Category: Los Angeles

Poverty in California

It’s hard to believe that there is significant poverty in California. The Los Angeles Homeless Services Authority say there are over 57,000 homeless in this county alone. That reality is made obvious by the growing number of homeless encampments that have sprung up all over the city.

More than a third of California households have virtually no savings and are at risk of financial ruin. That data was compiled by Prosperity Now, a Washington, D.C.-based organization seeking to help people — particularly people of color and those with limited income — achieve financial security and prosperity. Even if the data is half as bad as reported it would still mean that about 15% of the population is in serious trouble.

The report says that more than 37 percent of California households have so little cash saved that they couldn’t live at the poverty level for even three months if they lost a job or suffered another significant loss of income.

No emergency fund
The scorecard also shows that 46 percent of households in the Golden State didn’t set aside any savings for emergencies over the past year, a higher percentage than the national rate of 43.7 percent.

It doesn’t help that 21.1 percent of California jobs are in low-wage occupations. The scorecard found that 21.4 percent of Californians experienced income volatility over the past year, a situation that most often results from irregular job schedules.

Households of color
It gets worse for households of color. They are nearly twice as likely to live below the poverty line as white households — 18.2 percent compared to 9.7 percent — and they are much less likely to own a home or other assets that could help boost their long-term financial stability.


Less than half of California’s households of color (43.9 percent) own homes, compared to 62.5 percent of white, non-Hispanic households. Moreover, 60.7 percent of Latino households and 56.7 percent of black households have virtually no savings and are considered “liquid asset poor,” compared to 28.2 percent of white households fitting that category.

“Beyond providing a cushion to get families through emergencies, increased savings and wealth allow families to invest in their futures and gain ground for future generations,” Prosperity Now President Andrea Levere said in a statement. “It’s clear that far too many people are stuck in economic limbo.”

High housing costs
Lars Perner, an assistant professor of clinical marketing at the USC Marshall School of Business, said California’s high housing costs have put many households on shaky financial ground.

“The cost of housing in California is exorbitant,” he said. “That’s a big part of the problem. People pay a disproportionate amount of their income toward housing.”

The report finds that nearly 20 million U.S. households (16.9 percent of the total) have zero or negative net worth. That means they owe more than they own.

Getting on track
The scorecard suggests several policies that could help get struggling households on track, including adopting policies that encourage saving, increasing the minimum wage, providing better access to home ownership and boosting retirement security.

Workable solutions are lacking. Meetings by various community groups might be interesting to attend but none of our elected government officials have any worthwhile ideas.

Garcetti for president in 2020?

This letter sent to the Los Angeles Times conveys my opinion.  I would only add that the likelihood of a Jew being elected president of the United States is as likely that a buffoon like Donald Trump being elected.  Wait a minute I guess anything is possible.

July 5, 2017  9:30 AM

To the editor: Excuse me, but what has Los Angeles Mayor Eric Garcetti actually accomplished to be added to a short list of presidential wannabes? Is the Democratic Party’s bench so lacking that a mediocre-at-best mayor can be inserted into a serious presidential conversation for 2020? (“On the eve of Garcetti’s inauguration, soaring ambition meets a sober reality,” July 1)

Garcetti won a second term in an election in which few Angelenos voted and no one bothered to seriously challenge him. As for serious accomplishments, homelessness and gentrification are out of control, and Los Angeles has become known for high rents, anemic job growth and a seriously deficient municipal infrastructure.

Given his incessant and annoying public service announcements at LAX, Garcetti seems to be auditioning for talk radio, not higher office.

Nicholas J. Antonicello, Venice Beach

What’s Wrong with California?

To answer the title question: Nothing!

The talk at some discussion groups that I attend revolves around the argument that California and especially Los Angeles is on the verge of collapse due to high taxes, high public debt, and a significant loss of private enterprises moving to other states. That perception is not in keeping with reality.

For the most part Californians accept the multi-ethnic makeup of the society. Thus we find large populations of Asians and Hispanics throughout the state. The Los Angeles LGBT Center is one of the largest and most experienced providers of LGBT health and mental healthcare, supported by a research team working to advance the care and treatment of lesbian, gay, bisexual, and transgender people.

California alone as a nation would economically be the 6th largest economy in the world. The five ahead of us are the U.S., China, Japan, Germany and the United Kingdom. The U.S. Bureau of Economic Analysis reported that California’s GDP was $2.5 trillion in 2015, up 4.1 percent from a year earlier.

California is the largest producer of Pima cotton in the United States. The California cotton industry provides more than 20,000 jobs in the state and generates revenues in excess of $3.5 billion annually.

California is largest producer of fresh vegetables in the United States says the US Department of Agriculture. California strawberries are found in the markets of Toronto Canada.

Industry Week lists the 500 largest U.S. companies each year. Last year California surged ahead of Texas, 64 companies to 55. By revenue, the biggest manufacturers in California together contributed $881 billion to the state’s coffers, while the biggest in Texas contributed $847 billion. There is not one other state that employs over 1 million people in manufacturing. Texas at 750,000 is in second place. This is US Census data.

40% of all imports and exports of the U.S.A. are moved through the Los Angeles/Long Beach harbor facilities. This figure does not include goods that are shipped by air cargo.

Speaking of air traffic, Los Angeles International Airport (LAX) is the third busiest in the United States.  That makes Los Angeles a major tourist destination. Santa Monica, Beverly Hills, Hollywood, and the amusement parks draw millions of people and that means thousands of jobs.

San Francisco and San Diego are major tourist destinations for the entire world.  Last year we stayed at the Fisherman’s Wharf Sheraton Hotel.  The desk informed me that their primary of guests comes from other countries.   

Los Angeles is a world leader in architecture. The Los Angeles Times this past Sunday (May 21, 2017) published a catalogue of 186 pages showing the works of major architect in this city. Titled DesignLA, it pictured the work of those talented people who include Frank Gehry.

As to education, California has some of the most highly regarded universities in the world. UCLA, USC, UC Berkley, Stanford, and CSUN are just the top of an outstanding educational system that draw thousands of students from around the world.

Silicon Valley and San Francisco are the heart of high tech for the entire world.  Facebook, Google, Apple, Tesla are the four most famous of those companies but there are many others as well.

Los Angeles is still home to important aerospace companies including JPL, Rocketdyne, and Space X. 

Los Angeles is the entertainment capital of the world. All the major movie studios are based in metropolitan Los Angeles. All television networks have large studios in Los Angeles.

New Jersey has the highest effective property tax rate at 2.38% and is followed closely by Illinois (2.32%), New Hampshire (2.15%), and Connecticut (1.98%). California is happily in 34th place with an effective rate of .81%. My source: https://taxfoundation.org/

California gasoline tax will be the highest in the nation thanks to the latest increase in that tax that will take effect November 1, 2017. This is clearly a serious mistake.

California state government bonds are rated AA- by both Fitch and Standard and Poor’s, Aa3 by Moody’s.

I have not even discussed the weather that is the most obvious reason there was a mass migration to California after WW2 and is still a major drawing point for so many in the rest of the United States. We moved from Philadelphia where you can rely on rain if you plan a picnic in the park and that is in the summer. Winters can best be described as miserable at best.

California powered the nation

In March, California produced about 20% of the job growth in the entire country, which added 98,000 jobs last month. The state is huge, but it only accounts for about 11.5% of the country’s employees, which means that it is punching above its weight.

“We get beaten up for being a high-cost and high-tax state … but we have been outperforming many states,” said Robert Kleinhenz, an economist at Beacon Economics, a Los Angeles consulting firm.

California alone was responsible for 16% of the country’s growth from 2014 to 2016, according to Kleinhenz’s analysis.

California piled on 19,300 jobs in March and its unemployment rate dropped to 4.9%, according to figures released Friday by the state’s Employment Development Department. That’s the first time since December 2006 that the jobless rate has fallen below 5%.

It was another month of solid but not breathtaking job gains in a state that has slowed a bit after years of unbridled growth.

Still, California grew faster than the rest of the country in March, expanding at a rate of 2.1% year over year, compared with 1.5% nationwide. Californians were still slightly more likely to be unemployed; the U.S. jobless rate hit 4.5% in March.

The standout sector in March was construction, which increased payrolls by 18,900. The information sector — which includes tech businesses in Silicon Valley and moviemakers in Hollywood — faltered last month, cutting head count by 9,400.

Los Angeles County gained a net 16,000 jobs in March. The county’s unemployment rate fell to 4.6%, down from a revised 4.8% in February.

Source: Los Angeles Times

Los Angeles – Love It and Hate It

I have lived in Los Angeles most of my life.  My family moved here when I was nine years old.  We came here from Philadelphia in 1948.

As a boy, in those less sophisticated times, I rode the city on trolleys and buses without any fear.  It helped me to develop a little independence at a young age.  Of course living in middle class family I never missed a meal and never worried about homelessness.

As a young man I had access to a car that enabled me to drive where ever I wanted.

I have been to Hollywood, Santa Monica, Beverly Hills and downtown so many times I lost count decades ago.

So now I have started a blog titled “Los Angeles – Love It and Hate It.”

You are invited to visit it whenever you are curious about the second largest city in the U.S.A.  I will be writing about the good and the bad.  Included will be lots of photos mostly taken by me.

looking-west-past-hollywood-westwood-to-coast-from-observatory

Photo taken from Griffith Park Observatory parking lot looking west. Hollywood is in the foreground and the tall buildings are in Westwood (home of UCLA). Photo taken with a Panasonic DMC-FZ28 camera.

There are no Affordable Housing Requirements in Los Angeles

We have a living problem in Los Angeles that is prevalent in all the large coastal metropolitan areas of California. The cost of housing is too high for many families.

Los Angeles County has added more than 475,000 jobs since the depths of the Great Recession, and it’s expected to gain another 334,200 jobs by 2020 according to the Los Angeles County Economic Development Corp. in a report they just released. The families that have these jobs cannot afford most of the housing in this area.

The L.A. County report notes that more than a third of the county’s projected job openings over the next five years will require workers without a high school diploma and no work experience. Another 30 percent will go to people with a high school diploma or the equivalent with no work experience.

As the number of jobs has grown so has the number of new apartments throughout the area. The problem is that the new housing is renting for what the builders and owners say are “market rates.” Those are rates that I call “unaffordable rates.” Despite the need for affordable dwellings the cities and towns of the Los Angeles metropolitan area have approved the construction of those unaffordable units for those obtaining the new jobs.

In my own community the local community council approved a 150 unit development that consists of one bedroom, two bedroom, and three bedroom units. The two bedroom units are going to rent for $2,200 per month. Older two bedroom units are currently renting for $1,500 to $1,700 per month.

apartment-house-proposed-in-silver-lake

Rendition of Apartment House Proposed in Silver Lake District

Developers seem to think that 10% of their new projects devoted to “affordable housing” is sufficient. A 33 unit project in my community includes 3 affordable units. A proposed 67-unit apartment complex in Silver Lake area includes seven of the units to be reserved for “very low-income residents.”

Citing an affordable housing crisis of “epic proportions,” the California Supreme Court made it easier Monday for cities and counties to require developers to sell some housing at below-market rates. The unanimous decision, written by Chief Justice Tani Cantil-Sakauye, follows study after study documenting a lack of affordable housing in the state, especially in California’s coastal regions.

The decision clears the way for Los Angeles and other cities to require developers to sell a percentage of the units they build at below -market rates as condition of a building permit. Developers also could be given the option of paying into a fund for low-cost housing.

Where is the Los Angeles City Council and the Los Angeles County Supervisors? There is no law that requires affordable housing in new developments. The city will permit variances to zoning and use that as an opportunity to require affordable housing.

Report predicts LA County will add 346,000 jobs by 2020

This is both good and bad news.  Metropolitan Los Angeles is experiencing growth while many other large cities are shrinking. Chicago come to mind as a city that has lost 1/3 of its population.  The key sentence in the following article is “Unfortunately, many of those jobs are low paying positions that would make it tough for someone to support a family.” The median price of a home in LA County is $526,000 according to Zillow. They have gone up 6.5% over the past year and Zillow predicts they will rise 1.6% within the next year. The solution for low paid workers is to commute to work. That could mean a one and half hour travel time.   Many people are doing exactly that. Outbound freeways are jammed with cars every evening.

LA County Home Construction 

A new report from the Los Angeles County Economic Development Corp. reveals that L.A. County will add 346,00 jobs between 2015 and 2020, including 20,900 in the construction industry. Leo Jarzomb — Staff photographer

By Kevin Smith, San Gabriel Valley Tribune

Posted: 06/01/16, 12:41 AM PDT | Updated: 14 hrs ago

Los Angeles County is expected to add 346,000 jobs between 2015 and 2020 across a broad range of industries, according to a report released today.

The Los Angeles County Economic Development Corp.’s annual “People, Industries and Jobs” report shows that 123,000 of those jobs will be in the city of Los Angeles.

Construction, professional and business services, education and health services and leisure and hospitality will see the biggest growth rates in percentage terms. But the lion’s share of new jobs will come from administrative and support services (57,560), Food services and drinking places (39,510), social assistance (34,30) and professional and technical services (33,300).

Unfortunately, many of those jobs are low paying positions that would make it tough for someone to support a family.

On the plus side, construction is expected to add 20,900 jobs, which bodes well for both housing activity and commercial expansion.

Southern California’s construction industry took a heavy hit during and after the Great Recession, which began in late 2007 and ended in June 2009, as developers pulled back on building housing projects and commercial developments — sometimes curtailing activity altogether.

“We’ve been waiting for that industry to rebound,” said economist Christine Cooper, the LAEDC’s senior vice president and lead author of the report. “It has just been really hard.”

But the industry is rebounding and Southland developers have a variety of residential projects in the works.

KB Home, for example, has 10 housing developments underway in Los Angeles County in such communities as Santa Clarita, Van Nuys, Palmdale, Pomona, West Covina and Los Angeles.

An annual report on the company’s website shows that KB delivered 8,196 homes throughout its various U.S. markets last year compared with 7,215 the previous year and 7,145 in 2013. KB’s revenues have likewise risen, topping out at more than $3 billion last year compared with the $2.4 billion the company generated in 2014.

“As the housing market recovers, construction industries are expected to make a robust recovery,” the LAEDC report said. “Housing starts are showing signs of life after a dismal few years, and will be needed to meet pent-up demand.”

The report notes, however, that L.A. County’s economic recovery has been generally disappointing and that the region didn’t recover all of the jobs that were lost during the recession until last year. Moreover, the recovery that has taken place doesn’t take into account the job growth needed to accommodate the county’s ongoing population and labor force growth.

The report also shows a clear correlation between educational attainment and unemployment.

In 2014, the jobless rate for L.A. County residents with a high school education or the equivalent was 9.4 percent, nearly double the 5 percent rate for those with a bachelor’s degree or higher. That same kind of disparity played out in the city of L.A.

The median annual earnings for an L.A. County resident with a high school education or the equivalent was $26,049 in 2014. That figure is dismal when compared with the yearly median income of someone with a bachelor’s degree ($50,976) or someone with a graduate or professional degree ($71,596).

The largest share of working residents in the county (33.3 percent) earn $15,000 to $35,000, and nearly 8 percent earn just $15,000 or less. Still, Cooper said progress is being made on the education front.

“We’ve been doing these reports for a number of years and we’re seeing that more young people are gaining higher levels of educational attainment,” she said. “We see that as a really bright spot.”

That may be bright. But a not-so-bright portion of the study shows that nearly 323,300 of the 2.19 million families who were living in Los Angeles County in 2014 had their incomes fall below the poverty level in the previous 12 months. A large portion of that number included children and young working age adults.

Single mothers with children under 18 accounted for nearly 40 percent of those living below the poverty line.

“The good news is that our region is adding jobs across most industries, and is expected to continue its expansion,” Cooper said. “However, although we are seeing some job growth in high-paying industries, it is clear that not enough of our projected job gains are skilled, well-paying jobs that will support middle class incomes. We need to work together to change this trajectory, by fostering job creation in our leading export-oriented industries, which tend to pay higher wages and strengthen regional prosperity overall.”

Cooper said California’s new minimum wage requirements, which will boost the minimum wage to $15 an hour by 2022, will likely have some negative effects.

“Some businesses will choose to replace lower skilled workers will people who have higher skills,” she said. “And it will also lead to an increase in automation.”

$12 Billion Man Buys into Tribune Publishing

Patrick Soon-Shiong Tribune Publishing said this morning that Patrick Soon-Shiong, by some accounts the wealthiest man in Los Angeles, is buying 12.9 percent of the company’s stock and paying $15 a share, the elevated price that Gannett has offered in a bid to take over the company. Soon-Shiong will become the second-largest shareholder, get a seat on the board of Tribune Publishing and be vice-chairman. The Los Angeles Times says it will be a $70.5 million investment. The company is also entering into a licensing deal with Soon-Shiong’s NantWorks for use of what Forbes calls in its story “over 100 machine vision and artificial intelligence technology patents for news media applications.” Per Forbes, Tribune would earn the first $80 million in revenues from NantWorks’s AI patents and a 6% royalty after that. Tribune would issue 333,333 shares of stock to a NantWorks subsidiary, NantStudio.

Patrick Soon-Shiong is a South African-born American surgeon, medical researcher, businessman, philanthropist, and professor at University of California at Los Angeles.

Forbes magazine estimates Mr. Soon-Shiong’s wealth at $11.9 Billion as of today. He was born in South Africa and holds degrees from University of the Witwatersrand, University of California, Los Angeles, and University of British Columbia. He is 63 years old and married. He is currently chairman of the Chan Soon-Shiong Family Foundation and chairman and CEO of the Chan Soon-Shiong Institute for Advanced Health, National LambdaRail, the Healthcare Transformation Institute and NantWorks, LLC.[5] In October 2010, he bought Earvin “Magic” Johnson’s minority ownership stake in the Los Angeles Lakers. He lives in the Brentwood neighborhood of Los Angeles.

This proves you don’t have to be a flamboyant loudmouth to be a billionaire.