There is gold in them thar hills in California. And politicians like Gavin Newsom (aka, Pond Scum) not only spend all their cash available from (ruinous) taxes, but also spend like drunken miners and run up massive deficits and debts.
Governor Gavin Newsom bragged of a surplus, but California is seriously underwater. The next recession will hit the state extremely hard.
How Much Is California in Debt?
The above link says over a trillion. That’s being very generous to California. Click on it to discover … California State and Local Liabilities exceed $1.6 Trillion.
California’s total state and local government debt now stands at almost $1.6 trillion, or about half the state’s GDP.
That isn’t an alarming ratio when compared to the national debt, which has now soared to 128 percent of U.S. GDP with no end in sight. But Californians carry this $1.6 trillion state and local debt ($40,000 per capita) in addition to their share of the national debt (about $90,000 per capita).
That article was from February of 2022. I suspect the liabilities are now close to $2 trillion.
Cost of Running a McDonalds Jumps $250,000 in CA
On February 4, I noted the Cost of Running a McDonalds Jumps $250,000 in CA Due to Minimum Wage Hikes.
A blowback is underway.
California Restaurants Cut Jobs
On March 26, I commented California Restaurants Cut Jobs as Fast-Food Wages Set to Rise
Proposition 103 Backfires
Citing wildfire risk, State Farm will not renew policies on 30,000 homes and 42,000 business in California.
Also on March 26, I commented Proposition 103 Backfires, State Farm to Cancel 72,000 California Policies
Blame the state, not insurers.
Congratulations to NY, IL, LA, and CA for Losing the Most Population
People in California, increasingly getting sick of the state’s progressive madness, are voting with their feet.
For discussion, please see Congratulations to NY, IL, LA, and CA for Losing the Most Population
Absolute Basis Losers
- New York: -631,104
- California: -573,019
- Illinois: -263,780
California Leads the Nation in Unemployment
The BLS metro shows unemployment rates were up in 218 of 389 metro areas. Nonfarm employment only rose in 59 areas.
On March 15, I noted Unemployment Rates Rose in 218 of the 389 Metropolitan Areas
Unsurprisingly, California has the highest unemployment rate in the nation at 5.7 percent vs. 4.1 percent nationally.
A Booming Economy?
California has massive problems although the stock market is at a record high and the economy is allegedly booming. The next recession will hit California exceptionally hard, and it’s not too far off.
But thanks to Newsom’s Presidential ambitions (God help us!), along with virtually psychopathic state legislators, California has been tax crazy (particularly in 2022). This has helped to drive a demoralized middle class to Arizona, Texas, Nevada and other lower tax states.
And then we have California’s fast food minumum wage disaster, causing closing of small, family-owned restaurants. And causing massive layoffs in the fast food industry and probably leading to an AI takeover of corporate resturants (I remember taking my poor wife to Olive Garden and I refused to use to electronic ordering system and demanded a real waiter to serve us. The waiter told us that nobody liked the electronic ordering system).
While not the only guilty party, Newsom is a leader … in bankrupting California with his budgetary fantasies and Presidential aspirations.
I am surprised that Newsom hasn’t used the themesong from Jim Bowie as his themesong.
Confounded Interest - Anthony B. Sanders 
You must be logged in to post a comment.