Thread: California borrows 40 million a day

FROM CNN's Jack Cafferty:

California is borrowing $40 million a day from the federal government to pay unemployment benefits.

That means California is borrowing $40 million a day from you and me to pay unemployment benefits.

The Los Angeles Times reports the state will have a $362 million bill for interest alone due on a total debt of $10 billion next fall.

Thanks to the recession and poor management, California is an economic disaster zone, with one in every eight workers unemployed. More than 1.2 million Californians have lost their jobs since the start of the recession, and they're staying out of work for longer periods of time.

Plus in 2001, state lawmakers nearly doubled unemployment benefit levels without raising taxes. That was smart.

The result of all this is that if California keeps borrowing from the federal government, employers could face a steep hike in their unemployment taxes.

California is not alone here. 32 states in total have been borrowing from the federal government to pay unemployment benefits. The total is $41 billion. Some of these states are asking the feds for a deferral on repaying the loan until the economy improves.

The solution to this is fundamental: either increase contributions or decrease benefits - or both. Want to bet neither one happens?

Here’s my question to you: Should California borrow $40 million a day from the federal government to pay unemployment benefits?
http://caffertyfile.blogs.cnn.com/2010/ ... -benefits/ What is the problem? All those millions of valuable Illegal workers not paying enough in unemployment tax? I thought we have been told they contribute greatly to society and the economic stability? Is the problem the same as with the stimulas program? After all , it would have worked had it been 2 or 3 times the size it was. using that logic maybe you need another million or 2 illegals to get you back on your feet and turn things around. After all if 2 million of them are a good thing 4 or 5 million would be that much better ! I say cut them off , their progressive thinking has poisoned the rest of the country in more ways than one. You made the bed ,, NOW LIE IN IT !!!!!!!

As a native Californian I say cut the money off. As many of you know I have taken a break from this forum. The reason is I have been grieving for California. I was a true native Californian and I have been forced to watch it's death. Many of us here in California have been fighting this battle before groups like ALIPAC were formed. We are tired and battered. I did not want to taint anyone's efforts with my feelings of defeat.

The one thing that I have learned is that as long as our children and friends are passive, nothing will change. As long as social programs and unemployment are supporting us, nothing will change.

As a parent, grandparent and taxpaying citizen I say too my fellow California's " I am tired of supporting you" "The rest of the country is tired of supporting you". You want to share what you don't have with liberal and progressive groups. You want to share what you don't have with illegal groups. Fine that is your right, but get your hands out of our pockets.

Originally Posted by MontereySherry

As a native Californian I say cut the money off. As many of you know I have taken a break from this forum. The reason is I have been grieving for California. I was a true native Californian and I have been forced to watch it's death. Many of us here in California have been fighting this battle before groups like ALIPAC were formed. We are tired and battered. I did not want to taint anyone's efforts with my feelings of defeat.

The one thing that I have learned is that as long as our children and friends are passive, nothing will change. As long as social programs and unemployment are supporting us, nothing will change.

As a parent, grandparent and taxpaying citizen I say too my fellow California's " I am tired of supporting you" "The rest of the country is tired of supporting you". You want to share what you don't have with liberal and progressive groups. You want to share what you don't have with illegal groups. Fine that is your right, but get your hands out of our pockets.

We , the rest of the nation are the enablers. I feel your pain and I hope you never take it personal. There are many very good people in California. I have been there for work several times. It seems that if you get out of the major cities , people are more real and " Normal." I for one really get tired of hearing the " elite Hollywood types" spout their political beliefs. Stick to making simple mindless movies about make believe people with fairytale lives , collecting your multimillion $ paychecks for a month or twos worth of work before you fly off to some foreign country and adopt homeless children to bring home as personal pets. Those are the people with the money and power and many try and emulate that lifestyle and idolize them. There are many good people there and I really feel for them that they have been overrun , outvoted, and been forced to pay for the social vices that are pervasive there. It is a new day and age. Do not give up hope ,for in the end the righteous shall prevail , but this addiction to the federal teat must end. As with any addiction you must hit rock bottom before you can begin to recover. Continuing to carry them will only prolong their delusional view of life and prop up their skewed ideology. It is a shame that many very good people will have to suffer unnecessarily along with those who really deserve to suffer and are directly to blame for all that has happened there.