If only it were just an earthquake. We could then just repair some damaged roadways or condemn a couple dozen buildings, then resume our lives. Maybe the Bay Bridge would need a section reattached. Or the last letter “D” in Hollywood would tip over. We’d send over some lumber reinforcements. No problem. This tragedy, however, has no asphalt-rending fault lines, except the ones in government, where the fault lies.
I would like to direct your attention to something boring but infinitely informative regarding the nature of this mismanaged state. Employers who utilize labor pay into the FUTA, or the federal unemployment tax, at a rate of 6% and are credited back an offset of 5.4% that they previously paid the state, leaving a small federal liability of only 0.6%.
However, if the state-run U.I. trust gets overdrawn, as it did in California for going on its third year now, it automatically pulls an emergency loan out from the federal government to service the underfunded account. And if that is not repaid by November 10, and it defaults, then the government forces employers to pay it.
They just defaulted.