Wednesday, July 9, 2008

California's Budget Problem

I haven't done the detailed analysis others have. I just believe our accountancy department in California when they say, "We don't have a revenue problem, we have a spending problem." Mike Shedlock went to the trouble to do the numbers and prove it on his blog.

He shows the problem graphically in this image.


By the way, California's money problem is no different from the federal government's problem. We absolutely must spend less than we take in, but that doesn't win elections. Since the money doesn't belong to the politicians, they don't care. They spend it however it will help them win. As responsible citizens, it's our job to stop allowing that tactic to work.

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