California economic recovery unlikely in 2011

Source: Press TV
http://www.presstv.ir/detail/160065.html


California's economy is the eighth largest in the world, eclipsing even large countries like Russia.

But decades of mismanagement have allowed the state to sink to a budget deficit of 25 billion dollars.

That's the largest deficit in the U.S. and is more than the entire budget of most states. Throughout the economic recession, California has been among the worst performing states.

It's unemployment rate has been consistently higher than the rest of the nation and now has the lowest credit rating in the United States. For California residents, this rapid decline has been difficult to live through. Jim Panetta says it's nearly impossible to get a job in the state.

Panetta says as a resident, it's frustrating for him to see so much attention paid to politics instead of toward the people.

Economists are hopeful that a change in leadership might help
California obtain some recovery.

Governor Arnold Schwarzenegger left office this month, after failing to achieve any significant improvement in the economy.
Economists say Schwarzenegger just didn't have the political
experience to get the job done. But residents are doubtful that a new governor will bring new hope to the state.

California's new governor, Jerry Brown, released a new budget proposal this week but economists say it's to soon to say whether it will have any major impact on the state's massive deficit.