The unemployment rate is 4.8%. In related news, 80% of the public thinks we're in a recession.
Look -- economic growth stalled to 0.6% in the fourth quarter of '07, not technically a recessionary level but close. We may or may not go negative this quarter; I don't know. I hope we don't, for all the obvious reasons plus one: it would keep perfect the MSM's record of reporting a continuous recession through the Bush years in the face of a stubbornly non-recessionary economy.
Something like 60% of the public thought the economy was doing poorly in 2004, with a plurality thinking we were in a recession then. The wrong track/recession figures were even higher in 2006, when the expansion was in full stride. I am not a Pollyana, but doom and gloom now with a 4.8% unemployment rate is nothing short of surrealistic, gas prices notwithstanding. Sheesh.
The fact remains that housing, especially in California, is a terribly inflated economic bubble. Until the price of housing or even rentals drops to anything approaching reasonable levels, they are going to have what approaches a crisis.
On top of that, lots of people have been wiped out and their credit ruined by subprime mortgages. Those who are living in the tent cities may be either on small fixed incomes or too poor to even migrate out of the State—with no place in particular to migrate to.
That is why I suggest the State quickly create some fairly inexpensive camps where these people, especially families, can gather for a short term basis, say six months to a year.
Not just slacking off, however. This would be where the State would put an employment office, and that is where the adults would be during the day, while their children were at school; unless they had work. Then they would be shuttled on buses to work and back.
All money earned by workers goes into savings and to repair their credit. The families eat government food from a government store in the camp, perhaps even cooked for them in a mess hall to save costs. And a clinic to keep them healthy enough to work or go to school.
The costs of doing this are minimal compared the long term damage done by having a large number of homeless.
Importantly as well, this is a camp for citizens, not illegals.