State of the Union won’t help shrinking CA middle class

State of the Union won’t help shrinking CA middle class

middle class, John Darkow,cagle, July 5, 2014California is a place where middle-class jobs are vanishing faster than a politician’s word of honor.

But it’s not surprising President Obama discussed this problem in last night’s State of the Union Address. His solution has three parts:

1. Raise taxes on the wealthy — that is, investors. Which would mean less investment in business and jobs creation.

2. Trickle a little back to the middle class.

3. Increase government.

Meanwhile, in California, The Los Angeles Times reported:

The United States has seen a remarkable turnaround in manufacturing employment since the economy bottomed out five years ago — but California hasn’t.

The state has been among the slowest to recover jobs in an industry long viewed as a bastion of middle-class opportunity.

Since February 2010, U.S. manufacturing employment has increased at a rate of 6.7%, with some Midwestern and Southern states such as Indiana and South Carolina seeing gains of 15% or more. By contrast, California manufacturing has grown at about 1% over the same period.

Manufacturing jobs are good, middle-class jobs, for both skilled and unskilled folks. But we’re not getting them here.

High costs

The Times quotes Jordan Levine, director of research at Beacon Economics in Los Angeles: “It comes down to housing costs and the costs of doing business in California overall.”

An obvious culprit is AB 32, the Global Warming Solutions Act of 2006, which places immense new burdens on businesses. It also just increased gas prices for  everybody beginning Jan. 1.

The price increase is hidden because of the global and national declines in oil and gas prices. But compare these national prices today from GasBuddy.com:

Lubbock, TX: $1.70
Colorado Springs, CO: $1.73
Kansas City, MO: $1.75
Detroit, MI: $1.83
Gary, IN: $1.84
Birmingham, AL: $1.94
Orange County, CA: $2.49
Los Angeles, CA: $2.51
Bakersfield, CA: $2.60
San Francisco, CA: $2.71
Honolulu, HI: $3.15

California drivers obviously are being ripped off big time by their own government. Like Texas, California also is a major oil-producing and -refining state. So why does a gallon of petrol cost a dollar more in San Fran than Lubbock?

The high cost of gas also hurts most the poor and middle class who have long commutes — something itself often caused by the high cost of housing. A worker making $50,000 in L.A. often has to live out in Riverside just to pay the rent, forcing a long commute at high gas prices.

But the president, to be echoed by most California Democrats, insists the real problem is that rich investors aren’t taxed enough.

9 comments

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  1. Ted
    Ted "Patriot" Steele 20 January, 2015, 20:29

    God I love his President– great speech—-great concepts and the teabaggers will insure 2016 victory for the Dems if they keep up the ignorance parade—- which they will!

    Ted’s favorite part of he speech?
    Well of course where the big man shut down the baggers with his “I know because I won those two elections” comment! Lot’s of laughter and toasting at the Ted’s tonight!

    That’s all for tonight little buddies! Nite!!!

    Reply this comment
  2. Bruce
    Bruce 20 January, 2015, 21:18

    The ultimate vote is by foot. Business and people have left the state and country, plain and simple. Man-made global warming has been described as the biggest hoax in the history of mankind and the sun, which has the greatest effect on earth, is going into hibernation. Time will tell if we’ve been scammed by AB32. I’m preparing for cold.

    Reply this comment
    • Ted T T TNT
      Ted T T TNT 21 January, 2015, 08:48

      Looks like Amazon just built HUGE new fulfilment centers in Cali– added 5,000 jobs——–

      good news Doomera!

      Reply this comment
      • John Seiler
        John Seiler Author 21 January, 2015, 08:52

        Ted: They’re just distributing stuff Made in China to the 1% here.

        Reply this comment
        • Ted
          Ted "Patriot" Steele 21 January, 2015, 19:53

          Well true that Johnny boy—— but at one level 5k jobs is 5k jobs—- at yet another level the fact that the repub 1%ers off shored manufacturing over the last 50 years has certainly hurt our Nation. Now the 1%ers have with irony jacked up the lower classes to pretend that the Wall Streeters are on the side of everyman…….Zzzzzzzzz— there alot of ins and outs and what-have-yous…..

          Reply this comment
  3. Ulysses Uhaul
    Ulysses Uhaul 20 January, 2015, 23:36

    “Time will tell”.

    Gloom always in the future….get over it…..live now!

    Geesh

    Reply this comment
  4. Queeg
    Queeg 21 January, 2015, 17:41

    Comrades

    Are you considering just sitting on the porch awaiting?

    Those who watch things happen end up with nothin!

    No one is in the streets.

    Reply this comment
  5. Desmond
    Desmond 23 January, 2015, 16:01

    Plenty of democrats support free trade(offshoring as the near goner states).

    Reply this comment
    • Ted
      Ted "Patriot" Steele 26 January, 2015, 18:27

      Desilou—- It’s the repub fat cat chamber of commerce schmucks who off shored the mnufctring little buddy!

      You’re a “goner”?

      Reply this comment

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