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	<title>Comments on: Perhaps the Government Needs to be Educated in the Value of an Emergency Fund</title>
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	<link>http://beingfrugal.net/2009/07/02/government-budget-ious/</link>
	<description>Live more.  Spend less.</description>
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		<title>By: bob</title>
		<link>http://beingfrugal.net/2009/07/02/government-budget-ious/comment-page-1/#comment-17545</link>
		<dc:creator>bob</dc:creator>
		<pubDate>Mon, 06 Jul 2009 15:24:16 +0000</pubDate>
		<guid isPermaLink="false">http://beingfrugal.net/?p=2191#comment-17545</guid>
		<description>I live in California and I can tell you that the reason why California in particular has such serious budget issues is due to the very nature of it&#039;s political system. We have a proposition system here. That means that if a law is passed by the state legislature, citizens can immediately put up a proposition in order to change it. It can be seen from two perspectives. On one hand it can be seen as having a very democratic state government where the &quot; will of the people&quot; is absolute. On the other hand it also makes the state government totally ineffective. 

 Perfect example is Prop. 13, which was passed in the 70&#039;s to put a limit on property tax- both commercial and residential. What this means is that those who bought houses here 30 years ago still pay the same tax rate on a house that has gone from being worth maybe $50,000 to now close to a million. The same is true with residential property. This has created a number of serious problems. It severely limits the amount of taxes the state can collect. It also had a social consequence. Since unlike other states where taxes go up progressively with value, which means older people will eventually downsize or move out of their homes, in California they have no reason to move. Thus it creates a supply problem and prices skyrocket, which in effect prices out the young professional families whom are now moving to places like Texas, North Carolina, and Oregon. The state is bleeding itself to death. Due to the proposition system and the fact that Cali&#039;s avg age is rising means that the law will never stand a chance of being repealed. Thus the state will starve.</description>
		<content:encoded><![CDATA[<p>I live in California and I can tell you that the reason why California in particular has such serious budget issues is due to the very nature of it&#8217;s political system. We have a proposition system here. That means that if a law is passed by the state legislature, citizens can immediately put up a proposition in order to change it. It can be seen from two perspectives. On one hand it can be seen as having a very democratic state government where the &#8221; will of the people&#8221; is absolute. On the other hand it also makes the state government totally ineffective. </p>
<p> Perfect example is Prop. 13, which was passed in the 70&#8217;s to put a limit on property tax- both commercial and residential. What this means is that those who bought houses here 30 years ago still pay the same tax rate on a house that has gone from being worth maybe $50,000 to now close to a million. The same is true with residential property. This has created a number of serious problems. It severely limits the amount of taxes the state can collect. It also had a social consequence. Since unlike other states where taxes go up progressively with value, which means older people will eventually downsize or move out of their homes, in California they have no reason to move. Thus it creates a supply problem and prices skyrocket, which in effect prices out the young professional families whom are now moving to places like Texas, North Carolina, and Oregon. The state is bleeding itself to death. Due to the proposition system and the fact that Cali&#8217;s avg age is rising means that the law will never stand a chance of being repealed. Thus the state will starve.</p>
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		<title>By: DDFD at DivorcedDadFrugalDad.com</title>
		<link>http://beingfrugal.net/2009/07/02/government-budget-ious/comment-page-1/#comment-17538</link>
		<dc:creator>DDFD at DivorcedDadFrugalDad.com</dc:creator>
		<pubDate>Mon, 06 Jul 2009 01:47:06 +0000</pubDate>
		<guid isPermaLink="false">http://beingfrugal.net/?p=2191#comment-17538</guid>
		<description>Great post!  More people ought to pay attention to this approach.  Government is quick to tell you what to do, but doesn&#039;t practice sound fiscal management themselves . . .</description>
		<content:encoded><![CDATA[<p>Great post!  More people ought to pay attention to this approach.  Government is quick to tell you what to do, but doesn&#8217;t practice sound fiscal management themselves . . .</p>
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		<title>By: Michelle H.</title>
		<link>http://beingfrugal.net/2009/07/02/government-budget-ious/comment-page-1/#comment-17532</link>
		<dc:creator>Michelle H.</dc:creator>
		<pubDate>Sun, 05 Jul 2009 19:10:19 +0000</pubDate>
		<guid isPermaLink="false">http://beingfrugal.net/?p=2191#comment-17532</guid>
		<description>They need to use the &quot;envelope&quot; system! Seriously.......</description>
		<content:encoded><![CDATA[<p>They need to use the &#8220;envelope&#8221; system! Seriously&#8230;&#8230;.</p>
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		<title>By: Mike</title>
		<link>http://beingfrugal.net/2009/07/02/government-budget-ious/comment-page-1/#comment-17513</link>
		<dc:creator>Mike</dc:creator>
		<pubDate>Thu, 02 Jul 2009 23:02:41 +0000</pubDate>
		<guid isPermaLink="false">http://beingfrugal.net/?p=2191#comment-17513</guid>
		<description>And the debt keeps piling on. Here&#039;s the state of the Golden state in two minutes or less: http://www.newsy.com/videos/california_s_new_currency</description>
		<content:encoded><![CDATA[<p>And the debt keeps piling on. Here&#8217;s the state of the Golden state in two minutes or less: <a href="http://www.newsy.com/videos/california_s_new_currency" rel="nofollow">http://www.newsy.com/videos/ca.....w_currency</a></p>
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		<title>By: Angie</title>
		<link>http://beingfrugal.net/2009/07/02/government-budget-ious/comment-page-1/#comment-17512</link>
		<dc:creator>Angie</dc:creator>
		<pubDate>Thu, 02 Jul 2009 19:12:44 +0000</pubDate>
		<guid isPermaLink="false">http://beingfrugal.net/?p=2191#comment-17512</guid>
		<description>Isn&#039;t that the truth!</description>
		<content:encoded><![CDATA[<p>Isn&#8217;t that the truth!</p>
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		<title>By: karyn sweet</title>
		<link>http://beingfrugal.net/2009/07/02/government-budget-ious/comment-page-1/#comment-17511</link>
		<dc:creator>karyn sweet</dc:creator>
		<pubDate>Thu, 02 Jul 2009 19:05:48 +0000</pubDate>
		<guid isPermaLink="false">http://beingfrugal.net/?p=2191#comment-17511</guid>
		<description>Hmmm, seems like this came up before in the story of Joseph advising the Pharoah to save for the seven poor years that would follow the seven rich years. You would think thousands of years later, the government could get it right.</description>
		<content:encoded><![CDATA[<p>Hmmm, seems like this came up before in the story of Joseph advising the Pharoah to save for the seven poor years that would follow the seven rich years. You would think thousands of years later, the government could get it right.</p>
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		<title>By: Nathalie</title>
		<link>http://beingfrugal.net/2009/07/02/government-budget-ious/comment-page-1/#comment-17510</link>
		<dc:creator>Nathalie</dc:creator>
		<pubDate>Thu, 02 Jul 2009 19:01:20 +0000</pubDate>
		<guid isPermaLink="false">http://beingfrugal.net/?p=2191#comment-17510</guid>
		<description>Unfortunately our state government here in California is dealing with ugly choices when trying to figure out this budget.  No one is going to be happy with the outcome and everybody is lobbying for their particular interest.  

I think it makes it much harder on the legislators when they hear all sides from each group that is so passionate about their cause.  Education, healthcare, prison system, etc. How do we make these choices?  And, as you said in your post, we as individuals and families end up having to regularly be faced these same types of decisions.  We all make sacrifices daily, so more severe than others, to get through.  

The only security that we have is knowing that whatever choice we make we will still have a place in our family.  The legislators spend so much time thinking about the next election and their constituents and the possible outcry from their decisions that their thinking gets cloudy and decisions come slower and slower.  

Luckily we will not be up for re-election in our families!</description>
		<content:encoded><![CDATA[<p>Unfortunately our state government here in California is dealing with ugly choices when trying to figure out this budget.  No one is going to be happy with the outcome and everybody is lobbying for their particular interest.  </p>
<p>I think it makes it much harder on the legislators when they hear all sides from each group that is so passionate about their cause.  Education, healthcare, prison system, etc. How do we make these choices?  And, as you said in your post, we as individuals and families end up having to regularly be faced these same types of decisions.  We all make sacrifices daily, so more severe than others, to get through.  </p>
<p>The only security that we have is knowing that whatever choice we make we will still have a place in our family.  The legislators spend so much time thinking about the next election and their constituents and the possible outcry from their decisions that their thinking gets cloudy and decisions come slower and slower.  </p>
<p>Luckily we will not be up for re-election in our families!</p>
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		<title>By: Storm</title>
		<link>http://beingfrugal.net/2009/07/02/government-budget-ious/comment-page-1/#comment-17509</link>
		<dc:creator>Storm</dc:creator>
		<pubDate>Thu, 02 Jul 2009 15:02:36 +0000</pubDate>
		<guid isPermaLink="false">http://beingfrugal.net/?p=2191#comment-17509</guid>
		<description>Actually budget cuts would more than cover any such fund, though the cuts themselves would solve the problem. The federal budget could be cut by over 80% without cutting any &quot;essential&quot; service such as the courts, or even without touching the military (though the military budget could be cut by almost the same amount if only the government would stick to what is allowed by the Constitution and avoid foreign entanglements). 

Most of the spending is on two things: inappropriately named &quot;entitlement&quot; programs, and the interest on the debt which was created by those &quot;entitlement&quot; programs. 

Abolish these ineffective, unConstitutional programs and we could cut our individual taxes enormously, all the while dramatically boosting the economy. This double benefit would necessarily result in a higher standard of living for almost everyone, but most especially for those who are the least well off.</description>
		<content:encoded><![CDATA[<p>Actually budget cuts would more than cover any such fund, though the cuts themselves would solve the problem. The federal budget could be cut by over 80% without cutting any &#8220;essential&#8221; service such as the courts, or even without touching the military (though the military budget could be cut by almost the same amount if only the government would stick to what is allowed by the Constitution and avoid foreign entanglements). </p>
<p>Most of the spending is on two things: inappropriately named &#8220;entitlement&#8221; programs, and the interest on the debt which was created by those &#8220;entitlement&#8221; programs. </p>
<p>Abolish these ineffective, unConstitutional programs and we could cut our individual taxes enormously, all the while dramatically boosting the economy. This double benefit would necessarily result in a higher standard of living for almost everyone, but most especially for those who are the least well off.</p>
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		<title>By: Ryan</title>
		<link>http://beingfrugal.net/2009/07/02/government-budget-ious/comment-page-1/#comment-17507</link>
		<dc:creator>Ryan</dc:creator>
		<pubDate>Thu, 02 Jul 2009 14:52:38 +0000</pubDate>
		<guid isPermaLink="false">http://beingfrugal.net/?p=2191#comment-17507</guid>
		<description>I may be wrong on this one, but since governments operate on whatever they take in, spending as they go, wouldn&#039;t banking an emergency fund require the government to increase taxes in order to accumulate the necessary money?  I doubt that spending cuts would be enough to create a surplus equal to 6-12 months of expenses - this being the amount that most finance bloggers recommend for a personal emergency fund.

For the federal government, that would work out to a 3 trillion-6 trillion dollar range, with the states being even more on top of that.</description>
		<content:encoded><![CDATA[<p>I may be wrong on this one, but since governments operate on whatever they take in, spending as they go, wouldn&#8217;t banking an emergency fund require the government to increase taxes in order to accumulate the necessary money?  I doubt that spending cuts would be enough to create a surplus equal to 6-12 months of expenses &#8211; this being the amount that most finance bloggers recommend for a personal emergency fund.</p>
<p>For the federal government, that would work out to a 3 trillion-6 trillion dollar range, with the states being even more on top of that.</p>
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		<title>By: Deanna</title>
		<link>http://beingfrugal.net/2009/07/02/government-budget-ious/comment-page-1/#comment-17506</link>
		<dc:creator>Deanna</dc:creator>
		<pubDate>Thu, 02 Jul 2009 14:11:09 +0000</pubDate>
		<guid isPermaLink="false">http://beingfrugal.net/?p=2191#comment-17506</guid>
		<description>There are some many with their hands in the cookie jar, that this cycle is going to be tough to break.

No one wants to cut back and be told &quot;no&quot;.  It&#039;s just not the way it is.</description>
		<content:encoded><![CDATA[<p>There are some many with their hands in the cookie jar, that this cycle is going to be tough to break.</p>
<p>No one wants to cut back and be told &#8220;no&#8221;.  It&#8217;s just not the way it is.</p>
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