Transcript California`s Economy

California’s Economy
Hosanna Patroni
English ¾ period 2
June 1,2009
What is Economics?
Activities related to the
production and distribution of
goods and services in a
particular geographic region.
What is “GDP”?
The gross domestic product
(GDP) or gross domestic income
(GDI), a basic measure of an
economy's economic performance,
is the market value of all final goods
and services produced within the
borders of a nation in a year
Turn to the Facts
US newspapers wrote that Schwarzenegger
had never been able to find a way out of the
crisis during his governorship. The deficit of the
state budget already makes up $15 billion and
may soon reach $21.3 billion.
Economists say that the income of many
Californians dropped down to the level of 1938
during Schwarzenegger’s stay in the office.
Like much of the U.S., the housing bubble has
burst. Property values are decreasing. At the
same time, this has made it more difficult to
obtain credit -- banks could be on the hook for
many loans that could go into default, so they're
only lending to the more secure borrowers.
Starting in April 2009 there will be a new tax
increase that is set to increase sales tax from
8.25% to 9%+.
A massive plan to overhaul healthcare in
state prisons will be scaled back.A senate
bill which would have created a state-run
system to provide health care to every
Californian has been scrapped.A Cal
Works program providing medical, dental,
and vision care to 90,000 children will be
eliminated. Hundreds of new spending
programs have been sidelined, and the
local budgets of cities and counties have
been raided to make ends meet
California's unemployment rate hits
10.1% ( highest of all states).
And the list goes on on how we are all
affected by the budget cuts and raised
taxes.
How does it affect us
students?
The educational budget cuts affect
students by
-Increasing lay offs resulting in larger
class sizes.
-Tuition prices for colleges are rising.
-Extra curricular activities are being
shunned
Unemployment
California's
unemployment is rising
Who do we write to?
If you are interested in this issue the person
whom to write is
-US Senator Barbara Boxer
-Gov. Arnold Schwarzenegger
-CA State Senator Fran J. Pavley
-CA State Representative Mike Feuer
-Mayor Antonio Villaraigosa
*if highlighted in blue, person preferable to write to
How do we fix it?
Tell your elected official that banks have to
relax
-if lending regulations were loosened small
businesses will flourish and create more
jobs.
Ask your elected official to not cut CalWorks
or Healthy Families, programs which
provide medical care for the poor and
uninsured.