Consider the often-made comparison between Greece and the state of California. Both are in deep fiscal trouble, both have a history of fiscal irresponsibility. And the political deadlock in California is, if anything, worse — after all, despite the demonstrations, Greece’s Parliament has, in fact, approved harsh austerity measures.
But California’s fiscal woes just don’t matter as much, even to its own residents, as those of Greece. Why? Because much of the money spent in California comes from Washington, not Sacramento. State funding may be slashed, but Medicare reimbursements, Social Security checks, and payments to defense contractors will keep on coming.
For a change, Paul Krugman sticks to economics and doesn't blame George Bush for anything. His column provides a lucid assessment of Greece's economic predicament.
Given Dalton McGuinty's economic mismanagement of our province, Ontarians can indeed be thankful Ontario is not a unitary state.