Matt Welch | December 22, 2008
California State Assemblyman Chuck DeVore (R-Irvine) lays out the grim math of Arnold Schwarzenegger's finances in Investor's Business Daily:
In the past 10 years, under both Republican and Democratic governors, legislative Democrats have presided over a doubling of the California budget, from $72 billion in 1998 to $145 billion. This is double the rate of population and inflation growth, and it is unsustainable.
Much more DeVore-gore here.
I remember back in the heady days of the Gray Davis recall, me and my California pals used to play a game called "Name the tangible services we enjoy in return for a $100 billion state budget." Usually we'd run out of answers after "Uhhh, state parks? That aqueduct thingie?" Since then, Davis' allegedly budget-deficit-busting replacement has signed off on spending increases totalling $45 billion.
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Well obviously, the biggest benefit to the public of
California's massive state payroll is the way it keeps the least
productive workers out of private industry, where they could impede
the work of smarter people.
Remember your last visit to the DMV? Now, imagine if one of those
people was working where you do, and you had to keep fixing what
they screwed up.
-jcr
Is there a bigger disappointment than Arnold? I guess his ego is bigger than his principles. It was always bigger than his muscles. If he never took any steroids, do you think anybody outside of Graz would have ever heard of him?
Doubling in ten years? If my accounting rule of thumb serves me
correct, that's averaging over 7% annual growth...
...I know California keeps growing in population, but still, come
on... is inflation plus population growth too much to ask for in
terms of budgetary restraint?
(Wait, it's government... apparently it is too much to ask for)
"I remember back in the heady days of the Gray Davis recall, me
and my California pals used to play a game called "Name the
tangible services we enjoy in return for a $100 billion state
budget." "
That's the thing with most state governments and the federal
government as well. Most of the alleged "services" that big
government proponents claim we all are supposed to consider
ourselves obligated to pay for are not actual services at all -
they are transfer payments. Social security, Medicare, Medicaid,
welfare, food stamps, farm subsidies, public housing public
schools, etc. etc. None of these things are actual services in the
sense that those who are getting the product are the same set of
people who are paying for it.
"Most of the alleged "services" that big government proponents
claim we all are supposed to consider ourselves obligated to pay
for are not actual services at all - they are transfer
payments."
Is that true? You and I pay social security, and we will (in
theory) get social security benefits. Other big budget government
expenditures that you and I as taxpayers fork over for we benefit
from (roads, police, military protection, food regulations,
environmental regulations).
Even with things like welfare and food stamps we benefit in the
same way that one benefits from insurance, it will be there IF we
ever need it because we are paying for it now.
I don't see any excuse for farm subsidies btw.
Just wait a few years and you'll have that trillion dollar high speed train so you can all get up to Sacramento faster to wave your torches and pitchforks.
""Name the tangible services we enjoy in return for a $100
billion state budget." Usually we'd run out of answers after "Uhhh,
state parks? That aqueduct thingie?""
You mean Matt Welch never leaves his home (or has a Byzantine route
of privately owned roads by which he travels as per agreements with
the owners)? And he lives in his own oxygen tent eschewing the
benefit of the enforcement of environmental laws by state agencies?
And he eschews governmentally regulated food and instead barters
with locals based on a system of mutual trust and self enforcing
norms?
Wow Matt, you da man!
Well obviously, the biggest benefit to the public of
California's massive state payroll is the way it keeps the least
productive workers out of private industry,...
Which explains something about the only job growth in the last
several months being in government and education sectors.
Didn't Matt go to college in the CA state system? Some of the CA
budget pays the tuition there you know.
Don't get me wrong, Matt's overall point about the wastefulness and
stupidity of the CA government is as usual correct, and Matt is of
course one of the best writers on Reason (his book on McCain is
really good). But this libertarian thing about "I hate the
government what do I get from it" is a bit much.
"Is that true? You and I pay social security, and we will (in
theory) get social security benefits."
In theory?
Ha!
The social security program is nothing more than a giant Ponzi
scheme.
It is not a true retirement program where the individual's
contributions are set up in an individually owned account. Instead
the money goes for handouts to other people. And the benefit
formula is "progressivly" stacked in favor of low income workers.
They get a much higher benefit (i.e return on investment) relative
to what they pay in than do those higher on the income scale.
And since the scheme is financially unsustainable as is, the deck
will become even more stacked in the future, with payroll tax
increases for those on the top end (and no commensurate increase in
benefits) and, eventually, means testing regulations that cuts off
benefits to upper income people who have paid into the system for
years.
As I said - transfer payments.
If only the fooles above would look
here for a breakdown of the CA budget.
Transportation? - 9%
(Consumer) Regulation? - 1%
Environmental Protection? - 1%
Yep. No transfer of wealth here at all. Those who believe
otherwise, well you're "a but much".
MNG,
You and I pay social security, and we will (in theory) get
social security benefits.
That is still a transfer payment, actually, two of them. First from
you to some old person. Later (in theory) from some young 'en to
you.
If your money was going into some mandated fund in which you had
private property rights to and then you were paid from that fund on
retirement, that wouldnt be a transfer payment. It would be a
mandated retirement account. That would qualify as a service (an
unnecessary one, since IRAs and 401Ks already exist). The way SS
actually works, its transfer payments.
MNG,
You mean Matt Welch never leaves his home (or has a Byzantine
route of privately owned roads by which he travels as per
agreements with the owners)? And he lives in his own oxygen tent
eschewing the benefit of the enforcement of environmental laws by
state agencies? And he eschews governmentally regulated food and
instead barters with locals based on a system of mutual trust and
self enforcing norms?
Wow Matt, you da man!
Is that straw I smell burning?
So my post on the other thread.
Didn't Matt go to college in the CA state system? Some of
the CA budget pays the tuition there you know.
This is totally true. One year at UC Santa Barbara, and one
semester each at Santa Barbara and Long Beach community colleges
(where tuitions are especially subsidized, and where I for one got
pretty much what I paid for).
Of course, these were discussions we were having in 2003, not
1987.
You mean Matt Welch never leaves his home (or has a Byzantine
route of privately owned roads by which he travels as per
agreements with the owners)?
There was no evidence that the streets outside my home (when I
still lived in California) had seen a dime in government money for
decades, unless they had the same pothole-fillers as Romania.
And he eschews governmentally regulated food and instead
barters with locals based on a system of mutual trust and self
enforcing norms?
I dunno, does getting most of your produce from the local farmer's
market count? (Of course, the market was set up by the City of Los
Angeles....)
And lets not forget, that currently some SSI taxes are siphoned
off for the general fund, and at some point in the future, income
taxes will be siphoned off from the general fund to pay SSI
benefits.
Taxes are taxes, people. They are all fungible.
So, yes, Social Security is a transfer payment. The taxes you pay
this year will be transferred this year. Some to Social Security
dependents, some to the general fund.
"Even with things like welfare and food stamps we benefit in the
same way that one benefits from insurance, it will be there IF we
ever need it because we are paying for it now."
No one but the transferee derives any benefit from ANY transfer
payment.
NO benefit is provided to the transferor.
Period.
Turtles | December 22, 2008, 10:14am | #
If only the fooles above would look
here for a breakdown of the CA budget.
Transportation? - 9%
(Consumer) Regulation? - 1%
Environmental Protection? - 1%
Yep. No transfer of wealth here at all. Those who believe
otherwise, well you're "a but much".
That's a useful chart. Let's look at some of the big numbers:
Schools (K12 and colleges) are 41.3%
Prisons are 7.3%
So, unless you want to cut schools or release prisoners, half the
budget is untouchable right there.
So, unless you want to cut schools or release prisoners,
half the budget is untouchable right there.
Wouldn't necessarily be all that hard, from a practical standpoint,
cut a public education budget... just it's political suicide.
Glibert
Do you think insurance is a transfer scheme? You and I pay
insurance and if I'm lucky enough not to need it some of my
premiums will go to pay for your accident. What I get is the
knowledge that the safety net is there for me and my kids if
needed. And that is a benefit.
The same with social security, yes it works like you say, but in
paying for the system we in theory get a system to which we will
draw from as well.
robc
I don't think that is a straw man. Matt and Gilbert were talking
about how they got nothing from the government. That nothing is the
straw man.
"Do you think insurance is a transfer scheme?"
No but no one forces me with the threat of jail to buy insurance. I
have to pay into Social Security if I want to remain a "free
man"
So, unless you want to cut schools or release prisoners,
half the budget is untouchable right there.
Im okay with both of those. Obviously, cant cut the prisons to
zero, but once you release all the drug offenders, that should take
care of a good bit of it.
Separation of school and state. That cuts a huge chunk out of that
budger.
Lurker
As people above note the way ss works is you and I pay for some old
fart now and then when we are old our kids pay for us. It's not
workable due to free rider problems if we don't make everyone play.
The whole way it works is people are forced to take care of others,
this way you will be taken care off too.
robc is right. New England school marms would swarm into California and educate everyone as is their Christian duty. Who needs public education?
MNG,
See my post in the other thread. Expecting them to not use the
services is the straw man. That they cant think of them is beside
the point.
Insurance is voluntary. Manditory transfer payments are a different
category.
"Do you think insurance is a transfer scheme? You and I pay
insurance and if I'm lucky enough not to need it some of my
premiums will go to pay for your accident. What I get is the
knowledge that the safety net is there for me and my kids if
needed. And that is a benefit."
What I think is that you can try and spin government programs like
social security, welfare and food stamps as "insurance" all you
like but it doesn't make it so.
The ONLY thing that counts as "insurance" are voluntary, private
sector transactions entered into between two parties, each
purchasor assesing his own personal need to insure against some
specific risk and whether the price asked is worth it and each
seller assessing whether and at what price he want's to assume the
risk of another.
MNG,
CA doesnt have school marms?
I bet they are much hotter than the NE breed.
As long as parents want their kids to be educated, there will be
people willing to educate them. As for the kids whose parents dont
care...well, as long as the kid wants to be educated, he will find
a way.
That said, eliminating public schools wouldnt end manditory
schooling.
I saw your point. It missed mine. I'm not saying they are hypocrites for criticizing services they get from the government, I'm refuting the argument that they get no services from the government. Thanks by the way for proving my point by admitting they do get the services (as you said, they paid for em!)
My, what a rugged individualist you are!
I have insurance to provide me a safety net. My statement is still
accurate.
Gilbert
You do realize that many people under voluntary insurance programs
pay money that they will never get back and many other people get
back much more than they pay in? It's OK because the former have
the assurance that if they needed what the latter need they can get
it.
That's the case under welfare and social security too you know. If
you qualified for them you would be legally entitled to the
benefits.
MNG,
It's not workable due to free rider problems if we don't make
everyone play. The whole way it works is people are forced to take
care of others, this way you will be taken care off too.
Wrong! Private accounts would work too. No transfer payments, no
free rider problem (whether manditory or optional).
The question is why should I be forced to take care of others? Why
should I allow others to be force to take care of me? Both are
evil.
Wouldn't necessarily be all that hard, from a practical
standpoint, cut a public education budget... just it's political
suicide.
Actually, from a practical standpoint, cutting public education
spending in California is illegal. By proposition (and
therefore state Constitution), California must spend 40
percent of its annual budget on education.
Insurance is a safety net too. Social security, welfare, etc.,
are just safety nets that the government administers, and they are
kind of like nets below the nets of private insurance (for those
who don't or can't get it for example).
So you have a safety net, and always will I imagine. I don't think
you're a pussy though.
Peter Gibbons: He's going to ask me to work on Sunday and I'm going
to do it, because I'm a pussy, which is why I work at Initech in
the first place.
Michael Bolton: Hey, I work at Initech and I don't consider myself
a pussy.
Samir: Yes, I am also not a pussy.
MNG,
Okay, that failed, attempt 2:
I'm not saying they are hypocrites for criticizing services
they get from the government
Yes, you are. In the other thread. Im mixing thread replies here,
because its basically the same argument.
"It's not workable due to free rider problems if we don't make
everyone play. The whole way it works is people are forced to take
care of others, this way you will be taken care off too."
I know how it works, it my point is that your comment about it
being like insurance was wrong. YOu are not forced to buy
insurance.
That is NOT how I will be taken care of as it will be broke by the
time I get there. The point of this whole thread is that the growth
of government is not keeping up with the population, and if you
increase taxes to match it you will destroy the economy. The brakes
have to be put on is the bottom line. That is the case whether you
believe it is the government's job to take care of you or
not.
For the record I do not believe it is the government's job to take
care of me.
MNG,
Government transfer payments and Insurance have many similarities,
but they are not remotely the same things.
"Private accounts would work too."
Oh yeah, that recent plan where people would withdraw and put their
savings in the stock market, that would have been so nice right
about now!
"The question is why should I be forced to take care of others?
Why should I allow others to be force to take care of me?"
Uhh, because to not do so would be evil?
"Oh yeah, that recent plan where people would withdraw and put
their savings in the stock market, that would have been so nice
right about now!"
An even better system would be to let me invest it myself. I too
would not trust the government to invest my money.
"Government transfer payments and Insurance have many
similarities, but they are not remotely the same things."
Is their remotness determined by these many similarities you speak
of?
Oh yeah, that recent plan where people would withdraw and
put their savings in the stock market, that would have been so nice
right about now!
Actually, it would be. Now is a great time to be buying. Dollar
cost averaging dude. And yes, if you were retiring right now, you
would be taking a late hit. But, after all the growth of the last
40 years, that wouldnt be horrible. However, under the standard
rule that you shouldnt have any money invested in the market that
you will need in the next 5 years, 5+ years ago those people should
have started shifting to bonds and etc.
"An even better system would be to let me invest it
myself."
Because people who invested their own money in the stock market,
they are'nt hurting now either are they?
And so old farts who withdrew from the program and now needed to
pay the rent but their Wachovia stock is worth a third of what they
thought and they don't have it, what happens to them?
I can tell you what happens to them under the system I prefer. They
get taken care of.
Is their remotness determined by these many similarities you
speak of?
Nope, the remoteness is determines by the dissimilarities, that are
so dissimilar as to make the similarities meaningless.
Uhh, because to not do so would be evil?
You have evil and good backwards. The use of force is evil.
Taking care of others == good
Forcing someone to take care of others == evil
If you dont understand that you are a fucking retard. Or evil
yourself.
MNG,
Cause all I've noticed are these similarities so
far.
Maybe you should read other peoples post. Voluntary vs Manditory is
a huge fucking difference, you fucktard.
'The use of force is evil."
That's certainly not true.
If you try to rape my wife and I stop you using force, I don't
think I've done any evil.
"Because people who invested their own money in the stock
market, they are'nt hurting now either are they?"
See robc's comments on dollar cost averaging and moving thing to
safer investments as you get older. I mean I LOVE that my 401k
investments are buying in cheap right now.
I mean you need to go pick up an econ book. Not trying to be
smartass it is just a simple fact that you comments show you have
no clue what you are talking about on any of this.
"You do realize that many people under voluntary insurance
programs pay money that they will never get back and many other
people get back much more than they pay in? It's OK because the
former have the assurance that if they needed what the latter need
they can get it."
What I realize (and you, apparently do not) is that in the private
sector, individuals are free to choose what risks they insure
against - or not. Someone who has no car and doesn't drive does not
need car insurance and doesn't buy it. Someone who does not own a
home has no need for homeowners insurance and does not buy
it.
As I said, you can try to spin government programs as "insurance"
all you want - it doesn't make it so.
I believe that MNG has just proclaimed that, if A does not to
force B to take care of C, A is evil.
The audacity of that just rocks.
MNG,
Because people who invested their own money in the stock
market, they are'nt hurting now either are they?
Nope, doing fine. My growth from the 80s and 90s dwarfs my losses
this decade. And I have a good 25+ years to go before I even think
about retirement. Plenty of time to buy low now and be rolling in
the dough then.
"Voluntary vs Manditory is a huge fucking difference, you
fucktard."
It's a difference, but since we are talking about whether they both
are transfer payments I'd say it's not a decisive difference.
And the government ones are voluntary too in the sense that a majority of people vote for them, they are "self-imposed" in that sense.
MNG,
Do you know what the word "voluntary" means? How about the phrase
"tyranny of the majority"?
The majority of the people supported slavery, so the blacks volunteered to work on those plantations.
"Nope, doing fine."
Uhh, you do realize that you may not be the yardstick of the
average American on that right now?
MNG,
If you try to rape my wife and I stop you using force, I don't
think I've done any evil.
Fair enough. The initiation of the use of force is evil.
"I believe that MNG has just proclaimed that, if A does not to
force B to take care of C, A is evil.
The audacity of that just rocks."
If we were on an island with a child and the child became ill and
you had the only medecine on the island to help the child it would
indeed be evil (wrong) of me not to physically take it from you and
give it to him.
you do realize that you may not be the yardstick of the
average American on that right now?
Fuck the average american. The average american bought more house
than he can afford and ran up more credit card debt than he can
handle. The average american is a sucker.
robc
With programs that benefit society as a whole but for which free
rider problems would sink them, then majority consent is as close
to voluntary as we can get.
MNG,
If we were on an island with a child and the child became ill
and you had the only medecine on the island to help the child it
would indeed be evil (wrong) of me not to physically take it from
you and give it to him.
Wrong.
It would be evil of me to not give it to the child. It would also
be evil for you to take it from me. Then again, maybe Im expecting
my child to come down with the same disease (it being contagious
and all) and I planned ahead and bought it on the mainland before
we came to the island. So, maybe it isnt evil of me to give it to
your child after all. Its still evil for you to take it because you
didnt plan ahead.
"Fuck the average american."
Ahh, now we get to it. I'm the evil one, your the good one, and
"fuck the average american" and his/her troubles. That's how you
display your goodness :)
And I might add, that it seems to me that all of politics is simply the struggle to become the "A" in my above equation.
MaunderingNannyGoat-
If we were on an island, and pirates landed, I would sell you and
your child to them as slaves.
"It would be evil of me to not give it to the child. It would
also be evil for you to take it from me."
That's retarded with all due respect.
It would be evil to cause you a bit of discomfort to save the
child's life or great discomfort on his part.
WTF?
With programs that benefit society as a whole
Fuck society as a whole.
Im kind of in a pissy mood this morning. Fuck all of you.
Arnold Schwarzenegger **(R)** would have fit right in with congress, 2000 - 2006.
That's how you display your goodness
How I display my goodness is none of your business. And isnt the
governments either. I handle that privately. I will say that my
money goes to people a lot worse off than the average american, who
has every thing he needs if he stops being so fucking stupid with
his money.
I have to go (hey, where the f*ck is joe, I don't have the time
to do his job!), but robc I anticipate that your idea here is that
it would be "wrong" because of some kind of floating around
"natural" "right to property" that you think trumps utility.
And I think that is plain out daft. Property is important to the
extent of, and no further, than its furtherance of utility. A moral
theory that has such little regard for the actual welfare of people
is way out there.
It's like Cicero's: "Let justice be done, though the heavens fall!"
That's no kind of justice.
MNG,
It would be evil to cause you a bit of discomfort to save the
child's life or great discomfort on his part.
WTF?
The ends NEVER (NEVER NEVER NEVER) justify the means. Your means is
thru theft. That is evil. Thou shalt not steal is pretty clear to
me.
Choose good means and accept the ends that come. (Nothing wrong,
IMO, with choosing amongst the good means to maximize the value of
the end state)
It's like Cicero's: "Let justice be done, though the heavens
fall!" That's no kind of justice.
Heh.
I almost posted that I support the righteous path even if it leads
to the destruction of the Earth and all people on it. I agree with
Cicero.
Not knowing the context, Im not sure if Cicero was agreeing or disagreeing with that quote, so I dont know if I agree with Cicero or not. I agree with the quote.
MNG,
My immediate family of parents, siblings and their offspring, a
rather large brood (Irish Catholics, what can I say?) has received
exactly $0.00 in food stamps or public assistance of any form. We
would like our money back to set up our own "misfortune" insurance
fund. We promise to never ask the government for welfare in
return.
It ain't insurance, it's welfare.
I believe in a just government and a kind deity.
Unfortunatly, it appears that most folks believe the reverse.
All powerful wikipedia shows no
connection to Cicero.
The state supreme courts of GA and TN seem to agree with it though.
It looks like I have a lot of legal authorities on my side. Im not
sure how well I like that. :)
CN,
I believe in a just government and a kind deity.
I believe the best we can hope for from our fellow man is justice.
The worst thing we could get from God is justice, fortunately I
believe he is capable of grace.
I once graphed it with an asymptote at justice. Man can strive to
achieve (but never quite reach) justice. God can do no worse than
justice.
"It's a difference, but since we are talking about whether they
both are transfer payments I'd say it's not a decisive
difference."
Wrong - it is absolutely a decisive differnce.
"Property is important to the extent of, and no further, than
its furtherance of utility."
Wrong again.
You're batting 0.00 today.
"Fuck the average american."
The average american is not all that attractive. No thanks.
MNG shilling for Big Tax again I see. Hitting all the liberal "morals" that are actually immoral. Pretty funny stuff.
You know, with a headline about doubling my pleasure, I had such hopes for the auto-ads on this post.
In the past 10 years, under both Republican and Democratic
governors, legislative Democrats have presided over a doubling of
the California budget, from $72 billion in 1998 to $145
billion.
Hey, let's give the voters of California some props here, too!
They've voted for dozens of spending initiatives over the
years.
Actually, from a practical standpoint, cutting public
education spending in California is illegal. By proposition (and
therefore state Constitution), California must spend 40 percent of
its annual budget on education.
But it's given us the most egalitarian educational system in the
country, with high graduation rates and a level of student
achievement envied by the world!
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