Recently the United States Department of Labor released its unemployment statistics. California has an unemployment/underemployment rate of 20.3%. While it is true that the published unemployment rate for California is 10.2%, the more accurate unemployment rate can be found on the U-6 report.
The U-6 report gives a more complete picture of job market because it also measures those who are only working part-time, those who are under-employed, and discouraged workers who have given up looking for work. Simply put, one in five workers in California is in a financially difficult situation.
The media does a great disservice to the taxpayers of California when they report 10.2% unemployment. Imagine you had just been injured in a car accident and you went to the hospital with a broken arm. You told the doctor that you thought your arm was broken and that you are in a lot of pain. If all the doctor did was to tell you to take two aspirin and to call him in the morning, this would be a huge disservice to you since what you need is an X-ray to properly diagnose your injury.
As long as you are treating your broken arm with aspirin, you are going to have long term health problems in your life. However, with X-rays, a re-setting of the bone, and a solid cast, you can be back to a normal life in a short period of time.
High unemployment means that the economy is suffering. This means businesses do not hire, the unemployed do not have money to spend to create a demand for goods and services, and tax receipts for all levels of government drop. The bad economy is just one reason why we are being inundated this year with ballot measures to increase our taxes.
Businesses are exporting jobs from this state in record numbers. In fact, in 2011, 254 corporations moved some or all of their jobs out of this state. Many of our great technology companies have chosen to manufacture their products anywhere but California.
Rather than take an X-ray and fix the problems of our state, our Governor and the Democrat party has decided to tell the taxpayers to take two aspirin and vote for tax increases because your government needs more money. An X-ray of this state would show that our state is broken because we are spending money on a train to nowhere, have approximately $500 billion in unfunded pension liability, and the governor has decided to build the Peripheral Canal.
California Democrats refuse to look at the X-ray to see that their tax and spend policies are destroying this state in bad economic times. California Democrats are refusing to make the hard decisions to cut some of their personal pork barrel spending.
There are over 372 commissions to oversee and regulate personal lives and business. Many of these commissions should be combined or eliminated. It should not take years for granting permits allowing a business to start up. These excessive regulations are the main cause of many the smaller S-Corporations to either leave or prevent them from ever coming into the state. Why would businesses move to this state when we have been ranked as the worst state to do business in for eight years in a row?
In talking with businesses, three of their main concerns have been the high cost of all the permits and fees for doing business, fraud in workman’s compensation, and unreasonable environmental regulations.
Let’s start electing leaders who are willing to look at the X-ray of this state. Until we look at the X-rays, we will never be in a position that we can fix the problems that are destroying the greatness of California.