New Seniors

The onetime jewel in this country’s crown of achievement and testament to the “good life” has tarnished to the point were it is unlikely to be restored to its former greatness.  With unbridled spending by a virtual one-party State Assembly and Senate, unsustainable concessions to public sector unions, unfriendly restrictions and taxes on business along with personal income taxes and sales taxes that are among the highest in the nation, it’s no wonder the California dream has turned into a nightmare.

California is ranked 7th worldwide in terms of GDP (Gross Domestic Product), placing the state above nations such as Spain and Canada.  There was a 50 percent increase in the number of new residents from 1980 to 2000, today there are 37 million people living in California, which represents 8.5 percent of the US population.

But the population mix is changing.  Since the millennium, businesses have moved or closed at an alarming rate, causing the state to lose corporate taxes and the revenues skilled workers represent.  Even the work for unskilled labor has been diminished with draconian environmental laws for manufacturers and farmers losing vital irrigation sources in order to protect an endangered minnow at the expense of growing crops to feed the nation and the world.

At the same time, pension funds for public sector employees has increased 2,000 percent in the last decade while revenues are up only 24 percent.  The state deficit for this year will be in excess of $20 billion.  What happened to the money from the state lottery?  Native American casinos?  Increased gas taxes?  Higher sin taxes ( cigarettes and alcohol)?  The recent hikes in sales taxes at the state and local levels?  Are Californians destined to depend on the legalization of marijuana and the taxes gained from it to tide the state over until the next financial crunch?

Too many special interest groups resulting in too many petitions that end up as ballot propositions have taken much of the budget responsibility away from the elected representatives.  This experiment in direct democracy may be popular with residents, but it hampers budget control – assuming the free-spenders in Sacramento would actually be concerned about finances as opposed to pushing their own agendas.

The cycle of higher taxes imposed in order to pay for immigration services, education, health care, an aging infrastructure and increasing government costs are hangovers from the glory days of the Golden State.  This is not 1960 or 1985.  It is 2010 and the countdown to self-destruction is a reality.

Change is not an option; it is an imperative.  The voters of California must send a loud and clear message to politicians to stop the madness.  If they don’t listen, perhaps the state can declare bankruptcy (not actually do it, just take it to the brink before the federal government steps in), get out from under the commitments that shackle reform and start anew.  If California gets a fresh start other states might follow.  Think it could work?

Don Potter: Editor-in-Chief

Don Potter, a veteran of the ad agency business, is a Philadelphia native currently living in Los Angeles. He is the author of an acclaimed marketing book, The 50+ Boomer: Your Key to 76 Million Consumers. In retirement, Potter has written two novels, hundreds of articles and is a frequent lecturer. A leading advocate for those 65+, he is a founder of NewSeniors.com.

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