Despite commendable efforts and successes of the Sacramento California legislature in its attempt to turn around an economy devastated by a financial trading enterprise precipitated housing and economic collapse, a collapse that none of us in our lifetimes have witnessed, California still leads the nation with the highest poverty rate, the worst environment for businesses, the worst traffic, the highest taxes, the highest incarceration rate, one of the highest unemployment rates, and the worst economy out of all 50 states for consumer demand, production and job creation.
Meanwhile, an unabated pattern of frivolous lawsuits from unethical law firms against any business with more than 200 employees further drains dollars out of the economy through the hands of a relatively few law firms. Further, although we are not allowed to hear about it often to any meaningful degree on the mainstream media, the California foreclosure crisis is absolutely thriving. Many homeowners qualified for loan modifications are still ultimately foreclosed upon, while others who are making their modification payments are foreclosed upon behind their backs, because in the eyes of the perversely incentivized servicers, master servicers and wholly owned trustees of the financial trading enterprise, the loan modifications are merely an artifice from which to facilitate foreclosure.
The impact upon the California economy and homeowners from losing their equity and in many cases their life savings due to the loans into which they were steered prior to the crash of 2008, has been profound. Cash-strapped Californians worried about refinancing escalating mortgages have become more reluctant to consume, and thereby create the demand for products, and hence jobs to produce those products. Moreover, that impact is exaggerated many times by the negative cumulative effect upon the communities, businesses, schools and public facilities thus deprived of the spendable cash those homeowners would have otherwise paid into the economy.
Add to that the ingredient of financially desperate local governments, corporate corruption fueled by the financial squeeze, and a system that gives the unemployed, not to mention those who are discriminated by race, or for trying to return to society after having been in trouble with the law, extreme difficulty in getting into the game of democracy, and you have a toxic mix wherein the average citizen appears to have little hope of achieving what most of us want, and what most of us want is a government capable of assuring us that if we do everything right, and play by the rules, we will be able to earn an honest living, purchase a home, and provide for our families.
Lower taxes, and tax incentives for companies, will promote private sector job creation
Unless we confront each and every of the above-mentioned unfair practices, outdated statutes, bankster manipulated and corruption abetted oppressions, any economic improvements gained by lowering taxes or tax incentives, will not be enough by themselves to sufficiently eradicate government debt, lessen consumer debt, create sufficient buying power, and hence demand in the consumer markets to create the jobs to fill the demand for production created by that buying power.