California, and its sister state Illinois, are two prime examples of what happens to states when emotional activists gain power, and socialist policies are implemented to drive economies and budgets. For years, the state of California was not only the most productive state in the union GDP wise, but its the 8th largest GDP in the entire world.
However, with sancutary policies for illegal immigrants, over-regulation to the point where hundreds of thousands of businesses have left the state, environmental regulation which has destroyed a large sector of California's bread basket, and a tax rate that is nearly equivalent to socialist Europe, the spectre of Margaret Thatcher's famous quote has finally entered the scene.
"The problem is with Socialism is that you eventually run out of other people's money."
Picture courtesy of Americaandproud.net
California, and Governor Jerry Brown have finally capitulated as on May 14th, the state government found it necessary to propose billion dollar cuts across the board, after a referendum to increase taxes failed in recent elections.
California now joins the long list of Democratic and Progressively run cities and states, which have bankrupted its citizens through massive welfare, taxation, and over-regulation. New Orleans, New Jersey, Illinois, Detroit are just a few municipalities and states that stand on the brink of insolvency, and which for decades refused to even perform a modicum of fiscal responsibilty.