Prop. 103 Rebates
California, in its continuing effort to discourage business in this state, has recently added to many mistakes by Garamendi’s actions against the auto insurance industry. To limit the efficient companies to a profit return, which is less than a non-risk-taking utility company can earn, is a tragedy that will ultimately have to be faced by California consumers. The consumers in this state will eventually be left with only the auto insurance companies that are not efficient and charging the higher premiums, or even worse, a state-run system. With the largest insurers in California attempting to curtail new business, one needs to look at the naivete of Garamendi.
Insurance companies are a large, if not the largest, buyer of state bonds. Should these companies, because of California politics, decide to shift their investment policy to U.S. bonds and municipal bonds other than the state, another serious financial crisis would be confronting Sacramento. Again the consumers would be picking up the tab via another tax increase.
This country, because of the free enterprise system, was once and may still be a powerful nation. California government, however, is and has been seemingly doing everything possible to destroy our once wonderful economy.
MARY A. SANDERS