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Ready for a shock? Government has lied to us about the real unemployment rate in California. It is closer to 25% than 13%.
"But Williams goes beyond even the U-6 number to calculate unemployment. He said that, before 1994, the official numbers used to included discouraged workers, those who had given up looking for a job. Today, if you cant find a job in more than 12 months, you’re taken off the rolls completely. I try to estimate the discouraged worker.
He said that, at the national level, including discouraged workers as was done before 1994 would add about 5 percentage points to the unemployment rate. I don’t have a separate survey for California, he said. There’s no way to directly measure it.
But if the BLSs U-6 number for California is 21.9 percent, then adding 5 percentage points would put the actual unemployment rate at 26.9 percent. To be cautious, we can say it would be 25 percent.
California’s unemployment rate could be 25 percent, Williams calculated. During the Great Depression, unemployment nationally was 25 percent at its worst in 1933. We’re about as bad as we’ve seen in the post-World War II era."
Now you know why I call this the California Great Depression.
"Why is California, in reality, mired not just in a bad recession, but a slump of Great Depression proportions? And how can we get out of it?
The state of California probably is one of the most difficult in which to run a business, Williams said. There are health-insurance issues. State regulations generally are more severe than federal regulations. A business looking to locate between New Hampshire and California, might look at California, then look at a state that is generally less expensive where there’s not as much paperwork. There are many disincentives for a business to stay in this state.
That is AB 32, SB 375, high taxes and a legislature and Governor that are on vacation instead of passing a budget.
California unemployment? Possibly 25%--does this make you angry? Then do something about it on November 2.
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"But Williams goes beyond even the U-6 number to calculate unemployment. He said that, before 1994, the official numbers used to included discouraged workers, those who had given up looking for a job. Today, if you cant find a job in more than 12 months, you’re taken off the rolls completely. I try to estimate the discouraged worker.
He said that, at the national level, including discouraged workers as was done before 1994 would add about 5 percentage points to the unemployment rate. I don’t have a separate survey for California, he said. There’s no way to directly measure it.
But if the BLSs U-6 number for California is 21.9 percent, then adding 5 percentage points would put the actual unemployment rate at 26.9 percent. To be cautious, we can say it would be 25 percent.
California’s unemployment rate could be 25 percent, Williams calculated. During the Great Depression, unemployment nationally was 25 percent at its worst in 1933. We’re about as bad as we’ve seen in the post-World War II era."
Now you know why I call this the California Great Depression.
"Why is California, in reality, mired not just in a bad recession, but a slump of Great Depression proportions? And how can we get out of it?
The state of California probably is one of the most difficult in which to run a business, Williams said. There are health-insurance issues. State regulations generally are more severe than federal regulations. A business looking to locate between New Hampshire and California, might look at California, then look at a state that is generally less expensive where there’s not as much paperwork. There are many disincentives for a business to stay in this state.
That is AB 32, SB 375, high taxes and a legislature and Governor that are on vacation instead of passing a budget.
California unemployment? Possibly 25%--does this make you angry? Then do something about it on November 2.
More...