When our present idiot became California governor four years ago, he inherited a $12 billion surplus.
It is now a $35 billion deficit (it was much less until he was elected, whereupon they found how large it was). So, they are now fiddling around, cutting educational and hospital outlays - the less important things.
Neither Wilson, the Republican idiot, nor Davis the present Democratic idiot, noticed that the population increased by 20% over a decade without any increase in power supply. When we were in deep trouble they lately built a couple in ten minutes - or at least pretty quickly.
Then, of course, they "deregulated electricity". They were as good at this as they are with most "privatization" schemes. They freed wholesale prices but kept retail prices fixed. Wholesale prices zoomed, but the local distributors were unable to raise prices. This meant they began to go broke. This led to a rash of rushed and thoughtless legislation - and chaos.
Then, the normal action of the price mechanism took over and wholesale prices dropped to their lowest. Not that this made any difference because the idiot entered into a long range contract for power at the top of the market. Now, it's pretty cheap - but we are stuck with that high priced contract. (The governor is now trying to void it, but I'm not sure how much luck he's had. They are all pals together, after all)
I no longer blame the inept and venal CEOs for their antics. I see now that they are merely trying to get the same treatment as inept and venal politicians.
Harry
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Brian wrote:
Hi Ray,
Last night on the CBS evening news they ran a story about the Oregon public school system. Apparently they do not have enough money to finish out the year. Students may have their school year reduced by a month or so.
I'm sure Karen could provide us with much more about this.
This begs the obvious question - How serious are the state budget deficits?
Take care,
Brian
****************************** Harry Pollard Henry George School of LA Box 655 Tujunga CA 91042 [EMAIL PROTECTED] Tel: (818) 352-4141 Fax: (818) 353-2242 *******************************
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