California, it has long been claimed, is where the future happens first. But is that still true?
America’s projected deficits may sound large, yet it would take only a modest tax increase to cover the expected rise in interest payments — and right now American taxes are well below those in moshttp://graphics8.nytimes.com/images/global/word_reference/ref_bubble.png", sizingMethod="image");">t other wealthy countries. The fiscal consequences of the current crisis, in other words, should be manageable.
But that presumes that we’ll be able, as a political matter, to act responsibly. The example of California shows that this is by no means guaranteed. And the political problems that have plagued California for years are now increasingly apparent at a national level.
via nytimes.com
