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East Bay Loses 4,000 Jobs In December
Number of jobs takes an unexpected tumble even though the local unemployment rate dropped
The East Bay unexpectedly shed 4,000 jobs in December, a month that traditionally sees an increase in employment opportunities.
The job loss was in contrast to the region's unemployment rate, which showed slight declines in both Alameda and Contra Costa counties.
The jobless rate measures employment among people who live in these communities. It counts people who are willing and available for work. Those who have given up searching are not included.
The number of jobs represents what's available in businesses in the region. Some employees come in from outside the area.
In December, the total number of jobs in the East Bay dropped from 959,000 the month before to 955,000.
Officials at the state Employment Development Department said over the past 21 years December has seen on average an increase of 3,400 jobs. Last month, therefore, was 7,400 jobs fewer than normal.
Leisure and hospitality took the biggest hit. That industry lost 2,000 jobs in a month it usually gains 400. Food and drink establishments showed the biggest declines.
Professional and business services shed 1,300 jobs in a month it usually gains 1,100.
Government services had 1,100 fewer jobs, close to the average for December. Manufacturing lost 100 jobs.
Construction was one of the few bright spots. After losing 800 jobs in November, the industry added 400 in December.
Education and health fields saw an increase of 400 jobs while financial services and trade and utilities both saw bumps of 100 jobs.
Cindy Sugrue, a labor market consultant for the state EDD, said it's uncertain why December lost so many jobs. She said the shaky economy is the most likely cause.
"I think it shows there still some struggles out there," she said.
The East Bay's unemployment rate did drop from 9.5 percent in November to 9.3 percent in December. The rate was 10.8 percent in December 2010.
Both Alameda and Contra Contra counties had rates of 9.3 percent. In November, Contra Costa had a 9.5 percent jobless rate while Alameda County recorded a 9.6 percent rate.
The various communities in Alameda County saw their rates drop anywhere from one-tenth to three-tenths of a point.
Castro Valley recorded a 5.5 percent jobless rate while Union City and Newark both posted 8.7 percent.
San Lorenzo listed a 6.9 percent rate while San Leandro dipped to 9.2 percent. The neighboring community of Cherryland saw its rate fall to 13.5 percent.
In the Tri-Valley, Dublin recorded a 5.6 percent rate, Pleasanton had 4.7 percent and Livermore came in at 6.1 percent.
In Contra Costa counties, communities showed either the same rate or a drop of one-tenth to two-tenths of a point.
Concord's rate was listed at 10.1 percent while Clayton recorded 2.3 percent. Neighboring Walnut Creek had a 6.3 percent rate.
In the San Ramon Valley, Danville posted a 4.9 percent rate, Alamo had 3.5 percent and San Ramon had 3.9 percent.
In Lamorinda, Lafayette stood at 3.4 percent, Moraga at 5.6 percent and Orinda at 3.5 percent.
Martinez recorded a 7.5 percent rate while Hercules came in at 6.7 percent.
California's unemployment rate was 10.9 percent in December. Nationwide, the rate was 8.3 percent.
Triple Canopy
10:56 am on Saturday, January 21, 2012
Obamanomics is not working and he's working hard at suckering voters for another term of lackluster leadership and failed economic policies.
You're welcome.
David
12:03 pm on Saturday, January 21, 2012
It is getting clear that he will most likely get his second term. I hate to see that but lets face it this countrys politicans are broken. I will say at least Obama is doing a great job in letting us kill using the drones!!!!!! one good thing he has done.
Terry Parris Jr.
12:23 pm on Saturday, January 21, 2012
How do we get out of this then? Is there a solution? Does one of the GOP candidates running seem to have a policy you can support?
Tom Abate
12:32 pm on Saturday, January 21, 2012
Why this is my politics or even policy, in my opinion. I got a replacement tire today and the price of the tire was up 15 percent last year because of raw material increases. I did a story on Mi Rancho tortilla factory this week and was told that corn and wheat rose over 30 percent each year for the past two year (not in the story, can't include everything). But the sense is that any sort of producer business is getting hammered with increases in their supplies and forced to sharpen pencils to get business. So how can they hire?
Tim
1:24 pm on Saturday, January 21, 2012
Prices are up because fuel prices are up. Fuel prices have DOUBLED since Barack Hussein Obama took office. Is it entirely his fault? Of course not. Could he take measure to help bring prices down? Yes. Does he? NO. The Keystone pipeline would not only give us oil from our friendly neighbors from the north but would have created thousands of jobs in the process. North Dakota has a 3.5% unemployment rate because their state is acting responsibly and helped create jobs in the oil shale industry. So instead, because of Obama, we will continue to rely heavily on nut jobs in the middle east for our oil. So, please, don't start the "this isn't politics" garbage. Everything is politics. But David is right. He will probably win another term because the GOP has no alternative with the baggage of Newt and the phony from Mass. Romneycare, anyone?
2nd Generation Moraga
7:57 pm on Saturday, January 21, 2012
Let's talk facts: Obama rejected the arbitrary deadline the GOP imposed on Keystone, he did not reject Keystone itself. This is a link to the "Austin Statesman" (so no one can accuse me of trusting the liberal media) http://www.statesman.com/opinion/keystone-xl-delayed-but-it-wont-be-stopped-2116504.html
Don't fall for the hype --
David
8:10 pm on Saturday, January 21, 2012
Arbitrary deadline? It's been "under review" for years, including his recent idea to postpone the decision until after the election in November (yeah right). When do you finally make a decision?
It's part of a pattern whereby Obama can't get his agenda passed with our elected representatives, so he directs his unelected bureaucrats to kill, delay and regulate out of existence jobs and businesses (Boeing in South Carolina etc etc). Even Obamacare wasn't passed via "normal" means, it was "deemed" as passed by Pelosi's House, because they couldn't get a vote to reconcile it.
Tim
8:21 pm on Saturday, January 21, 2012
David, agree 99%... The Democrat House considered the "deemed" passed with Obamacare but after a threatened lawsuit by Landmark Legal Foundation they changed their mind and twisted enough "moderate" Democrats arms that they did pass it appropriately. This is why they lost 65 Seats in Nov. 2010. http://spectator.org/archives/2010/03/18/mark-levin-readies-lawsuit-on
2nd Generation Moraga
8:25 pm on Saturday, January 21, 2012
Maybe talk to the Bush administration, the project originated in 2005. Or possibly talk to Nebraska, because they aren't thrilled with the planned path through their state.
Can you explain why there was a connection between the approval of Keystone and the benefits extension vote to begin with please?
David
8:53 pm on Saturday, January 21, 2012
And it went environmental review and passed until Barry's State Department got a hold of it. The Canadians were getting tired of waiting on Barry, they have buyers in China ready to buy and so they'll build a pipeline out west for them now. But at least we'll have always-friendly Venezuela to buy from. That's "smart diplomacy"!
2nd Generation Moraga
8:56 pm on Saturday, January 21, 2012
You totally lost me -- Not sure who Barry is...
Still not sure what Keystone had to do with the budget...
2nd Generation Moraga
8:59 pm on Saturday, January 21, 2012
Answered my own question - Barry=Barrack -- sorry...
2nd Generation Moraga
9:03 pm on Saturday, January 21, 2012
David, as fun as this has been, I'm seeing lots of hyperbole and few actual facts. So best of luck and have a great evening.
Fran
9:16 am on Sunday, January 22, 2012
Not only that Moraga, the claims of Keysone reducing the price of oil is also a bunch of bs. Their OWN studies show its not the case and prices will continue to increase. People hear what they want to hear and beleive what they want to regardless of the facts. And if Obama agrees to the Keystone Pipeline, and it turns out to be an environmental and fiscal nightmare, they will be the first to blame Obama for it.
Gary Adams
10:18 pm on Monday, January 23, 2012
Tim, do your homework. Yes, there would hav been jobs building/maintaining the pipeline, but that oil was already earmarked for sale to China. You need to realize that all petroleum goes on the world market; it's always sold to the highest bidder. In this case, China won the contract.
Tim
10:31 pm on Monday, January 23, 2012
You need to do your homework Gary. Yes, it's a global market but the infrastructure plays a big role in the ability to deliver that oil. Canada is going to sell that oil to China not because they are offering a lower bid but because they are tired of waiting for us. As a previous person noted, this project has been in the works since Bush was president. It wasn't approved sooner because it had to go through the environmental review process, which it already has. Obama is just catering to his far left wing fringe environmental nut jobs and made a deal with the unions (who wanted the project) to keep them quiet and the campaign contributions coming in. Well, congratulations because once gasoline hits $5 a gallon this summer, it won't matter how much Obama spends on his campaign, he's finished.
Terry Parris Jr.
1:37 pm on Saturday, January 21, 2012
So Tim, who, in your opinion, can make it right-- or better? What policies have you been happy with in the past that have changed under mr Obama? Arab oil isn't a new thing, btw.
Tim
3:14 pm on Saturday, January 21, 2012
A leader with real executive experience in the White House is what we need. We need pro-business policies and we need to reduce the corporate tax rate which is the second highest in the world. No Arab oil is nothing new but here we have a blown opportunity to reduce the impact and the prices at the pump. Gasoline will hit $5 a gallon this summer is the unrest with Iran continues. The keystone pipeline would help... and to those that say "it won't help in the short term" you're wrong. Speculation plays a huge role in the price of oil. I personally like Obama and think he's done more to try to help the middle class than any president in my lifetime but you aren't going to improve the overall economy by punishing job creators.
Tom Abate
1:42 pm on Saturday, January 21, 2012
Thanks, Terry, for that observation. To which I would add that ethanol subsidies that have little benefit except as a payoff to farmers in the Republican midwest have distorted the agricultural economy and screwed our local tortilla maker. That and import demand from Asia where a growing consumer class is competing for our food (have you noticed beef prices lately?).
David
2:20 pm on Saturday, January 21, 2012
The republican congress ended ethanol subsidies this year. Just FYI.
Tom Abate
2:26 pm on Saturday, January 21, 2012
Thanks, David, I was not aware. I hope prices settle down -- softly and without damage.
David
3:20 pm on Saturday, January 21, 2012
That's probably unlikely for 2 reasons:
1) The price of food is inextricably to the price of oil. Oil makes fertilizers, runs trucks, combines, barges, packaging, all the stuff that makes corn or wheat into tortillas and bread.
2) The gasohol mandate requiring gasoline to be blended to 90% gasoline and 10% ethanol, a much bigger gift to corn farmers (began in the '90's) than the direct ethanol subsidy was. Ethanol does nothing to reduce emissions, reduces the mileage you get from the blend, and to top it off, it drives up the cost of food.
It'd be "smarter" in my opinion to mandate "flex fuel" including methanol blends, as methanol can easily be made from abundant (shale) natural gas and other sources. But I'm not a corn farmer.
Leah Hall
3:30 pm on Saturday, January 21, 2012
There is a really great documentary about the corn subsidy food chain and industrialization of corn. An informative and entertaining film.
One of the directors, Curtis Ellis, came to my daughter's school 2 years ago to talk with all the students about what he learned from making the film. Highly recommended and available at our local library.
http://en.wikipedia.org/wiki/King_Corn_(film)
Tom Abate
3:28 pm on Saturday, January 21, 2012
Tim, I appreciate the sentiment. I just don't know how to reward the job creators. The vast majority of jobs are created by the smallest business -- and I don't think taxes are as big a drag on their incentives as the pressure on profits, the rising commodity prices and the non-lending by banks (only the third of which is even possibly amenable to policy action).
David: I know less about methanol than the other topics referenced. I am glum, however, about food prices and as you observe, the pressure on them is also likely to continue
Leah Hall
3:34 pm on Saturday, January 21, 2012
Well, if a 15% tax rate for non-wage earned income (i.e. investment income) isn't a reward, I don't know what the heck is. The more I learn about Mitt Romney, the more I want to barf. :)
Now I anticipate my Patch detractors will label me a socialist yet again...
David
3:38 pm on Saturday, January 21, 2012
http://www.nfib.com/research-foundation/surveys/small-business-economic-trends
Naturally in this Depression, the greatest concern of small businesses is (lack of) customers/sales. However, it is nearly a three-way tie between lack of sales, taxes and government regulations.
David
3:42 pm on Saturday, January 21, 2012
Leah, the small business tax rate is the corporate or individual tax rate (35% or more), not the capital gains tax rate. You don't know "what the heck is" for certain. As for the capital gains tax rate, that tax is paid on money that has already been taxed at the corporate or individual rate, in addition to a large portion of the gains being due to inflation. I'd go through the math yet again, but you never let actual numbers interfere with your prejudices.
CJ
6:17 pm on Saturday, January 21, 2012
The issue with Methanol as an oxygenate additive is it is extremely toxic and once it reaches ground water supplies goes to solution rather than remaining separate as gasoline typically does.
Every time they try and mess with the formulations they get the negative consequences MTBE, Methanol,Ethanol.
David
6:55 pm on Saturday, January 21, 2012
Straight 100% gasoline is fine by me, CJ.
2nd Generation Moraga
8:17 pm on Saturday, January 21, 2012
I'm a small business owner and can directly attribute my last 2 hires to payroll tax breaks that incented me to hire back employees I had previously laid off. I would have brought them back eventually as sales picked up, but i was able to be more confident and bring them back earlier because of the federal program. I was also was able to keep an additional 3 employees who went to a reduced work schedule (due to the recession) because of a benefit they became eligible for that helped make up some of their lost wages.
I hear about these "job killing taxes and policies" but I have yet to find them.
Tim
8:26 pm on Saturday, January 21, 2012
You reward them by getting out of the way. Government doesn't create or produce anything; it impedes it with over-regulation and over-taxation. Again, the Keystone pipeline is a prime example of Obama FAIL. It was projected to create about 25,000 jobs.
Tim
8:29 pm on Saturday, January 21, 2012
David is 100%.... this is a double tax. If Leah had her way and increased the capitol gains tax any higher no one would risk their capitol and invest.
In my industry MTBE = Money To Be Earned. I agree Ethanol doesn't do much to decrease emissions. MTBE actually did but unfortunately, it is extremely toxic and extremely water soluble and difficult to clean up once it enters the water table.
2nd Generation Moraga
8:30 pm on Saturday, January 21, 2012
Outside of Keystone (which is a red herring and even if approved tomorrow isn't going to produce the jobs you are speaking of in the next decade) - please provide some specific Obama policies that have killed jobs.
Tim
10:26 pm on Saturday, January 21, 2012
Not only would Keystone create jobs immediately, it would reduce the price of fuel immediately on speculation alone that we wouldn't be quite as dependent on our middle east "friends". I can see you are in the bag for Obama and nothing I can say will change your mind.
I do have to give my new buddy Joe Biden some credit for coming into San Francisco this week and starting off his speech with "The Giants are going to the Superbowl!" GO GIANTS!!!
2nd Generation Moraga
10:43 pm on Saturday, January 21, 2012
Tim, please provide any basis in fact to back up your assertions. Talk is cheap -
David
6:55 am on Sunday, January 22, 2012
Well, somebody has to get hired to build and place the pipeline, no? Or are robots doing all the work? Then there are refinery jobs, maintenance jobs, etc etc.
2nd Generation Moraga
9:07 am on Sunday, January 22, 2012
Keystone will create +\ - 4,000 to 5,000 direct temporary construction jobs during the building phase with an undetermined amount of additional jobs (estimated at 2,500 - 5,000) peripheral jobs in servicing and support once it goes live.
If this thing was green lighted today, construction is at a minimum 3-5 years out due to logistical and legal issues outside the Obama administration. That's why I call this topic ared herring related to job creation or job killing.
Outside of this issue - show me an example of the administrations job killing tendencies - I've provided 2 specific examples of job creating or saving policies (in the East Bay).
Bob and Ann
3:35 pm on Saturday, January 21, 2012
We're growing more of our own food and driving a lot less, seeing more of a pinch on resources yet to come. And I think the president will be elected to a second term.
Terry Parris Jr.
5:51 pm on Saturday, January 21, 2012
Bob and Ann: You're growing more for cost reasons or health reasons (or both?). Also, how much do you think your home grown food has supplemented your store bought food? This might be hard to calculate, but how much of a savings do you think you've seen? This is interesting to me. Thanks for sharing.
CJ
5:58 pm on Saturday, January 21, 2012
The sentiment expressing a 2nd Obummer term is way to early to make any prediction.
You are not accounting for the fact the Dems have no primary which doesn't expose their candidate to the rigorous proces of vetting. 2008 saw a complete lack of vetting for the current POTUS so maybe this time we can do it more thoroughly.
You are seeing significant inflation because of oil. Yes. But the Fed is printing money and flooding the monetary system with paper to stay afloat. This greatly impacts the value of commodities and imported goods driving down the value of the USD.
You will see much more of this. Wait till you see the energy prices skyrocket soon because of the current Fed and State policies. You're gonna love it.
In addition this administration is very hostile to all business and is actively trying to regulate and control all aspects of the economy, which is very alarming to business leaders who will park their capital elsewhere while it gets sorted out.
I have talked to several large firm CEO's and they are in a hiding mode until this POTUS is gone. Many more are like them. It is just too unpredictable when every week the admin has some new tax,regulation or scheme they are floating.
Obama is gone in a landslide. It is actually worse than when Reagan destroyed Carter. The big difference is the Government Employees and those on entitlements have gratly increased since the 70's.
You could run Newt,Mitt or Mickey Mouse any one of them would win and do a better job.
Terry Parris Jr.
6:04 pm on Saturday, January 21, 2012
Not until I see Mickey Mouse's birth certificate.
Tim
8:33 pm on Saturday, January 21, 2012
Hope you're right but I don't see Gingrich winning a general and Romney is going out of his way to blow the nomination... just release you're taxes, stupid! He just got crushed in South Carolina among GOP and Independents. Florida, while more moderate, is a closed primary so no liberals and swing this one. Florida will not be a slam dunk for Romney.
Kenny
6:29 pm on Saturday, January 21, 2012
I found the picture of the "Help Wanted" sign to be amusing. Given the nature of the article, it seems like a picture of a "Sorry, We're Closed" sign might be more fitting.
Michael Delfino
6:37 pm on Saturday, January 21, 2012
The biggest problem is that neither the Republicans or Democrats have looked to history to see what has worked in the past.
How did we recover from the Great Depression? We put people to work. The country built the Hoover Dam, built tens of thousands of miles on roadway and other infrastructure projects, and private companies expanded their businesses to greater heights. Once those people were finished with those projects, they had a skill set that they were able to make a living off of.
What do we do now? Throw money at a problem and hope it will go away. Yeah, that works great, huh?
David
7:05 pm on Saturday, January 21, 2012
I'd invite you to read Amity Shlaes "The Forgotten Man." There is a very good argument to be made that FDR's make-work policies during the Depression made things worse. Beyond that, we have historical evidence--we recovered from just as deep of a downturn in 1919-1921 without massive government intervention. In fact, the next 8 years were the "Roaring 20's." European governments that did not intervene like FDR also recovered faster and more completely than the USA back in the '30's. Finally, those guys who "finished the projects" did not "make a living" with in the future with those "skills," unless you count standing around or collecting money for Democratic candidates as "skills" (hey, sounds like ACORN!). But other than that, your understanding of the Depression is pretty good.
CJ
7:08 pm on Saturday, January 21, 2012
We didn't have even a fraction of the parasitic public workers feeding off of the taxes then. Different time different place.
Until the issue regarding the overwhelming growth of the public sector is addressed we are heading to the abyss.
Leah Hall
7:43 pm on Saturday, January 21, 2012
Wow, Gingrich has "died" twice and now he's back on the top of the G.O.P. race? All this even after revelations of his "Patience, ladies, there's enough Newt for all of you"
Wonders never cease. :)
David
7:48 pm on Saturday, January 21, 2012
Newt won amongst your married women counterparts, Leah. As we all know, chicks dig the bad boys.
Tim
8:34 pm on Saturday, January 21, 2012
It's South Carolina.... I was there golfing last year. They still refer to Country Clubs as "Plantations"
Chris Nicholson
9:04 am on Sunday, January 22, 2012
I want to second David's recommendation of "The Forgotten Man." Much of the accepted popular history of the Great Depression and FDR turns out to be mythology. FDR had no brilliant play book. He was throwing spaghetti on the wall, and much of it did not stick.
2nd Generation Moraga
9:18 am on Sunday, January 22, 2012
Agreed CN, it was a good read. WWII pulled us out of the Depression, not the make work corps However I think the lessons were not lost on the current Fed Chief or administration who have applied different prescriptions this time around.
I think History also shows that Andrew Mellon's approach to solving the Depression (tighten monetary policy) simply exacerbated the problem and was a contributing factor to the steep slide.
Leah Hall
11:45 am on Sunday, January 22, 2012
"Now I know some people out there are questioning Gingrich’s moral authority to comment on other people’s marriages. Gingrich knew his infidelities would be an issue way back when he was contemplating a run. But he and his latest wife, Callista, decided to go ahead anyway, because “the country was worth the pain.’’ So selfless!
Besides, Gingrich has vowed to be faithful to Callista always. Yes, he has done this before, but this time I, like the women of South Carolina and across this great land, believe him.
He just has a way." - Yyvonne Abraham
I'll bet the Obama campaign is totally psyched. Go Newt! Go Newt! Go Newt!
Triple Canopy
8:44 am on Sunday, January 22, 2012
Ethanol - We'd rather burn our corn as fuel than use it for food products. Liberals say it's green and makes people feel good. However, it is bad for the economy and bad for everyone because it increases transportation, commodity, and food prices.
MTBE- Touted as a solution for reducing air pollution but "discovered" by leading scientists that it pollutes groundwater. Duh.
Obama - has never run a business nor managed a budget. Give me a governor with business and fiscal management experience.... not another legislator.
In his 2011 State of the Union address, Obama stated he would have a "laser focus" on job creation. The proposed pipeline would create jobs and create a multiplier effect. Alas, he is delaying his decision until the unions and environmentalists vote for in the next election after which he will make a decision. Get real.. it's a pure political decision. Where is the "laser focus"?
Words like “self-confidence,” “self-reliance,” “initiative”, “enterprise,” “optimism,” etc. play little role in the liberal vocabulary. The Liberal is anti-individualistic, pro-collectivist. Liberals want society to solve everyone’s needs for them, take care of them. A liberal is not the sort of person who has an inner sense of confidence in his own ability to solve his own problems and satisfy his own needs. The Liberal is antagonistic to the concept of competition because, deep inside, Liberals feel like a losers.
David Ross
9:39 am on Sunday, January 22, 2012
Ethanol is less green than the environmental wackos think because it a given amount of ethanol produces less energy than the same amount of gasoline. Additionally, it costs more to produce than gasoline.
Chris Nicholson
9:13 am on Sunday, January 22, 2012
In reading this thread, I was reminded of a good essay by Charles Murray in the weekend edition of the WSJ. The topic was the increasing class divide, and the author focuses on the evolving cultural attitudes toward work. The basic notion is that the upper-middle class has largely retained its cultural underpinnings over the last few decades, while the "middle middle" class has changed in troubling ways. Worth a read.
http://online.wsj.com/article/SB10001424052970204301404577170733817181646.html?mod=WSJ_hps_RIGHTTopCarousel_1
David Ross
9:37 am on Sunday, January 22, 2012
EVERY single one of the unemployment figures in this article is wrong. EVERY ONE! The government deceives taxpayers by not counting in the unemployment rate those who have given up on seeking employment. It also does not include the severely underemployed (such as the PhD working at McDonald's).
The BEST way to get more people employed is to reduce the size of the government workforce and reduce taxes. The former do not pay taxes (see below) and the latter steals from hardworking people.
Dividend income should not be taxed, period. As stated elsewhere in this discussion, dividends are double taxed.
Why do I say government workforce doesn't pay taxes? They are paid by taxes so effectively they are just rebating part of their salary back to the taxpayers. Example: John Government Worker earns $1000. All $1000 is from taxpayers. He pays $100 in taxes. That money goes back to the taxpayers.
David
10:10 am on Sunday, January 22, 2012
Well Barry's EPA just forced the shut down of the st. Croix refinery, costing 2100 jobs or so and increasing the price of gas to boot. Hoover jacked up govt spending by the way during the beginning of the depression. Credit tightened because the banks were having liquidity and solvency problems like today.
2nd Generation Moraga
10:27 am on Sunday, January 22, 2012
You aren't serious? This refinery was which was a joint venture with a Venezuelan petrochemical company operating in the US Virgin Islands was shut down by the operating company due to losses, driven by a lack of demand because of the recession.
http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/01/20/bloomberg_articlesLXZUWE6S972E01-LXZXU.DTL
I think you've made my point for me - have a great Sunday.
Dan Perez
2:08 pm on Monday, January 23, 2012
There are several explanations for the stagnating economy, in my opinion.
#1 - The real estate crash. For many people, the equity in their home adds a sense of financial security; something to fall back on if other investments sink. Now that millions of Americans have lost equity in their homes, they are less inclined to spend on goods and services. Consumer spending drives our economy. Less spending means less business, which means more layoffs.
#2 - Technology and Outsourcing. Many jobs in many industries have permanently been replaced by technology and outsourcing to other countries. These jobs are not coming back. Amazon.com is putting a lot of retailers out of business, for example.
#3 - Government overspending. I believe we overextended ourselves in Afghanistan and Iraq. You don't initiate two wars and cut taxes at the same time. It's the fastest way to a deficit, and this is exactly what happened. Billions more were lost to contractor fraud. Tax dollars down the drain.
#4 - More people qualifiying for Medicare. As our population ages, Medicare claims are increasing. Medicare is the biggest expense in the federal budget, so there is less money for infrastructure (job creation).
I think banks should loosen their home loan lending requirements (but require documentation) to stimulate home buying and increase property values. This may kick start the economy. The interest rates are fantastic right now; perfect tiime to do it.
David Ross
2:22 pm on Monday, January 23, 2012
Dan:
#1. A lot of the blame can be placed on people buying homes that cost too much and falling for the "interest only" loans. Why someone would get an interest only loan is beyond me.
#2.Amazon is successful because they don't have to pay the high California taxes. Also, until September, they don't have to collect sales taxes for California purchases. Just this alone saves Amazon millions of dollars a year because they don't have to be the unpaid tax collector for the California vultures at the FTB.
#3. One day, but definitely not in my lifetime or the lifetime of anybody living today, the government will realize that you don't spend more than $1 for every $1 received.
#4. Medicare and Social Security have one thing in common: they are Ponzi scams.
bryan
2:26 pm on Monday, January 23, 2012
All good points but nowhere do I see our misguided military expedition to Iraq listed..... billions lost, not to mention thousands of fine young Americans. I have to ask: what was that all about if not a futile search for WMD many people said were not there to begin with?
Tim
2:29 pm on Monday, January 23, 2012
That's because we didn't listen to Donald Trump and bill Iraq for the cost of providing them their freedom. I'm not suggesting we "steal" their own but surely they could reimburse us. This is bad policy that began with Bush and continued with Obama. Now that they have been liberated and sell their oil on the market, not one American oil company was granted a contract. Not one. We should have gotten the hell out long ago.
Dan Perez
2:48 pm on Monday, January 23, 2012
David, I wouldn't go so far as saying Medicare and Social Security are "Ponzi scams." I'm sure a lot of senior citizens would agree with me. There are many scenarios where people won't have enough money to pay for their retirement and/or healthcare when they are past 60. Disability, employer bankruptcy/fraud (i.e. Enron), major catastrophes requiring money (caring for sick parents, children, etc). With the logic you offer, there is no need for auto insurance, property insurance, and life insurance. Just save up enough cash, in case the inevitable happens. This is not an option for most people, of course.
David Ross
3:00 pm on Monday, January 23, 2012
It's a scam in that it relies on more people contributing to it. Fewer people are contributing.
Both were bad ideas when they were initiated. They are just as bad now. I would rather put MY money into MY managed account to save for retirement. Though it may sound cold, I think if people cannot save for their own retirement then they don't deserve to get a retirement. If I fail in my investments for my retirement then that's my problem.
I've always believed that there are two reasons why medical care is so expensive: ambulance chasing lawyers and insurance. Medicare is a form of insurance. When people can use someone else's money to pay for their medical care with little or no out-of-pocket expenses then they are going to use it more often.
Contrary to popular belief, there is no requirement by the state to have auto insurance. You can purchase a bond that shows you have enough money to be financially responsible in case of an accident.
You are not required by the government to have property, life, and other insurance. Your lender or other parties may require it. Additionally, unlike Medicare, you can shop around for insurance (outside of flood insurance) for the best deal. With Medicare, there is no shopping around. You take it at the price offered, period.
Brad Katkowsky
3:32 pm on Monday, January 23, 2012
And let's not forget Kuwait.... if anyone has to thank America for coming to save them it would be the Kuwaitis.
Paisley
3:42 pm on Monday, January 23, 2012
"#2.Amazon is successful because they don't have to pay the high California taxes."
No they aren't. They are successful because they are convenient. Even if you aren't paying sales tax, you still have to pay shipping. The costs are relatively the same when you include shipping. It's just you can actually buy the item you want.
People are tired of being told a store has an item, only to find out they don't. Amazon has what everyone wants 24/7. You don't have to wait in line. You can buy it in your underwear, and it always comes fast, and if you need to return it - it's easier than returning to any box store. *That is the reason Amazon is successful.*
If you make them pay sales tax, then prices will be higher than most stores - BECAUSE OF SHIPPING - and it will just kill jobs. Just because you are forced to go to a big box store to buy items, doesn't mean people will if they still feel the store doesn't have what they want, or makes it hard to get out of that store with an item.
I once walked into Best Buy, tried to by screen cleaners. It was my only item. After 5 minutes I walked out without the them and got it from Amazon. I never have to wait in line at Amazon.
Tim
3:51 pm on Monday, January 23, 2012
Best Buy is a disaster. They have no one to blame but themselves for their failure. They have terrible customer service and never have in stock anything I am looking for even AFTER I check their web site and it shows it being in stock. They will go the way of The Wiz, Circuit City, CompUSA, Crazy Eddie, etc. etc. etc.
David Ross
4:48 pm on Monday, January 23, 2012
If you do it right, you don't have to pay a dime for shipping.
1. Purchase anything over $25 from Amazon and it's free shipping or
2. Get Amazon Prime for $79/year. Free 2 day shipping, free videos to watch, borrow a Kindle book once a month
Not paying California taxes is still one reason they are doing so good. I'm not talking about sales tax. I'm talking about the thousand and one taxes the anti-business state of California imposes on businesses.
Tim
4:58 pm on Monday, January 23, 2012
The shipping may be "free" to the customer but Amazon is still absorbing the shipping cost in this case. Do you think UPS and FedEx are simply providing "free" shipping for Amazon customers out of the goodness of their hearts?
a local citizen
5:01 pm on Monday, January 23, 2012
Paisley, Amazon is not killing any jobs. In fact they are bringing 10,000 jobs to California.
The compromise bill delays tax obligations for online retailers until September 2012. "As part of the compromise, Amazon promised to create 10,000 full-time jobs in California, as well as hire 25,000 seasonal employees by the end of 2015, according to the governor’s website."
http://www.dailybruin.com/index.php/article/2011/09/gov._jerry_brown_signs_amazon_sales_tax_bill
Rumor has it these jobs will be in Patterson, California.
http://abclocal.go.com/kgo/story?section=news/business&id=8499678
David Ross
5:08 pm on Monday, January 23, 2012
<exasperated voice>No, Tim, I do not think UPS, FedEx, USPS, or any other shipper is providing Amazon with free shipping.</exasperated voice> In the context of the postings here, it is obvious that it is the end user who is getting the free shipping.
Zolla
3:57 pm on Monday, January 23, 2012
You really want to see where this country is heading if Obama or the Dems keep control of this country, see the movie "Atlas Shrugged" part II will be coming out before the election. it's simple math, Dems stay in power as long as they can keep this nation poor.
Paisley
6:02 pm on Monday, January 23, 2012
A local citizen - "Paisley, Amazon is not killing any jobs. In fact they are bringing 10,000 jobs to California."
That doesn't say it will be a net gain of those jobs - only that California shook them down to get the jobs here. Amazon not paying sales tax is no different than OSH having tax free sales days. They do it all the time. NO one complains about that.
CJ
8:32 pm on Monday, January 23, 2012
I shop Amazon and other online sites for the convenience and much better selection available vs brick and mortar stores. In fact almost everything I buy except food is online and out of state. Even vehicles.
I also shop online at other states to avoid the sales tax. Anything I can do to starve the beast ( California government) is my own small way to counteract the status quo of political power in this state.
If I felt this state was operating even in the vicinity of reality the thought wouldn't be there to look for states I prefer to send my money into.
I simply will not support the insanity any more than I am legally obligated by residence to do.
David Ross
9:54 pm on Monday, January 23, 2012
My original posting on this was from what I perceived to be the advantages of Amazon from their point of view. From a customer point of view, I shop at Amazon for many items because of 4 C's:
- convenience: I can research, see user reviews, and compare prices all in one place.
- cheaper: It's not only the lack of sales tax that makes items cheaper at Amazon. It's not uncommon for an item I want to be cheaper at Amazon than even Wal-Mart. And not everything on Amazon is currently tax-free. Some items from 3rd party vendors are taxed.
- customer care: Amazon has great customer care. Returning items, even items order by mistake, is an easy process and they pay for the return shipping. (For full disclosure, I have found locally owned small businesses with great customer care but those seem to be far and few in between.)
Paisley: OSH has tax free days but the tax is still paid. If memory serves, the last time I heard an OSH tax free day ad the wording was something along the lines of "OSH pays the sales tax."
a local citizen
10:01 pm on Monday, January 23, 2012
Paisley, It looks like you really don't know how a brick and mortar retailer works. Even if a retailer uses a sales tactic like OSH does, "We will pay the sales tax", they do. They do not charge the customer sales tax, however they are required to pay what sales tax they would have collected on those items sold, to the State Board of Equalization.
You need to check things out before you write comments.
Paisley
9:49 am on Tuesday, January 24, 2012
My bad. I made a mistake.