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California: A glimpse of America's future?

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  • Description

    California's financial turmoil could indicate what awaits the rest of the nation

  • Duration 2:50
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Nine point 8% unemployment California jobless rate is two full points above the national average.

That is just one of the economic problems Baring California and brace yourself is a federal government take in the -- country down California's -- But seven times that last sentence times Sacramento bureau chief Evan helper China's.

Evan how can you tell me as as -- look at California and I realize that there's some improvement they have a high unemployment rate negates some of your Iraq.

Corporate business being poached from other states you've got a huge reduction.

In government state government employees.

But he discretion the economic strategy to get California out of its current economic -- Well.

The economic strategy is is basically there they're trying to keep going the path about the course that they've been going.

The Silicon Valley has made a huge recovery and and -- sort of trying to leave the states Adam out of a recession.

-- -- Basically what that the big move that was just made all the focusing in state government was on raising taxes.

There was there was gonna have to be another many billion dollars of budget cuts have if voters did not approve attacks like that was recently approved -- -- That was approved in November and -- -- that sort of got that state budget balanced.

Is there -- -- Silicon Valley comes out of it that they didn't believe her that didn't start -- -- seeing businesses leave California Spain or even new ones coming in.

Well that's a matter of -- constant debate I mean there's there's there's a big effort to recruit some of these businesses and and some of them do you open.

You know offices they've they have they've -- put their factories to other states Texas has had -- success in coaching California businesses.

You know Nevada has always coaching but whatever from California can but.

Frankly.

You know the economy here is so big event that that the corporates are people who are located here like living in California they like the workforce they like the state university system.

That you know supplies.

You know it at a class of workers -- it's hard to find elsewhere in the country and hadn't done you know it's hard for the Silicon Valley companies start to stock -- You know other businesses live with the kind of trained engineers that are available to -- and in California.

What -- it around among many people because in the fiscal cliff bill there was -- said benefits extended to Hollywood which other parts of country didn't get.

Yeah -- Hollywood.

Has been very skilled at keeping its it's tax breaks both in California and didn't with the US congress and and this was another example you -- A lot of -- -- tax breaks referred discussion.

There was push to raise taxes but but Hollywood kept its it's tax break and so did.

The winning companies the companies that that are options that are very active in California trying to the harness wind technology they kept their tax credit also.

Haven't thank you.

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