What is Going On In California
Some say that if you want to know where the US is going you have to know what is going on in California. That is to say we are a trend setter. I really hope not!
California has passed bills to allow foreigners from Mexico to get tuition and grants to our colleges at the same rate as Californians. We have passed laws that will give cap and trade as a solution to global warming. Hurting the competitiveness of California's businesses. We are asking the people if they will allow for a higher tax rate so that the legistlature can spend more. Our legislature is spending without limits.
California has one of the highest unemployment rates in the country and we are broke. Some of you will state, "So What!" They are a land of crazies. Maybe so but these crazies, spawned those in the US legislature. We cannot farm the great central valley of California. Over 40% unemployment in some cities there. All due to the protection of a 1 inch long fish. The water is not allowed to irrigate the farms and is run by them to the ocean.
What does this have to do with real estate? Let me tell you. It keeps the government collecting money and the people poor. They cannot work and they cannot purchase homes. If you believe in the Occupy movement the collective and think that is the way out. Think again. Really, we get those who work to supply money to those that don't. Why work? Our system will colapse as has every country that has tried it.
This country has become great because we can all make it to wealth. I grew up in a poor neighborhood and I have had success as a Realtor. I have also failed at other businesses. But it has been the failures that has added to my experience and made me stronger than a lot of my competition. Same is true of US businesses and it people. We are strongest if allowed to be free to fail as well as succeed. If you do not let people experience hurt and small or big failures they cannot endure.
We in California are trying to save the child, save the planet, save the individual, save the animals, help the poor, and help any cause that we can think of that might cause hurt and or distress. By doing that we are failing as a State. We are failing the people of the state and we are not giving people the ability to succeed.
So, What is going on in California is exactly what we all should learn from. The status quo for California has failed and will fail. If we want a change we have to take a different direction and try smaller government and give the money and profit back to the people. That would mean lower taxes and less government.
What started this rant was the realization that we have a 31 month low in housing prices. We also saw that overall, 2297 Orange County residences sold last month, one of the slowest rates we have seen. It was 1988 since we last saw such a slow market.
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