The Governator...

[RS Davis]

So, does anyone think Arnold is going to make a difference in Cal-ee-for-nee-a? Or is he just going to become another politician, selling-out to special interests and watching his state bankrupt itself? Ron Paul has some interesting things to say about this...

The problem in California is easy to identify: the state government consistently spends more than it collects in taxes. Drunk on record revenues from the stock boom of the late 1990s, legislators in California went on a spending spree that bloated social services and added thousands of government employees to state payrolls. Politically, social service programs and government jobs are easy to create – but virtually impossible to eliminate. So when the bubble burst and tax revenues dropped dramatically, the state predictably kept spending at the same rate. The result is record budget deficits and the potential for a default on payments to state employees, various creditors, and bondholders.

If the scenario on the west coast seems familiar, it’s because we’ve seen it before in Washington. Congress spends far too much regardless of revenues. The fundamental difference is that the State of California, unlike the federal government, cannot simply print money to pay its obligations. It has only two choices when spending outpaces revenues: borrow money or raise taxes. With its bond and credit ratings floundering, borrowing is a difficult and expensive venture. Taxpayers in the state already pay some of the highest taxes in the nation, so tax hikes are politically unpopular. Faced with this dilemma, California lawmakers did nothing, hoping to keep the treasury afloat until tax revenues rebounded. But the economic turnaround never happened, so California faces a crisis here and now. Somebody had to pay, and Gray Davis was the most visible symbol of an irresponsible government.

Federal politicians, however, can use government printing presses to sweep economic problems under the rug and hide the effects of deficit spending – at least for a time. Our fiat monetary system permits politicians to spend money now to win votes and fund popular programs, while delaying the harms until later. When the federal government monetizes debt by magically paying its bills with newly printed money, the economic effects are diffused throughout the economy. Over time, however, we all pay for the increased number of dollars in circulation. Prices go up, personal savings are eroded, and the dollar becomes weaker against other currencies.

- Rick

[Gabrielle]

Well... Right now I am still stuck on the idea that he
was not satisfied with the spotlight he was in, as an actor, and wanted more. I'm open minded, though, so I guess time will tell. *tapping fingers on the mousepad*
waiting, waiting...

[RS Davis]

Gabrielle said:

Well... Right now I am still stuck on the idea that he
was not satisfied with the spotlight he was in, as an actor, and wanted more. I'm open minded, though, so I guess time will tell. *tapping fingers on the mousepad*
waiting, waiting...

Well, here's how I see it. He can either be effective, or a politician. To actually fix the problem, he will have to piss a lot of people and special interests off, and may have little chance of being reelected. If he becomes a politician and plays that game, California will be no better off when he completes his tenure. I hope he has the balls to do what is right.

- Rick

[NRAisREAL]

Gabrielle said:

Well... Right now I am still stuck on the idea that he
was not satisfied with the spotlight he was in, as an actor, and wanted more. I'm open minded, though, so I guess time will tell. *tapping fingers on the mousepad*
waiting, waiting...

tap - tap - tap = what's ya waiting for [glow=red,2,300]an instant reply ?[/glow]


it could have been worse. His wifey will make sure he plays the game and does some good.

If not, we can blame her.