Every month we devote posts to just general political class insanity that is running rampant through the country. The members of the American political class continue to show that they are incapable of operating any level of government in this country.
Even their best efforts are almost always inefficient and ineffective at resolving any problem facing Americans. They spend a great amount of time not trying to improve the lives of their citizens but continually ensuring their reelection and enriching themselves, their families, and their friends in the process, all at taxpayer expense.
Lately it seems like the insanity is getting more frequent and more intense as politicians continue to fail us all. Let’s look at just for of the latest examples of political class insanity:
1)We frequently discuss the distinct possibility that several states (Illinois, New York, New Jersey, California) and several large cities (New York City, Chicago, Los Angeles, San Francisco) are fast approaching a financial death spiral. This death spiral will eventually result in bankruptcy and all kinds of problems for a city or state’s residents and businesses.
A city or state death spiral will likely unfold as follows:
A city or state’s politicians continue to spend more and more taxpayer money which means they constantly have to increase the tax burden.
This higher tax burden results in more and more residents and businesses fleeing a state or city so that they can keep more of their hard earned wealth.
This reduces the tax base which results in lower government tax revenue.
Rather than cut spending to match the lower tax revenue stream, the politicians raise taxes to recoup the tax money they lost to out migration.
This leads to more businesses and residents fleeing the even higher tax burden which reduces the tax base and tax revenue stream and the financial death spiral is underway.
The question is which state or city will crash first. While for a long time we thought that Illinois had the best chance to be the first state to go bankrupt, recent numbers indicate that California may eventually beat them out:
According to Census data, the state of California has lost over 700,000 residents over the past three years.
This does not include the many businesses that have left the state in one form or another including Tesla, State Farm, and Toyota.
Many of these 700,000 folks ended up in Texas and Arziona, states with a much lower overall tax burden.
California has some of the highest sales, gasoline, and personal income tax levels in the country.
In some parts of the state the sales tax is a whopping 10.75%.
Gasoline taxes in the state cause gas prices in the state to be well over the national average and in the past year the average price for a gallon of gas reached a record $6.467 a gallon.
A shrinking tax base often results in cuts to fire, EMT, and police resources which leads to more crime.
The number of homicides statewide in 2021 was almost 2,400, the highest level since 2007.
More crime and more homicides also drive out residents and businesses, on top of the high taxes and cost of living, which further reduces the tax revenue base.
High taxes, high cost of living, high crime, the numbers don't lie and Calofornia is not going to go down easy in the race to be the first state to go bankrupt.
2)We recently checked in with the website that tracks government spending and the resulting growing national debt on a real time basis:
I will not go into all of the many, many numbers that the website tracks but let’s look at some very important, very ominous numbers:
The national debt load of the Federal government is quickly headed towards a mind blowing $32,000,000,000,000.
This debt comes out to about $95,000 for every American citizen, i.e. every man, woman, and child in the country would have to write a check for $95,000 to pay off the ever rising national debt.
Thus, a family of four would have to lay out almost $400,000 to cover just the Federal government debt, not counting state and local governments’ debt.
Obviously, this is not possible since the vast, vast number of Americans have nowhere near this much money to contribute to paying off the debt. And do not even start in about “taxing the rich” to pay off the debt:
The richest American today is probably Elon Musk with one source putting his personal wealth at around $180 billion.
If you were to tax his wealth, not his income, his wealth, at 10% a year you would collect $18 billion in taxes from him every year.
This would help pay off about .06% of the national debt, not 6%, .06%.
If you took the combined wealth of the five richest Americans and taxed that wealth at 10% a year you would pay off .2% of the national debt, not 2%, .2%.
And these numbers are only for the current national debt level, it does nothing to pay off the $80,000,000,000,000 in unfunded Federal government liabilities that still need to be paid in the future.
Yes, a state or city may go bankrupt pretty soon. But unless drastic action is taken very soon to curtail current Federal government spending and start paying down the debt, the country as a whole will go bankrupt, resulting in rampant inflation and the destruction of our democracy, all due to the idiocy and inane spending policies of the Washington political class.
3)It is no secret that Biden’s border policy has been a disaster:
Millions of unvetted people have walked into the country.
Those same millions are costing taxpayers billions and billions of dollars to house, feed and provide medical care to, Americans in need of those same benefits be damned.
Central and South American gangs have established criminal beachheads across the country.
The amount of illegal drugs entering the country is staggering and will surely result in thousands more Americans dying every year from overdoses.
On top of all those Biden-induced disasters, we have a new disaster form our leaky borders:
A large number of Romanians of all people that have illegally entered the country are suspected of creating crime waves from Florida to Pennsylvania to New York.
Many of these Romanians have been found to have had criminal records before entering this country.
In 2020, the Border Patrol encountered 266 Romanians entering the country illegally.
Two short years later, they encountered 5,895 Romanians entering the country illegally, a more than twenty fold increase.
And the 5,895 are just the ones that got caught, many more likely made it into the country.
Many of the crimes are financial in nature including two Romanians that got caught possessing fraudulent passports, credit cards, and charge card skimming devices along with Americans’ bank information.
Pennsylvania in particular has seen a plethora of Romanian crimes where they attach ATM skimming devices to Walmart self checkout lines.
Some of those that have been caught show up in the INTERPOL database, indicating they had similar criminal activities overseas.
Just another mess from Biden and the Washington political class that waste taxpayer wealth and endanger the lives and families of innocent American citizens.
So another day, another set of political class insanity: Romanian crime wave and both California and the Federal government head toward their own respective financial death spirals.
Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at:
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