Is California Too Big To Fail?

Hilzoy looks at the budget impasse in California, where the state may have to lay off tens of thousands of workers:

According to Calitics, it will cost California $191 million to shut the projects down, and $192 million to start them back up again once a deal is struck. So shutting down the government will mean spending nearly $400 million of taxpayers' money for nothing, and all in the name of fiscal responsibility.