While Fed-conjured liquidity finds its way into the market, causing everyone to do the green shoots dance, don’t forget about the budgetary woes in California, which will need a bubble-sized recovery to stave off disaster.
We’ve mentioned how much California state employees get paid (and how much retirees take in taxpayer-guaranteed funds). Naturally the response among state politicians has been to trim salaries. This is great, but those well-informed on the budget situation assure us that salary cutting won’t begin to make a dent in the real problem.
Still, you’d think that in this tighten-our-belts, we-all-must-sacrifice environment, the politicians hacking away might show that they, too, have some skin in the game–that they, too, are feeling the pain.
According to an analysis, 80% of lawmakers are taking their full pay of $116,000 , while the remainder are voluntarily taking a pay cut between 3-16% (with 16% being the least popular). Car-happy California also has a car-allowance, which 17 lawmakers have agreed to decline. The full list of politicians to cut back is here. Bottom line, the vast majority aren’t willing to embrace the shared sacrifice thing.
It’s easy to talk about sacrifice. And it’s easier to force someone else to make it than to make it yourself.