Russ Steele
Steve Lev director of the Center for the Continuing Study of the California Economy writes:
"Steep declines in construction spending and jobs are the primary reason why California’s unemployment rate is so much higher than the national rate. From 2005 through 2009, California experienced a 60% decline in construction spending adjusted for inflation, from near $100 billion in 2005 to just under $40 billion in 2009, compared to a 25% decline nationally. And the state saw a decline of 83% from the peak in residential unit permits (209,000 in 2005 down to 36,000 in 2009) compared to a 72% decline in other states.
The state saw massive job losses related to the construction decline job losses that were larger than experienced nationally and which explain why the states unemployment rate and job losses surged ahead of the national average.
California lost 33% of the states construction jobs between December 2007 and December 2009 compared to 24% for the nation. And California experienced larger job losses in construction-related manufacturing and retail trade sectors and well as larger losses in finance and real estate."
I find it informative that AB32, the Global Warming Solutions Act, was signed in 2006 and smart growth law SB 375 in 2008, all legislation that raised the cost of construction in California and the operations of business in the state. If you add California growing debt to the mix, California’s recovery is going to long and painful, as there are growing empediments to restarting our construction industry.
California citizens have an opportunity to reduce the grip of AB32 on our economy by voting YES on PROP 23. It is not the total solution but we have to start some where, and this is our first opportuntiy return citizens to power.
