California:The Big Dying Canary in the Coal Mine of Government Pensions

Guest post written by Joyanna Adams
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Back when I was young, and I thought of visiting California, I dreamed of walking around Hollywood, kicking sand up on the beach, dancing to happy Beach Boy songs, watching young men ogle young girls in bikini’s and soft summer nights driving around in my rented convertible looking for a great place to hang out. I haven’t been to California in years, but I have a feeling I wouldn’t recognize it. In the last decade or so, California has become the big fat canary that is dying with a loud screeching annoying squawk in the deep government pension mines of America. I no longer want to go there.

This video explains what I mean…it’s not only the Hollywood stars that are getting rich:

Now when I think of California, I think of Nancy Pelosi, Los Angeles as a place where no one speaks English, drag races, a well guarded Beverly Hills, liberal Hollywood idiots, and bankruptcy. Yesterday, yet another city, Stockton California, claimed bankruptcy.

From the Los Angeles Times:

Stockton slashed its police and fire departments, halted bond payments, cut employee benefits and adopted an emergency spending plan that cut many city services. But the city continues to pay into the state pension. At issue will be whether U.S. bankruptcy law trumps California law, which says the pension plan must be funded.

The $900 million Stockton owes to the California Public Employees Retirement System to cover pensions is its biggest debt -– as is the case with many cities in California.

So…while Obama declared this month to be “National Financial Capability Month” in which he wants to teach young people “How to budget responsibly,” maybe he should start with the adults that run all the democratic cities and states, and explain the fact to them, that a country that keeps paying great big pensions from a dying public sector, will soon kill the host.

Obviously, as we all know, that fact hasn’t dawned on Obama yet.

“My Administration is dedicated to helping people make sound decisions in the marketplace,” Obama said.

Sounds very noble, but unfortunately, his administration has no clue where the marketplace is. But one place it won’t be…is in California. The Canary has left the building.

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Guest post written by Joyanna Adams