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Running Scared: Middle Class in California

Written by Gary North on December 13, 2011

I grew up in California. It was a middle-class place. Where I grew up, Manhattan Beach, is today an enclave for the rich. A home that my parents bought for $8,000 would sell for $1 million today. Meanwhile, the middle-class is fading. It is no longer in the majority in California.

Three decades ago, 60 percent of California families could count themselves in what the Public Policy Institute of California calls the “middle-income” bracket. Not rich but doing reasonably well, the middle class formed a comfortable majority and shared the state’s prosperity.

But the portion of middle-income families slipped to 49.7 percent last year, according to the nonpartisan research group’s study. Using census figures and a federal standard-of-living measure adjusted for inflation, the report defines the middle-income bracket as families who earn $44,000 to $155,000 a year.

This is a trend. It will nor reverse.

Now, however, few are moving up. The downturn reduced the fortunes of almost all groups in California, but families who already earned lower incomes were hit the hardest.

Income dropped for California’s lowest-income families by more than 21 percent from 2007 to 2010 while dropping by just 5 percent for the most affluent families.

The poor are hurting even more.

Underemployment — not enough hours worked — was a bigger cause of declining incomes for working Californians than lower wages, according to the study.

“Employers during this recession were not adjusting wages, they were laying off workers,” she said. “That’s different from previous recessions. We think that the reason is that during this recession, inflation was really low. It’s easier for them to just leave the salary the same and let inflation eat it away.”

College grads suffered the least. This is typical across the nation.

Researchers differ in how they define the middle class or middle incomes, but Thursday’s report is the latest in a flurry of studies to suggest statewide income disparities are becoming more stark.

“Experts on income inequality believe that as income gaps widen, it could be even harder for people who start at the bottom to climb the income ladder,” said Alissa Anderson of the California Budget Project. “Already, rags to riches stories are less common.”

The economy is in bad shape. Unemployment is high. The state budget is a disaster.

What California is, the rest of the nation is becoming. Government debt is on the rise.

Continue Reading on www.mercurynews.com

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9 thoughts on “Running Scared: Middle Class in California

  1. Things will not change as long as the liberal dems are in charge

  2. All this thanks to the liberals…….:(

  3. Cliffystones says:

    So you grew up in Manhattan Beach? It could be worse, I grew up in Maywood!

  4. Luke 10:18And he said unto them, I beheld Satan as lightning fall from heaven.
    In ancient Hebrew the word for lightning is barack, the word for heaven or the
    heights is bama and to connect the words either an “a” or an “o” is used.

    2 Thessalonians 2:3 (King James Version)
    3Let no man deceive you by any means: for that day shall not come, except there
    come a falling away first, and that man of sin be revealed, the son of perdition;

    Political Correctness a term first seen in Mao’s Little Red Book, a communist engendered abomination that is instituting censorship little by little.

    “If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter.”- George Washington

    Carl Marx, once wrote that, the goal of the Communists was to quote,. “enter into men’s minds and cast God down from his throne.”

    Matthew 12:31Wherefore I say unto you, All manner of sin and blasphemy shall be forgiven unto men: but the blasphemy against the Holy Ghost shall not be forgiven unto men.


    In ancient Babylon their economy was based on usury.
    “If you lend money to one of my people among you who is needy, do not be like a moneylender; charge him no interest. Exodus 22:25
    Hath given forth upon usury, and hath taken increase: shall he then live? he shall not live: he hath done all these abominations; he shall surely die; his blood shall be upon him. Ezekiel 18:13
    Usury is unlawful; expressly prohibited by GOD!
     Article 1 Section 8 of the U.S. Constitution clearly states that only the Congress can print and coin money! 

    The Federal Reserve Act of 1913 was slipped thru congress during the Christmas break with the majority of it’s members absent. 

    The Federal Reserve is self serving and privately owned in violation to the Constitution, charging interest on illegally printed money. Money printed from nothing!
    In America On June 4, 1963, a virtually unknown Presidential decree, Executive Order 11110, was signed with the authority to basically strip the Federal Reserve Bank of its power to loan money to the United States Federal Government at interest. With the stroke of a pen, President Kennedy declared that the privately owned Federal Reserve Bank would soon be out of business. Five months later A UNITED STATES PRESIDENT, PRESIDENT JOHN F. KENNEDY was MURDERED BY COMMUNIST!
    “If you lend money to one of my people among you who is needy, do not be like a moneylender; charge him no interest. Exodus 22:25
    Hath given forth upon usury, and hath taken increase: shall he then live? he shall not live: he hath done all these abominations; he shall surely die; his blood shall be upon him. Ezekiel 18:13
    Usury is unlawful; expressly prohibited by GOD!
    In ancient Babylon their priest sacrificed babies to their gods baal, and molech.  
    In America the communist under their socialist programs have sacrificed over 50 million American babies to their god satan!
    Leviticus 20:2-5
    2Again, thou shalt say to the children of Israel , Whosoever he be of the children of Israel , or of the strangers that sojourn in Israel , that giveth any of his seed unto Molech; he shall surely be put to death: the people of the land shall stone him with stones.
    3And I will set my face against that man, and will cut him off from among his people; because he hath given of his seed unto Molech, to defile my sanctuary, and to profane my holy name.
    4And if the people of the land do any ways hide their eyes from the man, when he giveth of his seed unto Molech, and kill him not:
    5Then I will set my face against that man, and against his family, and will cut him off, and all that go a whoring after him, to commit whoredom with Molech, from among their people.
    Luke 22:35-36 Then Jesus asked them, “When I sent you without purse, bag or sandals, did you lack anything?” “Nothing,” they answered. 36 He said to them, “But now if you have a purse, take it, and also a bag; and if you don’t have a sword, sell your cloak and buy one.
    Jeremiah 50:16Cut off the sower from Babylon, and him that handleth the SICKLE in the time of harvest: for fear of the oppressing sword they shall turn every one to his people, and they shall flee every one to his own land.
    Jeremiah 50:23How is the HAMMER OF THE WHOLE EARTH CUT ASUNDER AND BROKEN! how is Babylon become a desolation among the nations!
    Jeremiah 50:14 “ Put yourselves in array against Babylon all around, All you who bend the bow; Shoot at her, spare no arrows, For she has sinned against the LORD.

    All nations compassed me about: but in the name of the LORD will I destroy them. Psalm 118:10


    “The thing that separates the American Christian from every other person on earth is the fact that he would rather die on his feet, than live on his knees!”. George Washington



  5. Is anyone really suprised????

  6. I couldn't agree more. I grew up in Redondo/Hermosa Beach, Lived there for 53 years. I had to move to Arizona because I was laid off do to a disability, my 1 bedroom cost $1650 a month (it was going up by 13.5% the next year)Here in Arizona my 1 bedroom is only $715 a month.

  7. Just a quibble:

    Looking at the actual percentages in the original article, I see…
    1980: 60.5% middle class, 33.9% lower class, 5.5% upper class
    2010: 49.7% middle class, 36.6% lower class, 13.7% upper class

    So, in the last 30 years, about 8% of the population moved from the middle to the upper class,
    and 3% moved to the lower class.

    Not too bad.
    Not optimal – I would prefer much more of the lower class move to the middle class – but not too bad.

    Now, what happened in the past is not indicative of what will happen in the future. And I agree, California – and the rest of the nation – is on a ugly downward trend for the rest of the decade (at least – two decades is more likely). And a lot of that upper-class wealth is tied to California real estate, a form of wealth that is looking shaky to me.

    Still, a shrinking middle class is not necessary a bad thing, if it means that a good chunk of it is moving up.

  8. TheThinMan says:

    As the Fed and the Treasury continued to devalue the dollar – this will get worse and worse. Minimum wage is the most direct way that governments mandate inflation. The business then has two choices to be able to pay any such increase in wages: 1) let employees go and make those that are left work harder/be more productive or 2) raise the cost of the goods or services. In both scenarios it's the worker that loses, along with the business. increased pay means increased taxes from the government, unemployment tax, social security tax, payroll tax and come federal tax filing time it may even put the worker in a higher tax bracket to pay more income tax. If it's reached by raising the cost of goods and services, the consumer loses, not only because of the increase in cost, but the increase in sales tax which is a % of cost. Workers are also consumers so their little increase in pay could be very costly when they go to buy food or clothing. Who is the winner – it's very obvious – it's the government taking more taxes in – although they are inflated dollars.

  9. And to think to cure the economic ills they elected a liberal governor like Jerry Brown?