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Shock doctrine comes to CA, targeting the working class, poor

Davidson's picture

[Welcome, Digby readers!]

Below is a great, in-depth report by Al Jazeera on the failure of the richest state in the United States and how the government cuts deal a lethal body blow to Californians, particularly the working class and those below poverty. The rabid, right-wing is truly holding the state hostage with Da Governator leading the assault on the most vulnerable.

Part One

Part Two. At 1:10, the shock doctrine is mentioned: "They created this crisis" (in order to kill the social programs).

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Davidson's picture
Submitted by Davidson on

The Obama administration has not said, "No," yet. According to the LAT, The Federal Reserve doesn't want to step in and help CA, and Axelrod seems most hesitant to for fear it'll cause other states to demand their own bailouts:

In an interview today, David Axelrod, a senior advisor to President Obama, voiced concerns that if the federal government steps in and provides special assistance to California to help ease the financial crunch, it could open the door to other struggling states wanting federal help.

Asked if the Obama administration would support a bill authorizing federal loan guarantees to California, Axelrod said: "Look, we're going to examine what we can do. What we need to do, however, is to treat states fairly and that means uniformly. Whatever we do for one state, there will be other states who also will want to do that. And there's a limit to what the government can do."

Asked if federal intervention on California's behalf would set a dangerous precedent, Axelrod said "There's no doubt that there are states all over this country who have problems -- not problems the size of California -- but significant problems. And every governor in the country wants and needs assistance. . . . there's a limit to what we can do."

Sarah's picture
Submitted by Sarah on

President Obama’s position on bailouts for state governments is—surprisingly—conservative. When asked if he would extend federal aid to financially-strapped states like California, the President responded, “states have to balance their budgets and so they have got to make some very difficult choices.”

May 23 (Bloomberg) -- President Barack Obama said a bailout of states such as California won’t be necessary and that his administration is in talks with state treasurers nationwide to find “creative” ways they can deal with frozen credit markets.

Many states will end up having to make some “very difficult choices” as demands on services rise while tax revenue falls, Obama said in an interview with C-SPAN.

The Democratic president said probably the biggest area in which states need help is in rolling over debt. Obama said his administration is trying to find “creative ways that we can help them get through these difficult times.”

“They are still being affected by some of the freezing in the credit markets,” Obama said in the interview, according to a transcript released by the cable-television network. Obama said “no,” when asked whether he will be forced to help financially strapped states such as California.

Submitted by lambert on

Why is fucking over the powerless always called a "difficult choice"?

Thanks for the links...

gqmartinez's picture
Submitted by gqmartinez on

Any attempt to drive health care reform to the states that does not adequately address the dire fiscal realities of the states is asking for some serious problems, and perhaps the end of momentum for single payer in at least a generation. States are in worse shape than the fed because they can't run deficits.

gqmartinez's picture
Submitted by gqmartinez on

No one answered my question last time I asked it.

By the way, CA's problems are due to many, many "actors". Both Dem and GOP alike. Dems caved to many Schwarzenegger proposals because he was so popular at the time. Rather than standing on principle they chose a "pragmatic" solution and years later we have to deal with the problems. Something else I mentioned before.