In the Blue Sky Cafe in central Auckland crowds. But they came not because of coffee or delicious blueberry muffins. Customers waiting to be allowed to enter into the inner room. They also offer pastries, though seasoned with marijuana.
Blue Sky is one of eight fixed points of the city administration to sell marijuana, which are the thorn in the FBI. For Auckland contrary, they are a legitimate source of income. By the way, recently in the City Hall decided that these points from the next year shall be levied a special city sales tax. Oakland Mayor Ron Dellams hoped at least $ 300 thousand per year. "We need every penny", - said Dellams, who in the city budget is missing $ 84 million addition to it in his pocket zalazim more and the government of California. To patch the hole in the budget, it intends to borrow from towns in the state $ 2 billion, however, the Government's promise to return the money with interest within three years, no one believes. And the city plans to protect themselves from forced loans with the help of the court.
California, the most important economic power of state in the U.S. can not withdraw from its budget crisis, and thus jeopardizing the restoration of the U.S. economy. And although the Republican Governor Arnold Schwarzenegger and Democrats opposing it with austerity measures already repaired the financial hole in the $ 26 billion (a quarter of the total budget), they succeeded only because of sorts balance tricks, for which an honest businessman with a high degree of probability can be brought to court.
In the difficult situation Schwarzenegger simply focuses on tax revenue and delay time required payments. And this will inevitably lead to a boomerang effect "probably in December when budget discussions begin on a new budget year," said Esmael Adeeb, head of Gary Anderson Center for Economic Research, based in Orange, near Los Angeles. The deficit could total as much as $ 40 billion and the reason is not only in the current economic crisis. "In the past 20 years, California had lived much wider than its capacity" - states Jason Clemens. But despite this, an economist at Pacific Research Institute in San Francisco, reform is not expected, because the legislative period Schwarzenegger enters its final year. In November 2010 California election will be held. "So no one wants to upset voters unpopular themes" - Predicts Clemens. Until now, Schwarzenegger managed to avoid raising taxes on businesses. However, due to severe cuts in social programs, he can not hold out for long.
For the U.S. economy's fiscal crisis in California fatal. First and most populous state in the U.S. was considered a locomotive of economic growth. Now the unemployment rate here has increased to 11,6% - the highest figure for the past 30 years.
In Silicon Valley, which was particularly badly affected by the failure of exports, unemployment reached 11.8%. This is even more than in times of crisis, dotcom - the collapse of the market of high-tech companies in 2000. And at the end of the year are expected, all 13%.
Strangely enough, but that California had a "weak link" - the inevitable for ensuring the functioning of state administration activities to reduce costs undermine the economic program of President Barack Obama. In California, every fourth workplace is granted public sector. And is there imposed forced to leave and wage cuts will inevitably reduce consumption. In parallel, the administration of the State reduces its costs, resulting in loss of orders particularly for small and medium enterprises.
Moreover, due to reductions of $ 8.5 billion education budget, which provided about one-third saving plan, California threatens their economic future. The fact that state on the West Coast has established itself as a center of high technology and was able to create such powerful companies as Intel, Apple, Cisco and Google, it must, above all, its universities. Their excellent reputation still attract talented people from around the world, who then either reinforce the competitiveness of serving local businesses, or create their own enterprises. University of California at Berkeley produced 55 Nobel laureates and is considered one of the founders of the U.S. biotechnology industry. One in four biotechnology company in California and one in six in the United States was founded by former student or teacher of the university.
Now this venerable university has to cut about 20% of its budget. In 1990, California gave out to each student to nearly $ 16 thousand a year, but now this amount has decreased more than doubled. Thus, tuition fees will inevitably increase, faculty sent to forced unpaid leave, and students for the big money paid less sentence. "We risk losing top researchers, who together with his students will go to other universities," warns the president of the university, Mark Yudof.
In addition, the legendary entrepreneurial spirit of California proved to be no more than a myth. Economist Clemens counted the number of small and medium-sized enterprises have been founded in recent years compared with other U.S. states and come to an unexpected result that the alleged miracle-state business ideas for the growth of small and medium enterprises is only 16 th place. No Silicon Valley and the biotech capital of San Diego, suggests Clemens, California in general was a below average. According to the researcher, is to blame the bureaucracy, high tax burden and stringent requirements for environmental protection.
So California company transferred its manufacturing facilities in neighboring states. Semiconductor giant Intel, where labor costs play a minor role, founded a huge factory in Oregon and Arizona. In California, the same is only the administration and research units. 20 years ago, as calculated from the Milken Institute of Santa Monica, California in the production of high-tech products was 752.6 thousand jobs. Since then, the number fell to 486 thousand out of state swim not only well-paying jobs are leaving and people. Over the past five years because of the high cost of living and taxes, California has lost about one million residents, while neighboring states have greatly added.
Meanwhile, Schwarzenegger is playing for time. Once this has helped the policy of the Republicans. When he was in November 2003, replaced his deposed predecessor, Gray Davis, a boom in the construction industry has brought him an unexpected tax revenue. This time he can come to the aid of rising stock prices, since the budget of California's most strongly supplemented by taxes on income earned from investments in securities.
If this does not happen, will only have control over drugs. According to the tax department, thanks to the legalization of marijuana, California would receive about $ 1.4 billion a year.
$ 1.4 billion a year in California can get from the legalization of marijuana
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