November 14, 2012 – Elections have consequences. There is little doubt that the reelection of President Obama will have far ranging consequences for the country. The last two decades of legislative elections in California have had enormous consequences for California and the U.S. more broadly. After 18 years of spending, taxing and regulating, the most resource-rich state in the Country is facing underemployment in excess of 20%, huge perennial deficits and failing schools. Sadly, the worst is yet to come. California has unprecedented problems. Estimates suggest that the pensions for the state and local governments are underfunded in excess of $650 billion – over 6 and half times the yearly revenues of the state. The yearly operating budgets the last decade have featured deficits larger than the budgets of twenty states. California features the 3rd highest unemployment rate in the nation with a million less people working today than 10 years ago, and nearly a 1/3rd of the U.S.’s welfare recipients. California has suffered the worst of the foreclosure crisis, including having 8 of the 10 worst foreclosure areas.