You might get a chance to test your theory. Schwarzan.... Shwarts.... The 'Governator' is about to sign an executive order which lowers the wages of over 200,000 California government employees from $8 an hour to $6.55 an hour. We're planning on protesting over the weekend, but there's little hope as Schwarzenegger has ignored our previous protests (even the big ones). He's trying to fix the $15b budget deficit.
After a few months of this, it's possible that we could see an effect on some of California's economy. I suspect that it could be a rise in homelessness and possibly strikes.
I don't mean to threadjack, but as someone who lives here I'm sure you understand that $6.55 just isn't going to cut it. I doubt I could survive in San Jose for less than $25k a year.
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