I thought California has been bankrupt for the past 5 years. But again, they still have highly innovative cities and top research and educational facilities.
Parts of California are broke, but there are other more vibrant regions that will continues to make California a respectable rival to Texas. Since I know there is an obvious competition between Texas and California.
I do think he makes a fair point here: “And if this agenda is successful, it will have national implications. After all, California’s political story — in which a radicalized G.O.P. fell increasingly out of touch with an increasingly diverse and socially liberal electorate, and eventually found itself marginalized — is arguably playing out with a lag on the national scene too.”
“California isn’t a state in which liberals have run wild; it’s a state where a liberal majority has been effectively hamstrung by a fanatical conservative minority that, thanks to supermajority rules, has been able to block effective policy-making. ”
I’d love to see a sensitivity analysis on the multitude of liberal policies that have been proposed in California. Would California be better off, or worse, if they passed?
The Stockton article is really interesting. My guess is that bondholders get paid before pensioners but its definitely a tough issue. I feel bad for small cities. The federal government can just print more money. Cities have to file chapter-9, reorganize and wrangle with these tough issues.
Stockton has a population just shy of 300,000 people. This is not a small chapter 9. This is very alarming and will likely reach the higher courts. The decision will have implications for a litany of unfortunate bankruptcies in the future.
I also thought California was already bankrupt. I read somewhere that unemployment was going down in the state as well. Seems to me that it shouldn’t be hard to get out of bankruptcy if the right decisions are made.
“The Sacramento Bee says California is insolvent.”
Interesting article. The massive overspending in that state is testament of fiscal irresponsibility but that state still has human capital and tech industry resources to lift itself out of financial despair.
Love it or hate it, California is a cultural leader among the states. Trends in California tend to arrive in other states within 1 to 10 years after first appearing in California. Whereas Northeastern states are perceived as elitist, Pacific Coast states are considered more egalitarian. The financial woes in California are harbingers for problems yet to come in other states.
“So is California still the place where the future happens first? Stay tuned.”
Yes, and that isn’t a good thing. He’s right about the GOP though. They have to adapt or survive, and right now the young, Liberty wing of the GOP is where the life is.
As far as rich people moving out, you cannot beat the weather in CA. If I could live there I would taxes and all. You can drive to the beach in the AM and be in a ski resort by night.
@ California
I thought California has been bankrupt for the past 5 years. But again, they still have highly innovative cities and top research and educational facilities.
@ Sandeep
Parts of California are broke, but there are other more vibrant regions that will continues to make California a respectable rival to Texas. Since I know there is an obvious competition between Texas and California.
@ The Krugman article
I do think he makes a fair point here: “And if this agenda is successful, it will have national implications. After all, California’s political story — in which a radicalized G.O.P. fell increasingly out of touch with an increasingly diverse and socially liberal electorate, and eventually found itself marginalized — is arguably playing out with a lag on the national scene too.”
“California isn’t a state in which liberals have run wild; it’s a state where a liberal majority has been effectively hamstrung by a fanatical conservative minority that, thanks to supermajority rules, has been able to block effective policy-making. ”
I’d love to see a sensitivity analysis on the multitude of liberal policies that have been proposed in California. Would California be better off, or worse, if they passed?
The Stockton article is really interesting. My guess is that bondholders get paid before pensioners but its definitely a tough issue. I feel bad for small cities. The federal government can just print more money. Cities have to file chapter-9, reorganize and wrangle with these tough issues.
Stockton has a population just shy of 300,000 people. This is not a small chapter 9. This is very alarming and will likely reach the higher courts. The decision will have implications for a litany of unfortunate bankruptcies in the future.
“Stockton, California declares bankruptcy.”
I also thought California was already bankrupt. I read somewhere that unemployment was going down in the state as well. Seems to me that it shouldn’t be hard to get out of bankruptcy if the right decisions are made.
“The Sacramento Bee says California is insolvent.”
Interesting article. The massive overspending in that state is testament of fiscal irresponsibility but that state still has human capital and tech industry resources to lift itself out of financial despair.
The Sacramento Bee says California is insolvent.
I always thought that California wasn’t worth a darn. This basically proves what I’ve said all along.
About California…
Love it or hate it, California is a cultural leader among the states. Trends in California tend to arrive in other states within 1 to 10 years after first appearing in California. Whereas Northeastern states are perceived as elitist, Pacific Coast states are considered more egalitarian. The financial woes in California are harbingers for problems yet to come in other states.
Agreed, Buster! If this is what’s happening to California right now, I expect worse things to start developing in other states.
“So is California still the place where the future happens first? Stay tuned.”
Yes, and that isn’t a good thing. He’s right about the GOP though. They have to adapt or survive, and right now the young, Liberty wing of the GOP is where the life is.
As far as rich people moving out, you cannot beat the weather in CA. If I could live there I would taxes and all. You can drive to the beach in the AM and be in a ski resort by night.