Why does CA unemployment remain so high?

Why does CA unemployment remain so high?

Veyron, wikimediaSilicon Valley and other areas of coastal California are doing well — assuming you can afford to live there. But the state economy as a whole remains stagnant, with unemployment stuck at 7.3 percent for October, the same as the previous month.

That’s the fourth worst of the states. And it’s even worse than Nevada, now at 7.1 percent, a state hit even harder than California by the 2008 economic collapse.

And California’s 7.3 percent still is well above 2006, the height of the previous recovery, when unemployment dropped below 5 percent. That was the year Gov. Arnold Schwarzenegger signed AB 32, the Global Warming Solutions Act of 2006, sparking the state’s decline. It mandated a reduction in state greenhouse gases of 25 percent by 2020.

And AB 32 especially put the state at a disadvantage compared to other states when the national recession struck in Dec. 2007, followed by the economic collapse of Sept. 2008. Along with other attacks on prosperity, AB 32 confirmed California as an anti-business state.

2008 also saw the passage of SB 375, by state Sen. Darrell Steinberg, D-Sacramento. It also was signed into law by Schwarzenegger. It made it state policy to force Californians out of their homes and cars and squeeze them into high-rises and mass transit. And in 2008, Schwarzenegger and others got voters to pass Proposition 1A, the bonds for the high-speed rail boondoggle.

Meanwhile, Schwarzenegger, who had been elected in 2003 to replace the recalled spendthrift Gov. Gray Davis and balance the budget, instead went on a wild spending binge, boosting spending 10 to 15 percent a year. It caught up with him with the economic collapse hit. In 2009, he signed into law a record $13 billion tax hike.

Gov. Jerry Brown took office in 2011. He replaced Schwarzenegger’s tax hikes, which expired, with $7 billion in increases from Proposition 30. That was an improvement. But Brown also backed severe environmental restrictions, such as mandating 33 percent renewable electricity.

Meanwhile, Arnold, showing what he really thinks of global warming, this month was spotted by the Daily Mail tooling around in a $2.5 million Bugatti Veyron supercar gas-guzzler like the one pictured above. If he really believed in AB 32, he would be driving a Nissan Leaf all-electric car. Here’s the fuel comparison:

veyron and leaf fuel




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  1. Ronald Stein
    Ronald Stein 28 November, 2014, 07:06

    California’s business climate with over regulations on businesses, over taxation and uncontrollable fees are contributing to the middle class becoming an endangered species as the inequality has deepened. The results are that consumers are paying for over regulations to businesses. Those behind the over regulations, over taxation, and uncontrollable “fees” on businesses are mostly the highly compensated, and most with sweet defined retirement benefit packages waiting for them upon retirement, i.e., those that CAN afford the higher costs that trickle down to all citizens for products and services. AB32 was implemented in 2006 when CA contributed a minuscule 1% to the worlds GHG’s. Now 8 years later we have higher costs for energy and higher costs for every industry that relies on energy and the by-products from oil and we still have that 1% minuscule contribution to the World’s GHG’s. The primary thing AB32 has done is to generate hundreds of millions of dollars of income to the government at the expense of the financially challenged. Case in point, in the past 40 years, California’s population has nearly doubled to its present 38 million, but the air quality has gotten better, not worse.

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  2. ricky65
    ricky65 28 November, 2014, 14:11

    All of that is true of course. And don’t forget, Jan 1 California consumers get to pay an undetermined additional tax on their gasoline due to the inclusion of refined petroleum products in the State carbon tax auction extortion scheme.
    It is thought to be10-15 cents per gallon initially which would pick state gas consumers pockets of nearly $3 billion dollars the first year. And it could climb to DOLLARS per gallon in the coming years as the Sac Mob cuts down the number of credits available every year to force up the price on the so-called ‘market’. Does anyone think that will not adversely affect consumer spending in the coming years? Well maybe if you’re a government bureaucrat ignoramus who denies cause and effect and actually believes that large tax increases will not affect consumer spending.
    I nearly choked on my bagel laughing this morning when the Sac Commie Bee article called it this government fleecing a ‘market based’ approach to fighting carbon emissions. Maybe that flies in their juvenile editors board room but only a socialist state would declare government control of the supply of goods is a ‘market’ solution.

    So we”ll see if this causes any consumer backlash. I doubt it. The drop in oil prices will moderate the outrage. But if the Middle East blows up again and gas goes back above $4 bucks it could be an issue given that we already pay the highest gas taxes in the country.
    The people in this state are so ignorant its hard to see any large scale protest of this ripoff. When nearly half of our citizens are tax grazers dependent on government they might be reluctant to bite the hand that feeds them. Shockingly, the recent election polls showed nearly 40% of our disinterested dolt population did not even realize Jerky Brown was running for governor again.
    This will put state government awash in extorted cash at the expense of hard pressed middle class and working folks who have to drive to their jobs. Ol’Jerky is counting on the cash for his Brown Streak train and twin tunnel fantasies. And state D-Rat party hacks are counting on this unlimited slush fund to pass around goodies to their favorite patronage groups and green crony capitalist bankrollers.
    SoI suspect the fleecing by a kleptocratic state government will continue until either the flock of shorn sheep die of exposure or high tail it to greene, less hostile pastures as has been the case for the last couple decades.
    Back to the point: If you’re looking for the reasons for persistent high unemployment in this state, the above is a good example of why that is.

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  3. Rex the Wonder Dog!
    Rex the Wonder Dog! 28 November, 2014, 17:30

    Also don’t forget that CA makes refineries use a special winter blend of gas that drives prices sky high. Drive out to Yuma and gas is 30 cents a gallon cheaper than in Imperial Valley….and 50 cents cheaper than San Diego. LA has cheaper gas than San Diego.

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  4. Queeg
    Queeg 28 November, 2014, 21:55


    Are you a long distance Uber driver?

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  5. Angus
    Angus 29 November, 2014, 01:51

    Just completed a big remodeling project inside my home. Did not get any permits, expect that the town officials will be eaten at their desks by California’s needy when EBT cards don t work. Think that will happen before I sell house so permits will be obsolete. Purchase price will be in bullets and blankets. Guess your could say we are going to a brass based currency.

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  6. Bill Gore
    Bill Gore 29 November, 2014, 06:35

    Yup, global warming (in summer)/climate change (in winter) is an EXISTENTIAL THREAT to mankind, according to the United States Government, and that’s why the United States Government is expediting the approvals for a terminal in Vancouver Washington to SHIP COAL TO CHINA. REPEAT: SHIP COAL TO CHINA.

    Agencies that are fast tracking this plan, which will help FIGHT GLOBAL WARMING, include the ever-fanatical US EPA…Goldman Sachs is ‘helping’ with the debt-based financing of this much needed project.

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AB 32Arnold SchwarzeneggerJohn SeilerVeyron

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