[Pen-l] California Budget Crisis

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

California has a deficit estimated at $15 billion.  The state is legally 
bound to balance its budget, but it never does so by resorting to various 
gimmicks.
California requires a supermajority to approve any budget.  Republicans 
have said they will not accept any budget that involves tax increases.  
Arnold has suggested raising money by selling the rights to future lottery 
money, but that is far from sufficient.
His latest ploy is to demand that the state pay workers the minimum wage so 
long until a budget is passed.  As a student of supply-side economics, I 
know that the best way to get out of a recession is to ruthlessly cut 
government spending.  Business will be so impressed that it will invest 
even though he cannot afford to buy anything.
If that does not work, Arnold probably have some friends in special effects 
who could do the trick.

-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com
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