Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
and it seems that even though alot of the areas in California are now adding alot of jobs it continues to have one of the worst unemployment situations in the whole entire nation.
and it seems that even though alot of the areas in California are now adding alot of jobs it continues to have one of the worst unemployment situations in the whole entire nation.
Why is that? Immigration??
There are a number of reasons. The short answer is because it's a blue state.
Blue State Budget Blues – Why Red States are in the Black
by moneychanges on April 15, 2012
The concept of Red States and Blue states have a lot of relevance to predicting certain outcomes in national elections. But what if the same concept was also useful in predicting the economic health of state and local governments.
Red States in America are in a better overall economic, budget, and debt position relative to Blue. If one looks closely at the economic data of all 50 states there is overwhelming agreement with this conclusion. The correlation is so strong that one will be hard pressed to find exceptions to this pattern.
Wikipedia provides the definitions and history of the terminology regarding Red States and Blue States.
The terms red states and blue states…refer to those states of the United States whose residents predominantly vote for the Republican Party or Democratic Party presidential candidates, respectively. A blue state tends to vote for the Democratic Party, and a red state tends to vote for the Republican Party.
A state that votes equally for Republicans and Democrats would be a purple state. In the general sense
A purple state refers to a swing state where both Democratic and Republican candidates receive strong support without an overwhelming majority of support for either party. Purple states are also often referred to as battleground states.
This discovery of a correlation between voting patterns and economic health was happened upon by accident. It came about in the course of researching creative financial innovation at the state level. In particular the Bank of North Dakota. There definitely seems to be a relationship between the financial success of the Bank of North Dakota and the economic success of the state as a whole. But on the surface it wasn’t so clear what the relationship is.
Could a state bank be the key to economic health and job creation? Pension fund investment problems in the state of California is an indication that the answer may actually be no. Nonetheless state banking does work in North Dakota. Its economy is one of the best performing in the nation. If we knew the answer to why North Dakota is doing well then it may be possible to fix the budget problems of the other states not to mention the Federal Government.
After looking at a lot of state economic data the one thing which really stands out is how miserable the Blue states are doing. Generally the Bluer a state is, the worse its financial and economic numbers are. Whenever a state showed exceptionally good economic data it was always turning out to be Red. So understanding more about Red versus Blue may be of great importance. Especially if it can help determine the universal factors which are involved in economic success and failure at the state level.
California- Ranked #2 Bluest State
Although Washington DC holds the #1 spot for bluest state, technically it is not a state. Therefore, California is truly the bluest state in America. However, being #1 in this category is not such a good thing.
In addition to its pension problems California boasts some of the worst economic data in the nation. A survey of CEO’s labeled it the worst state to do business. A RAND corporation study ranked California schools as the worst in the nation. Certainly California is the ‘best’ at many things, but searching the internet for the words ‘California’ and ‘worst’ will bring up quite a few hits for #1 worst state.
One of the key indicators of California’s poor economic health is continuing revenue shortfalls and higher than average unemployment numbers. Continuing tax revenue shortfalls are an indication of contracting business activity and overly optimistic projections about an economic recovery.
Could California help solve its economic problems with a state bank? A pension fund is really not much different then a state bank. Both invest/loan public monies in ways that the taxpayer benefits from the gains but will also be liable for losses. If California were to set up a State Bank on the same model as North Dakota then the California governor and other state elected leaders would be responsible for managing that bank.
California’s governor and state leaders are already managing the state’s pension funds. They have been doing so for many decades. During that time it seems most of the pension funds were invested outside of the state and still are today. After the 2008 financial crises CALPERS has sought to clean up its local image by highlighting that 10% of its funds are currently invested in California. What about the other 90%?
California’s pension funds may have performed well in the past but recently they have created huge losses for taxpayers. At the end of 2008 the states two largest pension funds CALPERS and CALSTRS lost an estimated 107 billion dollars. The bad news is that these are just losses at the state level. There is also local government pension funds in California which are independent from the state run systems. According to a Stanford University study the locally run pension funds have racked up an additional $135 billion in losses for California taxpayers.
Large amounts of California’s Pension funds continue to be invested outside the state and/or directly by New York based investment banks on Wall Street. When California state officials have already lost so much money and are reluctant to invest pension money locally it raises doubts about whether creating a state bank like North Dakota will solve California’s economic and financial problems. There must be something more to the story with Pension funds and North Dakota’s economic success.......
Location: where you sip the tea of the breasts of the spinsters of Utica
8,297 posts, read 14,166,733 times
Reputation: 8105
It can't be because of politics, since normally California is the tax powerhouse of the US economy. It is, however, a very cyclical economy - when it's good we're better than any other place, and when we're bad we're among the worst.
Even now we put in more tax money to the US than any other state, unlike most of the red states which are tax deadbeats, receiving more from the govt trough than they put in.
Location: Central Bay Area, CA as of Jan 2010...but still a proud Texan from Houston!
7,484 posts, read 10,449,471 times
Reputation: 8955
Quote:
Originally Posted by Woof
It can't be because of politics, since normally California is the tax powerhouse of the US economy. It is, however, a very cyclical economy - when it's good we're better than any other place, and when we're bad we're among the worst.
Even now we put in more tax money to the US than any other state, unlike most of the red states which are tax deadbeats, receiving more from the govt trough than they put in.
CA spends more federal dollars than it pays out and it spends more in federal dollars then any other state.
It can't be because of politics, since normally California is the tax powerhouse of the US economy. It is, however, a very cyclical economy - when it's good we're better than any other place, and when we're bad we're among the worst.
Even now we put in more tax money to the US than any other state, unlike most of the red states which are tax deadbeats, receiving more from the govt trough than they put in.
Red states usually do get more back than they pay into the system. However, that has little to do with why red states, generally speaking, have better economies. Red states are generally more frugal in their state spending. They are also more business friendly. Of course that's just a couple of factors. There are many reasons california as well as the other blue states are in economic trouble. This is an article about san bernadino. Think of it as a microcosm of the larger problems experienced by california, not to mention many/most of the other blue states.
You won't like the article, assuming you actually read it. You won't like the source. You won't like the message. It goes against just about everything you want to believe. It's just the way it is.
Jeremy Rozansky
San Bernardino’s Route to Bankruptcy
A long trip, perhaps, but the signposts were visible for years.
18 July 2012
Two years ago this August, San Bernardino city treasurer David Kennedy issued a dire warning to a politically riven city council. “Budget gimmicks are only going to take us so far,” Kennedy admonished. Absent some drastic changes, he argued, it would soon be impossible to certify that the city could make its monthly payroll. At the same meeting, former city manager Charles McNeely likened year after year of shortsighted budgeting and unsustainable expenditures to the Bill Murray classic Groundhog Day. But the council largely failed to act on those warnings (in fact, McNeely left his post on May 1 of this year, citing the city’s “toxic” political environment). Finally, news broke last week that the city of 213,000, unable to cover its payroll next month, would seek Chapter 9 bankruptcy protection.
San Bernardino has some procedural hurdles to clear before it can declare bankruptcy officially. The city council this week postponed a vote on whether to declare a “fiscal emergency” that would allow it to bypass a state-mandated mediation period. But city creditors have already begun to demand payment in cash.
San Bernardino is, as Mayor Pat Morris calls it, a “blue-collar town”—and currently one with a 16 percent unemployment rate. The U.S. Census Bureau last year designated it the nation’s second-poorest city, behind only decrepit Detroit. Nearly 46 percent of residents receive some form of government assistance. “The reasons for our dilemma are multiple and long enduring,” Morris explained last week, after the council voted 4–2 (with one abstention) to authorize the bankruptcy filing. “They began long before the meltdown of our economy. We’ve been living on the financial edge for a long, long time. But we were unmasked by the meltdown in 2007 when we lost $16 million in sales tax in one year, when we lost 60 percent of our land value and 5,000 homes went into foreclosure.” The city also relied on $6 million annually in redevelopment money—sequestered sales-tax dollars overseen by essentially autonomous and unaccountable agencies—to help balance its budget. But Governor Jerry Brown abolished California’s redevelopment agencies this year in a cost-saving move, leaving San Bernardino further in the red after exhausting much of its reserve fund two years ago. Today the city’s budget deficit is an estimated $45 million......
Location: where you sip the tea of the breasts of the spinsters of Utica
8,297 posts, read 14,166,733 times
Reputation: 8105
Red states DON'T usually have good economies. Alabama? Georgia? Mississippi? Arkansas? C'mon now, none come even close to California (or NY or MA) in ordinary economic times.
I did mention the part about "cyclical economy", didn't I? That means lots of ups and downs.
Red states DON'T usually have good economies. Alabama? Georgia? Mississippi? Arkansas? C'mon now, none come even close to California (or NY or MA) in ordinary economic times.
I did mention the part about "cyclical economy", didn't I? That means lots of ups and downs.
{sigh} I'll try again. In case this article is too long or the words too hard I can always sumarize it for ya'.
You guys are doing it wrong. There, does that help?
State Budget Blues – Why Red States are in the Blackby moneychanges on April 15, 2012
The concept of Red States and Blue states have a lot of relevance to predicting certain outcomes in national elections. But what if the same concept was also useful in predicting the economic health of state and local governments.
Red States in America are in a better overall economic, budget, and debt position relative to Blue. If one looks closely at the economic data of all 50 states there is overwhelming agreement with this conclusion. The correlation is so strong that one will be hard pressed to find exceptions to this pattern.Wikipedia provides the definitions and history of the terminology regarding Red States and Blue States.
The terms red states and blue states…refer to those states of the United States whose residents predominantly vote for the Republican Party or Democratic Party presidential candidates, respectively. A blue state tends to vote for the Democratic Party, and a red state tends to vote for the Republican Party.
A state that votes equally for Republicans and Democrats would be a purple state. In the general sense
A purple state refers to a swing state where both Democratic and Republican candidates receive strong support without an overwhelming majority of support for either party. Purple states are also often referred to as battleground states.
This discovery of a correlation between voting patterns and economic health was happened upon by accident. It came about in the course of researching creative financial innovation at the state level. In particular the Bank of North Dakota. There definitely seems to be a relationship between the financial success of the Bank of North Dakota and the economic success of the state as a whole. But on the surface it wasn’t so clear what the relationship is.
Could a state bank be the key to economic health and job creation? Pension fund investment problems in the state of California is an indication that the answer may actually be no. Nonetheless state banking does work in North Dakota. Its economy is one of the best performing in the nation. If we knew the answer to why North Dakota is doing well then it may be possible to fix the budget problems of the other states not to mention the Federal Government.
After looking at a lot of state economic data the one thing which really stands out is how miserable the Blue states are doing. Generally the Bluer a state is, the worse its financial and economic numbers are. Whenever a state showed exceptionally good economic data it was always turning out to be Red. So understanding more about Red versus Blue may be of great importance. Especially if it can help determine the universal factors which are involved in economic success and failure at the state level.
California- Ranked #2 Bluest State
Although Washington DC holds the #1 spot for bluest state, technically it is not a state. Therefore, California is truly the bluest state in America. However, being #1 in this category is not such a good thing.
In addition to its pension problems California boasts some of the worst economic data in the nation. A survey of CEO’s labeled it the worst state to do business. A RAND corporation study ranked California schools as the worst in the nation. Certainly California is the ‘best’ at many things, but searching the internet for the words ‘California’ and ‘worst’ will bring up quite a few hits for #1 worst state.
One of the key indicators of California’s poor economic health is continuing revenue shortfalls and higher than average unemployment numbers. Continuing tax revenue shortfalls are an indication of contracting business activity and overly optimistic projections about an economic recovery.
Could California help solve its economic problems with a state bank? A pension fund is really not much different then a state bank. Both invest/loan public monies in ways that the taxpayer benefits from the gains but will also be liable for losses. If California were to set up a State Bank on the same model as North Dakota then the California governor and other state elected leaders would be responsible for managing that bank.
California’s governor and state leaders are already managing the state’s pension funds. They have been doing so for many decades. During that time it seems most of the pension funds were invested outside of the state and still are today. After the 2008 financial crises CALPERS has sought to clean up its local image by highlighting that 10% of its funds are currently invested in California. What about the other 90%?
California’s pension funds may have performed well in the past but recently they have created huge losses for taxpayers. At the end of 2008 the states two largest pension funds CALPERS and CALSTRS lost an estimated 107 billion dollars. The bad news is that these are just losses at the state level. There is also local government pension funds in California which are independent from the state run systems. According to a Stanford University study the locally run pension funds have racked up an additional $135 billion in losses for California taxpayers.
Large amounts of California’s Pension funds continue to be invested outside the state and/or directly by New York based investment banks on Wall Street. When California state officials have already lost so much money and are reluctant to invest pension money locally it raises doubts about whether creating a state bank like North Dakota will solve California’s economic and financial problems. There must be something more to the story with Pension funds and North Dakota’s economic success.......
I'm trying to think of an easier word than "cyclical". How about "it goes up and down a lot over a time scale of decades". You seem to be under the impression that the main indicator of economic health is the unemployment rate at the moment, together with surveys of CEOs.
Lots and lots of minimum wage dead-end McJobs in red states don't add up to a healthy economy.
Uh, who are "you guys" and what are we "doing wrong?"
In your state of infinite wisdom and quoting prowess, you may not have considered than few if any of us are politicians or policy-setters. We're voters and tax payers who, for all you know, voted red and aren't fond of paying heavy taxation that funds our insatiable public employee unions or our illegal immigrant-saturated public schools.
It's time for you to stop being such a simplistic flyover state person and to start realizing that unlike ND- which has a homogenous population far less than 1M- some states are highly populated, diverse and complex beyond your understanding as is made plain by your reference to "you guys."
{sigh} I'll try again. In case this article is too long or the words too hard I can always sumarize it for ya'.
You guys are doing it wrong. There, does that help?
My name is Dutchman, I post long drawn out articles to try to prove points
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
