So now, California is projecting a “surplus” for years to come, and legislators are fighting over how to spend it. But the $2-trillion economy, the eighth largest in the world ahead of Italy and Russia, isn’t always blessed with asset bubbles. Twice in its boom-and-bust history, California has been incapable of paying its bills, most recently in 2008, when it escaped default only by mailing fancy-looking IOUs to suppliers, instead of paying them with real money.
The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.
© EconMatters All Rights Reserved | Facebook | Twitter | Email Subscribe | Kindle