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Author Mike Reagan on the state of the Golden State’s economy and the future of the food-stamp program.
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Good stuff let me get back to the West Coast a bankruptcy filing for Stockton California basically inevitable now the town is flat broke but here's the question.
Which towns on next in the formally Golden State -- Reagan is the author of the new Reagan revolution and he joins is from loss on.
Can you put your finger on any other towns cities in California which may well be in exactly the same bankruptcy situation fairly soon.
How a Los Angeles to name just one.
This is the big city it is virtually bankrupt.
As our most of the towns and cities you know throughout the state California there's no jobs -- news state.
11% unemployment 70%.
Up there in Fresno -- area of the state and there's nothing being done in Sacramento.
To help.
Bring businesses back to California to create the jobs to create the wealth to pay the taxes to bring a Stockton anybody else out of bankruptcy.
Are you serious I mean Whitney would you really use the word bankruptcy in the same sentence as Los Angeles -- think it is going to happen to.
I I think I I think we are but no but we have a mayor here who's not gonna say anything of that nature because he wants to be governor -- -- -- heard senator.
From the state of California in what have you so you're not literally hear those words.
But at the same problem here in Los -- she really have up in stock and remember the state of California.
-- what 500 billion dollars in the -- when it comes to pensions and retirement funds the whole status.
And end this didn't start just yesterday afternoon when this started really.
You know back in the Schwarzenegger air when -- unions completely beat back five ballot measures.
That he had you you might call -- what's implication of Arnold Schwarzenegger because from that point none.
He really did everything he could -- trying -- -- green and of course has been exacerbated by.
The new governor -- on the old new governor if you will Jerry brown and the state assembly what have you when you think a few weeks ago.
That they decide the executive order the governor did to require every new home in California bill.
In 2014.
And beyond.
Requiring them to have rose that would carry a solar panel what's that gonna do the cost of housing.
In the state of California's gonna drive it up up up that is driving business out out.
Out all right you used the would bankruptcy connected to Los Angeles on a move to -- second the US is gonna spend what 770 billion on food stamps in the next ten years.
-- what your dad's I have to say on that program this is back in 1982.
Virtually every American shops and a local supermarket.
Is aware of the daily abuse of the take place in the -- -- stamp program.
Which has grown by 161000%.
In the last fifteen years.
This month the senate refused to pass any reform of the food stamp program -- what so ever.
About was thirty years ago that you would dad said that nothing changes doesn't.
Absolutely right -- it's still growing and you know the old line Marty if fight tell you words -- -- I have to Killian.
-- I mean people really -- know that in fact there is actually a law on the books.
There is somebody told you where the money is being spent.
They can go to jail.
I mean that's how that congress United States backed itself up they spend this money there's no transparency.
And then they tell people who in fact take given the money that if you ever tell somebody where the money goes.
We could put you in jail.
Might be.
Agriculture Department says that the food stamp program has reduce poverty by about 10% the bulk of the money goes to.
People with children widows.
Disabled people isn't there a place for food stamps doesn't have a real role in -- just society.
-- -- I mean my -- believe that yes it does -- doesn't have a role of of being used as basically spending cash to take food stamps should not use them for food but fine places where you could turn into cash.
To buy drugs to buy alcohol.
And these kinds as the situation.
If indeed that's -- people want that -- be transparent about it and find out.
How the money is being spent who's taken the money and so that we can stop people from in fact up.
Well.
Taking advantage of a situation the government.
Not everybody takes advantage -- very noble we'd like to know who like dogs and resident I mean that's Charlie and I think what's wrong with the government to congress -- where there a better one of the center -- abuse that we will -- why don't we.
Why am I not allowed to know -- Wet food stamp money 77 billion dollars a year is being spent and what is being spent don't you know I'd like I'd want to though I want the government won't let me.
My comes ought to leave you out of this discussion can Raleigh heated here in New York but that with -- against suitor might right now.
What is important but it did they ask the panel why would you didn't pass the law and kill people if they tell you where the money goes.
Then you're going to be putting general.
Why would you put somebody in jail for telling you where the money's being spent -- pass the congress of the United States is tried to coverage backside.
I like you might Reagan.
Good stuff see you again soon.
Thank you answer the --
