From all corners, I’ve heard this myth: Schwarzenegger has been great for the California economy.  Perhaps it’s time to debunk that. 

They cite a huge job boom.  In fact, July job growth has been almost completely stagnant.  In total, there were 900 new jobs.  900, not 9000.  In a state of 37 million people that’s a rounding error.

California’s slowing economy was reflected in its most recent employment figures, with employers adding a net total of just 900 jobs to the state’s payroll in July, down from 11,000 jobs that were added in June.
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Nevertheless, the declining number of new jobs reflects a trend that economists statewide have been anticipating — that as the housing market cools off, California’s economy will have to adjust to a drop in construction-related jobs. The decline has been steady since May, when 14,800 new jobs were added to the state’s payrolls; June saw 11,000 new jobs, compared with only 900 in July.

“This was widely predicted,” said Roth. “The only question is how severe (this slowdown) will be.”(SacBee 8/19/06)

So, how are those workers that have jobs doing?  Well, it turns out that their lives aren’t so bubbly under the Governator.

California workers experienced stagnant wages and weak job growth during the past five years despite a surge in corporate profits, according to a report set for release this Labor Day weekend.

“We’re five years into an economic recovery and we’re not seeing the kinds of gains in wages that you’d expect,” said Jean Ross, director of the California Budget Project, the nonprofit research group that produced the study. “The old saying is that a rising tide lifts all boats, but this rising tide has only lifted a few at the top.”

Many California workers are losing purchasing power as inflation outpaces their earnings.

Low-wage workers — those in the lowest 20 percent of income distribution — made $10 an hour in 2005, or 0.9 percent less than in 2003, after adjusting for inflation, according the report. (SF Chron 9/3/06)

So, yeah, Schwarzenegger has done a great job for the top 1% of the state.  He’s made big business CEOs really happy.  But as for the rest of us, his economic miracle is better described as a downturn.  Add in the fact that we know have a multi-billion dollar budget defecit, and I would call Schwarzenegger a disaster for the California economy.

Here we are at Labor Day weekend. Two months to go before Election Day and we just MIGHT be poised to take the U.S. House of Representatives. So, at this point in the election cycle, I would like to ponder this question:

What would it mean for San Francisco, and the people of the Eight Congressional District if Nancy Pelosi becomes Speaker?

Other than the symbolic prestige, would it mean more money to upgrades the streets? Perhaps the city can upgrade and improve our transit system? Could BART get enough funding to expand further into the South Bay and consider providing service to the North Bay?

Who would benefit the most politically? Gavin Newson? Fiona Ma? Mark Leno? The local unions?

When I lived in Michigan, John Dingell was my Congressman, and Christmas came year-round while he was Oversight Chairman. Hopefully now, California, especially the Bay Area, can get its fair share.