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What is economy? Little do most people know it is the backbone of everything we depend on, such as electricity, stores, schools, and hospitals. Our economy is made up of taxes, jobs, imports, exports, energy production and use, and goods and service production. These all depend on each over. Like a line of dominos, if one falls they will all fall. Our present economic situation is severe and in desperate need of repair. Every single person in California depends on the economy in one way or another. If it fails, we all suffer. A good example of where we are headed is The Great Depression, one of the worst economical eras ever. California spends more than it makes, has a huge deficit to other countries, and has the worst economy compared to all the other states in the U.S. The plans to correct these problems need to be more carefully planned out since previous attempts to fix it have done nothing but made the situation worse. The economy is supposed to be a working team, instead, in California; it is a struggle to survive. The state spends more than it makes. California imports cost $123.0 billion dollars in January, 03. The export profit was only $81.9 billion. This means that there is a deficit of $41.1 billion in trade in just one month (BEA news 1). The huge debt there shows just how much money this state loses. Last spring, California had $8 billion surplus dollars, now it has dropped $23.6 billion dollars in deficit in total profits. This is one of the biggest drops in history (Wright 1). We depend on other countries to help us survive as well. Japan was the best buyer of American goods, but due to its recent deflation it has been having troubles. “The Nikkei stock average, which hit a fifty-two week high of 20,833.21 last April has since lost forty-one percent of its value, closing yesterday at 12,232.98” (Calbreath 2).
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