Tuesday, April 30, 2024

In the #News #Politics #Economy - California Should Follow The Money

“If you don't read the newspaper, you're uninformed. If you read the newspaper, you're misinformed.”

“Whenever you find yourself on the side of the majority, it is time to reform (or pause and reflect).”

― Mark Twain

Subscriber Comments

California Should Follow The Money

California is an interesting and beautiful State with a long history of risk-taking and innovation. Tourists come for the geographic, social, and economic diversity. That is, if they can afford the cost of living. The latter, the cost of living, has sent millions of Californians moving to other States. Remember, traders, investors, citizens, what we call the majority, see what they believe. Inconvenient reality, such as the future destruction of public pensions, is typically rationalized away as propaganda, spin, or fake news. Experience, discipline, and past dealing with the invisible hand (hard lessons) help us see things for what they are. Inconvenient facts, such as deteriorating employment, high cost of living, vulnerability of public pensions, will be ignored until the 2×4 of pain teaches balances the ledger (teaches the lesson) in the 2030s. The minority slowly leaves, while the majority self-promotes. The self-promotion from influencers to politicians keeps the majority off balance and vulnerable to the coming transition (see Tweet)

The LA Times sobering piece, “Are California’s public pension funds headed for another crisis?” should have been a wake-up call for Californians and Americans. Should have been. The problem has only worsened with rising interest rates, falling standard of livings, and soon deteriorating economic activity.

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