Has recession arrived in Elk Grove?

While all the politicians and economist talk about the possibility of recession, let me tell you from here in the trenches, we have been i...

While all the politicians and economist talk about the possibility of recession, let me tell you from here in the trenches, we have been in one for two or three months now.

Economist and politicians are great for telling us when a recession started five or six months into one. They are just to far removed from the action to know the reality on the ground.

First there is the real estate bust. This is something we can see right in front of ourselves here in Elk Grove. All around us we see empty home, some now being boarded up.

Speculators and major financial institutions who financed them and regulators (including the Bush administration, Congress and Alan Greenspan) who turned a blind eye and artificially drove the prices up can take credit for a major part our woes. Almost all of the growth in Elk Grove over the last few years can be attributed to the real estate development.

When, if ever, was the last time you saw a major employer locate operations here? Perhaps if the Elk Grove City Council and Sacramento County Board of Supervisors before them had focused on developing Elk Grove as a place to live and work, we would be something more than a bedroom community for Sacramento.

Alas, that time has come and gone. Our destiny is set.

Want more evidence the country is in a recession, just try looking for a job. A look at Monster, Careerbuilder, HotJobs or Craigslist today compared to two or three months ago will show the number of jobs listed are way down. Trust me on this one.

What makes this recession more troubling is evident when you go grocery shopping. Prices on food are up, way up, even at major discount grocers such as WinCo.

Everything from processed and fresh vegetables, meat, bread, milk, eggs and other staples have gone up. Most of this is probably due to oil prices.

So we find ourselves in a recession with inflation. What I find most amusing about this is how the government tries to spin this.

They say if you strip out health care, oil prices and food increases, inflation isn't that bad. What a crock of manure that is!

In other words, we are in a state of stagflation much like the early 70's.

I hope the city council is able and willing to deal with all the the economic and social problems a full-fledged recession brings. Their ability to respond to the problems that will arise in the next several quarters will determine much of our future destiny.

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