Saturday, October 10, 2009

California Failin'

What's Killing California, asks The Urbanophile? Same disease that fell the Rust Belt: getting old. In an excellent essay following The Guardian's Will California become America's first failed state?, The Urbanophile reviews the various ailments befalling the Golden State -- unfunded liabilities, the end of growth economics and institutional rigidity -- prompting the question, Could California be the canari in the U.S. coalmine? Though it looks like it, one should not underestimate America's tremendous capacity for reinventing itself. Yet, the prognosis is pretty shaky.

"Keep an eye on immigration," says The Urbanophile, "When people stop wanting to come here and especially if Americans start leaving in any material numbers, we'll know we have a major problem on our hands." California is already at the forefront of out-migration, as The Economist recently pointed out.

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