CA economic woes troubling

[SleeplessinSoCal]

Last edited Fri Apr 5, 2024, 06:46 PM - Edit history (1)

Newsom seems to have run into trouble. And that worries me regarding the Feinstein Senate seat.

California Businesses Revolt Against Gavin Newsom's New Tax Hikes

https://www.msn.com/en-us/news/politics/california-businesses-revolt-against-gavin-newsom-s-new-tax-hikes/ss-BB1l8T0H?cvid=960d571368664b9e8f3517ac5addb5b7&ei=26

Also bleeding jobs and losing people

California is gripped by economic problems, with no easy fix
Rising unemployment, a growing deficit and persistent outmigration are a painful trinity

https://duckduckgo.com/?q=why%20california%20economy%20is%20struggling&iar=news&ko=-1&ia=news&iai=https%3A%2F%2Fwww.economist.com%2Funited-states%2F2024%2F03%2F31%2Fcalifornia-is-gripped-by-interlocking-economic-problems-with-no-easy-solution&pn=1

And to add to the woes, India may overtake CA to be 5th, not overtake Germany as 4th largest economy

COULD CALIFORNIA DROP DOWN TO SIXTH LARGEST ECONOMY?

India could soon replace California as the world’s fifth largest economy, report says

https://www.msn.com/en-us/money/markets/india-could-soon-replace-california-as-the-world-s-fifth-largest-economy-report-says/ar-BB1l2ncz

[Fiendish Thingy]

1. Meh

While California is not without its troubles, much of this seems to fall into right wing talking points territory.

[Think. Again.]

2. I have to agree...

...I also find it odd that the OP contains the results from a search engine prompt for "why california economy is struggling" which would indicate an attempt to find items that support a specified conclusion, rather than find items to help come to an honest conclusion, such as "what is the condition of California's economy?".

[SleeplessinSoCal]

6. initially I Googled "CA Economy" under News

Try it.

[Think. Again.]

7. This is exactly what you "googled" on duckduckgo (with my highlights)...

https://duckduckgo.com/?q=why%20california%20economy%20is%20struggling&iar=news&ko=-1&ia=news&iai=https%3A%2F%2Fwww.economist.com%2Funited-states%2F2024%2F03%2F31%2Fcalifornia-is-gripped-by-interlocking-economic-problems-with-no-easy-solution&pn=1

I cut & pasted that directly from your OP.

[SleeplessinSoCal]

3. the high cost of living is not a talking point.

There isn't nearly enough affordable housing. His proposition 1 to address addiction, mental health and homelessness barely passed. It was expected to do far better. Owing to its cost many are afraid it's a money pit.

[Fiendish Thingy]

4. I acknowledged California has its troubles

It was your framing that I was questioning.

[SleeplessinSoCal]

5. I just Googled CA Economy.

Do you see new Newsom recall efforts? I do. Actually from "Newsom". I can't find any news item about another recall effort. But on Instagram what appears to be a plea from Newsom for donations to fight recall. Next time I see one I'm reporting it.

[Think. Again.]

8. You searched....

"why california economy is struggling"

on duckduckgo.

[SleeplessinSoCal]

9. AFTER searching CA Economy.

Seriously. I wanted to see what the headlines were. I searched two days ago as well because my brother keeps saying we have a shit awful economy out of the blue. I hoped to prove him wrong. Still searching for the upside.

[SleeplessinSoCal]

10. This is the one upside report I found...

UCLA Forecast: California’s Economy Will Outpace the U.S. as Employment Grows

https://timesofsandiego.com/business/2024/03/13/ucla-forecast-californias-economy-will-outpace-the-u-s-as-employment-grows/

[quaint]

11. Picked a different result from the OP's search...

Home to many of America’s most progressive policies, from criminal justice to vehicle emissions, California serves a unique role as a punchbag for right-wing politicians. Every few years it becomes fashionable to declare that it is a failed state, or that the California dream is turning into a nightmare. This rhetoric is often overblown: in terms of pure economic heft California remains the most powerful American state. But for all its continuing prowess in innovation (not least in artificial intelligence), California again appears to be entering one of its periodic rough patches.

The Economist

[BlueWaveNeverEnd]

12. I wish Newsome had held on to that surplus from a few years ago.

[SleeplessinSoCal]

13. is that what we got individual payments from?

Wasn't that part of a compromise for high taxes? Getting back what we paid into?

[nbsmom]

14. Some reasons why CA unemployment rate is above national average

Several possibilities to explain why California hasn’t been doing so well:

1. Fed hasn’t lowered rates yet. This means that tech companies have continued to shed jobs. It leads to startups dying because they can’t get the next round of funding. And it means that new housing isn’t getting built.

2. Larger companies have also begun to enforce return to office policies, meaning that employees are given a specified amount of time to move closer to the employer or their role is eliminated.

3. AI has been used as a reason to reduce headcount, but not so much as a reason to create new jobs and new companies.

4. Consolidation of companies and capabilities has continued at a breathtaking rate.

[SleeplessinSoCal]

15. I wonder too how much Musk's very public divorce from CA has hurt.

At least he is suffering (depression leading to Ketaminr usage).

I don't trust our Capitalist system anymore. It's been so corrupted. Trying to do what is best for people and planet are considered anti Capitalist. It's insanity.

And even most Californians look at politics from their own financial perspective. Especially when inflation is the boss.

[CountAllVotes]

16. $500+ PG&E bills are not helping one bit

I know of more than one person that is leaving this state.

It is too expensive for the common person to live in.

I feel sorry for those with a bunch of kids to care for.

I do not know what the solution is for the problems facing this state but the biggest problems, high gasoline prices, high food prices and outrageous PG&E bills is driving people away.

I know one person that is selling their house and moving into an RV.

What do you say to someone in that situation other than "Good luck".

[SleeplessinSoCal]

17. yesterday Steve Garvey called campus protestors "terrorists".

Saying they were siding with Hamas. Inflammatory rhetoric like that appeals to a larger segment of the population when it is under stress. And we are all under stress owing to jacked up gas prices and the cost of rent.

Why should CA pay more for gas than the rest of the country? Because we are a car culture? We buy more electric cars and hybrids. That should help save on gasoline supply. How do they always manage to squeeze us despite our best efforts?

[CountAllVotes]

18. People are getting desperate for places to live

When I moved away from San Francisco the rent was $800+ a month. That was in 1991.

Today, that same run-down rat infested apt. is $3500 a month.

Where I live now it is a bit less but still way overpriced.
The problem is GREED, plan and simple IMO.

[SleeplessinSoCal]

19. Then we are greedy too.

We lived in a very desirable Upper West Side, NYC rent stablized studio apartment with a lousy boiler and banging pipes. In '98 we were paying $435 when we left. It rents now for $2,900.

We purchased our condo in Orange County, CA for $158,000 when we moved in '98. As of today it is zestimated at $906,600. This amount seems outrageous. If we sold there would be no place we could afford. Possibly we may be able to afford assisted living with the money we make from selling our home. But as we are old, expenses skyrocket with medical needs and procedures provided that didn't exist in 1998.

We want our place to retain its value. But this climate is very scary. It makes us all greedy.

https://calmatters.org/commentary/2022/10/californias-chronic-housing-shortage-explained/

[CountAllVotes]

20. If it works for you it works for you

It doesn't sound feasible for you to move given your age.

You own this condo and you can sell it for close to a million dollars. That is a lot of money.

It would be wise to stay put like it or not IMO.

I live in a small house and it is a chore to keep it up. I must hire landscapers to deal with the property as it is on a large lot (close to 6,000 sq. feet). I cannot do it myself as I am living on my own since my husband died and I am disabled.

Being I am under proposition 13, my property taxes stay about the same thanks to it.

None of us know how long we are going to live.

I'm in the same situation as you are in a way except this house is certainly not worth a million dollars but it has gone up a lot in value since it was purchased in 2001.

I have a place to live as long as I can pay the taxes and monthly bills. I consider myself to be fortunate as many do not have anywhere to live these days.

You seem satisfied enough so why rock the boat?

Best of luck.

[SleeplessinSoCal]

21. I've always lived "hand to mouth".

My hubby's pensions have provided me with health insurance. When he goes, they go - includingcaffirdable health insurance. I may wind up on Medi-Cal. I'm always trying to figure out a path forward when he's gone.

[CountAllVotes]

22. oh wow, that sucks!

The health insurance is possibly more valuable than the condo is.

I'm fortunate as my insurance covered my late husband in his passing years.

I always took Union jobs w/benefits. I never earned a whole lot but I always had reliable health care.

I hope it doesn't come to you having to make such a choice.

Do all you can to prepare just in case.

I was left w/nothing personally.

I live in poverty now but I have the health benefits luckily.

Hang-in there and hope for the best!

[SleeplessinSoCal]

23. thanks.

I'm not at all sure of the best move right now. But I'm slowly making some plans.