Will California become America's first failed state?

Discussion in 'Economics' started by WallStWhizKid, Oct 7, 2009.

  1. Will California become America's first failed state?Los Angeles, 2009: California may be the eighth largest economy in the world, but its state government is issuing IOUs, unemployment is at its highest in 70 years, and teachers are on hunger strike. So what has gone so catastrophically wrong?

    California has a special place in the American psyche. It is the Golden State: a playground of the rich and famous with perfect weather. It symbolises a lifestyle of sunshine, swimming pools and the Hollywood dream factory.

    But the state that was once held up as the epitome of the boundless opportunities of America has collapsed. From its politics to its economy to its environment and way of life, California is like a patient on life support. At the start of summer the state government was so deeply in debt that it began to issue IOUs instead of wages. Its unemployment rate has soared to more than 12%, the highest figure in 70 years. Desperate to pay off a crippling budget deficit, California is slashing spending in education and healthcare, laying off vast numbers of workers and forcing others to take unpaid leave. In a state made up of sprawling suburbs the collapse of the housing bubble has impoverished millions and kicked tens of thousands of families out of their homes. Its political system is locked in paralysis and the two-term rule of former movie star Arnold Schwarzenegger is seen as a disaster – his approval ratings having sunk to levels that would make George W Bush blush. The crisis is so deep that Professor Kevin Starr, who has written an acclaimed history of the state, recently declared: "California is on the verge of becoming the first failed state in America."

    To continue article click on link: http://www.guardian.co.uk/world/2009/oct/04/california-failing-state-debt
  2. The Governator's rule a "disaster"? How so?

    Whether he's been a spendthrift or tried to reign-in expenses, somebody will call it disaster.
  3. Yeah, it's all Arnold's fault. Didn't you get the memo?
  4. It's Aztlan's first conquest

    viva la migra
  5. Don't worry, "California'll be back".
  6. clacy


    Arnold bears all responsibility.

    The CA state representatives are constantly looking for ways to cut spending, eliminate waste and improve governmental efficiency.

    These politicians are the brightest and most honest on the planet, and work diligently to solve the issues of their constituents.

    They truly are the epitome of the pharse "Public Servants"
  7. At last John Steinbeck can write his sequel to the "Grapes of Wrath".
  8. promagma


    lol :D
  9. Orange County was the first municipality (1994) to default on their GO's. Drive through the place and it's epitome of wealth. Does anyone in their right mind think that California will become Detroit?

    LOL...know nothings rule ET! Yeah!
  10. new$