California Economy

The case of California is the well-known more, by the importance that represents within the USA. Schwarzenegger, has been forced to apply to forts and unpopular cuts in the public cost, affecting to essential scopes of the call Been of Well-being, as they are them the expenses in education and in social services. The depth of the budgetary pocket causes that the cuts realised until the moment are insufficient and they must think about new reductions of expenses. Thus and everything, the government of California anticipates a public deficit among US$ 12,400 million and US$ 14,400 million in 2010. In order to graficar the seriousness of the financial problems in other states, the government of Arizona thinks about renting the building of the Congress to collect money, whereas in the state of Michigan already the diminution of expenses in schools and hospitals announced. The risk that exists around the necessity of a fort fits public prosecutor on the part of a great part of the S-states that the same adjustment finishes in this way bringing about a vicious circle within the economy and, that imposes a brake to the perspective of recovery of the economy of the USA. What must make the governors? The conflict of ideas is important. What appears like a seen better measurement is than the governments of the states in problems decide to trim their expenses to fit their balance public prosecutors.

The problem is that this decision can deepen the situation of economic recession with new negative effects on the collection. The alternative one happens to pospone all adjustment until the economy acquires force and it does not undergo too much with cuts in the expenses. For Susan Urahn, director of the Pew Center affirmed: the decisions that adopt those states while they try to leave in front of the recession will have a fundamental paper in what so fast all the nation will recover.