Missing from CA’s economic ‘comeback’: Los Angeles

Missing from CA’s economic ‘comeback’: Los Angeles

decay.LA
Gov. Jerry Brown’s daily push to depict California as being in a sharp rebound from the 2007-2009 economic meltdown ignores the fact that the recession never went away in a majority of the state’s 58 counties, especially those in inland areas. The journalists who are competent enough to point this out sometimes do so by shorthanding California’s economic rebound as being concentrated on “the coast.”

But there’s a big shortcoming to this narrative. It’s called Los Angeles. America’s second-largest city is struggling. Unemployment is estimated to be 8.7 percent, which is worse than any state. As bad as it is, that figure is misleading because it counts as employed tens of thousands of people with part-time jobs, and it doesn’t include those who have stopped looking for work. Based on U.S. Bureau of Labor statistics for California, it’s likely that fully one in five L.A. residents who want full-time work can’t find such jobs.

From 1990 to 2013, even as L.A.’s population went from 3.49 million to 3.85 million, there was a 3 percent decline in total payroll jobs, according to a recent UCLA Anderson report.

The bad news is that both the city’s short-term and long-term prospects are grim as its core 20th-century industries struggle or vanish. Aviation and manufacturing, both of which used to be huge within city limits, are all but gone. And the film/TV industry has never done more of its shooting outside of L.A., leading to panicked state  lawmakers passing an emergency increase in Hollywood subsidies in recent weeks after being begged to do so by city lawmakers.

The biggest ‘failed city’ of them all

This is not a narrative one hears that often. When California journos write about failed cities, they focus on the ones that have declared or are darn near bankruptcy.

Meanwhile, the city whose population is far greater than the combined population of those failed cities steadily goes down the drain. In January, a blue-ribbon panel of prominent Angelenos acknowledged this in a hugely downbeat report called “A Time for Truth.” Here’s the L.A. Times’ account:

Los Angeles is a city facing economic decline, weighed down by poverty, strangled by traffic and suffering from a crisis of leadership, according to a report released Wednesday by a 13-member panel of influential civic leaders.

The Los Angeles 2020 Commission offered a harsh assessment of government decision-making, warning that the nation’s second-largest city is heading to a future where it can no longer afford to provide public services. Among a litany of problems highlighted in the report are underfunded retirement programs for City Hall employees, slower police and fire response times, and government spending that is growing faster than revenue. …

The report … was commissioned last year by City Council President Herb Wesson. It arrives as the city is struggling to regain its financial footing after a turbulent five-year period of recurring budget crises, the elimination of 5,300 jobs and battles to secure union concessions on pensions and retirement benefits. …

Among the challenges highlighted by the panel: a poverty rate higher than many other American cities; city revenue that has remained flat since 2009; a shrinking middle class; and “wishful” responses to a “continued economic decline.”

Everywhere you look, grim tidings

Bruce Bialosky, a Los Angeles writer and occasional GOP politician, despaired at the breadth of his city’s decline:

8% of Los Angelenos earn poverty pay. If you include those out of work, they state 40% of residents live in misery.

Los Angeles is the only one of seven major metropolitan areas in the country to have a net decline in employment over the last decade.

Major industries are leaving; none are moving here. Twelve companies on the Fortune 500 used to call Los Angeles home, and now just four do.

The school system graduates just 60% of its students from high school and only 32% are qualified for either the UC or Cal State University systems.

The pension system has set aside only 10% of the future needs of city workers.

Stunning stuff. The next time you hear someone tout the California rebound narrative, please guffaw and ask how come it doesn’t extend to California’s biggest city.

As the star of “NCIS: Los Angeles” would say, don’t call it a comeback.

11 comments

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  1. John Seiler
    John Seiler 11 September, 2014, 08:28

    Gov. Jerry says you’re a “declinist.”

    Reply this comment
  2. LetitCollapse
    LetitCollapse 11 September, 2014, 10:03

    You notice that these media stories go out of their way and make a hurculean effort not to mention the 800 pound gorilla sitting in the middle of the room when it comes to the deterioration and decay of LA? Anyone who hasn’t been in a coma for the last 15 years knows the gigantic negative impact that illegal immigration has had on social services, the school system, community blight, wage suppression, scarcity of jobs for citizens, the underground economy, crime, taxes on those who work legally, health care delivery, traffic, water consumption, etc… yet the media avoids talking about it like the plague. Why? Complicity. One of the first thoughts that comes to mind when informed people think of LA is ILLEGAL IMMIGRATION. Yet it’s not even mentioned in this article. It just goes to show how far we’ve fallen from grace as a society. We are told only what they determine we should know. Have you ever seen one article in the media that itemizes the massive financial costs that illegal immigration has on our society? All that information is publicly available. Don’t hold your breath. You don’t have the need to know. lol. Just keep voting, writing your congressman and paying your taxes. Most of all, pay your taxes. The illegals need your support.

    Reply this comment
    • Artifact
      Artifact 11 September, 2014, 23:51

      Yes, when I think of L.A. I do think of illegal hordes and all the worthless pols who identify with them, and who are just one step above illegality themselves. L.A. is done. It is on a trajectory aiming right into the toilet, mostly due to the ethnic absurdity that has been allowed to grow illegally for decades. L.A. is dying from within.

      Reply this comment
      • LetitCollapse
        LetitCollapse 12 September, 2014, 10:15

        Yes, Artifact.

        Writing an article on the decay of LA and not even mentioning illegal immigration would be sort of like writing an article on 911 and failing to mention hyjacked planes or terrorists.

        In one word: Bizarre. But this is the direction the nation is moving in. Government, corporations and the media all working in unison.

        Reply this comment
  3. LetitCollapse
    LetitCollapse 11 September, 2014, 10:37

    Did you read the article in the LA Times yesterday?

    LA drug cops raided DOZENS of businesses in the Fashion District of LA early Wednesday morning and confiscated $75 MILLION dollars in illicit drug proceeds. These businesses were working for the Mexican drug cartels as laundering fronts. The businesses would take receipt of the drug proceeds from the cartels in duffle bags, suitcases, etc… and then send their merchandise to shops in Mexico that would sell the goods and then transfer the pesos from the sales to the Mexican drug cartels. lol.

    Of course the $75 MILLION is only the tip of the iceberg. BILLIONS of drug proceeds are laundered yearly and go undetected. lol. Illegals from Mexico run these operations. But nobody talks about it. When Governor Brownie introduced the Mexican president in Sactown he gestured to the immigrants in the room and said something to the effect: “It doesn’t matter if you have permission to be in the United States. You are all welcomed in California”. LOL!!!!

    In fact, if the illegals are busted for running dope or laundering money chances are after they do their time they will be released back into your neighborhoods under California’s new “Trust Act” that says jailers are prohibited to transfer inmates to the Feds for deportation unless they’ve committed serious VIOLENT felonies. Since drug running and laundering are not VIOLENT crimes no doubt the “Trust Act” applies! LOL!

    These are things you would never read in our trusted media! lol. You have to connect the dots yourself. To do so you have to be conscious and have at least a 10th grade education.

    Reply this comment
  4. Ulysses Uhaul
    Ulysses Uhaul 11 September, 2014, 10:45

    To measure an economy you have to have stuff to measure,,,,,,profound.

    For definition purposes……call them “them”.

    Them do not use bank accounts, credit cards, checking accounts.

    Them work lots of casual labor, barter, do like the Amish Barn Building thingee.

    The Them grey market in LA is huge with no workers comp, liability/disability insurance, business licenses, tax identification numbers.

    Them is summugling. Drugs, smokes, booze, prescriptions, knock off clothes, accessories and jewelry.

    And we worry about globalists’ Inversion Naughties?

    What you see is decline of laissez-faire and voluntary acceptance and reporting of taxes replaced with government involuntary allocation of private labor, capital, land, finance while the government class becomes affluent and is perceived corrupted.

    LA will get much much worse, you can count on it!

    Reply this comment
  5. LetitCollapse
    LetitCollapse 11 September, 2014, 11:30

    Let’s fact it, folks. Several Too Big To Fail Banks (eg. former Wachovia purchased by Wells Fargo and several others (google “bank drug money laundering”) were found liable in civil court of laundering BILLIONS of dollars in drug proceeds for the Mexican and SA cartels. Not one banker was criminally prosecuted for it. lol. The gov fine was about 25% of the profits that the banks made off their laundering operations. Then the gov allowed the banks to raise their customer service fees to recoup the losses from the fines. lol.

    Pretty much a lawless society, as long as you belong to a protected class.

    But keep voting, calling your elected representatives and paying your taxes. The first 2 are optional. The last one isn’t. LOL!

    Reply this comment
  6. LetitCollapse
    LetitCollapse 11 September, 2014, 14:40

    The Mexican and SA drug cartels are bigtime underground employers in the Los Angeles area. They need lots of mules, distributors, sellers, smugglers to move their product. Who does the work? Go ask a DEA or Custom’s enforcement cop at the border. The illegals from south of the border bring it in and move it for their bosses. Illegals don’t like to work for minimum wage any more than you do. Given the opportunity to drive a load of coke across the country for $10 or $15 grand do you think they might jump at the offer as opposed to working piecemeal construction or landscaping jobs @ %7/hr?

    So when Brownie and Obama want to amnetize the existing MILLIONS illegals living in your neighborhoods while leaving the border wide open – and thus importing massive amounts of new fresh poverty – what would you expect to get other than more crime, blight, higher taxes to pay for the free health care and education, more overcrowded prisons (right now 30% of the prison beds are occupied by illegals in California), more traffic jams, more lousy schools (Ca is now ranked #46 out of 50 in academic achievement), more publicly paid social services, etc…?

    LA is a perfect example. Look at the deterioration. Cause? The importation of massive amounts of indigents from south of the border.

    You see, like in the above article the media will report the obvious. That Los Angeles has turned into a gigantic slum. Everyone knows that. But the media will not dare reveal the true cause.

    You will be left to figure that out on your own. The government and media only hopes that you don’t have the brainpower to do it. lol.

    Reply this comment
  7. Ulysses Uhaul
    Ulysses Uhaul 11 September, 2014, 16:39

    La and Sf are toilets….period……

    Next Subject.

    Reply this comment
  8. LetitCollapse
    LetitCollapse 12 September, 2014, 13:10

    I see faceboob rich boy Zuckerberg went to Mexico to meet with billionaire Carlos Slim to promote amnesty. lol.

    See what I mean about the government and corporations teaming up to screw the average US taxpayer and worker? Zuckerberg would profit handsomely from the passage of Senate Bill. He could openly discriminate against US workers and hire cheap migrant labor.

    These people want to uproot the American way of life (culture), destroy the middle class and turn us into a society of rich and poor (just like south of the border).

    Our attention is being diverted with more political fearmongering about ISIS and ISIL while our society is actively being invaded and turned into a 3rd world craphole by the elite class – while our so-called leaders do nothing to stop it.

    Prime example: City of Los Angeles. And it’s spreading like wildfire.

    IMO the domestic terrorists who infiltrate our open borders from the south pose a much greater immediate danger to the well-being of US citizens than ISIS ever would.

    Reply this comment

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