Results 1 to 7 of 7

Thread: California starts feeling the pain of over-exuberance

  1. #1
    God/dess Deogol's Avatar
    Joined
    Dec 2003
    Posts
    5,493
    Thanks
    120
    Thanked 50 Times in 35 Posts

    Default California starts feeling the pain of over-exuberance

    Starting to sound like Ohio and Michigan out there....



    Statewide joblessness grew to 7.3 percent, up from 7 percent in June, according to California Employment Development Department figures released Friday.




    A year ago the state's unemployment rate stood at 5.4 percent. The statistic is adjusted for normal seasonal hiring patterns.



    OAS_AD('ArticleFlex_1'); But that rate paled when compared to the jobless rate in Riverside County, which topped 9 percent in June and rose to 9.3 percent in July.

    The east valley was hardest hit. Indio rose to 10.1 percent while Mecca saw 18.2 percent unemployment.


    Desert Hot Springs was also among the highest at 12.6 percent.

  2. #2
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: California starts feeling the pain of over-exuberance

    ^^^ and the joker in the deck on the 7.3% unemployment statistic is that this is an 'overall' number. In point of fact, the unemployment rate among private sector workers is even higher (which is offset by far fewer public sector job cuts on a percentage basis). As stated in the link article, the next report will be the first to reflect the elimination of thousands of 'part time' public sector jobs as part of Der Governator's gov't budget trimming.

    Arguably, the momentum that is now building in regard to California private sector employment levels is related to a point which has been raised several times already in Dollar Den. That point is that when a state / city chooses to create business conditions which create an additional burden on private sector businesses in that state / city, company management responds to those burdensome conditions. However, there is often a significant time lag between the point where corporate management makes the decision to relocate out of the state / city or to outsource to a foreign country to try and remain competitive with other businesses in other states / cities, and the time when new facilities are built and ready for operation (or new subcontracted foreign sources are ready to start operation).

    Arguably the exodus of California private sector jobs that are now beginning to occur en masse are the result of California state tax policies which were actually first implemented 5 years ago (the worldwide business profits tax), the result of energy policies / high energy costs which were set in motion 5 years ago (nix on new generation or transmission lines following the Enron incident), the result of disproportionately high health insurance costs being mandated a few years ago ( state laws were passed to prevent insurers from denying coverage to high risk high health cost people, specifically gay men with HIV+ and their now eligible 'spouse' who is likely to also be HIV+), and a host of other higher comparative cost issues from environmental compliance to worker safety to the high state minimum wage.

    Some California businesses were able to put up with these extra cost issues while the economy was booming ... they probably were researching their alternatives but did not commit to relocation / outsourcing because they (and their employees) LIKED living and working in California. However, when the economy began to turn sour a year ago, such that business levels dropped in general with a disproportionately greater drop for higher priced California businesses versus competitors in other states, decisions were made to either commit to one of those relocation / outsourcing alternatives or to sacrifice profit margin and market share.

    Here we are one year later ... the state of California has done nothing except discuss plans to raise taxes even further ... competitors in other states have underpriced their California equivalents thus 'stealing' a share of their former business as well as killing their profit margin ... or last year's corporate relocation / outsourcing arrangements are now complete and the time has now come to move the work out of California.

    The next huge ripple of course will be a shocking drop in state tax revenues as the result of the 'permanent' elimination of private sector jobs in California. This will cascade into even deeper budget problems for California state / local gov'ts, and will eventually result in massive elimination of public sector employees.

  3. #3
    God/dess
    Joined
    Sep 2006
    Posts
    7,964
    Thanks
    6,155
    Thanked 10,183 Times in 4,602 Posts

    Default Re: California starts feeling the pain of over-exuberance

    According to the article, most of the job losses are resulting from people spending less at restaurants and retail stores, rather then businesses leaving the state. In certain areas, such as computer programming, green energy and nursing, there is still a very big demand for workers with skills in those fields.

  4. #4
    God/dess Deogol's Avatar
    Joined
    Dec 2003
    Posts
    5,493
    Thanks
    120
    Thanked 50 Times in 35 Posts

    Default Re: California starts feeling the pain of over-exuberance

    ... computer programming...

    If you're an H-1B visa holder ... US citizens need not apply.

    (There is plenty of stuff on google to prove it.)

  5. #5
    Bianca O'Blivion
    Guest

    Default Re: California starts feeling the pain of over-exuberance



    Instead of kicking Cali when she's down, can anyone offer suggestions about how this state can fix itself? Didn't NYC pull itself out of a slump in the late 1970s? Now look at it!

  6. #6
    God/dess Deogol's Avatar
    Joined
    Dec 2003
    Posts
    5,493
    Thanks
    120
    Thanked 50 Times in 35 Posts

    Default Re: California starts feeling the pain of over-exuberance

    Quote Originally Posted by Bianca O'Blivion View Post


    Instead of kicking Cali when she's down, can anyone offer suggestions about how this state can fix itself? Didn't NYC pull itself out of a slump in the late 1970s? Now look at it!
    Well sure we can.

    But anyone pointing out what they need to do would be called a hateful wing nut.

    They will figure it out the long slow hard way.

  7. #7
    Bianca O'Blivion
    Guest

    Default Re: California starts feeling the pain of over-exuberance

    On the other hand, the thread title cracked me up. CA is naturally exuberant, it's the gaaaayest state in the Union!

    I can honestly say that disarray in the social aid spending system helped fuck things up.

    But not everyone is in the government cheese line there. I swear!

Similar Threads

  1. what do you do before the next song starts?
    By Axiom in forum Newbie Board
    Replies: 10
    Last Post: 07-18-2009, 03:32 PM
  2. Spearmint Rhino UK feeling economic pain
    By mysteryman in forum Industry Insight
    Replies: 11
    Last Post: 03-09-2009, 02:54 PM
  3. Back Pain and Ankle Pain
    By TravelandStrip in forum Body Business
    Replies: 3
    Last Post: 02-18-2009, 01:46 PM
  4. Replies: 5
    Last Post: 01-14-2007, 04:17 PM
  5. It starts before work
    By BigGreenMnM in forum Newbie Board
    Replies: 13
    Last Post: 08-25-2004, 03:34 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •