The West Coast of France
The latest unemployment figures for California are not what you would call encouraging:State unemployment rate highest since 1941
The state unemployment rate soared to 11.2 percent in March, the highest since before World War II, leaving a record 2.1 million Californians out of work, according to a report issued Friday.
Employment Development Department spokeswoman Patti Roberts said the March figure surpasses the 11 percent rate that occurred during the 1980s recession and brings California close to the jobless level of January 1941, when unemployment stood at about 11.7 percent.
The rate here in the Bay Area is slightly better - at least it's keeping pace with the national average:
The Bay Area job market remained slightly better than the state average in March. But local rates continued to rise even in the San Francisco metropolitan area, which has been among the state's most resilient job markets.
Unemployment in the three-county metropolitan zone made up of San Francisco, San Mateo and Marin counties rose to 8.5 percent in March.
I would say that matches my observations. The Bay Area isn't exactly a maelstrom of economic activity, but the bars and restaurants still fill up on the weekends, the tourists are coming back, and the highways in the East Bay are filled with trucks bringing goods in and out of the Port of Oakland. Still, it's clear that the rest of California is suffering.
This again raises the question of what the hell is going on in Sacramento. The state's economic situation is as bad as it's ever been, and yet our political class is raising taxes, expanding government and going forward with expensive boondoggles like high speed rail. No one seems to spend a lot of time worrying about protecting and creating jobs. Quite the opposite. The legislation that is being pushed most enthusiastically - whether "green" legislation, tax increases, or water rationing - are job killers. The pace of economic activity in California outside of the public sector and Silicon Valley has been steadily declining over the past 6 years. Even movie making has declined with just 33% of Hollywood's films being made here - down from 66%.
There is a real disconnect between California's political troubles and its economic problems. The political class seems to fear offending interest groups - especially public employee unions - that are feeding off the state budget, more than they fear (or even consider) the interests of voters who don't belong to a class of special pleaders. The upcoming special election to pass the tax increases and budget changes that were negotiated two months ago (vote "NO" on all of them, please) should be a good test of voters' willingness to go along with a system that has failed and is no longer serving the long-term interests of the state.
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