California Budget Mess

California still does not have a budget.  The Republicans have taken a vow not to raise taxes.  To pass a budget will require a few Republican votes, but whoever wavers will be severely punished by the Republicans.  The Republicans are holding out to get existing rules trashed, put on permanent spending caps, and cut spending.  Governor Arnold has a “compromise,” which is bad, but the Republicans strongly reject it, holding out for a complete capitulation.  Arnold also proposes to put almost all state workers on minimum wage.  This brilliant idea is put on hold by a court challenge.

Schumpeter is of interest here:

Schumpeter, Joseph A. 1954. “The Economic Crisis of the Tax State.” International Economic Papers, 4; reprinted in Schumpeter, Joseph A. 1991. The Economics and Sociology of Capitalism, ed. Richard Swedberg (Princeton: Princeton University Press): pp. 99-140.

101: “The spirit of a people, its cultural level, its social structure, the deeds its policy may prepare — all this and more is written in its fiscal history. … The public finances are one of the best starting points for an investigation of society.”

3 comments so far

  1. Rich on

    Hasn’t the govenator read Keynes?

  2. Keith on

    What is the legislature doing??? California has serious budget problems that the legislature doesn’t want to address. No, California is deficit spending problems and the only way both Democrats AND Republicans plan on balancing the budget is more borrowing?!? This is incomprehensible! No one in their right mind would run a personal or business budget this way. As a registered Republican I resent the Republicans in the legislature saying borrowing more money is the solution to our budget problems. This just pushes the problems beyond their terms in office to the next generation. The Democrats have been compromising, now it is the Republicans turn to do so and get a budget passed! California’s serious budget problems requires serious legislators who will work to solve the budget woes, not dance around them. I am not surprised now that this years California budget is latest on record, nor am I very surprised to hear that the legislature may do nothing at all this year and instead leave it to the next elected body to resolve. Shame on our politicians in Sacramento for forcing this on the good people of California.

  3. mperelman on

    I agree with Richard. Borrowing is not a solution.

    One of the easiest ways to cut back on spending — one the Republicans will not accept — would be tohave politicians stop trying to how to each other by increasing incarceration, especially for nonviolent victimless crimes.


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