California, Bankrupt?

Hard to imagine that the state as populous and ostensibly wealthy (as per GDP) as any country on Earth - actually, well beyond most countries on Earth - is in such dire economic straits. It didn't come overnight, wasn't the very immediate result of the United States' financial meltdown. Since it's a re-visiting of a dire economic situation that assailed the state in 2003, it's a functioning incapacity of the state to govern itself prudently and sustainably.

California's population is almost as great as the entire population of Canada. It is one of the world's ten largest economies. Ponder that; a state of the Union has an economy far larger than that of most countries of the world. And it's currently in such a delicate financial meltdown that the deficit crippling its economy is growing at the rate of $470 a second, $1.7 million every hour, $40 million each day. Astronomical, impossible, unbelievable.

An improbable, unlikely, absurd nightmare. How could a state with such entrepreneurial skills, with its huge agricultural output, its world-acclaimed film institutes, its research and production facilities, its IT campuses, possibly be facing such an enormous financial catastrophe? To the extent that much-required public and civic infrastructure projects have to be laid away, the intention to embark on an employment-boosting initiative shelved indefinitely.

This state that has a celebrated GDP of $1.7 trillion also has the unenviable record of representing as owning the worst credit rating of all the states in the Union. Governor Arnold Schwarzenegger was brought to his office during the time of an identical economic collapse, when the state's taxpayers rejected the-then governor's move to raise taxes by removing him from office, in an historical 'recall' move.

And although Governor Schwarzenegger came to office promising to put an end to "tax- and-spend" traditions, during his administration the state's budget has swollen by 40% to $144.5 billion. A fiscally irreconcilable situation in the face of the current abysmal recession and mortgage collapse. The result is a move to increase taxes; an inordinately unpopular move.

Kind of amazing, in a way. Californians are often very forward-looking, quite advanced in their conception of how best to treat their immediate environment. The first state to impose restrictions on gas guzzlers, insisting that automotive manufacturers amend their ways to suit their needs. The state has enacted important environmental legislation. For a Republican governor, Mr. Schwarzenegger has been fairly laid back.

But nothing is ever quite what it seems. Californians recently voted down acceptance of gay marriage, overturning a Supreme Court decision. For a geography with a deficit in fresh water sources, Californians abuse their aqua-environment, with an over-abundance of private swimming pools and lush gardens. It's so easy to become addicted to a fantasy of plenty.

The state might consider enacting sumptuary laws and institute complementary taxes.