Borrowing an old bromide, when the stock market sneezes, California’s state government catches pneumonia. It’s more than a common cold when the state coughs up billions of buckets in red ink. Wall Street recently has exhibited robust health, but Sacramento is still suffering from the market’s fall two years ago. This is what happens when the state becomes too dependent on rich people for tax revenue. The rich play the stock market and when it pays off, Sacramento reaps a hefty chunk. When the... Read this story
