Boom Gone Bust: California Far From Golden
When things go wrong in the nation's largest economy, it spreads.
March 2, 2009— -- Since the Gold Rush, people have flooded into California with dreams of a better life: riches, fame and glory. But, these days, with foreclosure signs dotting driveways and "Going out of Business" signs everywhere, life in California is far from golden.
"There's no jobs; there are just no jobs here," said Tracy Osborne, whose husband Kevin has joined the ranks of California's unemployed. "He's been out of work now for 11 months. And there's just nothing."
In the area of Southern California called "Inland Empire," the Osbornes are not alone.
At Promises Lutheran Church in Murieta, Calif., donations were once collected to benefit a local food bank. Now, they are left for any member in need.
"It's been really tough," said Rhianna Stackhouse, a church member and mother of 2-year-old Sienna. "We've been living with my parents. It's hard. I love my parents to death but we need our own space."
Nearly everyone in their church community has been touched in some way by the economic downturn.
"We don't know what our situation is," said church member Lecia Cecconi-Roberts, who works as a band director at a middle school in Temecula. "It could change tomorrow. It could change two weeks from now. This year, we're being hit a lot harder and my job is probably safe for the time being."
The scale of the recession seems especially large in California. The state's $1.8 trillion economy -- the largest in the country and eighth largest in the world -- was hit hard by the crash in the housing market.
In December, California had the fourth highest jobless rate of states in the United States, at 9.3 percent, according to the U.S. Bureau of Labor Statistics. Now, with almost 2 million Californians out of work, totaling more than 10 percent, those who came believing the state was the land of ultimate opportunity are packing up and leaving.
"For every person who imagines California where life is better, there is someone who's now leaving," said American historian Bill Deverell of the University of Southern California. "And they're leaving because California disappointed them."
