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Friday, October 10, 2008

California and Massachusetts Bailout

Due to current economic woes, both California and Massachusetts have asked for government assistance in the form of a bailout. Both these states have been spending insane amounts of revenue on a wide variety of projects over the last few years and have found their treasuries barren due to the deluge of runaway spending.
Having spent quite a bit of time in Massachusetts over the years, I can say that there have been a massive array of highway and infrastructure projects over the last 20 years on an unparalleled level. If you have spent time inside the 128 Beltway, you understand that the infrastructure is crumbling and the narrow arteries need to be expanded to supplement the flow of services and workers in and out of the Boston Metro Area.
As for California, I haven't spent as much tome there as Massachusetts, but I do understand that the housing industry and the tech industry has suffered and that suffrage has spread into other industries and greater unemployment and runaway "safety net" spending. 
Regardless, both states are seeking a government bailout similar to the package we saw past this last week. It will be interesting to see if other states follow suit and ask for a bailout as well. It is unclear what effect this may have on our nations economy, but it is unprecedented and oftentimes that isn't good.