Unfortunately, California's economic outlook is not only worse than the rest of the U.S., it is making the rest of the U.S. economy (jobs and housing market) look much worse nationally.
California is in much worse shape than the rest of the Country because, until the sub-prime/foreclosure bubble-burst, the State's economy was driven by the housing market. And this helped the job market, as well.
Well now, both markets are in trouble. California is #1 in the nation when it comes to the down housing market. Plus, all the high end jobs have left the State and it is left with all the low income jobs that do not drive the economy.
If you take California's statistics out of the national picture, the country actually looks to be in a lot better shape. In other words, California is tanking the country.
And don't look for the California housing (or job) market to pick up anytime soon/this year.
SIDE EFFECTS: The owner of the cafe I am blogging at today tells me over the past few months, business has taken a HUGE hit. Why? Five or six of the nearby stores have closed up shop in the area. So not only does the cafe lose the business of the workers in the area; they also lose the business of the customers who went to those businesses. At the same time, the City is hitting up the store with Planning compliance stuff out of no where which the place can't afford. And the customers they have are cutting back. People who used to get "lattes" are now just getting regular coffee. And the people who used to show up "ten times a day" are now just stopping in once a day. Then the owner gets hit with taxes and fees at home. [It's gonna be a real quick downward spiral.]
THE POLITICIANS ARE NOT GOING TO HAVE TO BELT-TIGHTEN. THE BELT-TIGHTENING WILL BE DONE FOR THEM. AND THEN ALL HELL WILL BE BREAKING LOOSE ON THE STREETS WHEN THE STATE OF CALIFORNIA CANNOT PROVIDE FIRE, POLICE, SCHOOL AND OTHER BASIC SERVICES.
(I wonder if any one city is over-contributing to the STATE'S problem?)
I say we don't change a thing. Villar and Girlie Gov have everything under control. Does anyone have any thoughts as to what distinguishes California from the rest of the country in hopes of trying to isolate what the State's problem could be?