California
So California needs a bail out. The state government is out of money. The Golden State, blessed with incredible beauty, perfect weather, fabulous soils, plenty of coast line and even much of the world's high tech and entertainment revenue, has managed to run out of money and is now asking Henry Paulson to tack on seven billion for their government.
Grey Davis, Arnold Schwarzenegger and the California Assembly has managed to do what Fidel Castro has done - run a paradise into the poorhouse. There are many problems with the state, not the least of which that many businesses have fled the state and taken their jobs and tax revenues elsewhere. For a number of years in a row, California has the country's "worst business climate."
California is locked into extremely generous labor contracts which not only offer high salaries and benefits but which promise generous retirement benefits, including gold plated health care for life. Years ago, a study concluded that state employees were paid about 30% more than their private sector counterparts for jobs of comparable skill level and responsibility. And California state employees are not widely renowned for their competence or hard work. To say the least.These personnel costs are the major reason California cannot pay its bills. Private sector employees of steel coompanies, airlines, and auto manufacturers (among others) have lost some of their gold plated retirement benefits. Why should state employees be any different?
[A: the people we keep sending back to Sacramento are owned by the labor unions]
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