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California's Gold Rush Has Been Reversed (Entrepreneurs are fleeing heavy taxes in the state)
Wall Street Journal ^ | January 10,2009 | DEVIN NUNES

Posted on 01/10/2009 8:42:51 AM PST by SeekAndFind

On Jan. 24, 1848, James Wilson Marshall found gold at Sutter's Mill, in Coloma, Calif., sparking a mad rush of some 300,000 people desiring to strike it rich. San Francisco grew from a tiny hamlet to a boomtown in no time, and in 1850 California entered the Union as the 31st state.

With this history at their back, state leaders might have understood that people have a propensity to get up and move when a better life is to be had elsewhere. But no. After more than 150 years of being a destination, California is becoming a place entrepreneurs, investment capital and the hardy workers who made it a global leader in agriculture, technological innovation and scientific research are fleeing. This exodus is the marker of something deeper than a national recession. It's a sign that the attempts by state leaders to spend their way back to prosperity are killing California.

While it has the sixth highest tax burden in the nation, according to the nonpartisan Tax Foundation, California is facing a breathtaking $40 billion budget deficit this year. This comes on the heels of a decade-long spending spree. Last year the state budget was $131 billion, up from $56 billion in 1998.

Citizens are burdened by all manner of state regulations. To mention just one example, this year a new law enacted by ballot initiative bans cages chicken farmers use on the grounds that it is inhuman to put birds in cages that prevent them from spreading their wings. Complying with the new law will cost farmers hundreds of millions of dollars, which will force many to leave the state. And that will force us to buy our eggs from other states and, possibly, others nations, such as Mexico.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Culture/Society; Editorial; News/Current Events; US: California
KEYWORDS: bluestates; california; exodus; goldrush; taxes
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1 posted on 01/10/2009 8:42:52 AM PST by SeekAndFind
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To: SeekAndFind

California is hopeless.


2 posted on 01/10/2009 8:44:00 AM PST by FlingWingFlyer (CIA Director!....So easy, a caveman can do it!)
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To: SeekAndFind

Citizens too dumb to figure out that massive spending is their problem. What can you do but shake your head and leave.


3 posted on 01/10/2009 8:44:50 AM PST by Tarpon (America's first principles, freedom, liberty, market economy and self-reliance will never fail.)
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To: SeekAndFind

NOTE THIS STATISTIC FOLKS :

In 2000, according to the state’s Department of Finance, about 150,000 people moved into California. But in the years that followed the in-migration slowed, and in 2005 it reversed, when a net 52,000 people moved out. In 2008, the outflow topped 135,000 people.

Consequently, Idaho, Utah and Wyoming all have unemployment rates around 5% at a time when California is suffering an unemployment rate of 9%. Californians are moving east and creating jobs in their new home states.

I’M NOT SURE HOW THIS CAN BE REVERSED BECAUSE CALIFORNIANS CONTINUE TO VOTE IN THE SAME PEOPLE WHO CAUSED THIS PROBLEM IN THE FIRST PLACE. Taxes remain high, and lawmakers employ all the tricks in the book to produce “balanced” budgets from shifting expenses around to borrowing ever larger sums of money. NOT LOOKING GOOD AT ALL.


4 posted on 01/10/2009 8:45:41 AM PST by SeekAndFind
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To: SeekAndFind
If you are a liberal Californian heading to Texas... DON'T. I'll whip your butt personally. We have enough of you Kalifornicators as it is...
5 posted on 01/10/2009 8:46:10 AM PST by avacado
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To: SeekAndFind

Just keep them out of here.

Californians come in and start turning this state into another California. Stay there.


6 posted on 01/10/2009 8:46:32 AM PST by GreyMountainReagan (Liberals really intend to increase the misery through their actions. Gives them power)
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To: SeekAndFind

While traveling on Hwy 395 recently, I couldn’t help but notice all the stores, gas stations, and a shopping plaza that were boarded up.

Our buddy had a business in the state for several years. Due to high taxes, he shut his operation down several years ago.

These are perfect examples of the natural progression (or should I say regression) of Socialism/Communism.


7 posted on 01/10/2009 8:48:15 AM PST by This Just In (Support Christian Homeschoolers)
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To: Tarpon; NormsRevenge; 2ndDivisionVet; justiceseeker93; celtic gal; ladyvet; BossLady; ZULU; ...

The Liberal mental illness and drunken spending you describe is infesting the entire country. Soon there will be no where to flee.


8 posted on 01/10/2009 8:48:38 AM PST by ExTexasRedhead
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To: SeekAndFind

I have a letter written by a grgruncle in 1850, while in California gold mining after a long trip from Texas. The conditions were terrible, the work unforgiving. I’m sure they’d be heartbroken over the mess we’ve made of California.


9 posted on 01/10/2009 8:48:57 AM PST by AuntB (The right to vote in America: Blacks 1870; Women 1920; Native Americans 1925)
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To: SeekAndFind

I just came back from a 3 week visit to California. I was there with my family to investigate if we should move there (most of my family is in Northern California).

As much as we loved the scenery (it is truly gorgeous) and the Wine Country (if I had to, I would live in Napa or Sonoma), we figured out plenty quick that two things basically killed our plans

1. Hyper liberal atmosphere. While my family over there continues to insist that there are “pockets of conservatism”, I don’t want to live in a ghetto inside walled compounds.

2. High taxes. Both my wife and I are still producing income (and will do so for decades to come). The highly confiscatory tax rates will basically put us behind where we have been for 10 years in Texas

So we came to a conclusion. We will take frequent vacations to California (as many as four a year) and it will still be cheaper and happier than living in California.

God Bless and Help California. They are in a world of trouble.


10 posted on 01/10/2009 8:49:18 AM PST by SoftwareEngineer
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To: SeekAndFind
They need a new add campaign. How about this for a slogan:

California. The New Michigan.

11 posted on 01/10/2009 8:49:23 AM PST by tbpiper (Al Gore is to Global Warming what Berney Madoff is to Finance .)
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To: Tarpon

“Citizens too dumb to figure out that massive spending is their problem. What can you do but shake your head and leave.”

Not really, many of us know it’s been out of control for years. There are just too many with their hand out wanting, demanding that spending. Hundreds of thousands of them shouldn’t even be in this country. Immigration is determining the outcome of California....the canary in the coal mine.


12 posted on 01/10/2009 8:51:06 AM PST by AuntB (The right to vote in America: Blacks 1870; Women 1920; Native Americans 1925)
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To: SeekAndFind

The Legislature is trying all kinds of tricks to raise money without calling them tax increases (which would require a 2/3 approval). I hope the people moving out aren’t liberals who will take their politics with them to adjoining conservative states like the people from Taxachusetts have done.


13 posted on 01/10/2009 8:51:14 AM PST by randita
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To: GreyMountainReagan
Just keep them out of here.

It's impossible unless you create a visa for interstate migration. For better or worse, this is the UNITED States of America. People who cause problems in one state by voting in the wrong people will abandon the state's problems for greener pastures.

Look what's happening to the "LIVE FREE OR DIE" state, New Hampshire. It has now turned DEMOCRAT as neighboring liberals from Massachusetts take up residence there. Pretty soon, you'll see this state enact a state income tax. Mark my words.
14 posted on 01/10/2009 8:51:28 AM PST by SeekAndFind
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To: GreyMountainReagan

They already messed up Colorado. Since our State House is back in session, our public benefactors even have a bill to eliminate the rolling 25 year rule on emissions testing on old vehicles like in CA. It is Senate Bill 9 and Bacon is one of the sponsors.


15 posted on 01/10/2009 8:52:11 AM PST by CORedneck
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To: SoftwareEngineer
So we came to a conclusion. We will take frequent vacations to California (as many as four a year) and it will still be cheaper and happier than living in California.

Just curious, what state are you from ?
16 posted on 01/10/2009 8:52:33 AM PST by SeekAndFind
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To: ExTexasRedhead
Well at least in Florida they are trying to control costs, not succeeding, but trying. But on it's face, you are right. It's as if the government believed it's own fairy tale of the endless rising taxes receipts because of endless rising house tax assessments. I know our local stooges did.

I still remember back in 2005 with Bush crowing that more people own their own home than ever. The part he didn't explain was how many of those owners couldn't pay for them.

17 posted on 01/10/2009 8:52:34 AM PST by Tarpon (America's first principles, freedom, liberty, market economy and self-reliance will never fail.)
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To: FlingWingFlyer
The sad thing is that Obama will bail out California, to spread the pain around to the rest of us.
18 posted on 01/10/2009 8:52:44 AM PST by marktwain
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To: AuntB

Sorry, I keep forgetting, freepers are much smarter than the average sheeple.

The USA cannot support the whole world. That is now becoming clear. Immigrants are now just stealing the jobs Americans used to have.


19 posted on 01/10/2009 8:54:20 AM PST by Tarpon (America's first principles, freedom, liberty, market economy and self-reliance will never fail.)
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To: SeekAndFind

The problem though is the idiots leave KaliFornication and then vote for the same liberal dumbasses that destroyed that state in thier new location.


20 posted on 01/10/2009 8:59:10 AM PST by commish
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To: avacado

And we have too many liberal Yankees moving to Alabama!


21 posted on 01/10/2009 8:59:22 AM PST by proudofthesouth (In spite of what's going on in the world, God is still in control.)
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To: SeekAndFind

If the politicos in Washington were not such arrogant, condescending assholes, they could look at California as a projector of where the US is heading.

But, “they know best.” So we’re stuck.


22 posted on 01/10/2009 8:59:47 AM PST by upchuck (Get ready for 2009: Pray; Raise/conserve cash; Pay your debts; Pray; Stockpile; Buy ammo; Pray)
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To: SeekAndFind

Texas


23 posted on 01/10/2009 9:00:31 AM PST by SoftwareEngineer
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To: avacado
If you are a liberal Californian heading to Texas... DON'T. I'll whip your butt personally. We have enough of you Kalifornicators as it is...

I'll bet you hear this all the time from the Kalifornia transplants: "It's nice here, but it would be better if..."...? Or how about, "That's great, but we used to do it like..."...?

You're pissin' in the wind, avacado. We said the same thing here in Nevada years ago, to no avail....

24 posted on 01/10/2009 9:01:01 AM PST by randog (Tap into America!)
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To: SeekAndFind

......NOT LOOKING GOOD AT ALL.......

Looking good to me....

Like Gaza where Hamas must die before there is any possibility of change, Californis must become violently ill and puke up all the marxistenvirowackohippiequeeahhomeless bugs that cause the problem.

Until the days when good guys will insult their leftist neighbors on the street or classroom or church, nothing will happen


25 posted on 01/10/2009 9:05:25 AM PST by bert (K.E. N.P. +12 . The original point of America was not to be Europe)
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To: SeekAndFind

Isn’t Kalifornia a microcosm of what the US has become — taxes, labor unions and government interference in our daily lives?


26 posted on 01/10/2009 9:05:46 AM PST by 353FMG (The sky is not falling, yet.)
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To: SoftwareEngineer
I've two minds about my beautiful former home state:

On the one hand, I want to see the Left-wing leadership of the state drive California into the ground -- to illustrate the folly of "progressive" politics.

But on the other hand, that scenario could be economically catastrophic for the rest of the country, as what happens in California never stays in California.

It reminds me of the classic old joke:

What is the definition of mental conflict?

Watching your mother-in-law drive off a cliff -- in YOUR new car!

27 posted on 01/10/2009 9:06:53 AM PST by Flycatcher (Strong copy for a strong America)
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To: FlingWingFlyer
California is hopeless.

Exactly right.

There is not hope when liberals are in control and they insist that big government is the solution.

But, I would rather have those people running away from California to stay put. They helped to create the problem, and wherever they go, businesspeople or not, they will still vote for more liberals. There are many large businesses in California and Washington state that created many jobs, especially in the tech in IT industries. Yet, the leadership and employees in those companies are overwhelmingly liberals. They are part of the problem.
28 posted on 01/10/2009 9:08:11 AM PST by adorno
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To: SeekAndFind

California used to be the place you went to to get away from excessive laws and taxes. Massive migration has changed all that. It’s hard to find people in California that were born in California. I’m going to hang in there with hope that all the foreigners leave. (My family has been here since 1780)


29 posted on 01/10/2009 9:08:57 AM PST by californio (Coast Guard Vet/ 211 Dick)
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To: SeekAndFind

That’s ok.

We’ll just open more chicken farms here in Washington.


30 posted on 01/10/2009 9:09:58 AM PST by djf (< Tagline closed until further notice. Awaiting bailout >)
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To: SeekAndFind
I’M NOT SURE HOW THIS CAN BE REVERSED BECAUSE CALIFORNIANS CONTINUE TO VOTE IN THE SAME PEOPLE WHO CAUSED THIS PROBLEM IN THE FIRST PLACE. Taxes remain high, and lawmakers employ all the tricks in the book to produce “balanced” budgets from shifting expenses around to borrowing ever larger sums of money. NOT LOOKING GOOD AT ALL.

It can't be reversed because they are supplanting the Hard-Working Patriotic Americans with Illegals who don't share our culture, who feel no shame at taking free-bies from the government (re: Taxpayers) that they have no rights too, and who refuse to assimilate. They're loyalty is to the countries they have come from.

Sorry to say it, but their is no hope for California.


31 posted on 01/10/2009 9:10:13 AM PST by SoConPubbie (GOP: If you reward bad behavior all you get is more bad behavior.)
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To: californio

“. (My family has been here since 1780)”

You’ve got me beat....1850.


32 posted on 01/10/2009 9:13:33 AM PST by AuntB (The right to vote in America: Blacks 1870; Women 1920; Native Americans 1925)
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To: SoConPubbie

1/4 of the state of California are illegals who pay no tax and make the other 3/4’s of the legal citizens pay for their housing, healthcare, car crashes, prison, etc while they send the money out of our economy to another country.

California citizens did this to themselves by refusing to enforce immigration laws. Now, they are bankrupted by the colossal spending and unending taxes.

Once the remaining large employers flee the state, the house of cards will come crashing down.


33 posted on 01/10/2009 9:15:34 AM PST by WaterBoard (Somewhere a Village is Missing it's Socialist.)
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To: FlingWingFlyer

> California is hopeless.
So is New York !!!


34 posted on 01/10/2009 9:16:03 AM PST by BuffaloJack
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To: GreyMountainReagan
Californians come in and start turning this state into another California.

When I was a kid California was a friendly western state. During the late 60's to early 80's there was a flood of very liberal eastern types that turned California into the $%!thole it has become. Take it from an native ex-Californian. Remember the old black and white Lassie show? Yep, California was really that great one time. Of course, that California does not exist any more either. And many of the people now leaving are the ones, (or their children,) that came and created the mess in the first place.

35 posted on 01/10/2009 9:16:42 AM PST by D Rider
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To: SeekAndFind
But in the years that followed the in-migration slowed, and in 2005 it reversed, when a net 52,000 people moved out. In 2008, the outflow topped 135,000 people.

And these are net numbers. Think what they would be if all those illegals were not pouring in. Yikes!

36 posted on 01/10/2009 9:18:02 AM PST by Free State Four
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To: SeekAndFind

>>It’s impossible unless you create a visa for interstate migration. For better or worse, this is the UNITED States of America. People who cause problems in one state by voting in the wrong people will abandon the state’s problems for greener pastures.

There are already laws on the books limiting where child molesters can live. Perhaps a similar law should be passed limiting Democrats.


37 posted on 01/10/2009 9:18:24 AM PST by vikingd00d (chown -R us ./base)
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To: SeekAndFind
I’M NOT SURE HOW THIS CAN BE REVERSED BECAUSE CALIFORNIANS CONTINUE TO VOTE IN THE SAME PEOPLE WHO CAUSED THIS PROBLEM IN THE FIRST PLACE.

And then they move to states where taxes are lower and conditions are more favorable and bring their voting habits with them, thus changing the business landscape. And, yes, it is irritating.

38 posted on 01/10/2009 9:18:26 AM PST by Desdemona (Tolerance of grave evil is NOT a Christian virtue (I choose virtue. Values change too often).)
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To: Tarpon

“It’s as if the government believed it’s own fairy tale...”

They have to continue believing the fairy tale or they’ll have to admit that they are wrong, which will never happen.


39 posted on 01/10/2009 9:21:47 AM PST by 353FMG (The sky is not falling, yet.)
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To: SeekAndFind

The Mexicans are looting California from their perches in government in Sacramento.


40 posted on 01/10/2009 9:22:04 AM PST by ckilmer (Phi)
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To: randog
I'll bet you hear this all the time from the Kalifornia transplants: "It's nice here, but it would be better if..."...? Or how about, "That's great, but we used to do it like..."...?

I've heard it. And they're smug about it, too. The concept of midwestern humility is completely lost on them.

41 posted on 01/10/2009 9:23:20 AM PST by Desdemona (Tolerance of grave evil is NOT a Christian virtue (I choose virtue. Values change too often).)
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To: BuffaloJack
> California is hopeless. So is New York !!!

Hey, NYC still had the good sense to vote in a Rudy Giuliani. This man single-handedly reversed the downward slide of NYC and made it livable and one of the safest big cities in the USA again.

Maybe the state might still consider him to be governor... ( hoping against hope ).
42 posted on 01/10/2009 9:24:48 AM PST by SeekAndFind
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To: SeekAndFind
I’M NOT SURE HOW THIS CAN BE REVERSED BECAUSE CALIFORNIANS CONTINUE TO VOTE IN THE SAME PEOPLE WHO CAUSED THIS PROBLEM IN THE FIRST PLACE

They move to other states and do the same thing, which is why everyone hates it when Californians move in. I hate them, too, and I'm originally from California myself!

43 posted on 01/10/2009 9:27:16 AM PST by Disambiguator
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To: SeekAndFind
For 20 years I have sold California businesses. The first 10 years the bulk of buyers (70%) were from India, middle east Nations and Asians. Today, with the Hi-Tech industry collapsing, almost complete loss of our manufacturing base we have a more balanced investor base, but that is not bragging. Even back then it was clear that some of our best business owners were getting out of California, some even left the US, most never return.

Today they are leaving in record numbers and I have always wondered if losing all this talent ever mattered to the powers to be here in California. It doesn't, the politicians here are more concerned with power, and politically correct issues then retaining and keeping the back bone of the State. More and more draconian laws are passed each year that make this group of over taxed, over regulated business owners finally throw in the towel.

There is no doubt that many people leaving California have caused other States to have problems with property values, crime etc, but many States also have the benefit of the most skilled and talented people anyone could ask for. For better or worse many more people will be leaving this once great State.

44 posted on 01/10/2009 9:29:45 AM PST by c21sac (How do we restore the good and decent of this once great Nation?)
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To: SoftwareEngineer

You made a wise decision. Esp since you live in TX.

But, it’s possible that our gov’t makeup could change. We just voted in a law that outlaws re-districting, which the Crats use to their advantage to keep being re-elected.

Let us hope that it will work as planned, and the liberal lockdown will resolve itself.


45 posted on 01/10/2009 9:33:45 AM PST by SnarlinCubBear (Get Sarcasma - Comforting relief from the use of irony, mocking and conveying contempt)
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To: tbpiper

How about California, “The new Cleveland.” LMAO (and I live in California)


46 posted on 01/10/2009 9:41:19 AM PST by DoughtyOne (I see that Kenya's favorite son has a new weekly Saturday morning radio show.)
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To: SeekAndFind

Wyoming’s unemployment rate is a lot lower than 5%.

Per the December BLS report:

http://www.bls.gov/news.release/laus.nr0.htm

Wyoming’s unemployment is about 3.2%.


47 posted on 01/10/2009 9:43:24 AM PST by NVDave
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To: SeekAndFind
I am hoping for “cntrl alt DLT”. This is rather entertaining to watch. You need to flush before you clean the bowl.
48 posted on 01/10/2009 9:43:57 AM PST by Dawggie
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To: randog
"I'll bet you hear this all the time from the Kalifornia transplants: "It's nice here, but it would be better if..."...? Or how about, "That's great, but we used to do it like..."...?"

The Californians do that with our Tex-Mex food. They always say: "It isn't real Mexican food." No kidding! It's TEX-mex!

49 posted on 01/10/2009 9:53:16 AM PST by avacado
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To: NVDave
Idaho's unemployment rate was 2.7% in Dec 2007. It jumped to 6.6% by Dec 2008.
50 posted on 01/10/2009 10:25:52 AM PST by Myrddin
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