Essay: U.S. sinks or swims with Michigan

[BeatleBoot]

http://www.detnews.com/apps/pbcs.dll/article?AID=/20081215/METRO/812150335

Washington should realize that if state goes under, everybody comes along for the ride.

<snip>

A few days after that bailout was announced, executives from one of the AIG's subsidiaries went on a weeklong retreat to California. The bill: $443,000.

Thinking of moving to California? Think again. The Golden State has an unemployment rate of more than 8 percent, and this does not take into account the illegal immigrants who can no longer find work.

California is $63 billion in debt with another $66 billion coming down the pike. State revenue shortfall this year is projected to be $11.2 billion, and next year's is estimated to be $13 billion.

"It's unprecedented," said H.D. Palmer, deputy director of the California Department of Finance.

By comparison, the highest estimates of Michigan's revenue shortfall this year is under $1 billion. Put another way, California has 3 1/2 times the population of Michigan and 12 times the debt.


<more>