The Plagued American West: The Financial Woes of California and Nevada

As the federal government debates over economic stimulus plans, the American state governments face massive deficits which threaten to (and are) profoundly affecting their residents' lives. Two western states in particular, California and Nevada, face particularly immense strains. The New York Times reports on the furloughs enacted in California, which have given over 200,000 state employees their Friday's "off" indefinitely. A program that employs 1,300 young Californians appears set to be axed by Governor Schwarzeneggar in the coming weeks. An article from last August in The Economist highlights the downfall of some Californian suburbs. Nevada, which currently has the highest foreclosure rate in the country, also faces a downturn in the tourism dollars it relies on.