Thursday, May 21, 2009

The Logical Consequences of Living Off the Government - Bankruptcy

The piper always has to be paid doesn't it. Only it took way too long for people to understand the consequences of government meddling in the economy. Government does not do anything well or correctly. It's only job is defence and to protect the individual's right to life, liberty and the pursuit of HIS happiness. I hope Michigan throws the bums out and demands a major reduction in their government budget!

Reporting from Sacramento and Washington -- After California voters Tuesday rejected almost the entire slate of ballot measures he had been championing as a means to fix the budget, Gov. Arnold Schwarzenegger was in Washington, D.C., seeking to secure federal stimulus money for the state.

The failure of the ballot measures means California now faces a $21.3-billion deficit. The steep state budget cuts Schwarzenegger has proposed to address it could violate federal rules against certain spending reductions, costing the state hundreds of millions - if not billions - of dollars federal assistance...

Schwarzenegger said he received the voters' message "loud and clear: an overwhelming majority of people told Sacramento, 'Go and do your work yourself, don't come to us with your problems....""The message was clear from the people, go all out and make those cuts and live within your means," he said.

The "big five" elected leaders -- Schwarzenegger and the legislative chieftains from both houses -- are slated to begin closed-door meetings today upon the governor's return from Washington.

On Thursday, a small group of Senate and Assembly members will hold the first of what's expected to be a slew of daily public sessions to wrangle over the details of the budget. Schwarzenegger has called for cuts that would hit every corner of the state.

He announced plans to lay off 5,000 of the state's 235,000 workers and has proposed slashing education by up to $5 billion, selling state properties, borrowing $2 billion from local governments and potentially reducing eligibility for healthcare programs. (READ)

At American Solutions:

Yesterday, Californians soundly rejected a series of new tax increases that Gov. Schwarzenegger argued were necessary to solve the state's budget crisis.

Of the six ballot measures, only one passed -- the one to stop pay raises for elected officials during budget deficits.

The remaining five propositions, including the most controversial measure, Proposition 1A, were defeated by 2 to 1 margins.

The signal sent to politicians wishing to raise taxes in the midst of a recession couldn't have been clearer: (READ at American Solutions)

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