Schwarzenegger Finally Learns: Freedom Is Profitable, Statism Starves
California's governor looks to open up drilling to raise cash for the troubled state.
Throughout the course of American history people have prospered when government expansion and regulatory polices have been kept in check. On the national level during the 20th century this was evident during the administrations of Calvin Coolidge (1923-1929) and Ronald Reagan (1981-1989) — both drastically cut taxes, defended the private sector, curtailed the size and scope of government, and witnessed unprecedented economic booms. Conversely, people have suffered during administrations like Jimmy Carter’s (1977-1981) where taxes and regulations were rampant.
In other words, freedom is profitable but progressivism, or “liberalism” as it is known today, is not.
And this appears to be a lesson that California’s Governor Schwarzenegger has finally learned, albeit reluctantly, as he is aggressively pursuing a way to open a portion of California waters to offshore drilling.
California currently faces a state deficit of more than $23 billion, which is the result of years of Democrat-run state legislatures, budget-busting spending, and exacerbating tax rates. Between the state legislature’s liberalism and Schwarzenegger’s “green agenda,” California has been transformed into the People’s Republic of California and the coffers have gone dry. Or to put it as NBC anchor Brian Williams did on July 21, 2009: “California is our biggest state in terms of population and it long ago ran out of money.”
Things are so bad that some state agencies have already begun issuing IOUs to banks instead of real payments and some businesses within the state are “[trying] to pay their employees … [and] their vendors … with IOUs.” No wonder there’s a mass exodus from the state among those who still somehow possess the means to get out.
In the midst of this statewide implosion, Schwarzenegger wants to work out a lease for Plains Exploration & Production Co. that would allow them to drill off the Santa Barbara coast for 14 years and would net the California budget $2 billion in royalties throughout the lease. Moreover, as part of the lease agreement Plains Exploration & Production Co. would “advance an immediate $100 million to the state to address urgent cash-flow needs.”
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AWR Hawkins is a conservative writer who holds a Ph.D. in military history from Texas Tech University.
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72 Comments
1. Marc Malone:I doubt he’ll get it done. He absolutely lacks credibility, because he caved so much in the past. He is done as Governator. Meg Whitman will clean his clock in the next election. then, CA will finally have a real man at the helm, not some girlie-man.
Aug 5, 2009 - 1:42 am 2. GA Knight:About damn time Ahnold got a clue.
Aug 5, 2009 - 3:19 am 3. David Thomson:This is excellent news—and long overdue. Offshore drilling will likely become reality in California in the very near future. The voters want the money and are no longer willing to listen to the environmental extremists. Other states will soon follow California’s lead. Whether we like it or not, in this unfair world the Golden State sets the pace for the rest of the country. The idiotic Californians are greatly responsible for the economic crisis that is currently afflicting the United States. Texans like myself have had their heads on straight for decades. It’s time the citizens of California also grow up.
Aug 5, 2009 - 4:07 am 4. Steve DeMarcus:Now if Florida and other states could follow and do the same and get oil production going here in this country. With Iran’s recent activities as well as other Mideast countries as well, we need our of resources to at least ensure that if there is a problem elsewhere that we have some oil always coming from within this country.
Aug 5, 2009 - 4:16 am 5. Koblog:California cannot change its disastrous course by having a different governor. Not as long as the liberals own the rest of the state.
Liberal thinking is so entrenched at every level that no one person can change the direction.
Arnold came in with the promise of leadership and new direction. He was slapped down by the very people who elected him to make necessary changes.
Do we have any new power generation capability to stop the rolling brownouts that got former governor Gray Davis recalled? No.
Is California more friendly to agriculture? No.
Have they even stopped runaway film production? No.
Does California want successful businesses to thrive here? In some places the sales tax is 10.25%. How much local shopping is going to take place with a 10% penalty slapped on every purchase?
California unemployment stands at than 10%. Every lost job has been in the private sector as no state employee and no LA city employee has been laid off. In fact, the state employment rolls have doubled in the last six years.
California truly is what Obama has in mind for the nation:
Aug 5, 2009 - 4:17 am 6. Brian:- unsustainable deficits
- shrinking taxpayer base
- “progressive” taxation where the top earners pay for…
- every liberal goodie clueless and gerrymandered/entrenched politicians can dream up
- onerous regulations stifling creativity and business
- welfare for those who don’t work
- a failing education system that by law eats half the multi-billion dollar budget
- underfunded or unfunded yet remarkably generous pensions for state workers
- state rebates for boondoggles
That is what is wrong with the California mindset. The state is full of ECOnuts. I am happy to have escaped. There are (or were) 25 million people in that state driving cars, yet they feel they are somehow above the need to drill off the coast. Drilling off the coast should be mandatory! Yes one lease is worth 2 billion in 10 years…. well maybe the state should hand out 20 leases? That would make a dent in the deficit, create new jobs and tax income for the state.
Aug 5, 2009 - 4:33 am 7. TennesseeVolunteer:The state has replaced the millions of tax paying residents that have left the state with non tax paying illegals.
The term “big oil” is lunacy… oil is what makes this economy run. The constant attacked on the industry is like chewing off your own foot!
Funny the kinds of decisions a state makes when their money faucet is turned off. As long as CA or any state can tax their constituents to oblivion, the entitlement libs , and even the GOP will spend the money on any number of misguided projects. As soon as they know that Mom and Dad (the taxpayer) won’t give them any more allowance , they start making rational decisions that all of us have to make. My foreman describes free spending liberals as “people who would spend their last $10 on a moneybelt.
Aug 5, 2009 - 5:50 am 8. cedarhill:I hope all of us are learning something here, starve the beast!
Yet another chapter in California’s redux of the looters from Rand’s classic. No drop of oil will ever flow from their fields. If not state laws, then the Sierra greenies (or rather the beluga luggies) will stop it. And if not them, then Obama will squash them.
Energy is life. Cheap energy is properity.
Aug 5, 2009 - 6:02 am 9. HLH:Californians, like Obama, want neither.
May they watch TV without power while freezing or melting.
Now, if only our federal government can learn the same. Instead, their encouraging us to put up windmills and solar panels.
Aug 5, 2009 - 6:38 am 10. Pelaut:When you’ve been flushed down the tubes while you slept, you do have a tendency to wake up. But don’t think that changes anything.
Aug 5, 2009 - 6:40 am 11. William:CA and the rest of us went down the tubes and only now becoming groggily aware of it, that’s all.
Way to go Arnold! Hadn’t seen this before but I’m glad to see it now. Yes, Arnold’s a little behind the curve on this one but better late than never. Won’t it be strange if he succeeds in getting offshore drilling passed and the rest of the country ends up following California into greater days of freedom instead of worse days of dependence on foreign oil?
Aug 5, 2009 - 6:43 am 12. Bilgeman:Pretty much says it all:
http://littlemissattila.mu.nu/archives/home/attila/www/archives/The%20No%20Zone.jpg
Aug 5, 2009 - 6:45 am 13. biblio44:“Throughout the course of American history people have prospered when government expansion and regulatory polices have been kept in check. On the national level during the 20th century this was evident during the administrations of Calvin Coolidge (1923-1929) and Ronald Reagan (1981-1989) — both drastically cut taxes, defended the private sector, curtailed the size and scope of government…”
Where to begin…. First of all, what ever happened to good old Herbert Hoover? Or are the consequences of pre-1929 policies something you’d rather forget? Secondly, not only did Reagan raise taxes multiple times, but he increased the size of government. Not until Clinton were government jobs actually cut.
And btw, equating off-shore drilling with freedom is really a hoot!
Aug 5, 2009 - 7:01 am 14. Bonner:Why are we so slow to learn from Ronald Reagan? Why does it take bringing a state to the brink of economic ruin to open the governor’s eyes to the fact that freedom is beneficial (and profitable according to AWR)? I hope Arnold is serious here, and that this isn’t just a phase he’s going through while the chips are down.
Aug 5, 2009 - 7:09 am 15. David W. Lincoln:Finally, something that is authentic Schwarzeneggerian. At least he remembered who brought him to the dance, even though it is almost time for the last dance.
Aug 5, 2009 - 7:16 am 16. Anonymous:The real problem is that the money will only encourage further lunatic spending. These people are like junkies, when they are high they are completely irresponsible, when they aren’t they will do anything imaginable to get the cash to get high again.
All money goes to feed the addiction.
13. biblio44:
Aug 5, 2009 - 7:19 am 17. anton:Most of those jobs deducted from the Federal Goverment were the resut of drastic cuts in the military. The Navy lost more capital ships to Billy than they did fighting the Japanese in WW2 and the Army was halved in size.
The real problem is that the money will only encourage further lunatic spending. These people are like junkies, when they are high they are completely irresponsible, when they aren’t they will do anything imaginable to get the cash to get high again.
All money goes to feed the addiction.
13. biblio44:
Aug 5, 2009 - 7:20 am 18. anton:Most of those jobs deducted from the Federal Goverment were the resut of drastic cuts in the military. The Navy lost more capital ships to Billy than they did fighting the Japanese in WW2 and the Army was halved in size.
OK that is weird….I’m 16. Anonymous: and 17. anton: and I can’t get this thing to keep me logged on, is everybody having the same problem?
Aug 5, 2009 - 7:24 am 19. Jason:That these recources have been sitting off the coast of California this whole time is shameful. In the name of the environment the California people have been robbed of wealth. Hopefully this marks an actual turn toward liberty in that state once again.
Aug 5, 2009 - 7:32 am 20. keithacita:gov newsom has a better solution, tidal wave power which can power all the rickshaws we will ever need. this visionary plan will be ready by 2050
Aug 5, 2009 - 7:53 am 21. savage24:Thr sad thing of this is the state assembly voted down the off shore drilling, and then expunged the vote from the record. It was all but one of the democrats and one republican that voted it down. They were so proud of their vote that they don’t want it made public. Cowards!
Aug 5, 2009 - 7:55 am 22. Scott:I live in CA. Before Arnold signed the budget two weeks ago, he used his line-item veto to cut $400 million in social services spending. The Dems were outraged. Now, the Republicans have called the Dems’ bluff. If they are so concerned about the “poor” and the “needy”, then vote to allow drilling and pick up $100 million to allocate to social programs. The Dems won’t do it. They would rather raise taxes.
The game is up. I spent weeks reading comments on budget stories in every major paper in California during the budget fight. The comments were at least 80% in favor of massive cuts to welfare and spending and in opposition to any tax increases.
We are changing the way we draw legislative districts. After the 2010 census, we will have a non-partisan commission that will draw boundaries with NO regard to political affiliation. It will be based on population and geographical integrity. No more “safe” districts for either party.
By the way, Arnold cannot run again. His term is up in January of 2011. I’m hoping Meg Whitman is our next governor. It’s either her or Jerry Brown.
Aug 5, 2009 - 8:13 am 23. Peter the Bubblehead:18. anton wrote:
…and I can’t get this thing to keep me logged on, is everybody having the same problem?
Peter writes: The logged-in feature was deliberately disabled this past week due to problems with contributor’s private e-mail addresses being displayed to anyone who accessed the article (and comment entry form) right after them.
Aug 5, 2009 - 8:39 am 24. Jeff:Way to go Arnold! You drove your state into Michigan-like economic times for nothing. As “Jason” posted above, these resources have been there all along but you’ve kept the citizens of your state in a stranglehold. I hope you succeed in drilling, for Californians’ sakes. (They deserve better than you.)
Aug 5, 2009 - 8:42 am 25. Calvin Ball:So are the glitterati all going to move to Dubai?
D’bai! Bon Voyage! Don’t do anything that will get you in trouble with the morality police!
Aug 5, 2009 - 9:06 am 26. Brian:A few years back when the CA government was fighting that years budget shortfalls (its been going on in that state for 10+ years) the people passes a 12 billion dollar bill for stem cell research!! And they couldnt pay for the programs they already had! I have no faith that the people in that state will figure it out anytime soon!
Aug 5, 2009 - 9:37 am 27. Former Californian:The fiscal problems in CA will not be fixed until all government agency employees are taken off defined benefit retirement programs and put on defined contribution programs.
Aug 5, 2009 - 9:46 am 28. Doug:I have written the Gov. many times about using the resources we have to pay some of the bills but two things stand in the way. He’s to dumb to consider it and the state is filled with environazis who control everything. The people of this state will not wake up until it is too late. The legislators could care less about the deficit as long as they get paid and it is doubtful if a new Governor will be able to change the tide. Our only hope is to replace all the legislators and get rid of the environmental nuts who have taken control of the state through various organizations.
Aug 5, 2009 - 9:54 am 29. BunnyMomRocks:Here is a NY Times article about the debate about oil drilling at the local Santa Barbara county level: http://www.nytimes.com/2009/04/08/science/earth/08drilling.html
My favorite quote from the article is from Ms. Farr, “Proponents of more drilling will say the technology has been improved. But when you look at what causes spills, it’s not about the technology, it comes about because of human error.” So basically as long as people are part of oil drilling it will always be bad. How utterly ridiculous. Nevermind the fact that oil drilling in the area has reduced pressure within the reservoir and thus greatly reduced the production of the NATURAL oil seeps in the basin. That’s right oil seeps are part of the natural world, Ms. Farr.
My parents have lived in Santa Barbara county for over 30 years and were quite happy at the thoughts of extra tax revenue coming in via oil leases. They and many others in the county were upset when the Board of Supervisors reversed their decision.
The mindset of those in power in California that sees a pile of debt and possible sources of income and doesn’t equate that one fixes the other is a problem at all levels of government in California, not just the state level.
Aug 5, 2009 - 10:02 am 30. William:I have watched California’s downhill slide under Arnold with sadness and anger. Sadness because of the greatness that state once represented, anger because Arnold has simply repeated G. Davis’ energy errors. Maybe this can be the start of a new day.
Aug 5, 2009 - 10:03 am 31. Letalis Maximus, Esq.:Ain’t. Gonna. Happen.
Arnie is just floating this proposal to try and scare people into agreeing to tax increases.
“OH MY GOD, OIL COMPANIES ARE GOING TO RUIN OUR BEACHES AND OCEAN VIEWS! We better agree to pay more taxes FAST!”
Aug 5, 2009 - 10:04 am 32. William:To “Former Californian” – post further if you get the chance. Not being from California I do not understand what you’re saying. It makes it sound like government workers in California are akin to members of labor unions in Michigan.
Aug 5, 2009 - 10:05 am 33. Mwalimu Daudi:I doubt he’ll get it done. He absolutely lacks credibility, because he caved so much in the past.
Exactly. And there is such a thing as closing the barn door after the horse has escaped.
Aug 5, 2009 - 10:06 am 34. urbanleftbehind:#27
That recalls another reason Michigan was actually better off than California (an old Pajamas Media post from this Winter) – Michigan has had all new state employees since about 1999 or so on defined contribution plans.
I could think of another reason, but passing through Detroit as my first town would be a better deterrent than a wall!!!
Aug 5, 2009 - 10:10 am 35. mad-as-H:TIME FOR A CITIZEN’S REVOLT:
CONSUMERS: Avoid ALL unnecessary purchases.
SMALL BUSINESS: REFUSE TO HIRE NEW EMPLOYEES until after 2010 or 2012.
FARMERS: DOUBLE YOUR PRICES TO THE MARKET.
The HEARTLAND must RECAPTURE AMERICA.
SCREW CITIES & POLITICIANS WHO PANDER TO THEM.
Aug 5, 2009 - 10:11 am 36. kcom:“Only liberals would dismiss $100 million in debt reduction on the grounds that it’s ’statistically negligible.’”
If liberals in California are saying that $100 million in the state budget is statistically negligible I wonder what they are saying about Barack Obama’s much ballyhooed $100 million worth of cuts in the federal budget he asked his cabinet to search high and low for? Are those cuts statistically micro-neglible? Nano-neglible?
Aug 5, 2009 - 10:22 am 37. Dave M.:What do Californians think powers their SUVs? I am always mystified by people who complain about “big oil” yet continue to drive. Put your money where your mouth is and boycott “big oil” by giving up your cars and living the green utopia you all espouse. Better yet, how about the rest of the country just boycott California.
Aug 5, 2009 - 10:23 am 38. Christopher:Why don’t the citizens of California aren’t rioting in the streets! The means to their betterment is sitting just off the coast, below an ocean where it is serving no purpose whatsoever at the moment. Arnold is finally doing something right while the Dems in that state continue with the same old “big oil” and “tax, tax, tax” agenda. I hope citizens across the country are watching California closely, cause they’re in the very place Obama wants to lead us if we don’t right our national course as well.
Aug 5, 2009 - 10:49 am 39. DirtCrashr:$100 million will barely cover the debt the CA Democrats owe to the SEIU and the Teachers Unions.
Aug 5, 2009 - 11:34 am 40. Jim Baker:The citizens of CA are rioting in the streets – it just happens to be the criminal-citizens and they’re in the streets of Compton, Stockton, San Bernardino, Oakland, East Los Angeles, and Richmond.
CA is gerrymandered, pwned – and the Democrats and their Unions RUN California not Arnold. He can only do so much.
More oil comes ashore in the Santa Barbara area from natural seeps than by any drilling or any human error – it is Natures fault there’s oily beaches, not people’s fault.
California will never allow oil exploration offshore in our waters. Arnold might be having his come to Jesus moment, but all the Democrat collectivists in that state aren’t going to buy into it. Hell, half of Colorado is now populated with these cretins, and they are busy trying to screw up that state in exactly the same ways. …..we are Borg….
Aug 5, 2009 - 12:09 pm 41. CJ:Props to #5 Koblog for his very accurate summary of the situation. Arnold is not the problem; since his set of budget-cutting initiatives were voted down, he has no power to stop the heavily liberal Democrat legislature from doing what it wants to do. The fundamental problem is the California electorate. They say they want better roads but they keep electing liberal Democrats. They pass initiatives against racial quotas, but they keep electing liberal Democrats. They complain about taxes, but they keep electing liberal Democrats. They vote against gay marriage, but they keep electing liberal Democrats. They’re shocked by the sweet pension deals for state employees and politicians, but they keep electing liberal Democrats. This list could go on, but you get the idea.
Aug 5, 2009 - 12:43 pm 42. Blacque Jacques Shellacque:Arnold came in with the promise of leadership and new direction. He was slapped down by the very people who elected him to make necessary changes.
That’s only because the teachers and nurses unions ran a campaign against him in 2005, and spared no expense or effort in the process. Needless to say, they succeeded in convincing the typical ignorant CA voter into rejecting Arnold’s proposed reforms.
Now, four years down the road, how are things now?
Aug 5, 2009 - 12:45 pm 43. Paul -Indiana:Just a thought … Isn’t California a bit short on drinking water? Along with the oil they might consider desalinization of sea water using the ‘green’ power of their choice.
Aug 5, 2009 - 12:55 pm 44. SteveB/Colorado:#40 Jim Baker: “half of Colorado is now populated with these cretins, and they are busy in trying to screw up that state in exactly the same ways….” Huh??? How did we get drawn into this California discussion? Last time I checked, energy companies are getting basically anything they want here. Wondering what cretins you are referring to?
#4 Steve DeMarcus: “now if Florida and other states could follow and do the same and get oil production going again in this country…..” Guess you haven’t been paying attention or doing your homework. As of June, 2008, energy companies were sitting on over 67 million acres of undeveloped oil & gas leases, located onshore, mostly here in the West, and offshore. That was before the recession hit big time, with demand down, wells being capped and drill rigs idled. (source: Republicans for Environmental Protection). If you want more drilling, and aren’t getting it, blame the energy companies, not the “eco-nuts.”
Aug 5, 2009 - 1:00 pm 45. narciso:You folks are missing the point, they had the compromise pass the state senate, than the assembly stripped it from the bill, and they had a voice vote to nullify the decision as if it never happened. Luckily a camera, caught the
Aug 5, 2009 - 1:29 pm 46. Micha Elyi:image, so they can’t hide. That’s how pathetic it has gotten
“I doubt he’ll get it done. He absolutely lacks credibility, because he caved so much in the past. He is done as Governator.”–Marc Malone (#1)
It has ever been thus with Republicans of the squishy persuasion. Example: Gov. Pete Wilson (Republican, 1991-1999).
“The idiotic Californians are greatly responsible for the economic crisis that is currently afflicting the United States. Texans like myself have had their heads on straight for decades.”–David Thomson (#3)
I laugh at such born-yesterday, too-smug-for-their-britches Texans. “For decades” Texas has put “keys in the door,” “walk-away,” and “mailing the keys to the bank” into America’s store of common expressions. Ask your momma about the S&L crisis of two decades ago, David. Ground zero was Texas.
http://www.time.com/time/magazine/article/0,9171,968279-4,00.html
“California cannot change its disastrous course by having a different governor. Not as long as the liberals own the rest of the state.”–Koblog (#5)
Exactly. All the recall of the governor could do was punish Gray “Prince of Darkness” Davis. As soon as the Democrat machine in the legislature realized that they had been left untouched, they came back more arrogant than ever.
“That is what is wrong with the California mindset. The state is full of ECOnuts.”–Brian (#6)
Talk of a “California mindset” is just the bigotry of people who resent shoveling snow and sweating through humid summers. Californians aren’t an undifferentiated blob “full of ECOnuts.” (We have TEA parties in the Golden State too.) It only takes a few ECOnuts to ruin a good thing, just as is happening all over America. (Here’s a clue: ECOnut ice cream millionaires Ben and Jerry aren’t from California.) Where do you suppose the votes to pass Federal ECOnut schemes – Montreal protocol, nonsense regulations intended to paralyze nuke power plant construction, bans on drilling in ANWR (Alaskan National Wasteland Reserve), CAFE regulations, cap-and-trade, etc. – come from? Uh huh, the majority of ECOnuts are outside California.
“First of all, what ever happened to good old Herbert Hoover? Or are the consequences of pre-1929 policies something you’d rather forget?
“–biblio44 (#13)
You forgot that Hoover was a progressive. You also forgot that “the consequences of pre-1929 policies” lifted millions from poverty, integrated millions of legal immigrants into American culture, transformed the automobile from plaything of the rich to transportation for millions, began the consumer electronics industry, and wired the nation for electricity; the list of examaples of pre-1929 economic progress could fill a library of history books. And has.
If America suffered post-1929, it was largely due to post-1929 policies from progressives.
“I live in CA. … The game is up. I spent weeks reading comments on budget stories in every major paper in California during the budget fight. The comments were at least 80% in favor of massive cuts to welfare and spending and in opposition to any tax increases.”–Scott (#22)
I want to believe.
Faster, please.
“Arnie is just floating this proposal to try and scare people into agreeing to tax increases.
“OH MY GOD, OIL COMPANIES ARE GOING TO RUIN OUR BEACHES AND OCEAN VIEWS! We better agree to pay more taxes FAST!””–Letalis Maximus, Esq. (#31)
If only Gov. Ahnold would frame the issue as your house, your job, and higher taxes versus ocean views for the Santa Barbara hillside love-nests of the stars.
Bring it on.
“What do Californians think powers their SUVs?”–Dave M. (#37)
The same thing non-Californians think, obviously; otherwise the national legislature would not be restricting offshore oil production on Federal tracts. (Duh.)
The automobile fleet in California has long had a better average MPG and a lower per-capita rate of gasoline consumption despite the greater miles driven per year than the gas hogs driven by the rest of the country. If the rest of America bought the kinds of cars Californians do, Carter and Reagan would have been bailing out the entire Detroit Big Three not just Chrysler.
Aug 5, 2009 - 1:39 pm 47. David Govett:Now we know what the Terminator was tasked to terminate: California.
Aug 5, 2009 - 2:20 pm 48. Calvin Ball:Please stop being an idiot. When a well is “capped”, it’s because the production cost is higher than the market price. It’s not a decision that’s taken lightly, and it’s certainly not a conspiracy.
If “big oil” wants to keep the oil off the market, wouldn’t it make more sense for them to just support the environmentalists? Or are you suggesting that they are, and it’s a big conspiracy between Exxon and Greanpeace?
[Cue the black helicopters...]
Aug 5, 2009 - 2:25 pm 49. Jim Baker:SteveB/Colorado,
Aug 5, 2009 - 3:09 pm 50. JDubya:If you are a Colorado citizen, like I am, you have noticed that now Colorado has become a completely Democrat state. We have a Democrat Governor, two Democrat Senators, a Democrat state legislature, several Democrat congressmen, and a state Supreme Court that was mostly appointed by Democrats. You will also note that our current Governor has never seen a tax increase he couldn’t love, especially if it masquerades as a registration or an annual fee. Just like Arnold. Colorado was a Republican leaning state before these political changes. This was brought to us mostly by demographic changes. You might look at the incoming migration statistics and see that Californians have been by far the largest group of people moving into our state. This is the basis of the theme of my previous diatribe.
I would like for you to clarify your discussion about the energy industry getting special favors here.
The fact that California is falling into the sea of debt is no surprise. The industries that built the state (aerospace and semi) are slowly leaving to greener lower tax pastures. Leave it to the meek. They are inheriting a smoldering turd. When they pull their collective heads out of their collective butts, they may just realize that all these soft, plush, “liberal” programs really did not amount to much.
Why would anyone get a job when some softy is gunning for their foodstamps and cheese by taxing those who work? If they are taxing him, surely they will tax me for making money. Ergo, I will stay right here watching Oprah.
Aug 5, 2009 - 3:09 pm 51. Brian:“Talk of a “California mindset” is just the bigotry of people who resent shoveling snow and sweating through humid summers.”
I HOPE you werent refering to me! I had lived my entire life in the state of CA! And only recently 2 years ago escaped that train wreck of a state. So do not patronize me by implying I know not of what I speak of. Sure there are tea parties there… but they have a snowballs chance in hell in that State. I saw state parks closed to OHV as a result of Eco nuts, the resources off shore closed, fishing along the coast closed, lakes closed to jet skiis, mountains closed to snow mobiles, fishing fleets destroyed, the economy set in ruin.
Aug 5, 2009 - 3:17 pm 52. bamaboy:I have lived through it all. The deserts are habitually closed to the public MILLIONS of acres in the name of the environmental gods!!
The state may not be 100 percent econuts, very true… but the vast majority of those running the government ARE! So the 20% who actually have common sense (and havent left the state yet) haven’t a chance of changing the direction of the state.
$100 million. It’s insignificant to CA with a $24B shortfall.
BUT when Obama cuts $100M from the multi-trillion dollar federal budget (2 sided copies anyone?) that a major headline!!
Aug 5, 2009 - 3:20 pm 53. Anonymous:#48 Calvin Ball: “please stop being an idiot.” Oh really. Perhaps you may want to read my comment again, or visit the source web site (www.rep.org). I fully know that when a well gets capped, it’s because the production cost is higher than the market price. Who said anything about a conspiracy? Perhaps you need to review some corporate SEC filings. I did and found some nice bottom line enhancements: undeveloped leases. One company I checked was Williams.
I don’t have a problem if companies want to sit on leases. That’s capitalism at work. What I have a problem with is when companies scream that they are being locked out of lands and they don’t have access. That’s baloney. Same for the argument that “eco-nuts” are preventing drilling.
“Cue the black helicopters.” I’ll leave that to the conspiracy crazies who think the United Nations is going to invade and take away everyone’s guns.
Aug 5, 2009 - 3:28 pm 54. Brian:However in all fairness to the people of CA, when they have gotten their act together as in the case of Prop 187, which would have saved the state billions of dollars by eliminating the drain from the pubic coffers for supporting illegal aliens and possibly kept the state alive financially activist judges have overturned the will of the people! The judges through the Proposition out after it was passed by the people!
Aug 5, 2009 - 3:38 pm 55. Bob:Too bad we can’t take cars away from those who vote against drilling offshore for our own oil in our own waters in our own country! I have lived in California for 45 years and I can’t wait the few years I have left before retirement so I can leave this land of depraved Utopianites.
Aug 5, 2009 - 4:15 pm 56. Coldwarrior57:so in one step he has reduced the states debt by 10 %.
Aug 5, 2009 - 5:26 pm 57. Samuel - business letter writing:about friggen time!.
The only thing that appears to have the power to save us from bigger and bigger government is having all the easy cash dry up…
Government may continue to increase its intrusiveness but at least it won’t be bigger
Aug 5, 2009 - 6:49 pm 58. red:First of all, what ever happened to good old Herbert Hoover? Or are the consequences of pre-1929 policies something you’d rather forget? Secondly, not only did Reagan raise taxes multiple times, but he increased the size of government.
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— If the poster knew history instead of lefy mythology, he would find out that Herbert Hoover was an economic activist as a matter of fact, his porculus work sounds like a lefty president I know of.
“After the stock market crash of 1929, Hoover browbeat business leaders to keep wages and prices high. He invested heavily in public works projects. He pushed for an international moratorium on debts. He created the Reconstruction Finance Corporation, which later became a home for many of FDR’s Brain Trusters. Hoover increased farm subsidies enormously.
In 1932, Hoover in effect repealed Calvin Coolidge’s tax cuts, increasing the rates for the poorest taxpayers by more than 100 percent and hiking the top rate from 25 percent to 63 percent. Worse, contrary to his own better instincts, Hoover signed the disastrous Smoot-Hawley trade bill that raised protectionist walls at precisely the moment the world needed trade the most.”
America’s Great Depression (PDF) (368 pgs) (Murray N. Rothbard, Ph.D. Professor Emeritus of Economics)
As for Reagan, you might be more successful peddling your BS if people weren’t still alive who remember the facts….
Many critics of reducing taxes claim that the Reagan tax cuts drained the U.S. Treasury. The reality is that federal revenues increased significantly between 1980 and 1990:
Total federal revenues doubled from just over $517 billion in 1980 to more than $1 trillion in 1990. In constant inflation-adjusted dollars, this was a 28 percent increase in revenue.3
As a percentage of the gross domestic product (GDP), federal revenues declined only slightly from 18.9 percent in 1980 to 18 percent in 1990.4
Revenues from individual income taxes climbed from just over $244 billion in 1980 to nearly $467 billion in 1990.5 In inflation-adjusted dollars, this amounts to a 25 percent increase.
http://www.heritage.org/Research/Taxes/BG1414.cfm
Aug 5, 2009 - 7:07 pm 59. red:BTW Ronaldus Maximus was a tax cutter. It was true yesterday and it is true today. Learn history, not your lefty talking points.
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Perhaps the greatest myth concerning the 1980s is that Ronald Reagan slashed taxes so dramatically for the rich that they no longer have paid their fair share. The flaw in this myth is that it mixes tax rates with taxes actually paid and ignores the real trend of taxation:
In 1991, after the Reagan rate cuts were well in place, the top 1 percent of taxpayers in income paid 25 percent of all income taxes; the top 5 percent paid 43 percent; and the bottom 50 percent paid only 5 percent.13 To suggest that this distribution is unfair because it is too easy on upper-income groups is nothing less than absurd.
The proportion of total income taxes paid by the top 1 percent rose sharply under President Reagan, from 18 percent in 1981 to 28 percent in 1988.14
Average effective income tax rates were cut even more for lower-income groups than for higher-income groups. While the average effective tax rate for the top 1 percent fell by 30 percent between 1980 and 1992, and by 35 percent for the top 20 percent of income earners, it fell by 44 percent for the second-highest quintile, 46 percent for the middle quintile, 64 percent for the second-lowest quintile, and 263 percent for the bottom quintile.15
These reductions for the lowest-income groups were so large because President Reagan doubled the personal exemption, increased the standard deduction, and tripled the earned income tax credit (EITC), which provides net cash for single-parent families with children at the lowest income levels. These changes eliminated income tax liability altogether for over 4 million lower-income families.16
Critics often add in the Social Security payroll tax and argue that the total federal tax burden shifted more to lower-income groups and away from upper-income groups; but President Reagan’s changes were in the income tax, not in the Social Security payroll tax.
http://www.heritage.org/Research/Taxes/BG1414.cfm
Aug 5, 2009 - 7:24 pm 60. YukonBill:OK, now this Canuck is really confused.
I agree with the offshore drilling idea, but I read somewhere recently that as part of the budget process, the Cal. govt voted down the proposal to allow this drilling, and then successfully voted to hide the record that they had voted against this offshore drilling. How is this option back on the table?
Aug 5, 2009 - 8:00 pm 61. Senator Foghorn Leghorn:Well, I declare! The
Aug 5, 2009 - 8:12 pm 62. paul_unalaska:senatorgovernor’s done changed his position on off-shore drillin’!As much as I would like to see this drilling truly happen, I just don’t.
The boobs in Santa Barbara County are just that. Santa Barbara County has a Mayor who summoned a special meeting with its City Council members a few years back to come up with a plan to exit Iraq! Elitist dimwits.
The city of SB considered painting a blue line 1,000 feet from the ocean to the city to display ‘Climate Change’ possibilities.
Santa Barbara County also boasts of possessing infinite-like protection acts for certain animals, plant life, fauna, et al.
Aug 5, 2009 - 10:16 pm 63. Old One:The hubris possessed left and liberals will never let go of their current monopoly on power in either California or Washington until they have created a complete economic and social collapse and are forcefully driven from power by the enraged citizenry. The complete meltdown in California is now well underway and will follow soon in the rest of the country.
Aug 5, 2009 - 10:30 pm 64. whyamInotsurprised?:The inevitable results of such a collapse nationally will not be unlike that which transpired in Germany 1919 through 1926 and anyone who has ever studied real history, not the marxist lunacy being rammed down young American’s throats by leftists and their usefulidiot teacher & professoriat commisars and dupes know what happened in Germany 1929-1945.
California has been in a slow motion meltdown since the the late 1950 that bean during the reign of Fat Pat Edmund Brown and later accelerated under his misbegotten son Jerry the Fairy.
The state was has been a gerrymander produced dictatorship of liberal democrats since the 1962 reapportionment with the democorrupts fiscally feeding a burgeoning army of welfare heavily criminal welfare parasites while nourishing legions of an ever expanding sinivelling counter-productive bloated bureaucacy.
A cabal of welfare recipients, a KGB of manipulatve and avaricious government employee unions with an insatiable appetite for tax revenues legally and electorally supported by the trial lawyer brigands, multi-millionaire funded envirowackos all of whom have fed the easily procured democrats seeking campaign moneyy have delivered the state to economic ruin.
California with less than 13% of he nation’s populaton has 32% of the the country’s welfare recipients and the highest paid state employees in the nation earning nearly double the average wage of workers in the private sector. We have more than twice the number of lawyers found in European nation with twice California’s population.
California may be bankrupt but its legions of bureauweenies continues to expand at the ceaseless rate of 44 per day 365 days a year. Meanwhile state revenues from personal income taxes, sales and corporate taxes continue to crater as unemployemnt rises. At the same time lawyering envirowackos and judicial actviists judges have shut off irrigation water to the state’s farmers to “save” a minnow.
I too like other commentors, a native born Californian am counting the months to my exit when my third generation Californian wife retires and we can flee to Texas with the gold we have purchased and then for Mexico to escape Maobama’s planned health care shut off of senior citizen via euthanasia holocaust as the the entire nation disintegrates economically in a tsunami of Argentina style hyper-inflation.
#24 Jeff … read #41 CJ – he has it right.
Ahnuld turned out to be more of a girlie man than even he imagined but the truth is he didn’t have much to work with. The retards that hold all the offices in Ca. blocked his efforts at reform and well, there isn’t much you can do unless you resort to Barry-like tactics and totally disregard the rule of law. That said, it is up to the citizenry to climb out of their ignorant “do-gooder” stupor and figure out that they are slitting their own throats by leaving these clowns in office.
As for the oil drilling, $2 billion over 14 years, yawn! Get serious. When the oil starts flowing there should be some serious tax revenues to help the government deficit BUT, and it is a BIG BUT, SPENDING has got to stop!
Aug 6, 2009 - 4:33 am 65. SteveB/Colorado:#49 Jim Baker: “If you are a Colorado citizen like I am…..” Yes, I have lived in Colorado for 28 years, and no, I didn’t come from California. I came from the conservative state of Indiana.
Yes, Colorado has trended Democrat in recent elections. But to attribute that to an influx of Californians is simplistic at best. Republicans in the state squandered their political capital on such things as tax cuts without thinking of impact on services, like road repair and building new prisons; social issues like gay marriage; while ignoring impending budget traps. As for the fees and registration increases that you call tax increases, just how would you pay for new & repaired roads and bridges?
Finally, you asked me to clarify the energy industry getting special favors. I never said anything about “special favors.” What I said was that industry has gotten what they want over the past 8 years. I’ve tracked the quarterly BLM energy lease sales; have you?
Aug 6, 2009 - 5:04 am 66. raybojabo:Arnold needs to hire Sarah Palin as a consultant to get this thing done right.
Aug 6, 2009 - 9:12 am 67. JimBaker:Glad to hear that you arrived from a conservative state Steve. I might also simplistically guess that, because you came from Indiana my assertion about Colorado’s demographics is refuted.
Aug 6, 2009 - 9:51 am 68. Marc Malone:Colorado cut taxes AND spent billions rebuilding I-25 during the last Republican administration. I might use the tax we already have on gasoline to work on roads and bridges. Deny that a fee is a tax, but who gets the money? You and me?
Finally, my job in the energy industry is to put together seismic data so the best places to drill can be found. I have friends who work to acquire those BLM leases you mention, as well as other leases, and they universally report that the leasing side of things is becoming increasingly more difficult. The BLM now holds many public hearings before any BLM property gets listed for mineral permit. The difficulty is that now there are several, friends of the environment, organizations who use these hearings as a mechanism to restrict energy exploration whenever possible. The legal shenanigans can be unlimited in some of these cases. I’m not saying that is a necessarily bad situation, but I am saying that maybe you should look a little beyond quarterly reports to see how things get done over at the BLM. By the way, what business do you work in?
What could Ah-nohld do? Does he not have state of emergency powers. It’s what Pawlenty did in MN, while the legislature was on vacay. He simply de-funded programs. That’s just one example.
Ah-nohld could go over the legislature’s heads to the people; make his case directly. He could convene a committee of top economists to figure a way out, then use his star power to sell the plan. He could name names as to who is blocking reform attempts. There are any number of things he could do.
Aug 7, 2009 - 1:12 am 69. SteveB/Colorado:#67 Jim Baker: “….now there are several friends of the environment organizations who use these hearings as a mechanism to restrict energy exploration whenever possible….” Actually, that’s not a bad idea. BLM is supposed to be governed by the principles of multiple use (Federal Land Policy Management Act-1976). But when some BLM field offices are approaching 80-90% of the land being leased, that’s not multiple use. Extensive development in Wyoming (Pinedale, Jonah) has clearly been proven to have an adverse impact on wildlife. Which is one reason why some of those friends of the environment groups you mention are historically conservative hunter and angler groups. Hunting & fishing is a big part of the economy of western Colorado and is being adversely impacted by all the energy development.
Those who thought they were discussing a California issue thread can learn something from the discussion between Jim & myself. These energy issues are far more complex than “drill, baby, drill.”
You asked my business: I presently engage in volunteer work in the outdoor education and recreation field. I’ve been active in the field for 25+ years. And yes, I do look beyond the quarterly lease sales.
Aug 7, 2009 - 4:19 pm 70. whyyeseyec:Forget it. Arnold can`t get anything done now. It`s too late. This should have been the 1st thing he did upon taking office in 2003. He chose to throw in his lot with the evil Dems and look where we stand.
To add insult to injury, Calif voters will elect a dem governor in 2010 thus hastening their already certain demise.
I am making plans to leave the state soon. I will take my family, my business and my education to another state that appreciates hard work and independence…..
Aug 8, 2009 - 11:45 am 71. Jim Baker:Steve,
First, it must be nice to be doing volunteer work. I still have to support my family with my work. I am wondering what proven damage has been done to the environment through the exploitation of the Jonah play and through the BLMs leasing of government land? Other than an explosion of the sage grouse population, what would be gained by not using BLM land in Colorado and Wyoming and who would gain what?
There isn’t even a baseline for what an ideal environment would be. Is it an environment that doesn’t change? Is it an environment free of humanity? What year was it, when everything in the environment was just right for all the plants and wildlife, and should we attempt to recreate that ideal because we are such experts on how it was ideal? We can’t even predict tomorrow’s weather accurately, so how do we have a complete knowledge of mother nature? Try this on. Humans are part of nature. Who can even say how that fits into the ideal big scheme of the enviroment. See, I don’t even buy into the first premise of political environmentalism, which is to claim that there is a big crisis that mother earth must be saved by yet another species which has no understanding of the why of its own existence. But now I am digressing. By the way, I just spent my weekend in Wyoming, and I highly recommend the Snowy Mountains for their beauty. But bring along a lot of $5 bills, the government is now charging fees to use the picnic grounds. I guess the federal government is broke, just like like California, eh? I just thought I would throw in something related to this blog and just for fun.
whyyeseyec,
Aug 8, 2009 - 7:40 pm 72. Californian:No offense, but please don’t consider Colorado. It doesn’t have any beaches anyway, eh. I’m just saying….
Okay so it sounds like Arnold is getting a clue! He has made California so hostile to business no wonder CA has one of the highest unemployment rates.
Hopefully Arnold will get some “balls” and open the CA coast up to drilling. In the past Arnold has taken the easy way out when dealing with the unions by bending over and grabbing his ankles. I hope that will change.
Aug 8, 2009 - 10:50 pm