As you can guess from my handle, I'm not a big fan of the old tax and spend thing.
Here is the problem in a nutshell, and fixing it is unlikely short of states starting to secede.
When government gains the ability to take money from one person and give it to another; a couple of problems set in that lead to this inevitable fate. First, legislators will use that power to buy votes. Second, people with an interest will then buy the legislators. Thus begins a terrible cycle.
In order to protect themselves in a democracy, these corrupted officials seek to create a situation where at least 51% of the population either derives income from government, or pays no effective taxes. This way, those who are pulling the wagon cannot outvote those who are riding in it and effective reform becomes impossible.
Once this point is reached, the bankruptcy of the state and country are inevitable. A republic can only endure until people figure out that they can use the ballot box as a means of encouraging politicians to take the results of my efforts by force, and give it to themselves.
California, with a GDP larger than many countries, has overspent their budget for years. It appears though, that their day of reckoning has finally arrived. Reality has finally set in that you simply cannot handout money like its candy indefinitely without the entire house of cards eventually tumbling around your ears.
The part I found most interesting in this story, is the plan to create a commission to re-work the state's tax structure which is "vulnerable to booms and busts...because it relies heavily on high income earners". Really? Wow, I did not know that. I was not aware that if you rely on high income earners to foot the bill, that eventually the entire system would collapse.
The frightening part of this story is that it is a prophecy of what is eventually to come in Washington. Some of the very programs that California must slash or eliminate are programs that our gov't in DC is currently attempting to create on a national scale. Sadly, I doubt our fearless leaders in Washington are bright enough to learn from California's poor example before they make the very same mistakes. As Will Rogers once said, some folks just have to piss on the electric fence themselves.
As you can guess from my handle, I'm not a big fan of the old tax and spend thing.
Here is the problem in a nutshell, and fixing it is unlikely short of states starting to secede.
When government gains the ability to take money from one person and give it to another; a couple of problems set in that lead to this inevitable fate. First, legislators will use that power to buy votes. Second, people with an interest will then buy the legislators. Thus begins a terrible cycle.
In order to protect themselves in a democracy, these corrupted officials seek to create a situation where at least 51% of the population either derives income from government, or pays no effective taxes. This way, those who are pulling the wagon cannot outvote those who are riding in it and effective reform becomes impossible.
Once this point is reached, the bankruptcy of the state and country are inevitable. A republic can only endure until people figure out that they can use the ballot box as a means of encouraging politicians to take the results of my efforts by force, and give it to themselves.
"This way, those who are pulling the wagon cannot outvote those who are riding in it and effective reform becomes impossible."
This is probably the clearest and most succinct evaluation of our current situation. God help us all.
government is that the primary motive for the majority of upper level decisions is empire building. Once you a have program intiated, it becomes bloated with layers and layers of upper management that soon results in the classical case of too many chiefs and not enough indians. It's all about building turf and protecting your turf and not about serving the people.
Though some programs may be good what inevitably happens is that the layers of management become institutionalized and the original mission is lost. There are agencies in California government where literally, people are making over $90,000 a year and not doing a damn thing, except micromanage. I am referring to the California Public Utlities Commission, a noble organization serving an important governmental function but is burden by bureaucracy and jurisdictional battles. This problem is replicated through out government agencies.
We need to make government management structure flat but that is a daunting task. Private industry did this two decades ago. I hope the next governor will seize this opportunity of this current economic crisis to make government more efficient.
Do not let a good crisis go to waste.
Good points Breaker. Every state has their empire builders, and they will fight to the death, so to speak, to maintain them, and increase whereever possible. The New Jersey Turnpike Commission is an excellent example. The commission is a quasi-state function that is filled with political appointees. The turnpike is , in effect, Interstate 95 through the whole of NJ. How they can charge a state toll for operating a federal roadway is beyond me. Gov Corzine recently appointed a 'Marketing Director' for the turnpike, at $155,000/year. What do they need a marketing director for? You either drive on it, or you don't. In 2006, the commission took in $675 million in tolls. Of that, $110 million was spent on turnpike maintenance. The rest was used for administrative costs and fees, and returned to the general fund. The state pays the NJ State Police $85 million/year to patrol the turnpike as it is a state owned highway. Strange, considering that 100% of the state police salaries, benefits, etc., are already paid from the state budget. So what happens to that $85 million? Good question. I can't find anyone that knows the answer. Corzine proposes to raise tolls 10% per year for the next 4 years to help balance the budget. Apparently, to a politician at any level of government, cutting spending has now become anathema. We have definitely lost our way.
transit authorities etc are bloated with highly paid political appointees who do absolutely nothing. Thank you for enlighting me on the New Jersey Turnpike. $155,000 for a marketing director...whAT a waste. Your example on how little money is spent on maintenance in proportion to administrative costs is replicated throughout government.
If you ever run for poltical office I'll be front and center, campaigning for you. Your posts are intelligent and no bullshit.
churches.
"Once you a have program intiated, it becomes bloated with layers and layers of upper management that soon results in the classical case of too many chiefs and not enough indians. It's all about building turf and protecting your turf and not about serving the people."
Though some programs may be good what inevitably happens is that the layers of management become institutionalized and the original mission is lost.
I read a study years ago that claimed that up to 80% of the protestant churches in the Western United States were started by women, and usually from Sunday school classes. Then when they got successful enough in serving the community, and getting substantial enough donations, the old guy in the high collar (ordained minister) came to take over, and build a building called a church. And, what you just said occurred. It's the nature of organizational development.
in defense of governments, they are at least a necessary evil. Churches OTOH are simply a drag on society, a way to keep the sheep shorn and the masses in line.
than teaching peACE and love. I hypothesize that the Roman Catholic Church and the nobility of Europe conspired to keep the people ignorant AND in darkness. The middle ages weren't called the Dark ages for nothing.
