Will California become America's first failed state?

**Jason** · 10-05-2009, 10:38 AM

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."

http://www.guardian.co.uk/world/2009...ing-state-debt

**djaburg** · 10-05-2009, 11:03 AM

Too many people here living above their means and then want government help to bail them out. Unfortunately I even have met some of them in my work. There are so many issues that factor in to the states current financial situation. I find it hard to believe that they collect more than 100 BILLION dollars in tax revenue (Preliminary amount in 2009, $104B) and they can't seem to establish a realistic budget. Holy crap.

**simpswr** · 10-05-2009, 11:25 AM

Hard to feel bad about someone dieing from a Self inflicted wound

yustr · 10-06-2009, 07:05 AM

My brother has spent his entire 30+ year career in real estate in Northern CA....He was fond of saying "Nobody ever lost money, in the long run, by investing in California real estate."

...He was recently in Colorado looking for property for some of his long time clients.

**simpswr** · 10-06-2009, 07:22 AM

One of the few things Enron did that I got a chuckle from was the "What is the diffeenceb eween the Titanic and California?" . . " The Titanic went down with the lights on!"

bry623 · 10-06-2009, 07:53 AM

Don't they tax the rich at a higher rate?

**djaburg** · 10-06-2009, 07:57 AM

Quote:

Originally Posted by simpswr

One of the few things Enron did that I got a chuckle from was the "What is the diffeenceb eween the Titanic and California?" . . " The Titanic went down with the lights on!"

And the titanic didn't catch fire every year.

10-05-2009, 10:38 AM	#1 (permalink)
Jason BANNED Join Date: Dec 2001 Location: Pasco, FL Posts: 8,497 OS: Windows Vista My System Blog Entries: 2	Will California become America's first failed state? 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." http://www.guardian.co.uk/world/2009...ing-state-debt __________________ Posting Tips \| Advice for New People \| Common Fixes \| Agus na damnaithe fágtha gan focal Glaoigh ormsa i measc na naomh Love to ONE, friendship to a FEW, and good will to ALL.

10-05-2009, 11:03 AM	#2 (permalink)
djaburg TSF Enthusiast Join Date: May 2008 Posts: 1,326 OS: XP SP3/Vista/7 Server 2K/2K3/2K8	Re: Will California become America's first failed state? Too many people here living above their means and then want government help to bail them out. Unfortunately I even have met some of them in my work. There are so many issues that factor in to the states current financial situation. I find it hard to believe that they collect more than 100 BILLION dollars in tax revenue (Preliminary amount in 2009, $104B) and they can't seem to establish a realistic budget. Holy crap. __________________ Computers make it easier to do a lot of things, but most of the things they make it easier to do don't need to be done. The inherent vice of capitalism is the uneven division of blessings, while the inherent virtue of socialism is the equal division of misery.

10-05-2009, 11:25 AM	#3 (permalink)
simpswr Moderator Hardware Team Join Date: May 2007 Location: Houston, Texas Posts: 12,327 OS: XP, Vista, Win 7	Re: Will California become America's first failed state? Hard to feel bad about someone dieing from a Self inflicted wound __________________ Rich MemTest86 \| BenchTest \| Virus/Trojan/Spyware Help How to post a Screen Shot \| PC running slow?

10-06-2009, 07:05 AM	#4 (permalink)
yustr Asst. Manager, The Conversation Pit Join Date: Sep 2004 Location: Connecticut shore Posts: 6,069 OS: XP Pro My System	Re: Will California become America's first failed state? My brother has spent his entire 30+ year career in real estate in Northern CA....He was fond of saying "Nobody ever lost money, in the long run, by investing in California real estate." ...He was recently in Colorado looking for property for some of his long time clients. __________________ If there are lawyers or politicians involved, logic may be a very poor tool for reaching a conclusion.

10-06-2009, 07:22 AM	#5 (permalink)
simpswr Moderator Hardware Team Join Date: May 2007 Location: Houston, Texas Posts: 12,327 OS: XP, Vista, Win 7	Re: Will California become America's first failed state? One of the few things Enron did that I got a chuckle from was the "What is the diffeenceb eween the Titanic and California?" . . " The Titanic went down with the lights on!" __________________ Rich MemTest86 \| BenchTest \| Virus/Trojan/Spyware Help How to post a Screen Shot \| PC running slow?

10-06-2009, 07:53 AM	#6 (permalink)
bry623 Manager, The Conversation Pit/Analyst, Security Team Join Date: Apr 2002 Location: NW Territory circa 1787 Posts: 11,717 OS: winxp pro sp2	Re: Will California become America's first failed state? Don't they tax the rich at a higher rate? __________________ "If you aren't a liberal when you're 20, you have no heart. If you aren't a conservative when you are 50, you have no brain"