Are we starting to see California really learning the truth of Margaret Thatcher's words? - Granite Grok

Are we starting to see California really learning the truth of Margaret Thatcher’s words?

The problem with socialism is that you eventually run out of other people’s money.

– Lady (and former British Prime Minister) Margaret Thatcher

bankruptcyYou know, I’m not sure if this is just the kind of creeping socialism that California has been practicing for the last few decades, or just dumb governance ideas gone crazy, or a willingness to participate in the kinds of “cooperative federalism” in which the Feds pass laws that offer much money to the “various States” but with strings attached.  Or, most likely, all of them at the same time (and a few more) (emphasis mine, reformatting):

The Sacramento Bee reports that the state’s Employment Development Department is about to cut its number of staff because the funding it gets from the federal government has been slashed.  Normally, the federal unemployment insurance program is the bulwark for the State Department, but the state will receive $150 million less through next June 15.  The federal program complains it is underfunded, blaming Congressional budget cuts, and is giving California less for two reasons:

  • California owes the federal government billions of dollars from borrowing funds when its own state unemployment insurance fund went belly-up,
  • the unemployment rate in the state fell from double digits to “only” 8.7 percent.

Department spokeswoman Patti Roberts said the department cannot keep up with demand; it has fewer telephone service hours, employees have a lower chance of working overtime, and staff have been transferred to other programs.

In the memo detailing the decision to cut staff, Chief Deputy Director Sharon Hilliard wrote, “We strongly encourage staff to explore other employment opportunities within EDD that don’t rely on (unemployment insurance) funding.”

The money is starting to run out, perhaps?  As Glen Reynolds keeps saying, things that cannot go on forever, won’t.  It is also a case that our governments at all levels have forgotten the lesson of independence and frugality.  California has spent beyond its means for decades and is chasing its gooses for about the same time for the golden eggs they should have left in their owner’s care.  States that have an inordinate financial dependency on the Feds should take note; it is time to start getting one’s house in order so as not to be hauled down when the USS Fed starts listing badly.

Dependency – it isn’t only at the personal level.  Pacts with the devil often turn out badly

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