California Economy Is on Edge After Tech Layoffs and Studio Cutbacks

[Zorro]

As recession fears persist, the troubles in major industries have hurt tax revenues, turning the state’s $100 billion surplus into a deficit.

California has often been at the country’s economic forefront. Now, as fears of a national recession continue to nag, the state is hoping not to lead the way there.

While the California economy maintains its powerhouse status, outranking even those of most countries, the state’s most-powerful sectors — including tech companies and supply chain logistics — have struggled to keep their footing, pummeled by high interest rates, investor skittishness, labor strife and other turmoil.

Even the weather hasn’t cooperated. Severe flooding throughout much of the winter, caused by atmospheric rivers, has left farming communities in the Central Valley devastated, causing hundreds of millions of dollars in crop losses.

Thousands of Californians have been laid off in the last few months, the cost of living is increasingly astronomical, and Gov. Gavin Newsom revealed in January that the state faced a $22.5 billion deficit in the 2023-24 fiscal year — a plummet from the $100 billion surplus a year ago.

https://www.nytimes.com/2023/04/11/business/economy/california-economy.html

[Lovie777]

1. NYT............

[Zorro]

2. Yep

Seems they do tend to always be writing gloom and doom articles about California...

[Retrograde]

15. Jealousy, IMHO

They remember the glory days when New York was the most important state in the union, and California just a two-bit agricultural backwater way out there.

Added to that is ignorance of the past. California has had a boom and bust economy since the 1850s. I've only been here since the 1970s, but I've seen a few drought/flood cycles (there's no such thing as an "average" year: it's either floods or no rain) and a couple of booms followed by layoffs in the tech sector (anyone remember the early 1980s? The early 2000s?) Same as it ever was.

[enid602]

4. NYT

‘Nuff said.’

[BigmanPigman]

14. As soon as I started reading I wanted to know the source......

NYT, figures.

[roamer65]

3. I see a building boom coming for CA.

Most of what was damaged will be rebuilt.

That means JOBS.

[OAITW r.2.0]

7. Building houses is sorta like coding.

Except, at the end of the day, you get to see your progress, IRL.

[roamer65]

8. Very true.

[Lovie777]

5. Our reservoirs filled...............

[pwb]

6. Yeah it is hard to live in a Blue States.

Last edited Thu Apr 13, 2023, 02:41 PM - Edit history (1)

On purpose.

[ZonkerHarris]

9. and we are about to have a probably 6 month long WGA writer strike in Hollywood soon.

not helping but I support them

[jimfields33]

10. I literally hope that does not happen.

[ZonkerHarris]

11. I don't see how it won't because the guild is adamant and correct on the issues they are getting

screwed on and it can't go on
its unsustainable

[jimfields33]

12. Then the powers that be needs to give them what they ask or at least have

Fair negotiations. There is a ton of money in Hollywood. They can spred it out some.

[ZonkerHarris]

17. have you met the studios? fair is not their thing. 100 years of history on it

[jimfields33]

21. That's true.

[Mr.Bill]

13. You know what happened when there was a writer's strike

a few decades ago in Hollywood?

Reality shows, which rely less on writers and scripts. I don't mean this was a good thing.

[ZonkerHarris]

18. the last WGA strike was in 2007/2008 and reality TV was already big and growing by then.

[chowder66]

16. Newsom predicted the shortfall earlier this year and has a $297B budget.

He is delaying some spending on certain things to avoid dipping into reserves.

[hunter]

19. California will be fine. It's the Republican states I worry about.

When push comes to shove they'll discover nobody is buying what they are selling.

Evangelical Christian grift, racism, xenophobia, and LGBTQ hate is not a winning hand.

[NowISeetheLight]

20. Life in CA

I’m upside down on my mortgage after refinancing last year. It’s my last house (hopefully). California is great as far as being gay goes but financially they need to learn about “rainy day funds”. They’re too willing to hand out every surplus and not save for a rainy day.