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California Showing No Signs of Economic Recovery

by Stewart A. Alexander Sunday, Jun. 28, 2009 at 12:34 PM

It is important to note that most of California’s economic woes have less to do with the national recession; California has a leadership problem in Sacramento. Under the leadership of Governor Schwarzenegger, California’s economy has been suffering a continuous decline. Governor Schwarzenegger and the California Legislature have led California into a sea of red ink and have protected special interested groups over the public’s interest.

Stewart A. Alexander

California State Organizer

Socialist Party USA

June 27, 2009

The unemployment numbers in California are now hovering above 11 percent; and in the Counties of Riverside and San Bernardino, unemployment is now over 13 percent and climbing. In Los Angeles County, more than 2 million residents are receiving public assistance; and kids searching for summer jobs are competing with adults searching for work just to feed their families.

In Riverside and San Bernardino, auto dealerships that once sold 300 plus vehicles monthly are now selling less than 100 units; and most dealerships have sharply cut payroll and are laying-off workers. Many automobile sales consultants that once earned good incomes are now earning minimum wage. The majority of customers that are in the market to purchase a new car or truck cannot due to banks tightening the lending guidelines and the lack of household income. Many potential automobile shoppers are reluctant to buy due to uncertainties about the economy.

In 2007, many retail shops, mini-service marts, and fast food establishments posted “Help Wanted” signs; now those signs are only collecting dust at hardware stores. Within the past three years many of the local papers had columns and pages of employment positions; now, many of the local papers will have 1 or 2 listings for employment and at times there will be no listings.

From 2002 to 2006, Riverside County was the fastest growing county in the United States; employment opportunities were everywhere. Many families were moving from neighboring counties to relocate their families; and the housing boom created a building and construction industry Mecca for jobs and good family incomes. Today, the housing and construction markets have gone bust and local municipal governments are attempting to cope with the lost of revenues in the entire region.

In Southern California, home foreclosures are still at the highest levels nationwide; and in some areas of Riverside County, such as Murrieta, Temecula and Riverside, bank foreclosure and bank repo signs dart the lawns of every neighborhood. While homeowners await their fate, the regional economic outlook grows dimmer by the week.

At many of the local utility payment centers, the waiting lines have increased 300 to 500 percent to accommodate those waiting to pay to avoid service interruption. The lines at the local food banks are another indication of the grim economic times; in some areas, the lines have increased 300 to 400 percent within the past 2 years.

This recession is like no recession since the 1930s and many Southern California residents are now calling it the Great Recession. The economic situation in California is not likely to improve within the next few months considering California is struggling with a billion budget gap; the largest among all 50 states. Governor Arnold Schwarzenegger has announced that thousands of public workers will be losing their jobs to help reduce state spending. Also, thousands of teachers will be losing their jobs; good paying jobs that help fuel local economies.

It is important to note that most of California’s economic woes have less to do with the national recession; California has a leadership problem in Sacramento. Under the leadership of Governor Schwarzenegger, California’s economy has been suffering a continuous decline. Governor Schwarzenegger and the California Legislature have led California into a sea of red ink and have protected special interested groups over the public’s interest.

Socialists throughout the State of California believe many fundamental changes must occur in California and the State Legislature to revive the state’s economy. Laying-off thousands of public workers and making deep cuts in public services is not the answer. Socialists believe creating good paying jobs in local communities will be vital in rebuilding the state’s economy; good paying jobs in manufacturing and industry, and in the building and construction industry. Socialists are also calling for the elimination of the requirements of the 2/3 supermajority to pass a budget and taxes.

Socialists groups and organizations in California believe the budget cuts that Governor Schwarzenegger is now proposing to balance the California budget will crush the poor only to protect the wealthy and big corporations; the governor’s cuts will also lead the state into further economic decline. However, there is a light in the tunnel to California’s economic recovery; the upcoming election is in November 2010 and Arnold Schwarzenegger will end his term as California Governor.

For more information search the Web for: Stewart A. Alexander

Stewart Alexander: Gov. Schwarzenegger has Failed Calif., Should Resign


Alexander: Schwarzenegger’s Tax Proposal Unfairly Targets Working People


Washington and Capitalism in Shambles; Socialistwebzign





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