California better get its act together

Sunday, February 15th, 2009

Okay, I think I got this correct: Since the credit crises California’s coffers have been running low, very low, so low that its budget is now running a 42 billion dollar deficit. Because of its deficit, its credit rating is falling. Because its credit rating is falling loans are now harder to obtain. Because it can’t get the loans it needs to operate, sate employees are having to take mandatory furlows, since the state can’t afford to employ them full time (lay-offs are also a possibility.) To make matters worse for the passed 102 days, and one all-nighter, California’s lawmakers can’t come to any agreement on a way to adjust the budget. Of course this is not taking into account the ballooning unemployment rate in the state which is now at 9.3%, and rapidly plunging property values.

California has been a prosperous state, it is responsible for 13 percent of the United States GDP, and has the largest GSP (gross state product) in the US. I’m not an economist, but if this budget crises continues California is going to be bankrupt.

About Me

Welcome to my blog. My name is Justin Paone and this is where I express my thoughts, discoveries,views and the day-to-day happenings in my life.

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