The euro zone isn't the only economy reeling from "failed states." The United States has several of its own — most notably California and Illinois.California is not only shedding jobs, it's shedding companies:
According to the CIA's world factbook, California's economy is the ninth largest in the world with a gross state product of $1.9 trillion. Illinois' economy is the world's 23rd largest economy with a gross state product of nearly $630 billion.
These are impressive figures, to be sure, but both states have seen their global position slip in recent years — and further erosion is likely thanks to poor fiscal stewardship and anti-competitive tax increases.
Both California and Illinois are hoping that tax hikes will bridge gaping deficits created by politicians' failure to rein in government growth — including expanded entitlements and exorbitant public sector pensions.
Does any of this sound familiar? It should. This is precisely the sort of unchecked public sector growth that has landed Greece in its current predicament — a worsening crisis that has pushed the entire euro zone to the brink of collapse.
The backbone of a new social website with free online classifieds is looking to not only leave Palm Springs, but leave California altogether.
SquawkBoard.com offers "neighborhood bulletin boards" for neighborhoods throughout the United States, so where the company moves to is really wide open, said spokeswoman Faith Jackson.
"California's tax hike will place a strain on SquawkBoard's growing company and is seeking to save various taxes by moving out of the state," she said.
Gov. Jerry Brown is seeking to raise taxes and establish across-the-board cuts as a way to shore up the state's $16 billion budget gap. Sales and income taxes are first on his list, with hopes of raising enough money to prevent more cuts to education.
Will our friends on the left figure this out before the last company to leave turns out the lights?