Why doesn’t West Virginia have more debt? The question rates asking in response to a Wall Street Journal editorial which observes that California “is facing huge budget deficits despite an ebullient stock market and capital-gains rush.” The answer to the West Virginia question can be found in the Journal editorial’s observation.
Explaining the California deficit and debt situation, the Journal editorial cites analysis from the state’s non-partisan Legislative Analyst’s Office (LAO) that suggests it's an effect of “spending growth continuing to outstrip revenue growth.” The LAO implies that markets are rather stupid.
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