Saturday, June 19, 2010

Is Greece different than California?

The Greek debt crisis and now the Spanish debt problems have me thinking a lot about the debt problems that states have in the U.S.  I'm not sure how different the scenarios are.  To me, and average person, I just see that the states don't have the money to pay their bills.  The options, borrow against the future, or borrow from the federal government, which is borrowing against the future.   Either way, the amount of money we are spending continues to be more than the amount that we are generating.

At what point does the complete failure of world economies force us to re-evaluate our local governments role in society and how we can scale it back to a size that the taxes can afford?