Supply-Side Economics

[whell]

Originally Posted by Chicks

How amusing that someone from Detroit is giving “lessons” to California on public debt. Detroit’s solution was just like Donny’s. Declare bankruptcy, screw those to whom money is owed. Meanwhile, CA just jumped up a spot in the world’s most vibrant economies, overtaking the UK.

https://en.m.wikipedia.org/wiki/Detroit_bankruptcy

Nice attempt at a dodge, Chicklet. Can't address the facts posted so now you try to change the topic.

I'll give you this much:

I certainly was a witness to Detroit's spectacular fall from a great American city, to the fall from grace amid profligate spending against declining revenues, to city officials and employees convicted of looting the city and creating a pay to play environment, to a budding resurgence. Detroit chased businesses and investments out of town that might have changed its fortunes.

California might be able to weather its increasing debt for the foreseeable future largely due to the economic clout of Silicon Valley and Hollywood, and the high taxes that those businesses pay. However, it remains THE worst state to do business in.

But nothing lasts forever and California is fueling its own demise. The folks that help create California's revenue stream have been leaving steadily. Businesses have also been leaving California for other states, and that trend shows no sign of changing.

California is a long way from becoming another Illinois. But it needs to address those elements that are driving up housing costs, and driving individuals and businesses to relocate.

[finnbow]

Originally Posted by whell

California might be able to weather its increasing debt for the foreseeable future largely due to the economic clout of Silicon Valley and Hollywood, and the high taxes that those businesses pay.

You forgot agriculture. California's agricultural economy is over 13% of the entire nation's, larger than the next two states combined (Texas and Iowa), totaling over $32 billion (compared to ~$4 billion for Michigan). And then there's tourism, where California is by far the largest at $130 billion (vs $18 billion for Michigan). California is the nation's economic powerhouse and no other state comes close (it's over 5x bigger than Michigan's).