Wednesday, February 3, 2010

Why California's Decline May Be Long-Term

At the heart of California's rise was not Silicon Valley, but its ports and trade with Asia. All things being equal, areas with large trade volumes will be wealthier than areas without. Athens versus Sparta, etc.

With the widening of the Panama Canal, there will probably be a surge in Asian trade with the Eastern and South Eastern seaboards that will bypass the West Coast. In the long-term, this will weaken California's economy.

1'Cheapest Route to Walmart From China May Skip Buffett’s Railway' - Bloomberg; Sabo and Park

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