meaning of the California recall is that it is a taxpayer's
against an elected leadership that, as in many other States,
abandoned any fiscal restraint or even common sense.
In a recent issue of The American Enterprise,
Kevin Hassett analyzed why
California, Connecticut, New Jersey, New York, Oregon, Massachusetts,
Minnesota, Wisconsin, Maine and Delaware are mired in debt and
the answer is Democrat control of their legislatures and governorships.
Democrat control accounted for fully 70% of these and other
State's deficits. In each of the top ten debtor States, tax
revenues had increased 5% over the past decade, but spending
grew even faster! Compare citizens in these debtor States whose
average tax was $2,445 per person with those in States that
are fiscally conservative. Their average tax was only $1,923
news is that, under President George W. Bush, spending at the
level has increased on just about everything. "Three of
the five biggest increases in federal spending in US history
occurred during President Bush's first three years in office,"
notes Hassett. "This spending surge can't simply be written
off to the war on terror." It is too soon to say if this
will cost him re-election, but clearly Americans are fed up
with this out-of-control spending and California is sending
a message. Stop it! Stop it now! Let's
take a quick look at the situation regarding jobs and our national
I keep hearing that all the jobs are disappearing.
Some surely are. All new
technology replaces old technology. This happened to the agricultural
between 1850 and 1950. Today's version is not obsolescence;
it is transference
as corporations elect to outsource often highly technical jobs
to India, Russia
and elsewhere because it costs less. Another important factor
is the way new
technology enables those who make things to do so faster, at
less cost, and
with fewer workers.
There's another factor and it's the huge wave
of Mexican immigration into
California and elsewhere in America. It has insured that crops
get picked, lawns
get mowed, and hotel beds get made. This is an off-the-books
economy that is
sending billions to Mexico. The constant flow of millions of
illegal, has insured that Americans will no longer do these
jobs. Since this nation essentially stopped trying to count
immigrants in the late 1950s, we have no idea how to find and
induce these illegal aliens to become citizens. Why should they?
They are a drain on the economy as they access medical care
and our educational system, courtesy of taxpayers. Does any
of this make sense? Ask a Californian.
The figures cited regarding disappearing jobs
are based on the Establishment
Survey taken by the US Bureau of Labor, but it's just a poll
of some 160,000
establishments and government agencies that tell the BLS how
many are on their
payrolls. Never mind that the countless new, smaller establishments
are left out or that some of these employees are moonlighting
with second jobs. Then there's the Household Survey and this
one says that job growth is soaring. It says that 1.8 million
new jobs have been added to the economy since 2000, thus diverging
by 2.6 million jobs from the other one that says we've lost
the two, you arrive at the statistical conclusion that job growth
or loss is flat. As always, statistics, depending on who is
announcing them on any given day, simply cannot be taken at
face value. That said, it is surely good news to hear that 57,000
new jobs have been added to US payrolls since January. Today's
unemployment of 6.1% is the same it was in 1994, 1987 and 1978.
It does not portend a new Depression, given the annual economic
growth of 4% or more.
And this may account for the fact that real
people are spending real money on
consumer goods, the housing market remains strong, and even
big ticket items
like automobiles are doing well. In a consumer economy, there
will always be
good cycles and bad.
One thing, however, bodes ill. Our national
debt is spinning out of control
despite or because of the budgetary hocus pocus being practiced
the Treasury and other departments responsible for this nation's
stability and growth. The federal debt currently stands at $6.7
unfunded liabilities in the system exceed $44 trillion. The
daily increase in the
national debt is $1.72 billion. You don't have to be a mathematician
out that, sooner or later, something very bad is headed our
While ours is a consumer-driven economy as
noted, we all also now live in a
virtual "welfare" society crafted by Democrats. The
government takes our
earnings before they can be spent, invested or saved, then sends
us a check when we get passed age 65. Through Medicare, the
government controls the health care
system. Meanwhile, the Democrats continue to call for more taxes
for the "rich", a term that now includes many two-salary
middle class families, and the Census Bureau has just announced
that the number of "poor" has increased as household
income has declined. When you regulate every aspect of the economy,
you increase costs. Is anyone surprised by this? You do not
have to be an economist to know that most people are struggling
to pay bills each month. Many carry large credit card debt.
nation was founded the intent was to insure a small federal
government with most of the power delegated to the States. The
founders did not conceive of an income tax, a central bank,
a huge permanent government bureaucracy, or a Congress composed
of professional politicians who routinely tap billions of public
money to fund pet projects designed to get them reelected.
are beginning to demand fiscal responsibility. Let's hope it
is not too late.
Alan Caruba is the author of Warning
Signs, published by Merril Press. His weekly commentaries
are posted on the Internet site of The
National Anxiety Center.
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