By early 2013, California had turned the corner from
deficits—$9 billion in 2011 and $25 billion in 2010—to anticipated
surpluses—$785 million for the fiscal year ending June 2013 and $851 million in
the year thereafter. The lack of balance between billions and millions suggests
that Keynesian economics may contain a fundamental imbalance in favor of consumption,
at least in a democratic context. The prudent proposals by Jerry Brown,
California’s head of state and chief executive, point to the ability of a
republic to responsibly manage its fiscal business even within the overall
imbalance.
