Wednesday, December 26, 2007

"Stay Put"


"Stay put." Good advice from Lorenzo Martinez in this story from the LATimes front page above the fold.
The steady construction work that had allowed him to send home as much as $1,000 a month in recent years had disappeared. The 36-year-old father of four said desperation was growing among the day laborers with whom he was competing for odd jobs.

What do you think happens to local economies when hard working productive people like Lorenzo send $1000 per month out of the local economy? Construction used to have one of the greatest multipliers of all industrial classes. Now it turns out part of why California is in so much trouble is that there is not only no multiplier effect but a divisor effect. The Divisor Effect. You heard it here first.

2 comments:

Edgar said...

Then you get this $hit.

Sweet Cashback said...

I hope Santa Flipper Clause was good to her this year and brought her some sweet ride with pimped extra-wide seats to drive to the bank in order to cash those checks!

Oh and firstness and murstness should not be forgotten during the holidays....