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Sat

20

Jun

2009

California's Terminator Economics: Poor Pay for Excesses of Wealthy
Written by Naomi Klein   
Saturday, 20 June 2009 07:46
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Schwarzenegger’s Shock Therapy — The Poor Pay For The Sins Of The Rich
by Naomi Klein   
Now that Washington has ruled out an immediate bailout for California, we know who will pay the ultimate price for the crisis born on Wall Street: the state's most vulnerable citizens. And with many states facing similar crises, this could be a preview of where the country as a whole is headed.

California is facing a $24.3 billion dollar budget gap, and the governor wants to attack it with cuts to social programs alone. If Schwarzenegger has his way, the price will be paid by 1.9 million people who lose their health care coverage, 1.3 million who lose basic welfare, thousands of state workers who get fired, schools that lose $5 billion in funding, having already survived brutal cuts earlier this year.

I just spent a week in LA and Sacramento filming a documentary on the crisis for Fault Lines, the show I co-host on Al Jazeera English Television. We interviewed teachers who are on hunger strike against the cuts, students organizing protest marches, health care workers and their patients, politicians from both parties, undocumented immigrants and the talk show hosts who demonize them (Californians will know the John and Ken Show...)

What we discovered (beyond some priceless video of Arnold Schwarzenegger introducing Milton Friedman's TV series on PBS in 1990, is that thanks to the quirks of California's system, the state is a Petri dish for some of the most virulent strains of American political culture.

Around the world, government is seen as the last hope to stimulate a comatose economy. In California, anti-tax, anti-spending, and anti-government sentiments are converging: California is facing a de-stimulus package of epic proportions.

 
 
 
Watch both parts of my half-hour documentary below,
and check out AJE live, 24 hours day, at livestation.com.

Fault Lines, California: Failed State Part 1
[Part 2 Below the break]
 
 
 
 
 
Comments (1)Add Comment
Everybody pays for the excesses of the Governing Class
written by ispeedtoo, June 20, 2009
"will pay the ultimate price" We all will pay for the bad behavior of poor governance. The rich is a scapegoat and only a young fools sallow this line! The Government of California has been run by One party for almost 40 years and they have been tending to the State Employees Unions which have sucked the life out of the General fund!!!

"We interviewed teachers who are on hunger strike against the cuts, students organizing protest marches, health care workers and their patients, politicians from both parties, undocumented immigrants and the talk show hosts who demonize them (Californians will know the John and Ken Show...)"

Yes it is these people that have sucked so much money out of the system that the California system is failing. The real budget problems in cost are SPENDING related and the costs due to increasing unemployment and loss of profits is already WAY past 24.5 billion. How about 30 Billion.

GOVERNMENT IS THE PROBLEM!!! Look at Iran!!!
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