Happy New Year 2017! We begin 2017 with a raise in our sales tax to 9.75% and the raise in the minimum wage for businesses employing over 25 people to $10.50, next year in 2018 all business will be required to pay $10.50 per hour.
In Sacramento, there is a one party monopoly on power with both houses of the legislature having veto proof majorities, meaning that if Governor Brown would veto legislation by the democratically controlled legislature they would have the ability of overriding the Governor’s veto. The good and evil of power will be seen over the next two years in California.
The California Economy is doing very well for a highly educated employment base, in bio-tech, internet content, creative economy that includes architecture, movie and music, the emerging technologies of VR and AR. Traditional manufacturing, agriculture as well as many low paying service industry jobs are lagging in opportunities.
We face an issue with raising housing prices as the greater Los Angeles Area just surpassed $2000 per month average for a one bedroom apartment, as government tinkers endlessly around the edge of affordability instead of facing the issue straight on by creating housing opportunities instead of road blocks in the way of affordability.
Broadening the employment base to the entire business sector instead of pushing jobs out of the area and state, loosening some of the processes of creating housing would be a simple start to help those most needed of help.
That’s what I think….
Steven J. Rose President/CEO