According to a meeting held at the beginning of this month, the economic recovery from COVID-19 is set to be “long and uneven” in the Southern Californian region. This was the conclusion of the annual Southern California Economic Summit held by the Southern California Association of Governments (SCAG).
Still, it’s not all doom and gloom. At the summit, Governor Gavin Newsom said:
“We’re going to be alright. In fact, not only be alright, there’s no state better positioned in the future than this state.”
There is however, work to be done. This involves the importance of home ownership expansion in 2021; investment in people-of-color-owned SMEs; bolstering education, pushing forward the manufacturing industry, etc.
Over in Long Beach, it is hoped that the City Council will approve the proposal for a $5m fund in support of personal care service providers (cosmetic stores, hair salons, tattoo parlors etc.). so far it already has the support of Al Austin, Rex Richardson and Robert Uranga from the Council. The money will come from the next federal stimulus package.
It was a recent article in The New York Times by Tim Arango, Adam Nagourney and Natalie Kitroeff that sung the praises of California’s economic surge. They began their article by describing California as having:
“the highest concentration of billionaires in the country. It exports more computers than any other state. It is the nation’s largest producer of agriculture products by far: More than $6 billion in dairy products alone last year.”
They referred to California as “an economic powerhouse — now the fifth largest economy in the world after surpassing the United Kingdom in total output this year.”
But their concern is of Jerry Brown’s uncontested successor – Gavin Newsom – and how he will “navigate California through challenging fiscal times could be critical to assuring both the state’s continuing economic durability and its outsize contribution to national prosperity.”
Founding Partner of Beacon Economics, Christopher Thornberg believes that California is reflective of the economy as a whole. He said:
“So goes California, so goes the U.S.. It is far and away a dominant source of job growth in the U.S.”
And that’s good because a recent LA Times article noted how employment rates in California are positive too, with an additional 44,80 net jobs and a low of 4.2% in unemployment. There was an increase in wages but that was not “enough to top the increase in consumer prices.”
And as SS Economics President said: “California’s economy continues to sizzle.”