I keep hearing those two (seemingly opposite) statements in the news and don’t know what to make of it. Help me!
In: Economics
Like most states, California is in pretty bad fiscal shape. Also like most states, this generally has two reasons:
* Pensions are expensive
* Medicaid is expensive
California is very middle of the road with respect to these problems compared to other states. The only reason why they appear out of the norm is when debts are listed in aggregate dollars compared to that of other states, effectively ignoring CA’s massive population and output relative to every other state.
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