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California Imploding Just Like Greece

Lady Thatcher’s axiom regarding Socialism has come to California. They have “run out of other people’s money” at least in the sense that tax revenues are plunging. The table below shows the accounting results of a dying economy.

Doug Ross reports:

California and Greece have more than a few things in common, including the fact that their unofficial slogans are both “Ask Us About Our Death Spiral!”

Inquiring minds have noticed a huge plunge in California Tax Revenue for the month of February compared to February 2011…

That is a 22.55% plunge in spite of the fact that this February was a leap year adding a day to the calendar

To learn more about this situation, read the rest of the article.

Sadly,  the contraction in income and wealth is inevitable when regulations, taxes and fees become unbearable. The incentive to work diminishes and the incentive to flee the taxing jurisdiction increases. People and capital flee CA while the legislative body continues to spend, spend, spend and tax, tax, tax. Its destructive policies are destroying the state. Revenues will continue to shrink as will population and corporate activity.

Of course there is a limit to how much more spending can be done. Bond markets don’t care about wants, needs or “fairness.” Nor, at some point, does the productive class.

Want to learn what is coming to your state and country? Look at California, Greece and soon to be several other examples for a preview.