Stimulus Money Creating New Jobs! California Dreaming: Pretend to Pray on a Winter Day

California Dreamin', The Mamas and Papas

Seldom have I found a more appropriate music video to go with a story.

Los Angeles City received $111 million in stimulus money.

The stimulus money is helping create jobs in California.

The city controller said the $111 million resulted in 55 new jobs. Not 55,000 new jobs. Not 5,500 new jobs. 55 jobs.

It would be interesting to get a breakdown of those 55 jobs. I assume they are city employees, probably some of them in the auditor's office.

That's $2 million/job.

With the additional 3.8 percent tax on almost all passive income starting next year to help pay for administrative costs associated with the new federal health care program, North Dakotans getting royalty money from Bakken wells may be able to help out California, a little bit.

And with 12% unemployment in California, any little bit will help. 

[I assume North Dakota will continue to receive more federal spending per dollar of tax paid but the rate should shift toward California, and it could shift significantly. With the 3.8% on royalty income it is no longer a given that North Dakota will receive more federal dollars than taxes paid. Remember, North Dakota is producing 10 million barrels of oil per month; at $50/bbl that's one-half billion dollars/month. Most recent data shows New Mexico is number one beneficiary in federal/state offset; North Dakota is number six; California, 43; and, New Jersey, last, at 50.]

Wouldn't it be easier just to send the royalty money (if that turns out to be the case) directly to California and bypass Washington, DC? It would be a bit more efficient.

Anyway, my rant for the day.

Update: I posted the above note earlier today/yesterday and now -- just minutes ago -- I checked in at LA Times.com and see that the 55 jobs was not enough to stem the unemployment problem in California. The LA TImes.com is reporting that unemployment in California has jumped to 12.4%, up from 12.3% the previous month. Actually, that change is statistically insignificant, but one would have assumed the increase in the number of jobs in Los Angeles would have stemmed the tide. Of the 2.3 million unemployed in California, almost one million have been unemployed for more than six (6) months.

This is not good, folks.