California does have tremendous wealth and vast continuing productive capacity, given the talent, resources, and opportunities extant within the state, and the

California does have tremendous wealth and vast continuing productive capacity, given the talent, resources, and opportunities extant within the state, and the author correctly characterizes any doomsday scenario as lacking credibility. The problem, though, as seen from the view of one who has lived here for 40+ years, is that the powers that be in Sacramento had too much of a good thing during the boom years and, having raised public spending by large amounts when the tax coffers were full and exploding, don't want to make any systemic changes to spending levels now that receipts are way down in fear that this will short-change their pet programs when good times return. That is why spending is strained to the limit even though fundamentals are still pretty good. The assumption all along, though, is that nothing can kill the golden goose and, while I agree with the author of this piece that extreme problems aren't imminent, that doesn't mean that the state can't ultimately wear itself down through fiscal irresponsibility. Only time will tell in the long term on this point.