John on March 6, 2009 at 9:15 am
Naturally, this report only appears in Britain’s Daily Mail:
A century and a half ago it was at the centre of the Californian gold rush, with hopeful prospectors pitching their tents along the banks of the American River.
Today, tents are once again springing up in the city of Sacramento. But this time it is for people with no hope and no prospects.
With America’s economy in freefall and its housing market in crisis, California’s state capital has become home to a tented city for the dispossessed.
Those who have lost their jobs and homes and have nowhere else to go are constructing makeshift shelters on the site, which covers several acres.
As many as 50 people a week are turning up and the authorities estimate that the tent city is now home to more than 1,200 people.
California’s unemployment rate is at 10%. That’s likely to grow as the new taxes (including new gas taxes, a 10% sales tax and many more) slow the economy further. We’ll undoubtedly see more and larger tent cities in the coming months.
In the 1930′s these were called Hoovervilles, after President Hoover who took office just 8 months before the crash of 1929. In our case, the crash has been happening piecemeal since October. In any case, the precedent has been set: Welcome to Obamaville.
Related: National unemployment jumps to 8.1%, the worst since 1983.
Category: Energy & Economy |