BTW, we shouldn't be surprised that this outcome occurred. It's not as though people don't understand or know what I'm talking about--it just doesn't fit our culture anymore.
People claim our government ought to model those households; ironically, it seems to be doing exactly that.
I don't think the middle class reduces spending to remain within their budget, though; rather, they buy on credit.
Here's a portion of an article today that supports what I was stating:
Quote:
State finance officials will rush to sell the bonds approved Tuesday as quickly as possible. They hope to secure the money in time to cover $14 billion in short-term loans that the state must repay to a syndicate of banks in June.
They already have formed a working group that includes Schwarzenegger's finance director, the state controller, the treasurer and others, and will map out how to get the state the best interest rates on any borrowing, which would be repaid over the next 8 to 14 years.
This week the state will name a finance team of underwriters, bond counsel and financial advisors to push the bond sale. State Treasurer Phil Angelides noted that it would be "the largest municipal bond sale in U.S. history."
Experts question whether passage of the two ballot measures warrants the kind of celebration evident at Tuesday's victory party, where the drink of the night was a "poinsettia," a blend of champagne [how about stop buying fucking champagne on the public's money, for starters] and cranberry juice, and the emcee was radio disc jockey Rick Dees.
Wall Street rating agencies on Wednesday applauded California voters for approving the deficit bond issue, raising their outlook on California finances — although not the state's credit ratings [interest rates are contingent on credit ratings, BTW]. But they urged lawmakers to quickly close the gap between what the state spends and what it takes in.
Until the Legislature and Schwarzenegger pare the structural deficit that has plagued the state budget for the last three years, the rating agencies said California cannot expect to see improvement in its worst-in-the-nation credit standing.
Even with Tuesday's vote, "The state's increased ability to sell bonds to fund current operations merely postpones the difficult taxation or expenditure reduction decisions," said Standard & Poor's analyst David Hitchcock.
"They've bought themselves some time. We'll see how they make use of it."
Without decisive steps toward shrinking the structural deficit, Hitchcock said, the state again could find itself in a serious cash crisis.
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--http://www.latimes.com/news/local/la-me-bonds4mar04,1,6719131.story?coll=la-home-local