A review of the Californian Economy Nov: 08

The current economic climate is bleak; in fact, for most, it is down right terrifying. While I celebrated (and continue to) the victory of Obama I have not fooled myself into believing that this will immediately solve any of our economic crisis'. America's current unemployment rate is at 6.5% and California's is at a whopping 8.2% making it the 3rd highest in the country. Since most analyst seem to think this is only the beginning things are going to get worse and not just on the job front (if you look at the previous article, they are estimating unemployment rates at at least 9.9% in 2010).

This is going to put a huge burden on the already draining unemployment insurance funds. According to the associated press, California's Unemployment Fund is “expected to have a deficit of $1.6 billion at the end of 2009” now, if we link that to what we saw above something terrible and terrifying comes out. Unemployment Insurance is paid for by from taxes taken out of people's paychecks. The fewer people out there with jobs, the less is paid into the fund. If, at the same time we have record highs of people who are applying for these funds, California will have to consistently borrow from the federal government. This is in addition to the record high deficit expected for the State of California. It is estimated that in 2010 there will be a deficit of $28 Billion dollars.

This deficit comes in the face of demands for social services, higher education funding and the aforementioned job loss rates.

All signs point to 2010 being a horrible horrible year for California if solutions aren't generated.

California's Leadership has already started to take actions to try and curb the oncoming crisis. Senate Pro-Tem Elect Darrel Steinberg, Assembly Speaker Karen Bass and former Pro-Tem Don Perata wrote a joint letter to Governor Schwarzenegger in October requesting that the Governor work with Congress in trying to bolster the economy of California and Karen Bass has been rather vocal in her requests.

It is estimated that the stimulus package will mainly fall to infrastructure; the creation and repairing of roads and rails. Many municipalities need such help seeing as many roads are being left unpaved because of increasing prices of materials. This was as a result of oil prices and demand from China. This stimulus package will create jobs and give a little bolt to the economy but it is still a band aid on a broken bone.

Until some form of a real solution is found, I am still going to be nervous, as I assume most others will be as well. Until then.

-Andrew Kornblatt

Sorry about the absense.

I have been working on so many other projects I haven't been able to comment over the ridiculousness of this campaign.

I wanted to talk about, when it happened, the insanity i have seen coming from the right and how, as a Jew, it reminds me so much of what I have heard of 1930's Germany.



I wanted to talk about the economy and how we are NOT a free econonomy and have NEVER been a laze-fair economy. How we have, since the great depression, had regulations on the market and have "spread the wealth around" though welfare, rebates and work programs for almost 100 years.

I am a little disappointed in both sides but I am furious at the right. I am insulted, and have been since 9/11, when they accused me of being unpatriotic because I had the gaul to look at what we did to create that event, what actions we took to create that much anger. I am insulted to be called a not "real american."



I wanted to comment on these events and a lot more but I have been incredibly busy with my own work and *gasp* other blogs.

I wanted everyone out there to be aware of a few sites;

I have been following electoral vote.com and
fivethirtyeight.com. I like 538 because it is a little more in depth, a little more accurate and much more conservative. The fact that they currently have 259 for Obama and 118 McCain makes me a bit optimistic.

But if you want to follow a specific proposition or local election in California, a great place to watch the returns is the Secretary of State's site

I am following Prop 4 rather closely.

I wait with baited breath.