Wednesday, August 11, 2010

Former Mayor: LA Will Be Bankrupt by 2014

By this time next year, the cost of retirement pensions in Los Angeles will have jumped from $500 million to nearly $1.25 billion, former Los Angeles Mayor Richard Riordan told CNBC. This coupled with an unemployment rate of 12.3 percent — higher than the 9.6 percent national unemployment rate — has led some city officials, and Riordan, to fear for the worst.

"The stimulus has hardly created a single private job,” Riordan said. “It’s all public jobs, most of which won’t last very long because they’re going to finish a bridge or a tunnel, or whatever they’re working on. And if you’ve heard other things, ridiculous things that that money has been used for.”
old CNBC.

Riordan also criticized the city’s current administration, headed by Mayor Antonio Villaraigosa, for adding 3,000 government jobs during a recession. He drew parallels between the inefficiencies created by a burgeoning labor force in Los Angeles and one in the nation’s capital, where a 6.5 percent unemployment rate is among the lowest in the country.

“It’s even worse in Washington D.C. now," he said. "You take Homeland Security where they had, at one time, 80 agencies."

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