The perverse seduction of government money is the bane of capitalisms existence. De Tocqueville’s 19th century warning of the collapse of American democracy from government officials bribing the public with the publics own money has been realized. Politicians have been buying votes with government money to grow a government that we can no longer afford.
Chronically, these bribes have distorted capital markets such as banking, housing, venture capital, automakers, energy, agriculture and Wall Street. And, these bribes have raised public expectations of government assistance to create a debilitating co-dependency along with budget deficits that have American government borrowing 43 cents of every government dollar spent today. This monopolistic “bad government” is only revealed under the clarifying hardships of America’s protracted economic downturn. With four years of Obama in power, the national debt has tripled. In the case of Obama, it’s not “crony capitalism” – it’s “crony socialism.”
California’s faded glory as a progressive government-by-ballot-initiative state, its lavish welfare burden and its myopic “green” misadventures have left the “golden state” broke and broken. In 2008, distracted California voters approved a bond (state borrowing) initiative to build a 510-mile long, San Fran-to-L.A., High-Speed Rail Project that may now cost as much as $98.5 billion. The campaign for the bullet train ballot initiative was funded by powerful labor unions and democrat operatives, and was to become a political trophy of Obama’s U.S. Dept. of Transportation and his re-election campaign.
Gov. Brown plans to issue the first $2.7 billion in state bonds to start construction of the bullet train even in the face of “voter initiative remorse.” The cost of the bullet train has tripled, its projected feasibility is flawed, and polling indicates that Californians would vote the train down by a two-to-one margin. Two-thirds of California voters want a “do over” on the train ballot vote. (WSJ, Jan. 12, 2012)
California’s bullet train is a sad yet prescient example of how runaway progressive government could be the downfall of America, as it is in Europe.
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