california: ""Gov. Arnold Schwarzenegger said he will declare a "fiscal emergency" in January so that he and the legislature will have more power to deal with the state's growing deficit. "" I was just reading an article (first paragraph of it is ^ there) about how California has a huge deficit. How is this possible if California brings in so much money from around the world? Where does the money go?|||having a large economy does not mean necessarily that you have lots of money. The economy is more than just finances -- it includes productivity and natural resources and technologies and all that fun stuff like that. Governments in deficit still spend all that money, they're just borrowing it from other countries that do not have a deficit -- like Canada for instance. the governments that lend money will charge the lendee an interest rate, and therefore get more money out of the deal -- it may take a long time, but eventually it will all balance itself out. And when the government borrowing money can pay back the money they owe, then they can start lending that money that they now have available. but again, like I said before, an economy can be extremely large and not necessarily be in good financial shape. In the end, Money is really just a method of trade, a store of value, if you will. It is used in place of items (ie trading a chicken for three books) so that there is an easy way to keep track of how much value a person has available, and how much of something else an item is worth.|||because they spend more than they take in in revenue. they have huge bureaucracies, social programs, environmental boondoggles, and wasted wages.|||Why does America have a multi-hundred billion dollar deficit if it also has the largest economy in the world?|||In short, California has become ungovernable - the majority of us Californians will never vote for fiscal policies that will allow us to operate in the black. We all want a level of service from the state we are unwilling to pay even more for. Yet what we do pay for seemingly goes into a black hole. We're paying for plenty of services we never receive. Government at all levels is tremendously wasteful, and the only answer at this point is to raise taxes to new staggering levels. This will drive out the remaining viable businesses, sending them and their revenue generation to other states, most of which are much more business friendly.|||It is called illegal aliens.