The Beginning Of The End
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If You Live In California Things Just Got A Whole Lot Worse

Why does the state of California seem to be so incredibly hopeless?  These days California can't seem to do anything right, and if you live in California things just got a whole lot worse.  Governor Brown has announced that the state budget deficit for this year is going to be much larger than projected, that more government services are going to be cut and that voters are going to vote on another round of tax increases in November.  Meanwhile, unemployment is sitting at 11 percent and extended federal unemployment benefits for workers in the state are ending.  Because California is one of the worst places in the nation to conduct business, there has been a steady flow of companies leaving the state.  Those companies have taken a whole lot of good jobs with them.  Due to the lack of jobs and a steady stream of impoverished immigrants coming in from Mexico and other countries, poverty in the state has exploded and crime is rapidly increasing.  California may be the land of "endless sunshine", but for the California economy there are only dark clouds on the horizon.  The state is coming apart at the seams and there is not much hope that things are going to turn around any time soon.

These days, California is very similar to Greece in many ways.

Just like Greece, California has had round after round of "austerity" and yet still cannot seem to balance the budget.

Even after all of the cuts that have been implemented in recent years, the California budget deficit is still going to be far larger than originally projected this year.  The following is from the Los Angeles Times....

Gov. Jerry Brown announced on Saturday that the state's deficit has ballooned to $16 billion, a huge increase over his $9.2-billion estimate in January.

The bigger deficit is a significant setback for California, which has struggled to turn the page on a devastating budget crisis. Brown, who announced the deficit on YouTube, is expected to outline his full budget proposal on Monday in Sacramento.

"This means we will have to go much further, and make cuts far greater, than I asked for at the beginning of the year," Brown said in the video.

During his remarks on YouTube, Governor Brown stated that California is "still recovering from the worst recession since the 1930s" and he stressed that hard choices are ahead.

But the California state government has already cut back in so many places.  For example, back in the late 1970s the state of California was number one in per-pupil spending on education, but now California has fallen to 48th place.

Unfortunately, Governor Brown does not believe that budget cuts alone will solve the problem.

So you know what that means.

Tax increases!

The tax increases that California voters will be voting on in November were outlined in a recent Bloomberg article....

Brown this week submitted more than 1.5 million signatures to place the tax measure on the ballot. It would temporarily raise the state sales tax, already the highest in the U.S., to 7.5 percent from 7.25 percent. It would also boost rates on income starting at $250,000. The 10.3 percent levy on those making $1 million or more would rise to 13.3 percent, the most of any state.

Get ready to fire up the moving vans.

The rest of the California economy may be falling apart, but moving companies will continue to do very well.

As I have written about previously, California has already experienced a net loss of approximately four million residents to other states over the past 20 years.

If the top rate on those making a million dollars or more a year hits 13.3 percent you will see a lot more wealthy people leave.

And thousands of businesses have left California in recent years as well.  Sadly, one survey found that CEOs ranked California as the worst place in the United States to do business for seven years in a row.

You would think that the state legislature would get the message.

Unfortunately they have not.

California absolutely suffocates businesses with rules and regulations and it gets worse with each passing year.

So lots of good jobs continue to leave the state.

As mentioned earlier, the official rate of unemployment in California is sitting at 11 percent.  That is almost 3 points higher than for the nation as a whole.

Of course the "official" numbers greatly understate the true scope of the unemployment problem, but for more on that you can check out this article.

However you want to look at it, the reality is that California has a massive unemployment problem.

Sadly, a whole bunch of unemployed workers in California are about to lose their unemployment benefits.

On Saturday, more than 200,000 unemployed Americans were dumped off the unemployment rolls.  Close to half of them live in California.

Instead of 99 weeks, unemployed workers in California will now only be able to collect unemployment benefits for a maximum of 79 weeks.

It is estimated that a total of 93,000 people in California have suddenly lost their benefits as a result of this change.

Unfortunately, the truth is that the employment picture in California is not really getting any better.  It is still incredibly difficult to find a decent job.

Unless you are "connected", it can be a horribly frustrating experience trying to find a new job in this economic environment.

But if you are truly desperate, there are some folks out there who are always hiring.

These days, "national security" is quite a growth industry.  For example, if you are currently unemployed you can always apply to work as an Internment/Resettlement Specialist for the national guard.

While the economy is going to pot, you can get paid to lock up other Americans that are protesting about the state of our country.

Doesn't that sound fun?

But seriously, if you live in California right now you probably don't need anyone else to tell you how bad things are.

You probably already know that the number of children living in poverty in the state of California has increased by 30 percent since 2007.

California is rapidly changing, and not for the better.

But it is not just the economy that is falling apart in California.  The truth is that there are a whole host of good reasons to move away from California.  The traffic is nightmarish, crime is on the rise, the gangs are bigger and more active than ever before, millions of illegal immigrants have poured into the state, and the control freak politicians become more insane with each passing year.

Plus there is the constant threat that your home will be destroyed by a mudslide, a wildfire or an earthquake.

One of these days the "big one" will hit California.

You do not want to be there when that happens.

But if you decide that you do want to move from California, what is the best state to move to?

That is a very good question.

The truth is that economic conditions are horrible in most of the country and are rapidly getting a whole lot worse.

According to one poll, 30 percent of all Americans described the condition of the economy as "good" back in February but only 20 percent do now.

When we enter the next major economic downturn, unemployment is going to go higher everywhere in the nation.

There will be small pockets where jobs are still plentiful (where the oil industry is strong for example) but almost everywhere else will be really hurting.

So what do all of you think?

For people looking to move away from California, where should they go?

Please feel free to post a comment with your thoughts below....

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  • BuddhaBill

    A significant majority of those of us who live in 51 of California’s 58 counties are quite conservative and we’d love to join Nevada or Arizona (probably not Oregon), but that ain’t gonna happen. Our votes for statewide offices count for exactly nothing because of the huge populations in those Left Coast counties, so we’re saddled with two super-wealthy far-left let-them-eat-cake Bay Area senators. Due to the “winner-takes-all” vote-counting scheme,
    our votes for president likewise count for absolutely nothing. With children, grandchildren and a construction business located in California, I’m stuck here for a while yet. But my wife and I don’t think in terms of another state where we’ll flee to… rather, we’re favoring northern Chile. Check it out…

    • Jonathan

      You point out a very interesting truth, BB.

      Supposedly the left is all for the little guy. But what I always see is the left controlled by the ultra rich and elite urbanitses, who despise the very “down to earth” sorts of people they claim to be “struggling for”.

      Certainly, the left has its down and outers, such as exemplified in the OWS “movement”. But seems to like the poor mainly when they serve as useful idiots for black tactics mob action, or as puppets for some political victimization campaign.

      Everytime I watch the OWS protests, I marvel at how deceived and deconstructed our reality has become. It’s not about Wall Street fatcats. Its about a war on the Middle Class being conducted by rich internationalists, using the fists and pitchforks of non-producers.

  • http://www.simonshenbetter.com Simon Shenbetter

    There are things about California you just cannot replace in any other state. The weather is mild, and easy on property. Take a look at what weather does to houses in Houston or way-out-in-nowhere Indiana. Over a lifetime the cost of owning a home in California can be pleasantly less. That sum considers the cost of energy, maintenance, and general all around just stuff not breaking factors. Give me a break on earthquakes, sure, they happen, and I have been through two big ones in my 49 years. I don’t know one person in my life who has ever lost something in a quake. Ask a person my age in the midwest or the south or the gulf that question about hurricanes, tornados, hail, floods, snow storms, whatever…. Politicians come and go, and hopefully many of them in California will go. But look at what the rest of the country has elected, I mean, geesh, yikes, really? Joe Biden? The dead Kennedy’s? Harry the reed? We’re not the only loonies in the USA.

  • David Carswell

    I live in San Francisco and I must say that this article is outright lying in regards to SF. Been for 22 years and the city is 100′s of times better… more beautiful, cleaner, safer, and gentrified than ever. Even the seediest of areas I would have no fear of walking through at 3 am alone.

    Now I have noticed more and more people at the food kitchens and dispensaries they don’t look homeless or much in need in regards to appearance. San Francisco has always had an enormous amount of homelessness as other cities give away free tickets and ship them off here. That is another problem entirely. I however do not see an increase in that per se.

    San Francisco today is a whole lot better than SF of the past 22 years and as far as I can tell it may be because 1/3 of the populace is gay and they tend to bring the value of property up thereby making the cost of living unreachable by a population of povert and crime. Not that they don’t exist here but much less than yesteryear.

    The only problem I have with SF is the supervisors overreach in passing fascist and nazi laws in recent years and the corruption and mismanagement or outright robbing of monies by the Municipal Transit Authority and other city government entities but that is another issue entirely.

  • Robert B

    State and local governments can be worst than the Fed when it comes to taxes especially if you have a low income and own a property. So I am glad I moved to Panama about 12 years ago. Even though my income is low by American standards, I have a nice home and property and pay no taxes on it and manage to eat okay. And since wages are low here my income is more than what the average Panamanian has. The climate at about 4500 feet is cool enough that I never need air conditioning and warm enough that I never need heat. Since I am over 65 I get a 25% discount on my electric bill plus a discount on bus tickets, , prescriptions, and many other items including airline tickets to fly back to the States. My expenses would even be lower accept that I married a young Panamanian women and now have a six year old little girl to support. But at least now I have enough of dependents so I don’t owe any taxes to the Fed. Panama of course hardly has any taxes and the Panamanians who do owe taxes figure out some way not to pay them. It is part of the culture. Anyhow what you say about California applies to many state and local governments across the country. The whole system is going to collapse some day as there won’t be enough of money to support it. I suspect that eventually there will be a lot of defaults with state and local debt. They can’t exactly print money like the Fed. Unless the Fed bails them out. Who knows?

  • http://theeconomiccollapseblog.com mike

    Everyone’s talking about the symptoms only! Jobs, economy, urban decay, and on and on. No one wants to face the real root of the problem which ultimately leads to all this crap, Sin! A departure from dependence on GOD! Mock ridicule all you want, but time will bear this out!

  • Justin

    I had to comment because i read another article this auther wrote and he quoted someone on here who made a comment like this, “I am a native Californian ( Im 61) and have lived here all but two years of my life. I can tell you absolutely that this state is not what it was 30 years ago. Cities like San Francisco have gone from being world-class tourist attractions to national disgraces. Los Angeles is a third-world city. San Diego is bankrupt….”

    I am here to say that who ever is shouting these comments do not know anything about “Reclaiming your state Citizenship”. People, the time is now to wake up and listen,.. The only way for the people all across America to be free again and end the tyranny is to do this process. check out this website http://www.state-citizen.org and read the files in the “Files room” and then go check on them at your local law library. By doing this process you get back all your freedoms, send a powerful but peaceful message to the gov, and you also get back all the money that was ever stolen from you by the gov. (plus compound interest, which is a lot of money).

    People, I urge you to stand up, get off the net, turn off the TV/radio and check these files out for yourself before deciding if you want to do this. You can even do this process on your own, but time seems short these days.

    There is a reason the united state of america was the leader of the world and set the standard for other counrties is because we were the first “Free” country and our gov was only a “service” to us not our controllers. We can get that back again, but it will take people standing up and doing it on their own. Just please don’t take the violant measure against the gov. because the gov has all their swat teams and military polic units (non-american soliders) waiting for people to use force so they have an excuse to bring in “martial law”. Please, lets not give them what they want lets fight back the peaceful, but powerful way.

  • Peter

    The head of the snake is the fed and u.n

  • Winston Smith

    Insanity sign is spot on, but then again, out of stupidity, fear, etc-99% this fall will vote Romney or Obama…..so, done deal for another 4 yrs of decay…….

  • pegstermm

    get rid of the *************** and illegal asians.

  • mike

    All of you have written good comments but have only talked about the symptoms of the disease which plagues humankind.

    The disease is the privately owned currency issuing banks (ie: the FED et al.) This form of currency is loaded at the beginning with your being in debt, then once in debt, we are lead (as the unknowing sheep we really are) from boom to bust, that is: your equity built by you, your equity stollen from you.

    Government, media and schools are just devices to keep us all thinking that we have a say.

    Kill the Dragon! Wake UP! It is the owners of the privately owned currency issuing banks and their monopoly corporations.

    I am the owner of my own business, I know we are being snowed.

    Can’t you all see it?

    Argueing who is better: left or right is exactly where the owners want you.

    I was stationed in California for my training while in the Navy in 1970; it is a nice place and I truly hope it remains so.

    It is the bankers stupid!!!!

  • http://www.coloradoselfstorage.com Aisha Latsha

    The system seems to be working providing a good service for those that wish it. If it isn’t broken,don’t fix it. guides certainly have a place in the canyon as many would never climb with out them. Sincerely, Greg

    • SandraO

      Huh, Greg (aka Aisha Latsha) posted that the system in California seems to be working? For who? Maybe for rich politicians in Sacramento and for the rich leftist Hollywood elite like George Clooney and Barbra Streisand who live in gated mansions, have chauffered limos, and only fly in private jets? Otherwise for average middle-class Californian, the state has become a freaking nightmare! California has become a bankrupt banana republic ruled by insane leftist thugs, the state is over-run with millions of illegals, many homeowner’s mortgages are hopelessly underwater, most cities are crime ridden, taxes are among the highest of all states, unemployment is in the double digits in many areas, the state ranks on the bottom of almost every list from educational levels to a business friendly climate, etc, etc. Maybe the state would be better off if a country like Mexico took it over? How could it be any worse? Spanish is already becoming the primary language in California and at least Mexico enforces their borders?

  • Jason Schiebelhut

    California is ran by illegal aliens. Do you ever see any Mexicans or illegal aliens on the corner begging for money and food? I just see veterans and hairy white people.

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