California unemployment much higher than govt. admits

Unemployment Line - DepressionDec. 30, 2012

By Stephen Frank

I love how the Democrats are crowing about the “California Recovery.” Specifically, they want you to believe that unemployment is slowly declining in the State.  Not so.

This is from the California Employment Development Department on December 26, 2012:

“Current Benefits Status

“Currently, there are more than 920,000 people certifying for benefits in California. The majority of these customers are collecting on a federal extension claim while the remainder are somewhere in the midst of a regular unemployment claim.

“Between regular and federal extension benefits, the EDD has paid a total of $17.1 billion in benefits for calendar year 2011 and $9.3 billion so far this year (as of August 16, 2012), and is currently paying about $284 million a week. These benefits provide critical sustenance to unemployed workers and their families, in addition to local businesses where much of the benefits are spent on basic needs.

“Customers Who Have Run Out of Maximum Benefits

“As of December 24, 2012, there have been close to 928,600 unemployed workers in California who have run out of all available benefits.” 

Funny numbers

In other words, if you counted all the California unemployed, that number is 1.846 million.  The rate is not 9.8 percent.  According to the Bureau of Labor Statistics, the U-6 number, a broader measure of unemployment, is 19.6 percent — more than double what Obama and Brown want you to believe.

Brown claims that 2012-13 California budget deficit will be $1.9 billion when the fiscal year ends on June 30.  Yet, State Controller Chiang, a Democrat. says the cash deficit if $24.9 billion—and growing.  Oh, and expected revenues are down 10 percent.

You get $1.9 billion by “forgetting” the $12.5 billion owed the schools due to Proposition 98, the $10 billion owed the federal government for paying for the unemployment insurance checks, the $15 billion stolen from Trust Funds and $10 billion borrowed from Wall Street to cover the cash deficit.

Then you have to add the full-time workers forced, due to Obamacare, to part time work—that is tens of thousands more, starting Jan. 1.  Of course, we already have many working part time that want to work full time.

Yes, it is depressing to hear the truth and the Democrats want you to be happy.  As Ayn Rand said, “You can hide from reality but you can not evade the consequences of reality.”


California is in a Depression; the nation is in a Depression. In fact, economists are now saying we have been in a national recession since July.

We feel comfortable hearing the deficit will be lower and fewer will be unemployed. We do not ask if it is the full truth.  We do not want to be depressed.  No one wants to hear that we have already fallen over the economic cliff.  Regardless of the deal made in Congress on the “fiscal cliff,” spending by government will continue to rise and regulations will continue to kill jobs in the name of environmentalism.

Go to the grocery store on a consistent basis and note that the price of bacon, bread and milk has gone up.  The cost of hamburger is up.  Try naming a fruit or vegetable that is not more expensive this year than last.  Yes, the price of technology is down—but how many cell phone or iPads can you buy?  Take a family to McDonald’s for dinner and see how expensive that has become.

Forget the government “statistics.” Has your cost of living gone up or down? Do your friends trust the economy? Do you?  Trust you experiences.

Thanks to Obamacare,  a 70-year-old woman will probably not qualify for a hip replacement—but can immediately receive “free” contraception.  In California, thanks to “health exchanges” and the mandate for insurance companies to provide “free” services, the cost of private health insurance has gone up 25 percent in one year.  This has caused many employers to drop coverage for their employees.

The unemployment numbers headlined by government are just the tip of the iceberg.  We need the media to report on the complete numbers, not just those sent out by press release.  The Depression is getting worse. It is time we stopped evading reality.

Stephen Frank publishes California Political New & Views.


Write a comment
  1. Dyspeptic
    Dyspeptic 29 December, 2012, 19:29

    Moonbeam is lying through his teeth about the budget deficit. The Demogoguecrats are delusional and out of touch with economic reality. I wonder how many people actually believe all of these fanciful government statistics? For the ones that do, I feel sorry. What suckers.

    Reply this comment
  2. SeeSaw
    SeeSaw 29 December, 2012, 21:14

    What documentation do you use to determine that a 70-year old woman will “probably” not qualify for a hip replacement? Saying that a 70-year old woman will qualify, though, for contraception, is a pretty stupid statement–it certainly does not add positively to any conversation about a subject as serious as the ACA.

    Reply this comment
  3. Donkey
    Donkey 29 December, 2012, 21:16

    Dyspeptic, there are times I believe many folks are just hiding from the truth. Look at all the RAGWUS feeders that ignore the truth about their pay, benefits, perks, and pensions being unsustainable. Look at all the citizens that voted for government money over sound reason when voting for the POTUS.

    The truth is, that the math is coming due, with Obamacare, increased prices for energy, water, and food from the acts of the California legislature, and rising inflation because of out of control spending, we are heading for the perfect economic storm, keep your powder dry my friend!! 🙂

    Reply this comment
  4. Rex the Wonder Dog!
    Rex the Wonder Dog! 29 December, 2012, 21:19

    The CA U-6 UE Rate was at 23% for most of the last 5 years……………..

    Reply this comment
  5. Daniel Kroner
    Daniel Kroner 30 December, 2012, 08:03

    Unemployment is only going to become a larger and larger problem as time goes on due to automation. We already have more people than we need to get the work that needs to be done completed and automation is just going to push this further and further. This is a huge part of our unemployment problem in the US. When we passed that threshold of having more laborers than necessary it put us in the position of having to make a choice. Either we play the economic game of musical chairs and a large number of people are just simply fucked. Or we have to restructure our social and economic systems to account for this imbalance.

    I am personally in favor of option number 2 but I do not expect us to get there without a few uncomfortable decades of musical chairs.

    I wrote a bit about this topic about a month ago:

    Reply this comment
  6. Hondo
    Hondo 31 December, 2012, 01:17

    Donkey is right. The math is coming due. Jerry Clowns wall of debt is here and there is no more money left to steal. These latest tax increases at every level in Kali will kill any hope of recovery. Investment money will flee from the state. You can bet outside investment money won’t be coming to this high tax, cap and trade state. Once you raise taxes enough, you don’t get anymore revenue, you begin to lose it. Controller Chiang numbers are showing it already.
    My guess is that Obama has been fudging the numbers on the economy for a while now, to get reelected. The same with Kali. If you add up all the people who are going to school just to get the student loans to live on, I’d bet the unemployment rate is closer to 20%.
    Socialism fails when you run out of other peoples money and the money men run out on you.

    Reply this comment
  7. Rex the Wonder Dog!
    Rex the Wonder Dog! 31 December, 2012, 17:08

    Daniel Kroner says:

    I wrote a bit about this topic about a month ago:
    ==Excellent piece. I don’t know if farming is the bets comparison, or that manufacturing jobs are being lost world wide, but I agree with many of the points

    Reply this comment

Write a Comment

Leave a Reply

Tags assigned to this article:
Jerry BrownjobsStephen Frankunemployment

Related Articles

Rail system in LA already a low-speed fail (video)

April 13, 2012 By Brian Calle One might assume policy makers would first assess the value, usage and efficiency of

Gov. Brown celebrates ObamaCare ruling

Steven Greenhut: Gov. Jerry Brown is happy with the Supreme Court’s ObamaCare ruling: “Today’s dramatic Supreme Court ruling removes the

Latest budget deal tarnishes Golden State

Katy Grimes: The sheen has come off of the once-golden state. As the Assembly and Senate sessions began yesterday morning,