California is the largest state of USA. It is perhaps the richest too. The famous Silicon Valley is in this state. Don’t forget Hollywood too. These two bring generate a lot of money and also create many jobs for the people. California is also very rich in agriculture. So, it is very surprising to me to find that the state government is in the brink of getting bankrupt. The people recently voted about tax increase and they rejected the plan of Governor Arnold Schwarzenegger’s plan. Arnold Schwarzenegger put this plan to get some more revenue so that his state government could fight against the huge budget deficit.
California is the home to companies to like Intel, Google and Yahoo. So, you can easily understand that it has some of the richest people and companies. It seems to me that President Obama will have to think of another bailout to save this state. Otherwise, if California suffers bankruptcy then it will bring disaster for the overall US economy.
Part of the problem is that Arnold Schwarzenegger is from the Republican Party but the legislature assembly of the state is now run by the democrats. So, there is bipartisan conflict and it is not helping anyone.
