In 2007, Congress incrementally raised the $5.15 an hour minimum wage by 40% making it $7.25, effective July of 2009. At that time we were told that $7.25 an hour was a "fair" wage; or, in other words: a "living wage". In fact, the law responsible for the increase was called the "Fair Minimum Wage Act of 2007". Now, if that $7.25 wage was truly a "fair wage" in 2009 and, if it had been automatically adjusted for inflation each year, then the "fair wage" of today should be about $8.
Instead, in 2013, President Obama kicked off a national debate on what is a "fair wage" by campaigning around the country promoting a 24% increase to $9 an hour. A year later, he was pushing a 40% increase to $10.10; or, more than $2 above a supposed fair wage if that $7.25 had been inflation-adjusted all these years. Meanwhile, unions, who don't have a single minimum wage earner as part of their membership, have decided $15 is a living wage and picketed company stores like those of McDonald's and Walmart to give their cause public attention.
As a result of all this, the public is left with the impression that millions of Americans earn the minimum wage and are, literally, living in poverty. Believing all this, 63% of those surveyed in a recent Hart Research poll support a $15 minimum by the year 2020.
The truth about the $15 minimum wage was exposed when the unions in Los Angeles asked the city council to provide an exception to the law for unionized operations in the City. This, after those very same unions had pushed hard by picketing and lobbying to pass the $15 wage in that city.
Suddenly, they realized that a bunch of inexperienced 16-year olds, working part time at cash registers at fast food restaurants, would earn as much or more than their supposed experienced union members. This is because 71% of the 1.25 million workers earning the minimum wage in this country are part-timers. In Los Angeles, union members can make as little as $12/hour. That apparently was a good enough "living wage" for their union members. Let's hear it for the brash hypocrisy of the union living wage argument.
References:
Fair Minimum Wage Act of 2007: http://en.wikipedia.org/wiki/Fair_Minimum_Wage_Act_of_2007
Feb 12, 2013 · President Obama wants to raise the minimum wage to $9 an hour, the first increase since 2009: http://money.cnn.com/2013/02/12/news/economy/obama-minimum-wage/index.html
March 5, 2014: Obama pushes for $10.10 minimum wage: http://wtnh.com/2014/03/05/obamas-minimum-wage-campaign-comes-conn/
Unions and the $15 Minimum Wage: http://www.nationalreview.com/corner/418936/unions-and-15-minimum-wage-kevin-d-williamson
Hart Research Poll on Minimum Wage: http://www.nelp.org/content/uploads/2015/03/PR-Federal-Minimum-Wage-Poll-Jan-2015.pdf
Bureau of Labor Statistics: Characteristics of a Minimum Wage Worker for 2014: http://www.bls.gov/opub/reports/cps/characteristics-of-minimum-wage-workers-2014.pdf
Hypocrisy Thy Name Is Union; Unions Demand Exemption From LA's $15 Minimum Wage: http://www.forbes.com/sites/timworstall/2015/05/27/hypocrisy-they-name-is-union-unions-demand-exemption-from-las-15-minimum-wage/
Showing posts with label los angeles. Show all posts
Showing posts with label los angeles. Show all posts
Wednesday, June 10, 2015
Sunday, December 21, 2014
The $15 Minimum Wage and Maribel versus McDonald's
Recently, I ran across a story in the DailyMail about a Mexican immigrant by the name of Maribel who organized a strike against a McDonald's in her Los Angeles neighborhood. Her grievance was that she and her two toddlers couldn't live on the $9.35/hour that McDonald's was paying her. Which, by the way, is 35 cents higher than California's minimum wage of $9/hour, which is set to be $10/hour as of 1/1/16.
Because of her situation, she says she needs $15/hour. Not $10. Not $12. But, exactly $15. Which is what apparently the magic number that everyone in the U.S., who is earning a minimum wage, thinks they should be making in order to live. This despite the fact that the cost of living varies widely in this country; from state to state and, from urban areas to rural America.
My biggest problem with the $15 minimum wage is that it is higher than the average annual income of everyone living in the County of Los Angeles. In that county of 10 million people, the average per capita income was $27,749 in 2013. When broken down to an hourly wage, it is equal to $13.34. As such, are we then supposed to believe that as many as 5 million Angelenos, making less than $15/hour, are unable to live?
My other problem is with Maribel's story itself. While it was never stated, it is obvious that she is living in this country illegally because her mother brought her here from Mexico when she was just 7 months old. That's a problem for a lot of people like Maribel. Because, if she was a naturalized citizen and given the fact that she had two children and is only making $9.35/hour -- even if she worked a full 40 hour week -- she would be eligible for all kinds of state and federal welfare programs. Programs that have an aggregate worth in the tens of thousands of dollars.
Also, because she is in poverty, she will not have to pay any federal taxes. Something that wouldn't be the case if she made $15/hour. She is also eligible to get money back from the IRS by filing a tax return and by claiming Earned Income Tax Credits for herself and her children. An amount that could be as high as $3300; something she would lose when making $15/hour.
Once again, the $15 minimum wage proponents don't seem to see what many single parents, assuming they are citizens, will be giving up by going to this level of a minimum wage. As is often said: Be careful of what you wish for.
References:
Maribel vs McDonald's: Single mother of two goes on strike against fast-food giant demanding $15 minimum wage and a union for employee: http://www.dailymail.co.uk/news/article-2878565/Maribel-vs-McDonald-s-Single-mother-two-goes-strike-against-fast-food-giant-demanding-15-minimum-wage-union-employees.html
2014 Poverty Guidelines: http://aspe.hhs.gov/poverty/14poverty.cfm
Welfare In California: http://en.wikipedia.org/wiki/Welfare_in_California
Cost of Living Calculator - CNN Money: http://money.cnn.com/calculator/pf/cost-of-living/
"Poverty" pays better than middle-class employment: http://humanevents.com/2012/11/28/poverty-pays-better-than-middle-class-employment/
Policy Basics: The Earned Income Tax Credit: http://www.cbpp.org/cms/?fa=view&id=2505
Because of her situation, she says she needs $15/hour. Not $10. Not $12. But, exactly $15. Which is what apparently the magic number that everyone in the U.S., who is earning a minimum wage, thinks they should be making in order to live. This despite the fact that the cost of living varies widely in this country; from state to state and, from urban areas to rural America.
My biggest problem with the $15 minimum wage is that it is higher than the average annual income of everyone living in the County of Los Angeles. In that county of 10 million people, the average per capita income was $27,749 in 2013. When broken down to an hourly wage, it is equal to $13.34. As such, are we then supposed to believe that as many as 5 million Angelenos, making less than $15/hour, are unable to live?
My other problem is with Maribel's story itself. While it was never stated, it is obvious that she is living in this country illegally because her mother brought her here from Mexico when she was just 7 months old. That's a problem for a lot of people like Maribel. Because, if she was a naturalized citizen and given the fact that she had two children and is only making $9.35/hour -- even if she worked a full 40 hour week -- she would be eligible for all kinds of state and federal welfare programs. Programs that have an aggregate worth in the tens of thousands of dollars.
Also, because she is in poverty, she will not have to pay any federal taxes. Something that wouldn't be the case if she made $15/hour. She is also eligible to get money back from the IRS by filing a tax return and by claiming Earned Income Tax Credits for herself and her children. An amount that could be as high as $3300; something she would lose when making $15/hour.
Once again, the $15 minimum wage proponents don't seem to see what many single parents, assuming they are citizens, will be giving up by going to this level of a minimum wage. As is often said: Be careful of what you wish for.
References:
Maribel vs McDonald's: Single mother of two goes on strike against fast-food giant demanding $15 minimum wage and a union for employee: http://www.dailymail.co.uk/news/article-2878565/Maribel-vs-McDonald-s-Single-mother-two-goes-strike-against-fast-food-giant-demanding-15-minimum-wage-union-employees.html
2014 Poverty Guidelines: http://aspe.hhs.gov/poverty/14poverty.cfm
Welfare In California: http://en.wikipedia.org/wiki/Welfare_in_California
Cost of Living Calculator - CNN Money: http://money.cnn.com/calculator/pf/cost-of-living/
"Poverty" pays better than middle-class employment: http://humanevents.com/2012/11/28/poverty-pays-better-than-middle-class-employment/
Policy Basics: The Earned Income Tax Credit: http://www.cbpp.org/cms/?fa=view&id=2505
Wednesday, September 17, 2014
Are We Really Better Off Since Obama Took Office?
In front of adoring crowds at one of his all-too-many campaign style events, President Obama has claimed that "By almost any measure, we are better off since I took office" or that America is stronger under his watch.
The problem with such statements is that they are factually untrue when looking at the broader state of our union.
Sure, the President can claim that overall unemployment is down from where it was when he took over the reins of government in January 2009. But, to get there, overall unemployment rose to a rate of 10% in the first year-and-a-half of his presidency. Something that the so-called "stimulus" was supposed to avoid by promising that the unemployment rate wouldn't go above 8%. Even now, 5 years passed the end of the official end of the recession, this country still has an unemployment rate that is a full point above pre-recession levels.
Our major cities have extraordinarily high unemployment rates. Chicago, Obama's home town, is still at 8.0%; and, that's just recently down from a January 2014 rate of 9.6%. Detroit, now in bankruptcy, had an unemployment rate of 17.7% in July. A city like Atlantic City, that depends heavily on Americans spending leisure-time money, is suffering from cash-strapped tourists unable to indulge in what they have to offer. The casinos are closing and the unemployment rate sits at 13.7%. More worrisome is the fact that our three largest cities -- Los Angeles, New York, and Chicago -- are dangerously close to following Detroit into bankruptcy.
The Gross Domestic Product (GDP) is stuck at a 5-year growth rate of about 2%. This is, at least, the worst recovery since World War II and, some say in the history of the United States when using alternate methods of calculating GDP.
Then there's the overall economic health of America. For 5 straight years the median incomes of this country have fallen and income inequality has risen to a record high. Half the jobs created under this President's watch were low income/low paying. When he took office, only 30 million Americans were on food stamps. Today, that number is 47 million; a 56% increase. Similarly, only 38 million Americans were living in poverty. Today, that number is a record 47 million and has stood at 15 percent of the population for the last 2 years. Thus, as the population grows, so does the amount of people left in poverty.
Of course, the real elephant in the room is the amount of debt that Obama has left us with; a number that only gets worse by the day. At the beginning of his first term, the federal debt was $10.6 trillion. Today, it is closing in on $18 trillion; just $250 billion from the current number (as of this writing) of $17.756 trillion. A number that, for the first time in this nation's history, is greater than the total annual economic output of the country. Of those advanced economies in the world, only Portugal, Italy, Ireland, Greece and Spain can claim debt levels above their economic output. All of which are near bankruptcy and on the brink of bringing the European Union to its knees.
When we see people standing behind President Obama and nodding in agreement that things are better, you have to wonder what planet they're from. Most other Americans (74% in one poll) still think that we never recovered from the recession. And, in so many ways, they're right.
References:
By almost any measure, we are better off since I took office: http://www.realclearpolitics.com/video/2014/07/10/obama_by_almost_every_measure_we_are_better_off_than_when_i_took_office.html
Obama claims US is 'stronger' than 'when I first came into office' as economy weakens, debt soars, America loses global influence and border crisis deepens: http://www.dailymail.co.uk/news/article-2722926/Obama-claims-US-stronger-I-came-office-economy-weakens-debt-soars-America-loses-global-influence-illegal-immigrants-flood-border.html
Half Of The Jobs Created During The Recovery Were Low-Paying: http://thinkprogress.org/economy/2013/05/14/2008591/jobs-recovery-low-paying-minimum-wage/
Chicago Unemployment Rate Falls to 8.0%: http://www.worldbusinesschicago.com/news/chicago-unemployment-rate-jul2014
Detroit Unemployment Rates: https://ycharts.com/indicators/detroit_mi_unemployment_rate
Unemployment rises in most US states in July: http://www.detroitnews.com/article/20140818/BIZ/308180072
Another Atlantic City Bust: Trump Plaza Closes: http://abcnews.go.com/US/wireStory/trump-plaza-4th-atlantic-city-casino-shutdown-25528499
3 huge cities flirting with bankruptcy: http://money.msn.com/investing/post--3-huge-cities-flirting-with-bankruptcy
Obama’s economic recovery: officially the worst in US history: http://poorrichardsnews.com/post/41366829334/obamas-economic-recovery-officially-the-worst-in-us
Median Income Falls For 5th Year, Inequality At Record High: http://www.huffingtonpost.com/2013/09/17/median-income-falls-inequality_n_3941514.html
47 million Americans on food stamps: http://img.washingtonpost.com/blogs/wonkblog/files/2013/09/SNAP-participants.jpg
That’s rich: Poverty level under Obama breaks 50-year record: http://www.washingtontimes.com/news/2014/jan/7/obamas-rhetoric-on-fighting-poverty-doesnt-match-h/?page=all
America's Poverty Rate Stuck At 15 Percent For Second Straight Year: http://www.huffingtonpost.com/2013/09/17/poverty-america-census_n_3940812.html
74% said we are still in a recession: http://patch.com/new-hampshire/concord-nh/is-the-recession-over-yet#.VBR1qmNAVLU
U.S. Federal Debt Exceeds GDP: http://jamesviser.com/?p=995
The problem with such statements is that they are factually untrue when looking at the broader state of our union.
Sure, the President can claim that overall unemployment is down from where it was when he took over the reins of government in January 2009. But, to get there, overall unemployment rose to a rate of 10% in the first year-and-a-half of his presidency. Something that the so-called "stimulus" was supposed to avoid by promising that the unemployment rate wouldn't go above 8%. Even now, 5 years passed the end of the official end of the recession, this country still has an unemployment rate that is a full point above pre-recession levels.
Our major cities have extraordinarily high unemployment rates. Chicago, Obama's home town, is still at 8.0%; and, that's just recently down from a January 2014 rate of 9.6%. Detroit, now in bankruptcy, had an unemployment rate of 17.7% in July. A city like Atlantic City, that depends heavily on Americans spending leisure-time money, is suffering from cash-strapped tourists unable to indulge in what they have to offer. The casinos are closing and the unemployment rate sits at 13.7%. More worrisome is the fact that our three largest cities -- Los Angeles, New York, and Chicago -- are dangerously close to following Detroit into bankruptcy.
The Gross Domestic Product (GDP) is stuck at a 5-year growth rate of about 2%. This is, at least, the worst recovery since World War II and, some say in the history of the United States when using alternate methods of calculating GDP.
Then there's the overall economic health of America. For 5 straight years the median incomes of this country have fallen and income inequality has risen to a record high. Half the jobs created under this President's watch were low income/low paying. When he took office, only 30 million Americans were on food stamps. Today, that number is 47 million; a 56% increase. Similarly, only 38 million Americans were living in poverty. Today, that number is a record 47 million and has stood at 15 percent of the population for the last 2 years. Thus, as the population grows, so does the amount of people left in poverty.
Of course, the real elephant in the room is the amount of debt that Obama has left us with; a number that only gets worse by the day. At the beginning of his first term, the federal debt was $10.6 trillion. Today, it is closing in on $18 trillion; just $250 billion from the current number (as of this writing) of $17.756 trillion. A number that, for the first time in this nation's history, is greater than the total annual economic output of the country. Of those advanced economies in the world, only Portugal, Italy, Ireland, Greece and Spain can claim debt levels above their economic output. All of which are near bankruptcy and on the brink of bringing the European Union to its knees.
When we see people standing behind President Obama and nodding in agreement that things are better, you have to wonder what planet they're from. Most other Americans (74% in one poll) still think that we never recovered from the recession. And, in so many ways, they're right.
References:
By almost any measure, we are better off since I took office: http://www.realclearpolitics.com/video/2014/07/10/obama_by_almost_every_measure_we_are_better_off_than_when_i_took_office.html
Obama claims US is 'stronger' than 'when I first came into office' as economy weakens, debt soars, America loses global influence and border crisis deepens: http://www.dailymail.co.uk/news/article-2722926/Obama-claims-US-stronger-I-came-office-economy-weakens-debt-soars-America-loses-global-influence-illegal-immigrants-flood-border.html
Half Of The Jobs Created During The Recovery Were Low-Paying: http://thinkprogress.org/economy/2013/05/14/2008591/jobs-recovery-low-paying-minimum-wage/
Chicago Unemployment Rate Falls to 8.0%: http://www.worldbusinesschicago.com/news/chicago-unemployment-rate-jul2014
Detroit Unemployment Rates: https://ycharts.com/indicators/detroit_mi_unemployment_rate
Unemployment rises in most US states in July: http://www.detroitnews.com/article/20140818/BIZ/308180072
Another Atlantic City Bust: Trump Plaza Closes: http://abcnews.go.com/US/wireStory/trump-plaza-4th-atlantic-city-casino-shutdown-25528499
3 huge cities flirting with bankruptcy: http://money.msn.com/investing/post--3-huge-cities-flirting-with-bankruptcy
Obama’s economic recovery: officially the worst in US history: http://poorrichardsnews.com/post/41366829334/obamas-economic-recovery-officially-the-worst-in-us
Median Income Falls For 5th Year, Inequality At Record High: http://www.huffingtonpost.com/2013/09/17/median-income-falls-inequality_n_3941514.html
47 million Americans on food stamps: http://img.washingtonpost.com/blogs/wonkblog/files/2013/09/SNAP-participants.jpg
That’s rich: Poverty level under Obama breaks 50-year record: http://www.washingtontimes.com/news/2014/jan/7/obamas-rhetoric-on-fighting-poverty-doesnt-match-h/?page=all
America's Poverty Rate Stuck At 15 Percent For Second Straight Year: http://www.huffingtonpost.com/2013/09/17/poverty-america-census_n_3940812.html
74% said we are still in a recession: http://patch.com/new-hampshire/concord-nh/is-the-recession-over-yet#.VBR1qmNAVLU
U.S. Federal Debt Exceeds GDP: http://jamesviser.com/?p=995
Tuesday, August 12, 2014
The Real Story of Unemployment and the Economy In America
Every month, we get an accounting of the overall unemployment rate. Last month, the number moved up slightly to 6.2% from June's 6.1%. All-in-all, that number seems reasonable; given that we were at nearly 10% unemployment in 2011. As a result, many Americans feel that unemployment is not a big problem anymore.
However, out of that top-level 6.2%, there are some very disturbing facts.
First, many of our major cities are still suffering. Take Chicago, for example. That city's unemployment rate is at 8.4% or 35% higher than the national average. Los Angeles sits at 7.6%. Cleveland is at 8.5%, and Detroit -- still in bankruptcy -- is at a whopping 14.5%.
The two cities that depend on gaming and leisure revenues -- Las Vegas and Atlantic City -- are still on the high side of unemployment; indicating that Americans don't have the ability to resume vacationing at these pre-recession, entertainment hot spots. In Las Vegas, the unemployment rate is still 7.6%. Atlantic City is almost double that, and worse than Detroit at 14.9%, and we are now seeing once high-trafficked casinos closing for lack of visitors.
The bottom line is that many of our major cities have high rates of unemployment because, quite frankly, their economies haven't recovered. All three of the major metropolitan areas -- New York, Los Angeles and Chicago -- are struggling to keep their heads above water, and at least 20 more smaller cities such as Oakland, Fresno, and Harrisburg could see themselves in bankruptcy court very soon.
So, when I hear that President Obama is going to "pivot" to the economy and how well it's doing under his watch, I know that he's only able to do so because many Americans only hear the top line numbers every month and too many of those will falsely think it's the truth. But, this country -- now 5 years since the recession ended -- is still in a world of hurt; and, that's a story that is definitely not being told.
References:
Chicago Unemployment Rate: https://www.google.com/search?q=chicago+unemployment+rate&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb
Los Angeles Unemployment Rate: https://www.google.com/search?q=Los+Angeles+unemployment+rate&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb
Cleveland Unemployment Rate: https://www.google.com/search?q=cleveland+unemployment+rate&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb
Detroit Unemployment Rate: https://www.google.com/search?q=Detroit+unemployment+rate&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb
Las Vegas Unemployment Rate: https://www.google.com/search?q=las+vegas+unemployment+rate&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb
Atlantic City Unemployment Rate: https://www.google.com/search?q=atlantic+City+unemployment+rate&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb
Casinos no longer golden for Atlantic City: http://www.latimes.com/nation/la-na-atlantic-city-blues-20140725-story.html
3 huge cities flirting with bankruptcy Staggering under pension obligations and debt, any of these could follow Detroit into court: http://money.msn.com/investing/post--3-huge-cities-flirting-with-bankruptcy
20 Cities That May Face Bankruptcy After Detroit: http://www.newsmax.com/US/cities-bankruptcy-after-detroit/2013/08/06/id/519081/
Obama pivots to economic legacy: http://thehill.com/news/administration/213888-obama-pivots-to-economic-legacy
However, out of that top-level 6.2%, there are some very disturbing facts.
First, many of our major cities are still suffering. Take Chicago, for example. That city's unemployment rate is at 8.4% or 35% higher than the national average. Los Angeles sits at 7.6%. Cleveland is at 8.5%, and Detroit -- still in bankruptcy -- is at a whopping 14.5%.
The two cities that depend on gaming and leisure revenues -- Las Vegas and Atlantic City -- are still on the high side of unemployment; indicating that Americans don't have the ability to resume vacationing at these pre-recession, entertainment hot spots. In Las Vegas, the unemployment rate is still 7.6%. Atlantic City is almost double that, and worse than Detroit at 14.9%, and we are now seeing once high-trafficked casinos closing for lack of visitors.
The bottom line is that many of our major cities have high rates of unemployment because, quite frankly, their economies haven't recovered. All three of the major metropolitan areas -- New York, Los Angeles and Chicago -- are struggling to keep their heads above water, and at least 20 more smaller cities such as Oakland, Fresno, and Harrisburg could see themselves in bankruptcy court very soon.
So, when I hear that President Obama is going to "pivot" to the economy and how well it's doing under his watch, I know that he's only able to do so because many Americans only hear the top line numbers every month and too many of those will falsely think it's the truth. But, this country -- now 5 years since the recession ended -- is still in a world of hurt; and, that's a story that is definitely not being told.
References:
Chicago Unemployment Rate: https://www.google.com/search?q=chicago+unemployment+rate&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb
Los Angeles Unemployment Rate: https://www.google.com/search?q=Los+Angeles+unemployment+rate&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb
Cleveland Unemployment Rate: https://www.google.com/search?q=cleveland+unemployment+rate&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb
Detroit Unemployment Rate: https://www.google.com/search?q=Detroit+unemployment+rate&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb
Las Vegas Unemployment Rate: https://www.google.com/search?q=las+vegas+unemployment+rate&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb
Atlantic City Unemployment Rate: https://www.google.com/search?q=atlantic+City+unemployment+rate&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb
Casinos no longer golden for Atlantic City: http://www.latimes.com/nation/la-na-atlantic-city-blues-20140725-story.html
3 huge cities flirting with bankruptcy Staggering under pension obligations and debt, any of these could follow Detroit into court: http://money.msn.com/investing/post--3-huge-cities-flirting-with-bankruptcy
20 Cities That May Face Bankruptcy After Detroit: http://www.newsmax.com/US/cities-bankruptcy-after-detroit/2013/08/06/id/519081/
Obama pivots to economic legacy: http://thehill.com/news/administration/213888-obama-pivots-to-economic-legacy
Tuesday, April 1, 2014
Los Angeles Is On Shakey Ground; Literally and Economically
All three of our largest cities -- Chicago, New York, and Los Angeles -- are currently walking a fine line between solvency and bankruptcy. While all three cities must better manage their finances in order to avoid looking like the Godzilla of all bankruptcies in comparison to, say, Detroit, Los Angeles has an added difficulty to contend with: A Possible Mega-Sized Earthquake.
Right now, the series of earthquakes near Los Angeles have mostly resulted in minor damage; although, some homes have actually been structurally condemned. But, what if a 6.7 quake or higher hit the city? The damage could be massive. Just as it was when a 6.7 hit the Northridge area in 1994. That quake caused $25 billion in damages in a somewhat smaller and must less densely populated area of Los Angeles. But, the current activity is on a little known Puenta Hills Fault which extends through downtown L.A. and into Hollywood. Between a tangle of overpasses, high rises, and older buildings, the toll in lives and damage could be many times greater than what Northridge and other surrounding communities experienced.
If such an event did hit the heart of L.A., police, fire, and most city workers would all be called into action. There could be serious damage to many civilian and municipal buildings, city roads and bridges. The cost could literally tip the city into bankruptcy almost instantaneously; and, certainly a lot earlier than the estimated 2 to 3 years that lawmakers had "thought" they had left to fix their financial woes. If it is hastened by an earthquake, the city managers have only themselves to blame. For years, they've dallied while, all along, bankruptcy was staring them right in the face.
References:
Three Huge Cities Flirting With Bankruptcy: http://money.msn.com/investing/post--3-huge-cities-flirting-with-bankruptcy
1994 Northridge Earthquake: http://en.wikipedia.org/wiki/1994_Northridge_earthquake
Major quake on Puente Hills thrust fault could be worse than San Andreas: http://www.upi.com/Top_News/US/2014/03/30/Major-quake-on-Puente-Hills-thrust-fault-could-be-worse-than-San-Andreas/7831396195031/
Right now, the series of earthquakes near Los Angeles have mostly resulted in minor damage; although, some homes have actually been structurally condemned. But, what if a 6.7 quake or higher hit the city? The damage could be massive. Just as it was when a 6.7 hit the Northridge area in 1994. That quake caused $25 billion in damages in a somewhat smaller and must less densely populated area of Los Angeles. But, the current activity is on a little known Puenta Hills Fault which extends through downtown L.A. and into Hollywood. Between a tangle of overpasses, high rises, and older buildings, the toll in lives and damage could be many times greater than what Northridge and other surrounding communities experienced.
If such an event did hit the heart of L.A., police, fire, and most city workers would all be called into action. There could be serious damage to many civilian and municipal buildings, city roads and bridges. The cost could literally tip the city into bankruptcy almost instantaneously; and, certainly a lot earlier than the estimated 2 to 3 years that lawmakers had "thought" they had left to fix their financial woes. If it is hastened by an earthquake, the city managers have only themselves to blame. For years, they've dallied while, all along, bankruptcy was staring them right in the face.
References:
Three Huge Cities Flirting With Bankruptcy: http://money.msn.com/investing/post--3-huge-cities-flirting-with-bankruptcy
1994 Northridge Earthquake: http://en.wikipedia.org/wiki/1994_Northridge_earthquake
Major quake on Puente Hills thrust fault could be worse than San Andreas: http://www.upi.com/Top_News/US/2014/03/30/Major-quake-on-Puente-Hills-thrust-fault-could-be-worse-than-San-Andreas/7831396195031/
Monday, February 16, 2009
I'm Excited!
I live in Las Vegas and I was born in Los Angeles. Most all of my relatives live in California. I just can't wait. In 19 months, right after Barack Obama signs the stimulus bill, there should be a brand new, $8 billion, Maglev monorail train service built between Disneyland, in Los Angeles, and the "Strip" in Las Vegas (See Full Story). Families visiting Disneyland can jump on that new rail service and the kids can be locked up in the hotel room while the parents take in some gambling and other forms of adult entertainment. It will be great. And, I can plan on visiting my relatives in "just" 19 months.Man. I didn't even know that the Maglev project was shovel-ready. It has been talked about for almost 20 years but, I didn't ever think that we'd see it because it was really only marginally justified. There were so many other causes that needed the money more than this one. But, now, we don't have to worry about the justification. The Democrats and Obama put that aside and said, in effect: "Let's do it!" Yippee! It should really be something to watch. That's because to build the thing in the 19 month target of this stimulus package, they will have to build it at a rate of 14 miles per month. But, with $8 billion dollars in total spending and the ability to dole out 1/2 billion dollars per month; it should be a piece of cake!
This is really great! It is SO Las Vegas! It's rolling the dice with "your money" so "I" don't have to sit in a car for 3 or 4 hours on Interstate 15 to get to Southern California.
Thank you, America. Thank you for the election of Barack and all those Democrats. Thank you for your kind and charitable giving to the citizens of Las Vegas and those visitors to Disneyland. Thank you for spending this amount of money on us and not wasting it on the roads and bridges that are in much needed repair.
My sarcasm aside, this project is probably a good one for good times. However, it should have never been part of this stimulus package. It is literally a big piece of pork that Harry Reid could desperately use for his reelection. The taxpayers of Los Angeles and Las Vegas, the ones who would actually benefit from such a project, should be picking up the tab. Not the U.S. taxpayer. Why should every man, woman, and child in America cough up $26 each so that 1 percent of the population will benefit from this service. Now, many of us in Las Vegas need a higher level of expert health care that is only available to us in Southern California, and a high speed train would be advantageous. The city of Las Vegas would also benefit from the increased "gambling" traffic that could be realized from Southern California; once this thing is built. Currently, the Interstate 15 corridor is packed on a daily basis and rapid transit would be a great way of alleviating all that congestion. This project should be paid for by bonds or some other mechanism that is floated by the residents of both cities. I am concerned that, with the Federal Government getting involved, it could turn into another pig like Amtrak.
Shanghai Maglev Image by Dennis Kruyt's photostream on Flickr with Creative Commons Licensing remix/adapt/modify permission (Click to View Other Works). Specifically modified by Cranky George for this blog entry.
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