Posted by: coastcontact | May 13, 2013

Los Angeles on the Verge of Collapse

Boneventure Hotel from 5th & Fig -#2

I grew up in this city.  Nothing speaks more to Los Angeles than the beautiful architecture of many of our buildings.  Above is a photo of the Bonaventure Hotel in the downtown area.  I have lived in many communities from Westchester to Canoga Park.  Los Angeles has been decimated by poor governance.

From the Los Angeles Times:

Average (DWP) employee pay rose 15% over the last five years to $101,237 in 2012, according to records obtained by The Times.

The median household income for Los Angeles residents – the public utility’s customers – fell over roughly the same period, from $48,882 in 2008 to $46,148 in 2011, the latest year for which U.S. Census numbers are available.

The conundrum in voting for the next city mayor is that both candidates, Wendy Gruel and Eric Garcetti, are liberal Democrats that have voted for every DWP labor union contract and every city employee union contract.

Worse is that in their TV debates neither has addressed the question of labor contracts, high pension costs, high medical insurance costs, or the gross revenue tax that is imposed on every business in the city.

In my view the gross revenue tax is the most harmful of these issues to the city.  After all adjoining cities do not have that kind of tax.  So Pasadena, Glendale, and Burbank are all in the central part of the metropolitan area but provide far lower costs of doing business.

Garcetti and Gruel’s unwillingness to address those big issues sends me one message.  They are not prepared to confront the city’s major problems.  Instead they talk about improving the schools (they do not have any direct authority over the schools), transportation (limited authority), and street paving (they have authority but there is no money available).  Are we heading down the Detroit path to bankruptcy and desolation?  We may not be near there now but the road signs are obvious.


photo taken from 5th Street and Figueroa Street using a Panasonic DMC-FZ150



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