Nothing was more predictable after the passage of Prop 30 in November that, come December, growth would screech to a halt. Sure enough:
After outpacing the U.S. for most of last year, California’s jobs engine lost momentum in December as employers’ payrolls shrank by 17,500 last month.
The unemployment rate remained unchanged at 9.8% last month, according to figures released Friday by the state’s Employment Development Department.
The loss of payroll jobs in December ends seven months of job growth in the Golden State. For much of the year, yearly job growth was hovering around 2% but has now dropped to 1.6%.
You mean to tell me that “rich people”–you know, the ones who run the businesses that employ people–might not want to pay more than 10 percent of their income to California and so might just pack up and take their businesses elsewhere? My goodness, who could’ve foreseen that?
Of course, this being the land of unicorns, the governor is allowed to announce that his state is running a surplus based on nothing more than projections, even after it’s known that actual revenues are coming in 11 percent below the projections.
Prediction: January’s unemployment rate will hit 10 percent. And then keep rising. The governor and legislature will blame the U.S. economy. And talk about raising taxes further.