Saturday, May 8, 2010

Why its diffcult for the state to bounce back and how to fix things

A state can not file for bankruptcy like a person can. If a person runs out of money they can ask the state for money to help them out for a time. A state on the other hand cant just ask for 27 billion dollars. Governor Swartzenager is doing what he thinks is best for the state. Its true hes failing but California has has troubles in the past and bounced back. California needs to find a way to fix their economy before their entire economy collapses under them. In my opinion if they were hire to back the 60,000 they fired then in the short term they would be in a small bind paying their salaries but in the long run those jobs would actually help stabilize the economy of the state. Lets do the math. The average household income in the U.S is between 30-50 thousand. If you do the math there is then at the least another 1.8 billion flowing back into the economy from purchases made by the 60 thousand employed.

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