California burning
The state has shifted from a $97.5 billion surplus to a $81 billion deficit within a few years.
Greetings Financial Healers,
Imagine if you had a friend who kept squandering their money time and time again. Would you still be inclined to lend them cash if they came asking for help? Generosity is important, but there comes a time when people must learn from their destructive behavior.
This is precisely how California feels right now — like that friend struggling to manage their finances and losing support rapidly.
According to GistFest, “California [has shifted] from a $97.5 billion surplus to a $81 billion deficit within a few years…” That’s horrible.
Who’s to blame? Pundits say the “pitfalls of expansive government spending without adequate revenue increases.”
In other words, California is spending way too much on its expansive welfare state. Just like someone who flaunts a luxurious lifestyle with fancy cars, lavish homes, and oversized TVs, you quickly realize they’re drowning in debt and have nothing to show for it.
If this were the private sector, the solution would be easy: fire the employees responsible for reckless spending (in this case, Governor Newsom and his appointees). But when it comes to government, inefficiency often goes unchecked, so long as it’s masked with appealing slogans.
GistFest continues, “California’s population has seen a huge decline over the last few years. People have been moving away because of the expensive cost of living and the quality of life.”
In stark contrast, the entire nation of Argentina managed to balance its budget within a mere 9 and a half weeks. How’d they do it?
Their president implemented sweeping cuts in government spending. According to Sky News Australia, Milei terminated 50,000 public employees, halted the renewal of over 10,000 contracts, and abolished 200,000 irregular social programs.
Of course, this has led to the closure of thousands of government jobs and increased unemployement. But sometimes, making tough decisions is imperative to stop the financial bleeding.
Will California learn from the economic wisdom of Argentina? Or will they continue down the path toward poverty?
We’ll have to see.
God bless your Prosperous Soul,
Stephen K. De Silva
About: Stephen K. De Silva is an author, speaker, and financial coach. From 1995 until 2017, he served as the CFO of Bethel Church, and a member of the senior leadership team. Stephen’s blend of experience, training, and gifting make him a pioneer in the subject of money. You can reach Stephen at hello@prosperoussoul.com