Personal income falls 2.5% in California

Excerpted from “Personal income falls 2.5% in California” By Tom Abate, Chronicle Staff Writer, The San Francisco Chronicle, Friday, March 26, 2010
[SIZE="+2"]P[/SIZE]ersonal income in California fell last year for the first time since the Great Depression, the Commerce Department said Thursday.

State income plunged even more sharply in 2009 than the similar, historic drop that occurred on a national basis, a notable reversal given that California generally has beaten the national averages throughout the 80-year history of this report.

Personal income includes wages and salaries, health and pension benefits, rents, dividends and interest, federal payments such as unemployment and Social Security, and just about every form of wealth except stock sales and other capital gains.

The 2.5 percent drop in statewide personal income works out to $1,527 fewer dollars for every man, woman and child in California.

The accompanying nationwide drop of 1.7 percent works out to a $1,028 decline in per capita income for all Americans.

Prior to last year's drop, personal income in California had fallen only five times since 1929, when such record keeping began. All five of those occurrences were during the Depression. …

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California dreamin' no more.

Chappy said:

California dreamin' no more.

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And they have to wait for the state refunds, too, because the coffers are empty.

I was there a couple of weeks ago. People are pissed, scared, and depressed.

Erod said:

And they have to wait for the state refunds, too, because the coffers are empty.

I was there a couple of weeks ago. People are pissed, scared, and depressed.

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I think a big part of the problem is the way their ballot measures work. Put to vote, people are all for increasing services, but rarely in favor of raising taxes to pay for them. "More parks in X city? Sure, sounds great! Free garbage pickup in all cities? Awesome! Double hiring of police force? Woohoo! INCREASE TAXES .05%? OVER MY DEAD BODY!"

They vote for all sorts of fun things but never a way for paying for them. Good argument against direct democracy

Deuce said:

I think a big part of the problem is the way their ballot measures work. Put to vote, people are all for increasing services, but rarely in favor of raising taxes to pay for them. "More parks in X city? Sure, sounds great! Free garbage pickup in all cities? Awesome! Double hiring of police force? Woohoo! INCREASE TAXES .05%? OVER MY DEAD BODY!"

They vote for all sorts of fun things but never a way for paying for them. Good argument against direct democracy

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A 12.4 percent unemployment rate doesn't help.

I agree with you that increased city services should require additional taxes, provided that the citizens vote for these taxes and services.

I agree with you that increased city services should require additional taxes, provided that the citizens vote for these taxes and services.

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The problem is that the citizens vote for services without the taxes. They don't seem to understand that railroads don't materialize out of thin air without somebody putting up money first. Its bad enough that moronic large spending projects get passed in the first place, its worse that we don't pay for them. The only projects on the ballot I have ever seen even think about needed revenue mortgage the future with yet more bonds.

rathi said:

The problem is that the citizens vote for services without the taxes. They don't seem to understand that railroads don't materialize out of thin air without somebody putting up money first. Its bad enough that moronic large spending projects get passed in the first place, its worse that we don't pay for them. The only projects on the ballot I have ever seen even think about needed revenue mortgage the future with yet more bonds.

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Oh you should even see how the political ads run, too. They vote on all these new services and then the politicians hammer each other for having to vote voodoo budget measures to pay for them.

It's this huge quagmire that will never be resolved at this point.

Please make note that State Employees are not actually part of this story. Many law makers have recently given staffers some pretty good raises California is in trouble for a multitude of reasons.

The Governor is worthless RINO and Obama worshiper and he will not stand up to the Liberals who are controlled by Unions and their donations.

State workers are lazy and there are way too many of them.

The State legislature has over the years made the State an anti-business State with laws regulations and taxes that drive business away in an unfriendly atmosphere.

The PHONY Green movement inhibits business and does nothing but add to the problems. No one will stand up to the environmentally ill and say HELL NO you're all a bunch of lying hypocrites who don't give a damn about anything but making sure there is always something to complain about the those who make big money in these crooked groups can keep rolling in the real green they care about. CASH!

These are a few of my favorite things, Wrong with my State.

You can add a school system controlled by people in unions who are doing a bad job of teaching and it's not all their fault. Some of the blame is the schools system run by Liberals some is because of Unions and some is the fault of poorly educated parents who don't spend enough time with or caring about their own children or their education.

Al this leads to poor performance and bad decisions that lead to what we see today and it's not just in California.

Those who stand for nothing fall for anything.

California also has the highest income tax and sales tax in the US.

Gotta love them libs.

Crunch said:

California also has the highest income tax and sales tax in the US.

Gotta love them libs.

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I came here from a state with no sales tax and no income tax. I was floored by the fact that I made twice what I made before but brought home about the same.

jallman said:

I came here from a state with no sales tax and no income tax. I was floored by the fact that I made twice what I made before but brought home about the same.

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What a State...... I got the hell out of there 15 years ago, don't regret it one bit.

rathi said:

The problem is that the citizens vote for services without the taxes. They don't seem to understand that railroads don't materialize out of thin air without somebody putting up money first. Its bad enough that moronic large spending projects get passed in the first place, its worse that we don't pay for them. The only projects on the ballot I have ever seen even think about needed revenue mortgage the future with yet more bonds.

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Can anyone say Greece.

Erod said:

A 12.4 percent unemployment rate doesn't help.

I agree with you that increased city services should require additional taxes, provided that the citizens vote for these taxes and services.

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It sounds to me like the California state constitution needs to be revised so that any government-provided service passed can only do so if a measure to pay for that service passes as well.

I think we need to repeal the three progressive-led changes to the California constitution at the beginning of the twentieth century when the Southern Pacific Railroad basically ran the state: direct democracy through amendments, resolutions and recalls. I don't think they achieved their purpose then, and I am certain they are not achieving their purpose now.

Second I would repeal the super majority requirement to pass a state budget. California is just about ungovernable at this point.

Third, I would repeal term limits on state office holders. We have lost all our experienced politicians who might have had the good sense needed to get the state through these hard times without so much pointless conflict.

Chappy said:

Third, I would repeal term limits on state office holders. We have lost all our experienced politicians who might have had the good sense needed to get the state through these hard times without so much pointless conflict.

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When Reagan left the governor's office, the slow death of California began.

washunut said:

Can anyone say Greece.

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The hell I can.
I can even say it backwards.... Eceerg.

Chappy said:

I think we need to repeal the three progressive-led changes to the California constitution at the beginning of the twentieth century when the Southern Pacific Railroad basically ran the state: direct democracy through amendments, resolutions and recalls. I don't think they achieved their purpose then, and I am certain they are not achieving their purpose now.

Second I would repeal the super majority requirement to pass a state budget. California is just about ungovernable at this point.

Third, I would repeal term limits on state office holders. We have lost all our experienced politicians who might have had the good sense needed to get the state through these hard times without so much pointless conflict.

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Hoe do you get past a great underlying problem for Califirnia and the U.S. overall. That is the elctorate's refusal to vote for people who are willing to make the kinds of changes you propose.

California is just in the limelight because it is our biggest state and has a lot of problems. The problems are not that much different than they have in Ill. or NY.

Deuce said:

I think a big part of the problem is the way their ballot measures work. Put to vote, people are all for increasing services, but rarely in favor of raising taxes to pay for them. "More parks in X city? Sure, sounds great! Free garbage pickup in all cities? Awesome! Double hiring of police force? Woohoo! INCREASE TAXES .05%? OVER MY DEAD BODY!"

They vote for all sorts of fun things but never a way for paying for them. Good argument against direct democracy

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It's what happens when you create an entire welfare class, then let them for themselves more entitlements.

The welfare class votes in the fun things, then when the working class is asked to pay for it, they vote no. Plain ole common sense tells us that won't work.

washunut said:

Hoe do you get past a great underlying problem for Califirnia and the U.S. overall. That is the elctorate's refusal to vote for people who are willing to make the kinds of changes you propose.

California is just in the limelight because it is our biggest state and has a lot of problems. The problems are not that much different than they have in Ill. or NY.

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Bob Schieffer had a good suggestion on Face the Nation this morning: eliminate party primaries and hold an open election to select the two best candidates and vote on them in November. By doing so, we would eliminate the ability of the radicals on the right and the left to control which candidates we select our representatives from. It's a good idea and I think we'll obtain people prepared to work together to solve our state's problems.

Chappy said:

Bob Schieffer had a good suggestion on Face the Nation this morning: eliminate party primaries and hold an open election to select the two best candidates and vote on them in November. By doing so, we would eliminate the ability of the radicals on the right and the left to control which candidates we select our representatives from. It's a good idea and I think we'll obtain people prepared to work together to solve our state's problems.

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interesting thought. We have to get past the radicals who have a stranglehold on both parties.

I really think it is going to take a person who is very rich, articulate, proven accomplishments to form a viable third party. One that both parties have to recon with. Sort of like the Perot candidancy before things fell apart at the end.