of welfare that is not federally subsidized.

  15. To Tulio:

    What grates on them (and many non-racist whites) is the apparent bias displayed by the government in favor of blacks and other minorities. This bias animates many whites.

    Who were you quoting..? I didn’t see that Rob or any other commenter made that statement. Was it from another post..?

  16. It isn’t clear who made the statement about the supposed bias the government shows toward non-Whites. But Tulio is correct that a lot of Whites see only themselves as taxpayers, and their language constantly shows this.

    1. Yeah, seriously. I work, I pay taxes. The largest share of my taxes are going to pay for white retirees on social security. The younger workforce is increasingly non-white and is increasingly paying more to support an aging white retiring population. Yet you don’t see young non-white workers up in arms about it. And this phenomena is true in Europe too. Why are whites the only ones that go crazy about this stuff?

  17. On a peripheral note, maybe progressives should start talking about “neoliberalism” when they mean unbridled capitalism. It would be technically correct and fairly precise in its meaning, and it would be a way of harnessing the negative attitudes most regular white people have toward “liberalism.”

    1. That’s probably a good idea, Mort.

      I’m actually supporting this health care bill, even though it sucks. You got to figure that anything that 100% of the Republicans and most of the Blue Dog Dems in Congress are against has got to be a good thing.

      It’s a start. It’s better than nothing. It’s a foot in the door, even if the sock is pretty smelly.

      I’m disturbed at these polls showing 60% of the population is against the bill though? Why are they against it? I mean other than the rightwingers who hate it because it’s progress, why is anyone else saying they are against it.

      The Republicans are going to run on overturning the bill next election. I don’t think it’s going to work. Any thoughts?

      On a disturbing note, apparently 100% of White nationalists are opposed to ObamaCare. But this isn’t about race at all, is it?

    2. Some people are saying they are against it because it doesn’t go far *enough.* Too watered-down, too centrist, that sort of thing.

    3. I was one of them, but now I’m for it. What the heck. These people who say it doesn’t go far enough, are they so stupid that they would vote Republican in the next election to *overturn the bill*? That’s really crazy. Are people really that stupid?

    4. Another blogster that sometimes covers similar material to this one, HalfSigma, also has no opinion because the bill’s too complicated. My greatest worry is that it will give the neo-con Supreme Court a license to rule that the insurance companies can sell nationally from any state, like credit cards from Delaware, so all the states race to the bottom to attract the business, and we all get the same insurance options as the most industry-friendly state.

    5. As to why people are against it:

      I hate to say it, but most Americans are too poorly informed to know what they want. The MSM sets the tone, and the people follow. I spent the last week at my Unabomber-style shack w/ only a TV and a digital box, and I got all my news from the international channel. BBC, Al Jazeerah, etc. I’m here to tell you even the most mediocre news services of other countries–South Africa, for example–cover more real news, even U.S. news, than even “serious” U.S. news programs. The U.S. media’s purpose is mainly to instruct the populace on the proper *attitude.* In this case, it is suspicion and even hatred towards the public sector and adulation for all things neoliberal. Hey look, I’m using it!

    6. “Are people really that stupid?”

      Well… A good case in point is the Wiccan lesbian couple that lives 4 doors down from me. They voted for McCain to spite Obama for beating Hillary. They continue to hate the president with a zeal previously reserved for no “person of color” since O.J. They spread lies from Alex Jones and the teabagger movement. Ironically, most of this stuff defames the progressive ideology they (previously) adhered to as much as it does any one individual. It’s almost like the progression you note in people who gradually go into antisemitism from a leftist POV. Eventually, they end up implicitly rejecting everything they used to support in order to adopt the right wing POV with which their antisemitism is consistent. In the same way, these umm… ladies hate Obama so much that they’ll throw out the whole progressive project that guarantees them i rights and possibly non-burning at the stake. It really is a mental illness, IMO.

      So my answer is yes, people are that stupid, or crazy.

  18. To Tulio:

    Yeah, seriously. I work, I pay taxes. The largest share of my taxes are going to pay for white retirees on social security. The younger workforce is increasingly non-white and is increasingly paying more to support an aging white retiring population. Yet you don’t see young non-white workers up in arms about it. And this phenomena is true in Europe too. Why are whites the only ones that go crazy about this stuff?

    Yep only some of the Republicans and Libertarians are in favor of rolling back and/or discontinuing social security. Note if the US government had increased eligibility for Social Security in keeping with increased lifespans we wouldn’t be in this mess. Some government based public based pensions (such as Singapore..) are fully in the black and will pay foreign workers who have paid into the system.

    1. And speaking of lifespans, blacks have shorter lifespans than whites. So that means I will pay into the system, and never collect any SS. Or at least not as much as whites. Yet does anyone see Tea Parties of blacks demanding that they shouldn’t have to pay tax to white retirees?

  19. So basically you are all for transferring endless amounts of tax-confiscated monies from productive, hard-working, intelligent, and tax-paying White citizens to ignorant, over-breeding, and minimally productive non-White citizens?

    “Remember, democracy never lasts long. It soon wastes, exhausts, and murders itself. There is never a democracy that did not commit suicide.” – John Adams

    1. Screw the non-Whites. I don’t care about them. If they want a piece of the pie, they can go grab it themselves.

      I’m for the Whites! And my White friends and I want national healthcare! National healthcare will be great for Whites! That’s the important thing here.

  20. California is obviously far too big and complex for its own good — it’s so large that it has basically become ungovernable.

    A lot of people have proposed splitting the state up in to at least 3 different states – something like: Cali South, Cali Mid, and Cali North.

    I think it’s a great idea and that it ought to be done.

    Too much complexity leads to collapse – http://www.voxeu.org/index.php?q=node/1723 – which is the trajectory Cali is currently on. Thus to prevent decline and eventual collapse Cali needs to (re)simplify as much as possible, and the best way to do that is to break the state up in to smaller, more manageable chunks.

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