The paralyzed state of California

Introduction: The current financial crisis in California may herald the future of the United States and the Government must act responsibly, according to Paul Krugman, the New York Times columnist and Nobel laureate for economics, in a May 24 column. The following is the article selected passage: For a long time, California has been hailed as the birthplace of America's future. But is this statement still valid now?　　If it was, it would have to pray to God to help America. The recession has hit California badly.　　California's housing bubble is much bigger and more shattered than anywhere else, with California's jobless rate at 11%, the fifth in the U.S., and a correspondingly severe impact on California's income.　　What is really worrying about California, however, is the inability of its political system to cope with the current grim situation. Despite the recession, California has had huge human and financial resources, despite the irresponsible policies that have doubled California's debt burden since his governorship. California should not have been in a fiscal crisis and would not have been in the position of public sector layoffs and child health insurance.　　But the grim reality is that you have to worry about whether the political paralysis in California bodes well for the future of America as a whole. The current crisis in California was sown more than 30 years ago, when people overwhelmingly passed the 13th bill (the state's constitutional amendment, passed in 1978 in California to lower property taxes), putting the budget in tights. The result is a tax system that is neither fair nor stable.　　The unfairness is because earlier homeowners paid much less property taxes than later homeowners, because the restrictions on property taxes forced California to rely more on income tax, which fell sharply during the recession. But more importantly, Proposition 13th makes it extremely difficult for California to raise taxes even in emergency situations: the two-thirds majority of the two chambers of state legislatures can raise tax rates.　　This clause and political orientation have been very poorly interacting and interacting with each other.　　So will the crisis in California spread across the United States? Bill Gross, the joint chief investment officer of Pimco, last week warned that the US could lose its AAA sovereign debt rating, Pimco.　　Is that possible? From a rational standpoint, Gross's warning is unfounded. While the US government's budget deficit may sound huge, only a modest increase in tax rates will make up for increased interest payments, and the US now has a far lower tax rate than most other rich countries.　　In other words, the impact of the current economic crisis on America's finances will be manageable. But the premise is that we will be able to take responsible action. California's example shows that no one dares to make a promise.　　The political problems that have plagued California for years are now becoming more pronounced at the national level. Will America be paralyzed in the footsteps of California? Some of California's weaknesses do not exist in the coalition government. In particular, federal tax increases do not require a two-thirds majority of Congress to pass, and can be bypassedObstacles to the passage of the proposal.　　So it is easier for Washington to take responsible action than Sacramento (the capital of California). But the California paradigm still scares me. Who would have thought that America's largest state would be so easily transformed into a banana Republic (Banana Republic)? Building)