Digital Age Lesson #2
May 14, 2010
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In Lesson #1 we learned:
ALL PROPERTY RIGHTS EMINATE FROM THE SOVERIGN
In Lesson #2 we realize:
WHEN THE SOVERIGN IS BROKE....IT WILL TAKE BACK PROPERTY FROM YOU.
SAN FRANCISCO (MarketWatch) -- Citing the most severe economic downturn since the Great Depression, California Gov. Arnold Schwarzenegger laid out a draconian plan Friday to close an estimated $19 billion budget gap with steep spending cuts and higher taxes.
The new budget calls for $12.4 billion in spending cuts and $4.9 billion in higher taxes.
Personal income taxes will go up 5.1%, corporate taxes will increase 4.2% and liquor taxes will rise 6.6%. An estate tax will be imposed -- a move that could raise $892 million. The plan also calls for a 4.8% surcharge on home- and commercial-insurance policies to pay for fire protection.
What's more, most state workers will see a 10% reduction in wages under the proposal.
http://www.marketwatch.com/story/new-calif-budget-calls-for-deep-cuts-more-taxes-2010-05-14
Right now government is running out of money.....plain and simple.
The problem is government is still operating on Industrial Age habits although cash flow is being reduced to Digital Age levels.
In the Digital Age...we can probably get rid of most towns, cities and counties as administration can easily be centralized at the state levels due to increased efficiencies. The cost savings will be enormous as we can probably reduce government employment by 7 to 10 million workers.
The tension between transitioning from the Industrial Age to the Digital Age will be uncomfortable for many....but in the end it will lead to a healthier, happier, and more community orientated lifestyle.
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