As if anyone actually needed another reason to move out of the crazy state of California, now it is being reported that conditions in some areas of the state “are like a third-world country” due to the multi-year megadrought that has hit the state. In one California county alone, more than 1,000 wells have gone dry as the groundwater has disappeared. The state is turning back into a desert, and an increasing number of homes no longer have any water coming out of their taps or showerheads. So if you weren’t scared away by the wildfires, mudslides, high taxes, crime, gang violence, traffic, insane political correctness, the nightmarish business environment or the constant threat of “the big one” reducing your home to a pile of rubble, perhaps the fact that much of the state could soon be facing Dust Bowl conditions may finally convince you to pack up and leave. And if you do decide to go, you won’t be alone. Millions of Californians have fled the state in recent years, and this water crisis could soon spark the greatest migration out of the state that we have ever seen.
Back in 1972, Albert Hammond released a song entitled “It Never Rains In Southern California“, and back then that was considered to be a good thing.
But today, years of very little rain are really starting to take a toll. In fact, one government official says that conditions in Tulare Country “are like a third-world country”…
Near California’s Success Lake, more than 1,000 water wells have failed. Farmers are spending $750,000 to drill 1,800 feet down to keep fields from going fallow. Makeshift showers have sprouted near the church parking lot.
“The conditions are like a third-world country,” said Andrew Lockman, a manager at the Office of Emergency Services in Tulare County, in the heart of the state’s agricultural Central Valley about 175 miles (282 kilometers) north of Los Angeles.
As California enters the fourth year of a record drought, its residents and $43 billion agriculture industry have drawn groundwater so low that it’s beyond the reach of existing wells. That’s left thousands with dry taps and pushed farmers to dig deeper as Governor Jerry Brown, a 77-year-old Democrat, orders the first mandatory water rationing in state history.
The mandatory water restrictions that Governor Brown is imposing are going to be very painful for a lot of people. We have just learned that some California communities will be required to cut their water usage by up to 36 percent…
Californians are going to have to start preparing for a dry summer as the dehydrated state prepares for a water crackdown.
In a somewhat controversial move, California water officials drafted a set of mandatory conservation regulations outlining varying degrees to which communities will be required to cut back on water use, ranging from 8 to 36 percent, depending on their history of water consumption.
The regulations — slated for approval in early May — are part of California’s first-ever attempt at mandatory rationing. Earlier this month, Gov. Jerry Brown issued an executive order requiring a 25 percent reduction in urban water use, a historic step in a series of measures aimed at conservation ahead of the state’s fourth consecutive year of drought.
And of course it isn’t just the state of California that is dealing with drought.
All over the southwest United States, we are seeing conditions that we have not witnessed since the days of the Dust Bowl in the 1930s.
In fact, the water level in Lake Mead is now the lowest that it has been since those days, and it is expected to drop even lower in the months ahead…
One of the most stunning places to see its impact is at the nation’s largest reservoir, Lake Mead, near Las Vegas. At about 40 percent of capacity, it’s the lowest it’s been since it was built in the 1930s.
“Just to see the rings around it, it’s just … kind of scary, you know,” says Darlene Paige, a visitor from New York. She’s standing at a vista point above the Hoover Dam on the Arizona side of Lake Mead.
That “ring” is the infamous bathtub ring around the rim of the reservoir. The levels have dropped 140 feet over the past 15 years, exposing a white stain on the gravelly brown mountains above the water. The level is forecast to fall an additional 10 feet by this summer.
According to the Government Accountability Office, it is being projected that a total of 40 U.S. states will be dealing with a shortage of water by the end of the next decade.
It has been said that “water is the new oil”, and this is just the beginning. The truth is that as bad as things are here, we are actually in far better shape than almost everyone else in the world to deal with the emerging global water crisis. All over the planet supplies of fresh water are disappearing, and the availability of water is going to increasingly become a major geopolitical issue in the years to come.
And even now, the U.S. government is taking all of this very seriously. In fact, the EPA is already trying to train our kids to take showers instead of baths…
Parents across America who struggle to keep their young rambunctious kids clean now have a new obstacle: the U.S. Environmental Protection Agency (EPA).
As part of its effort to help save the planet from the dangers of taking too many baths, the EPA’s WaterSense program is trying to convince kids they should avoid bathtubs in favor of showers, which it says is a far more efficient use of water.
“To save even more water, keep your shower under five minutes long—try timing yourself with a clock next time you hop in!” the “WaterSense for Kids” website says.
For most of our lives, most of us have been able to take water for granted.
But now things are changing, and we are going to have to adjust to these new realities.
So what do you think about this emerging water crisis? Please feel free to share your thoughts by posting a comment below…
America is being suffocated to death by red tape. You are about to read about an 11-year-old girl in Illinois that had her cupcake business brutally shut down by government bureaucrats. Her name is Chloe Stirling and her crime was doing something that we used to applaud young people in America for doing. Instead of sitting on her sofa and watching television all day, she actually started her own business. And it turned out there her little business started thriving. In fact, it started doing so well that a local newspaper took notice of it. Well, that is when the control freaks swooped in and took her business away and banned her from selling any more cupcakes. The really sad thing is that people are being paid to do this with our tax dollars. All over America, little entrepreneurs are having their lemonade stands shut down and are being banned from selling Girl Scout cookies, and our tax dollars are paying the people that are doing it. As I wrote about earlier this month, the level of economic freedom in the United States is at an all-time low, and it gets worse with each passing year. The country that so many of us love is dying, and it is being replaced with something that I like to call “the USSA”.
In the Union of Soviet Socialist Americans, you have to have a government “license” or “permit” to do just about anything. If the government does not give you permission, you can get into a whole lot of trouble.
Little 11-year-old Chloe Stirling must have thought that this was still the nation that George Washington and Thomas Jefferson once founded, because she dared to actually start a business and sell cupcakes to the public. Little did she know that she would soon make national news…
An 11-year-old girl from Illinois got a dose of regulation American-style this week when local government officials shut down her cupcake business.
Chloe Stirling, from Troy, got the front-page treatment from her local newspaper, which featured how well her business, Hey, Cupcake, was doing. By all accounts, it was a successful little enterprise. Chloe was getting $10 for a dozen cupcakes and $2 for each specialty cupcake. She even donated her cupcakes when a boy in her school fighting cancer held a fundraiser.
So why did they shut her down?
Well, it turns out that she didn’t have a “permit” to sell cupcakes and her kitchen was not “licensed”.
Like I said, you have to have permission from the government to do just about anything these days.
Another example of this phenomenon that is absolutely infuriating took place out in Fauquier County, Virginia. When a mother held a birthday party for eight 10-year-old girls and posted the photos on Facebook, she never imagined that she would soon be hit with $15,000 in fines…
Martha Boneta owns a small farm in Fauquier County, Virginia, where she recently hosted a birthday party for eight 10-year-old girls. They wore hats, picked veggies, and made goat’s milk soap. The county says she should have obtain a license before hosting such an event and hit her with a $5,000 fine.
Boneta also got slammed with two more fines for $5,000 each, one for advertising a pumpkin carving and another for violations in the small shop on her property. Boneta sells produce from her farm, as well as eggs, yarn, birdhouses, and local crafts. She sought and received a license for the shop in 2011, but the county now says she can’t sell handiwork or produce from her neighbors under that license.
Stuff like this just makes me want to scream sometimes.
What is happening to this country?
A few years ago, my wife used to take old pieces of furniture, sand them down, repaint them and sell them to others. It was something that she really enjoyed doing and she made some extra money along the way.
But if you try doing that in some areas of the country today, the EPA could potentially hit you with a fine of $30,000 for a single incident in which you do not follow the proper procedures. The following is an excerpt from a discussion that some furniture painters were having on Facebook. It is a little technical, but it is worth reading. In this excerpt the identity of the business has been removed to protect the business from overzealous regulators…
As a painter in PA, I am required by law to test everything that I disturb and I must charge the customer $60 for every test I perform which adds up. What the law states in my area is that if I disturb more than 6 square inches on anything made prior to Jan 1 1979 I must test it. Disturbing means, sanding, scraping, or even using a sponge/scuff pad (like you use on your pots) if I disturb more than 6 inches, I must take photographs, document in 4 different logs, I have local, county, state, and federal log books. If I find lead then I must suit up. Originally, the law stated that if there were no children around then you didn’t have to do that however some lame brained legislator decided that if a child enters the premises for more than one hour a day, we must assume they will be in contact with the lead and therefore will contract lead poisoning. Then the legislators decided that if you were over the age of 60 then it didn’t matter, you didn’t have to test who cares if you get poisoned. Lo and behold OSHA stepped in and joined forces with the EPA, they decided that all were at risk including your pets and the leaves on your trees can hold the lead dust and …..well, that’s a whole other issue.
What is happening now is that so many painters decided they weren’t going to follow the lead law, that OSHA and EPA send out secret shoppers. A lot of us don’t even put our logo’s on our vehicles because that invites these shoppers to investigate. If you come to the **** ********, you won’t see signage on the building, you have to get to the actual door of the workroom to know we are there. We no longer have logo’s on our vehicles either as the fines are too stiff. There isn’t one of us that can afford a find of $30,000.00 A DAY, not a year, A DAY.
The government bureaucrats are running wild and the rest of us are just sitting back and letting it happen.
Things have gotten so bad in this country that the federal government even requires small-time magicians to submit “disaster plans” for the rabbits that they use in their acts. The following is an excerpt from one of my previous articles…
Central planning in this country is getting completely and totally out of control. These days, you can hardly do anything without running into a suffocating web of red tape. For example, a small-time magician from Missouri that does magic shows for kids was absolutely horrified when he learned that the Obama administration is requiring him to submit a 32 page “disaster plan” for the rabbit that he uses in his shows. Yes, this is actually true. His name is Marty Hahne, and he thought that it was bad enough when the U.S. Department of Agriculture busted him for not having a “license” for his rabbit. He went out and acquired the proper “license” for his rabbit, but he never dreamed that eventually he would also have to submit a 32 page “disaster plan” for the same rabbit.
You can read the rest of that article right here.
Are you starting to get the picture?
These control freaks want to completely dominate every aspect of our lives. The “nanny state” is entirely out of control and it is up to “we the people” to do something about it.
Barack Obama revealed the kind of mentality that is behind this “nanny state” when he recently made the following statement…
“I would not let my son play pro football”
And without a doubt, the control freaks that run things will try to ban football (or at least “tone it down”) the moment that they think that they can get away with it.
America was supposed to be a place where liberty and freedom were maximized and the interference of the federal government in our lives was supposed to be minimized.
Instead, what we have now is just the opposite.
No wonder Americans consider the government to be their biggest problem.
If you want to get an idea of where the rest of America is heading, just take a trip through the western half of West Virginia and the eastern half of Kentucky some time. Once you leave the main highways, you will rapidly encounter poverty on a level that is absolutely staggering. Overall, about 15 percent of the entire nation is under the poverty line, but in some areas of eastern Kentucky, more than 40 percent of the population is living in poverty. Most of the people would work if they could. Over the past couple of decades, locals have witnessed businesses and industries leave the region at a steady pace. When another factory or business shuts down, many of the unemployed do not even realize that their jobs have been shipped overseas. Coal mining still produces jobs that pay a decent wage, but Barack Obama is doing his very best to kill off that entire industry. After decades of decline, vast stretches of impoverished Appalachia look like they have been through a war. Those living in the area know that things are not good, but they just try to do the best that they can with what they have.
In previous articles about areas of the country that are economically depressed, I have typically focused on large cities such as Detroit or Camden, New Jersey. But the economic suffering that is taking place in rural communities in the heartland of America is just as tragic. We just don’t hear about it as much.
Most of those that live in the heart of Appalachia are really good “salt of the earth” people that just want to work hard and do what is right for their families. But after decades of increasing poverty, the entire region has been transformed into an economic nightmare that never seems to end. The following is a description of what life is like in Appalachia today that comes from a recent article by Kevin D. Williamson…
Thinking about the future here and its bleak prospects is not much fun at all, so instead of too much black-minded introspection you have the pills and the dope, the morning beers, the endless scratch-off lotto cards, healing meetings up on the hill, the federally funded ritual of trading cases of food-stamp Pepsi for packs of Kentucky’s Best cigarettes and good old hard currency, tall piles of gas-station nachos, the occasional blast of meth, Narcotics Anonymous meetings, petty crime, the draw, the recreational making and surgical unmaking of teenaged mothers, and death: Life expectancies are short — the typical man here dies well over a decade earlier than does a man in Fairfax County, Va. — and they are getting shorter, women’s life expectancy having declined by nearly 1.1 percent from 1987 to 2007.
In these kinds of conditions, people do whatever they have to do just to survive. With so much poverty around, serving those on food stamps has become an important part of the local economy. In fact, cases of soda purchased with food stamps have become a form of “alternative currency” in the region. In his article, Williamson described how this works…
It works like this: Once a month, the debit-card accounts of those receiving what we still call food stamps are credited with a few hundred dollars — about $500 for a family of four, on average — which are immediately converted into a unit of exchange, in this case cases of soda. On the day when accounts are credited, local establishments accepting EBT cards — and all across the Big White Ghetto, “We Accept Food Stamps” is the new E pluribus unum – are swamped with locals using their public benefits to buy cases and cases — reports put the number at 30 to 40 cases for some buyers — of soda. Those cases of soda then either go on to another retailer, who buys them at 50 cents on the dollar, in effect laundering those $500 in monthly benefits into $250 in cash — a considerably worse rate than your typical organized-crime money launderer offers — or else they go into the local black-market economy, where they can be used as currency in such ventures as the dealing of unauthorized prescription painkillers — by “pillbillies,” as they are known at the sympathetic establishments in Florida that do so much business with Kentucky and West Virginia that the relevant interstate bus service is nicknamed the “OxyContin Express.” A woman who is intimately familiar with the local drug economy suggests that the exchange rate between sexual favors and cases of pop — some dealers will accept either — is about 1:1, meaning that the value of a woman in the local prescription-drug economy is about $12.99 at Walmart prices.
I would encourage everyone to read the rest of Williamson’s excellent article. You can find the entire article right here.
In Appalachia, the abuse of alcohol, meth and other legal and illegal drugs is significantly higher than in the U.S. population as a whole. In a desperate attempt to deal with the pain of their lives, many people living in the region are looking for anything that will allow them to “escape” for a little while. The following is an excerpt from an excellent article by Chris Hedges which describes what life is like in the little town of Gary, West Virginia at this point…
Joe and I are sitting in the Tug River Health Clinic in Gary with a registered nurse who does not want her name used. The clinic handles federal and state black lung applications. It runs a program for those addicted to prescription pills. It also handles what in the local vernacular is known as “the crazy check” — payments obtained for mental illness from Medicaid or SSI — a vital source of income for those whose five years of welfare payments have run out. Doctors willing to diagnose a patient as mentally ill are important to economic survival.
“They come in and want to be diagnosed as soon as they can for the crazy check,” the nurse says. “They will insist to us they are crazy. They will tell us, ‘I know I’m not right.’ People here are very resigned. They will avoid working by being diagnosed as crazy.”
The reliance on government checks, and a vast array of painkillers and opiates, has turned towns like Gary into modern opium dens. The painkillers OxyContin, fentanyl — 80 times stronger than morphine — Lortab, as well as a wide variety of anti-anxiety medications such as Xanax, are widely abused. Many top off their daily cocktail of painkillers at night with sleeping pills and muscle relaxants. And for fun, addicts, especially the young, hold “pharm parties,” in which they combine their pills in a bowl, scoop out handfuls of medication, swallow them, and wait to feel the result.
Of course this kind of thing is not just happening in the heart of Appalachia. All over the country there are rural communities that are economically depressed. In fact, according to the Wall Street Journal, economic activity in about half of the counties in the entire nation is still below pre-recession levels…
About half of the nation’s 3,069 county economies are still short of their prerecession economic output, reflecting the uneven economic recovery, according to a new report from the National Association of Counties.
So what are our “leaders” doing to fix this?
Well, they plan to ship millions more of our good jobs overseas.
Unfortunately, I am not kidding.
Republicans in the House of Representatives are introducing “fast track” trade promotion authority legislation that will pave the way for rapid approval of the secret trade treaty that Barack Obama has been negotiating. The following is how I described this insidious treaty in a previous article…
Did you know that the Obama administration is negotiating a super secret “trade agreement” that is so sensitive that he isn’t even allowing members of Congress to see it? The Trans-Pacific Partnership is being called the “NAFTA of the Pacific” and “NAFTA on steroids”, but the truth is that it is so much more than just a trade agreement. This treaty has 29 chapters, but only 5 of them have to do with trade. Most Americans don’t realize this, but this treaty will fundamentally change our laws regarding Internet freedom, health care, the trading of derivatives, copyright issues, food safety, environmental standards, civil liberties and so much more. It will also merge the United States far more deeply into the emerging one world economic system.
Once again, our politicians are betraying the American people and millions of jobs will be lost as a result.
Not that the economy needs another reason to go downhill. The truth is that our economic foundations have already been rotting away for quite some time.
But now the ongoing economic collapse seems to be picking up steam again. For example, the Baltic Dry Index (a very important indicator of global economic activity) is collapsing at a rate not seen since the great financial crash of 2008…
Despite ‘blaming’ the drop in the cost of dry bulk shipping on Colombian coal restrictions, it seems increasingly clear that the 40% collapse in the Baltic Dry Index since the start of the year is more than just that. While this is the worst start to a year in over 30 years, the scale of this meltdown is only matched by the total devastation that occurred in Q3 2008. Of course, the mainstream media will continue to ignore this dour index until it decides to rise once again, but for now, 9 days in a row of plunging prices is yet another canary in the global trade coalmine and suggests what inventory stacking that occurred in Q3/4 2013 is anything but sustained.
Soon economic conditions will get even worse for Appalachia and for the rest of the country. The consequences of decades of very foolish decisions are rapidly catching up with us, and millions upon millions of Americans are going to experience immense economic pain during the years to come.
So what are things like in your area of the country right now? Please feel free to share your thoughts by posting a comment below…
Why in the world would anyone want to live in the state of California at this point? The entire state is rapidly becoming a bright, shining example of everything that is wrong with America. It is so sad to watch our most populated state implode right in front of our eyes. Like millions of Americans, I was quite enamored with the state of California when I was younger. The warm weather, the beaches, the great natural beauty of the state and the mystique of Hollywood all really appealed to me. At one point I even thought that I wanted to move there. But today, hordes of Californians are racing to get out of the state because it has become a total nightmare. It is the worst state in the country in which to do business, taxes were just raised even higher, unemployment is more than 20 percent higher than the national average and the state government is drowning in debt. Meanwhile, poverty, gang activity and crime just seem to get worse with each passing year. On top of everything else, the insane politicians in Sacramento just keep on passing more laws that make the problems that the state is facing even worse. Unfortunately, what is happening in California may be a preview of what is coming to the entire nation. The old adage, “as California goes, so goes the nation”, has been proven to be true way too many times.
In dozens of different ways, the state of California is showing the rest of us what not to do. Will we learn from their mistakes, or will we follow them into oblivion? Please share the list below with as many people as you can. In addition to a large amount of new research, this list also pulled heavily from one of my previous articles and from outstanding research done by Richard Rider. The following are 55 reasons why California is the worst state in America…
1. One survey of business executives has ranked California as the worst state in America to do business for 8 years in a row.
2. In 2011, the state of California ranked 50th out of all 50 states in new business creation.
3. According to one recent study, California is the worst-governed state in the entire country.
4. Thanks to Proposition 30, California now boasts the highest state income tax rate in the nation.
5. Even though California just raised taxes dramatically on the wealthy, state revenues are falling like a rock. State revenue for November 2012 was 10.8 percent below projections.
6. California has the highest sales tax rate in the United States.
7. California has the 8th highest corporate income tax rate in the country.
8. California has the highest “minimum corporate tax” in the country. Each corporation must pay at least $800 to the state even if a corporation does not make a single dollar of profit.
9. California is tied with New York for the highest gasoline tax rate in the country.
10. California is the only state in America that taxes carbon emissions.
11. The state of California issues some of the most expensive traffic tickets in the nation. This is another form of taxation.
12. As of October, only Nevada and Rhode Island had higher unemployment rates than California.
13. The unemployment rate in California is more than 20 percent higher than the overall unemployment rate for the rest of the nation.
14. The state of California requires licenses for 177 different occupations (the most in the nation). The national average is only 92.
15. California teachers are the highest paid in the nation, but California students rank 48th in math and 49th in reading.
16. California accounts for 12 percent of the U.S. population, but a whopping 33 percent of Americans that receive TANF (Temporary Assistance for Needy Families) live there.
17. Only the state of Illinois has a lower bond rating than the state of California does.
18. Including unfunded pension liabilities, the state of California has more than twice as much debt as any other state does.
19. Average pay for California state workers has risen by more than 100 percent since 2005. That is good news for those state employees, but it is bad news for the taxpayers that have to pay their salaries.
20. More than 5,000 California state troopers made more than $100,000 last year.
21. One highway patrol officer ended up bringing home almost $484,000 in 2011.
22. One state psychiatrist in California was paid $822,000 in 2011.
23. Since 2007, the number of children living in poverty in the state of California has increased by 30 percent.
24. Sadly, an astounding 60 percent of all students attending California public schools now qualify for free or reduced-price school lunches.
25. The American Tort Reform Association has ranked the state of California as the worst “judicial hellhole” in America.
26. Businesses all over the state of California are being absolutely suffocated to death by ridiculous regulations.
27. According to the Milken Institute, operating costs for California businesses are 23 percent higher than the national average.
28. According to CNN, the state of California had the worst “small business failure rate” in America in 2010. It was 69 percent higher than the national average.
29. The number of people unemployed in the state of California is roughly equivalent to the populations of Nevada, New Hampshire and Vermont combined.
30. Residential customers in California pay about 29 percent more for electricity than the national average.
31. So many poor people and illegal aliens have taken advantage of the “free” healthcare at emergency rooms that many of them have been forced to shut down in California. As a result, the state of California now ranks dead last out of all 50 states in the number of emergency rooms per million people.
32. Political correctness is totally out of control in California.
33. One California town is actually considering making it illegal to smoke in your own backyard.
34. The traffic around the big cities is horrific.
35. Los Angeles
36. San Francisco
40. The rampant gang activity in the state gets even worse with each passing year.
41. Crime continues to rise all over the state.
42. Just recently, the city attorney of San Bernardino, California told citizens to “lock their doors and load their guns” because there is not enough money to pay for adequate police protection any longer.
43. The murder rate in San Bernardino is up 50 percent this year.
44. In Oakland, burglaries are up 43 percent so far this year.
45. Today, Oakland is considered the 5th most violent city in the United States.
46. There have been more than 250 gold chain robberies in Stockton, California just since the month of April.
47. In Stockton, the police budget cuts got so bad that the police union put up a billboard at one point with the following message: “Welcome to the 2nd most dangerous city in California. Stop laying off cops.”
48. Jerry Brown.
49. The absolutely insane California state legislature.
52. The state of California lies directly along the infamous “Ring of Fire“. Approximately 90 percent of all the earthquakes in the entire world happen along the Ring of Fire and the “Big One” could hit the state at any moment.
53. According to the U.S. Census Bureau, approximately 100,000 more people moved out of the state of California in 2011 than moved into it.
54. During 2011, more than 58,000 people moved from California to the state of Texas.
55. Overall, the state of California has experienced a net loss of about four million residents to other states over the past 20 years.
If you have a farm or a small business, would you like to pass it on to your children when you die? Well, unless Congress does something, it is going to become much, much harder to do that starting next year. Right now, there is a 5 million dollar estate tax exemption and anything above that is taxed at 35 percent. But on January 1st, the exemption will go down to 1 million dollars and the tax rate will go up to 55 percent. A lot of liberals are very excited about this, because they believe that the government will be soaking wealthy people like Warren Buffett and Bill Gates. But the truth is that a lot of farms, ranches and small businesses will be absolutely devastated by this change in the tax law. There are many farmers and ranchers out there today that do not make much money but are sitting on tracts of land that are worth millions of dollars. According to the American Farm Bureau, approximately 97 percent of all farms and ranches in the United States would be subject to the estate tax if the exemption was reduced to just a million dollars. That means that the children of these farmers and ranchers would be faced with a very cruel choice when it is time to inherit these farms and ranches. Either they come up with enough money to pay the government about half of what the farm or ranch is worth, or they sell the farm or ranch that may have been in their family for generations. Needless to say, most farm and ranch families do not have that kind of cash lying around. Most of them are just barely making it from year to year. So this change in the tax law is going to greatly accelerate the death of the family farm in America. This is also going to devastate many family-owned small businesses. Many small businesses don’t make much money, but they have buildings or land or assets worth millions of dollars. Children that may have wanted to continue the family legacy will be forced to sell because of the massive tax bill that they get from Uncle Sam. This is an insidious cruelty, and it shows just how broken our system has become.
The desire to leave the wealth that you have worked so hard to accumulate all your life to your children is something that is common to virtually all human societies. We want to know that future generations will be taken care of.
It is simply immoral for the federal government to swoop in and tax farms, ranches and small businesses that were intended to be passed down from parents to their children at a 55 percent tax rate.
A lot of the people that are going to be affected by this change are not “wealthy” at all. A recent Fox News report examined what this change in the law is going to mean for rancher Kevin Kester and his family…
Rancher Kevin Kester works dawn to dusk, drives a 12-year-old pick-up truck and earns less than a typical bureaucrat in Washington D.C., yet the federal government considers him rich enough to pay the estate tax — also known as the “death tax.”
Kester told Fox News that he has no doubt that his ranch will have to be sold when he dies just to pay the tax bill…
“There is no way financially my kids can pay what the IRS is going to demand from them nine months after death and keep this ranch intact for their generation and future generations,” said Kester, of the Bear Valley Ranch in Central California.
Two decades ago, Kester paid the IRS $2 million when he inherited a 22,000-acre cattle ranch from his grandfather. Come January, the tax burden on his children will be more than $13 million.
Reading that should make you angry. Every single year, thousands upon thousands of farms, ranches and small businesses are going to be lost to the federal tax monster.
It is almost as if the federal government does not want income-producing assets to remain in the hands of the “little guy”.
What in the world are we supposed to do?
It isn’t as if all of those farmers and ranchers can go off to the big cities and find good jobs. As I wrote about yesterday, our politicians are standing aside as millions of our good jobs are shipped out of the country.
The cold, hard truth is that our system does not work for average Americans any longer. Those that roll out of bed every morning, work hard and never complain always seem to get the short end of the stick.
The people that are the backbone of America are the ones that the government is always the hardest on.
Unfortunately, we have gotten to a point where the government is searching for more “revenue” from anywhere it can because it desperately needs more money. U.S. government finances are a complete and total mess and we are drowning in the biggest ocean of debt the world has ever seen.
We are more than 16 trillion dollars in debt and there are more than 100 million Americans that are enrolled in at least one welfare program.
Someday has to pay for all this.
Middle class Americans are already hit with dozens of different taxes each year, and you can be certain that our politicians will continue to invent ways to extract even more “revenue” out of us.
And of course our politicians will never stop their wild spending. Despite all of the negotiations that have taken place over the past couple of years, our spending problems just continue to grow. For example, the federal budget deficit for the month of October was $120 billion, which was more than 20 percent larger than the federal budget deficit for October 2011 was.
So what is the solution?
Well, Treasury Secretary Timothy Geithner now says that he wants to eliminate the debt ceiling entirely. He says that we should just have no limit and that the federal government should just be able to go into debt as much as it wants.
In the end, all of this debt is going to absolutely crush us. We have literally destroyed the future of America, and yet most of the country still seems clueless about all of this. The blind are leading the blind, and we are headed straight for complete and utter disaster.
One day, when people look back on this period in American history, what do you think people are going to say about us?
Can you hear that sound? It is the sound of the air being let out of the economy. Since the election, there has been a massive tsunami of layoffs and business failures. Of course the company that is making the biggest headlines right now is Hostess. On Monday, Hostess will be in a New York bankruptcy courtroom as it begins the process of liquidating itself. Needless to say, Twinkie lovers all over America are horrified. Many are running out to grocery stores and hoarding as many as they can find, and some online sellers are already listing boxes of 10 Twinkies for as much as $10,000 on auction websites such as eBay. Well, there is really no reason to panic. It is very likely that another company will purchase the Twinkie brand and continue to produce them. In fact, it is already being rumored that a Mexican company may have the inside track. But even though the Twinkie may survive, the failure of Hostess is yet another sign of how weak the U.S. economy has become. Approximately 18,500 Hostess workers will be losing their jobs, and even if some of them are rehired by the company that takes over the Twinkie brand, the truth is that those workers will almost certainly be looking at greatly reduced pay and benefits. Sadly, we are seeing this kind of thing happen all over America. Large numbers of once thriving businesses are either shutting down or laying off workers. Overall, the failure of Hostess is not that big of a deal for the U.S. economy. But we may look back someday and remember Hostess as a symbol of the economic problems that were unleashed by the election of 2012. Since November 6th, a wave of pessimism has swept over the economy and we are now seeing some of the worst economic numbers that we have seen in more than a year. Many fear that we may have reached a tipping point and that things are only going to get worse from here.
Sadly, the reality is that Hostess is not the only iconic American company that is in a huge amount of trouble right now. Sears just announced a loss of nearly 500 million dollars in the third quarter. Sears has been bleeding money like this for a couple of years, and if they continue to do so it will just be a matter of time before Sears is headed for liquidation as well.
Can you imagine trying to explain the Sears catalog and Twinkies to future generations in a world where those things no longer exist?
Our world is changing at mind blowing speed, and the pace of change is only going to keep accelerating.
A few days after the election, I wrote an article about the huge number of layoff announcements that we saw after Barack Obama won.
Well, it has gotten even worse since then. The following is a partial list of the layoffs and job losses that have been announced since November 6th…
Abbott Labs 700
Adventist Health 48
Airlines SAS 6000
American Cotton Growers 110
American Independence Museum 4
American Airlines 4400 + 800 leaving voluntarily
American Coal 54
Atlantic Lottery Corporation 16
Assc Milk Producers 130
Aveo Oncology 45
Bechtel Power Corp 277
Bigpoint Games 47
Boston Scientific 1200
Brake Parts LLC 75
Brattleboro Retreat 31
Bristol Myers 500
Career Education 900 + Closing 23 Campuses
Consol Energy in W.V. 145
Crouse Hospital Syracuse NY 70
DEP in Tallahassee FL 15
DuPont, Co. 64
Eagle-Tribune, Andover 21
Emanuel Medical Cente 24
Energizer Holdings 1500
Exide Tech, Laureldale 150
City of Findlay, OH 39
First Energy 400
Gameforge Berlin 20
Gamesa Energy 92
GenOn Energy Inc 33
Glen Falls Hospital 29
GT Advanced Tech 165
Harris’ Broadcast 17
Hawker Beechcraft 400 + Facilities closing
Hill Rom 200
Hills Holdings 300
HMX Group 567
Iberia Airlines 4500
ICM of Colwich 25
Judson University 21
Juniper Networks 500
Kaiser Permanente 84
Kinetic Concepts 427
Kratos Defense Security 125
Lackawanna County PA 11
Lightyear Network Solutions 12+
Majestic Star Casino/hotel 80
Major Wind Company 3000
Martha Stewart Living 70
Mills Manufacturing NC 68
Momentive, Inc. 150
Monitor Group 235
Montco Behavioral Health/Dev 58
Nebraska Medical Center 38
Neovia Logistics Services 52
New Energy 40
Penn Refrigeration 40
Penske Logistics 50
Philips Electronics 218
Pierce Mfg 325
Pratt & Whitney Rocketdyne 100
Research in Motion 200
Rheem Manufacturing 50
Sentry Foods 70
Shaw’s Supermarket 700
Shawano foundry WI 90
Smith & Nephew 770
Smithfield Packing Co. 125
Solel Solar Systems 140
Southeastern Container 15
SRA Intl Inc 222
St. Jude Medical 300
Sun Media 500
TE Connectivity 620
TECO Coal Corporation 90
Texas Instruments 1700
The Providence Journal Co 23
TMX Group Ltd. 100
Turkey Point Nuclear Plant 277
Oce North America, Inc. 135
Turbocare OCE 220
US Cellular 980
UtahAmerican Energy Inc 102
Volvo Trucks Pulaski County 300
Wake Forest Baptist Medical 950
Welch Allyn 275
West Ridge Mine 102
World Media Enterprises Inc 105
WPS Health Insurance 600
Wright Patterson AFB 115
Wyodak Coal Mine 11
Sadly, the list actually keeps going. You can view the remainder of the list right here.
Even companies owned by Obama supporters are laying people off. Just check out this excerpt from a report by CitizenLink…
A corporation whose part owner gave $2 million to a group committed to re-electing President Obama announced this week that it will be forced to lay off more than 1,000 employees in lieu of the financial hardship imposed by the president’s signature health care law.
Overall, more than 100,000 job losses have been announced since the election. It is almost as if the election was the straw that broke the camel’s back. Everyone in the business community that had been hoping for something different now realizes that no change is coming.
Meanwhile, Obama continues to pour on even more rules and regulations. According to CNSNews.com, the Obama administration has posted a total of 6,125 regulations on its reguations.gov website during the past 90 days. Our politicians are clueless and they simply don’t understand what they are doing to the business community.
But of course this goes for politicians from both sides. For decades we have been consuming far more than we produce and spending far more money then we bring in, and most of our politicians seem to be under the delusion that this can continue indefinitely.
The other night my wife had me watch a documentary entitled “The Queen of Versailles” that followed the lives of time share mogul David Siegel and his wife Jackie. I found it to be a perfect metaphor for what America is going through right now. David Siegel built the greatest time share empire the world has ever seen on a mountain of easy money and cheap credit. At the beginning of the movie, David and Jackie were living the high life and were constructing the largest house in America down in Florida.
Well, things dramatically changed when the financial crisis of 2008 struck. Suddenly nobody wanted to lend to David’s company and the house of cards started to crumble. But even though they were facing massive financial problems, Jackie found it incredibly difficult to adjust her lifestyle. She just kept spending and spending and spending.
It would be easy to pass judgment on David and Jackie, but the truth is that they are a perfect example of what this entire country is going through. Thousands of businesses are failing, our economic infrastructure is being gutted, millions of jobs are being shipped overseas, our financial system has become a gigantic casino and we keep piling even more mountains of debt on top of the mountains of debt that we already have. We have been living way above our means for so long that we don’t even have any concept of what “normal” is anymore.
If you have not seen “The Queen of Versailles” yet, I encourage you to do so. Don’t watch it to laugh at the downfall of David and Jackie Siegel. They are just trying to make their way in this world like all of us are. Rather, watch for parallels between their lives and what the United States is experiencing as a whole. As I mentioned earlier, I found their story to be a perfect metaphor for what is happening to this entire country. You can find the trailer for “The Queen of Versailles” right here.
As the economy falls apart, it is going to be really easy to point fingers at one another and blame one another. But what will really be needed is more love and compassion. A lot of workers at Hostess and a lot of other good companies just lost their jobs. The unemployment epidemic in this country is going to get a lot worse. These people are going to need our love and support.
In the end, we are all in this together. The coming economic storm is not going to be averted, but we can choose how we respond to it. Hopefully the crisis that is coming will bring out the best in many of us.