Altered States

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It was the worst of times, and it then it got…even worse.

An awkward introduction into this article, I agree, but it fits two states that have similar problems, but are taking different paths to fix their problem.

Both California and New Jersey are up to their necks in a swamp of debt and bloated budgets.

And both states have long addictions to high taxes…

And businesses are fleeing both states in huge numbers…

Leaving them scrambling for tax revenues and employers.

It’s no surprise that the jobless rates in both states are above the national average…

With New Jersey’s somewhere above 9%, and California’s over 11%.

So, both states rank among the highest in tax rates, welfare, and lost jobs.

Thus, both states must work fast to alter their states …

Or die a slow financial death as they slide into the sea of bankruptcy.

And which path did each state choose to avoid this fate?

I’ll give you a hint:  not the same ones.

Fiscal Reality

New Jersey Governor Chris Christie has chosen to face fiscal reality.

He knows that he has to find a way to cut taxes and social programs as much as he can…

Which should be easy to do…

And at the same time, quite difficult to do.

Why would this be?

The problem lies in the ratio of those paying taxes to those not paying taxes but receiving state benefits of one kind or another.

There are plenty of taxes to cut since New Jersey is in the top tier of heavily taxed states…

And, there should be plenty of wasteful areas to cut, too.

But it may be hard to do because of New Jersey’s addiction to welfare in various forms.

Those who receive benefits vote…and will vote to keep their benefits.

That means that higher taxes would stay in place to pay for those benefits.

So the New Jersey Governor has a big job ahead of him.

But, in his recent state of the state speech, he called for a 10% tax cut across the board.

We wish him luck with that.

At least he is on the right path.

Dude, Where’s My Welfare?

And on the left coast?

Well, the Golden State has returned to days gone by…

In a throwback to the late ‘70’s, California again has Jerry Brown calling the shots…

And the shot he likes best—the only shot he really knows—is raising taxes.

In his state of the state speech, Governor Brown has proposed raising taxes still higher.

Now think about this for a moment...

In a state that is among the top food producers in the world…

That is the home to the worldwide film industry …

That gave birth to the technology boom…

And is home to companies like Apple and Oracle—at least, for the moment…

But still can’t get it together.

And by the way, California’s economy is the 8^th largest…in the world.

But, as it turns out, the California dream is no longer about going to Hollywood and becoming a movie star…

Or starting a world-changing tech company in your buddy’s garage…

No; today, the dream is much more about slumming it in the sunshine state…

And letting the working fools pay for your food, shelter, medical care, education, and any other expensive benefit offered at the welfare buffet.

It’s no wonder that the state is in crisis…

And will continue to be.

15 years ago, California had 21% of the nation’s welfare burden.

But today, that has grown to 32%...

Even though the state has only 12% of the US population.

To put it in perspective, California is almost 2 times the size of New York State, but has 5 times the number of welfare cases.

Dude…that’s a lot of trough-sucking slackers…even by California standards.

So, if you’re Jerry Brown, what do you do?

You raise taxes on those who are still working….Whom else?

And the result?

Productive people are still heading for the exit.

Mirroring the National Election

Now, as a former Californian, it makes me sick to see what has become of my home state…

But as an American, it makes me even sicker to see the same thing happening to my country.

And when you come right down to it…

We all will have the same decision to make this November.

The upcoming national election will be about the choices the state of New Jersey and the state of California have made.

Will we, as a nation, cast our vote to stay on the current path to a top heavy, command economy with high taxes, low incomes, and vanishing opportunities?

Or will we vote to take the path of lowering taxes, cutting welfare, and balancing our budget?

The problem lies in the sad fact that too many Americans are not working…

And too many of us—citizens and too many millions of those here illegally—are sucking off the system…

Without contributing to the society in any real, productive way.

Under the current trends, we are transforming our country…

Shifting away from a productive nation…

Into a food stamp nation.

Just look at California…

A welfare state if there ever was one…

As you know what they say…

So goes California, so goes the nation.

But hey, if you’re Jerry Brown, it’s cool…

If you’re Barack Obama, well, that’s called “change.”

And if you’re a hard working American…

You better get ready to change the path we’re all on…

Or get used to living in the new reality…of altered states.

And those are…The Gorrie Details.

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