Rich & Ultra-Liberal California Sinks into Poverty, Chaos

First, congratulations to president Trump for yet another political victory over the now-ended government shutdown. As they say, “Trump holds, Schumer folds”. The Democrats thought that they would get away with their usual tactic of blaming Republicans, but the world is different than it was under Obama. This is Trump’s World.

Now here is today’s main commentary:

California is extremely liberal. Today every single statewide office is held by a far-left Democrat (governor, lieutenant governor, attorney general, secretary of state, etc.). Its two US senators are very liberal Democrats. Most of its US congresspeople are very liberal (39 Democrats and only 14 Republicans). Both houses of the state legislature are majority Democrat, most of them extremely liberal.

Only 32% of Californians voted for president Trump in 2016. Wow.

California was not always this way. It was a conservative place for its first 100 years of statehood. Ronald Reagan came from California. But the 1960s changed all that.

California today is one of the richest places on earth with annual state economic production of $2.5 trillion, or more than twice as much as the entire nation of Mexico and somewhat less than the nation of Britain.

So you may wonder: How can California be so rich? Isn’t liberalism supposed to hurt the creation of wealth?

And the answer is Yes, it does. But it is important to remember that liberals took over wealthy California, they did not build California; conservatives did. And Democrats now are in the process of looting California as they have done to other wealthy places like Massachusetts, New Jersey, Michigan, Illinois, Connecticut and New York state that are seeing or have seen major population and job losses.

In short all of that wealth and liberalism does not make California the utopia that the socialists wish it did. In fact the opposite is true. California officially has the highest poverty rate in the US. And if you have seen the stories about the mass homeless crisis in California cities then you see the truth.

The state’s socialist policies are driving the middle class out of California; productive, skilled and educated middle class people are fleeing high-tax, over-regulated, anything-goes California by the hundreds of thousands every year after California attracted such people by the millions for 150 years. And so California is seeing a deeper and deeper divide between rich and poor.

To make matter worse California is inviting in millions of poor, unskilled, uneducated illegal immigrants, causing major economic and social disruption. So we can expect except increasing poverty.

This is the intentional socialist plan to create a more poor and needy population that relies on government and votes Democrat while driving out the more conservative middle class.

Here are excerpts from an article on PJ Media about California today with a Nikitas3.com comment after each except:

PJ Media reports: Guess which state has the highest poverty rate in the country? Not Mississippi, New Mexico, or West Virginia, but California, where nearly one out of five residents is poor. That’s according to the Census Bureau’s Supplemental Poverty Measure, which factors in the cost of housing, food, utilities and clothing, and which includes noncash government assistance as a form of income.

Given robust job growth and the prosperity generated by several industries, it’s worth asking why California has fallen behind, especially when the state’s per-capita GDP increased approximately twice as much as the U.S. average over the five years ending in 2016 (12.5%, compared with 6.27%).

The Left’s first, last and only instinct is to throw more money at the problem, but California’s already done that. and guess what?

Nikitas3.com comment: Wait, don’t tell me. I know. The problem is getting worse.

PJ Media reports: It’s not as though California policymakers have neglected to wage war on poverty. Sacramento and local governments have spent massive amounts in the cause. Several state and municipal benefit programs overlap with one another; in some cases, individuals with incomes 200% above the poverty line receive benefits.

California state and local governments spent nearly $958 billion from 1992 through 2015 on public welfare programs, including cash-assistance payments, vendor payments and “other public welfare,” according to the Census Bureau. California, with 12% of the American population, is home today to about one in three of the nation’s welfare recipients.

Nikitas3.com comment: That’s almost $1 trillion in just one state over just 23 years and that excludes the huge federal programs and private charity. So as we conservatives say over and over throwing taxpayer money at a social problem does not solve the problem. It makes the problem worse after a certain point. After that point the problem must be solved by other means.

Democrats never learn their lesson, however. Look at this from Fox News:

Calling the Trump administration’s tax reform plan a “middle-class tax increase,” two California lawmakers introduced a bill that would force large companies to fork over half of their expected savings to the state.

Assemblymen Kevin McCarthy and Phil Ting, both Democrats, introduced Assembly Constitutional Amendment 22, which calls for a 10 percent surcharge on companies with a net earnings over $1 million. The plan could potentially raise billions for the state’s social services programs.

These liberals just keep taxing, taking and spending. They don’t understand that this will just drive companies elsewhere. It already is doing so. It is being reported that 1,700 companies, including big companies like Toyota and Nestle, have fled California’s high taxes in the last 10 years. More are sure to follow.

Nikitas3.com estimates that “anti-poverty” programs across America have spent up to $150 TRILLION in the last 60 years on the federal, state and local level and on private charity and in-kind services. Yet we have more poor people than ever. So money is not the problem.

We need economic expansion to give people jobs and opportunity. But as more and more money is sucked out of the economy by these ‘anti-poverty’ programs, there is less to invest in jobs and new wealth creation.

If we had diverted just one third of that amount, or $50 trillion, to private investment and job creation Nikitas3.com estimates that we would have eliminated most of the poverty and dependency that we have today. And we would have saved taxpayers $100 trillion and we would have zero national debt.

PJ Media reports: The (leftist) progressives who control every aspect of (California’s) government are not necessarily stupid people, but they are malign. They understand that increasing welfare spending only encourages the arrival of more recipients on whom to spend it, and the high likelihood that those new constituents will vote Democrat as soon as they are able, legally or otherwise. Already, some 55 percent of “immigrants” receive means-tested benefits, while only 30 percent of native Californians do so.

Nikitas3.com comment: So there you go. The idea behind all of these illegal immigrants is to create a dependent state that votes Democrat. And there is another sinister goal – when census numbers are taken illegals are also counted, which keeps California’s official population numbers up. Thus the state retains its congressional clout through its large population size and also remains eligible for more and more federal funds.

But this could come to a screeching halt. Breitbart News reports:

Democrats fear the Trump administration’s re-reinstatement of citizenship questions on the 2020 U.S. Census will cost California a Congressional seat and billions in funding.

The number of U.S. House of Representative seats was fixed by law in 1911 at 435. The “enumeration” requires at that each state have at least one Representative, and the other Representatives are allocated according to population as determined by the U.S. Census every ten years. Based on the 2010 Census data, California received the most, at 53.

But Politico reports that could change with the Department of Justice sending a letter on December 12 to the Census Bureau asking that the citizenship question eliminated in 2010 during the Obama administration be reinstated for the 2020 Census.

Fantastic. Another Trump triumph.

PJ Media reports: California’s army of bureaucrats contributes as well, as does the state’s highly restrictive land-use ordinances and environmental restrictions, which drive up the cost of housing in what is already the nation’s most expensive real-estate market:

With 883,000 full-time-equivalent state and local employees in 2014, California has an enormous bureaucracy. Many work in social services, and many would lose their jobs if the typical welfare client were to move off the welfare rolls.

Further contributing to the poverty problem is California’s housing crisis. More than four in 10 households spent more than 30% of their income on housing in 2015. A shortage of available units has driven prices ever higher, far above income increases. And that shortage is a direct outgrowth of misguided policies.

They’re not “misguided” — in fact, they’re doing exactly what the progressives designed them to do. Higher housing prices means more money in the pockets of Angelenos and San Franciscans when they go to sell, high energy prices have a disproportionate impact on the poor, generous welfare “benefits” mean an endless supply of new Democrats and permanent employment for the public-employee unions who actually run the state.

Nikitas3.com comment: Yes indeed. The rich get richer… under socialism, that is.
Meanwhile there is a movement for the rest of California to secede from the liberal and heavily populated coastal strip from Los Angeles to San Francisco. CBS Sacramento reports:

With the reading of their own version of a Declaration of Independence, founders of the state of New California took the first steps to what they hope will eventually lead to statehood.

To be clear, they don’t want to leave the United States, just California.

“Well, (California has) been ungovernable for a long time. High taxes, education, you name it, and we’re rated around 48th or 50th from a business climate and standpoint in California,” said founder Robert Paul Preston.

The state of New California would incorporate most of the state’s rural counties, leaving the urban coastal counties to the current state of California.

“There’s something wrong when you have a rural county such as this one, and you go down to Orange County which is mostly urban, and it has the same set of problems, and it happens because of how the state is being governed and taxed,” Preston said.

But unlike other separation movements in the past the state of New California wants to do things by the book, citing Article 4, Section 3 of the US Constitution and working with the state legislature to get it done, similar to the way West Virginia was formed.

The group is organized with committees and a council of county representatives, but say it will take 10 to 18 months before they are ready to fully engage with the state legislature.

So just imagine the following scenario: New California secedes from California and creates a new state but remains part of the United States. This would mean that the US Senate in Washington, DC would get two more conservative Republican US senators from New California, for a total of 102 senators. That would give Republicans 53 senators to 49 for Democrats/Independents.

If California then seceded from the US the two Republicans from New California would take the place of California’s two liberal Democrats in the US Senate, taking the total back down to 100 and giving Republicans 53 to 47 Democrats.

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