Economy

Record Prices May Hit California With Reality Check

Written by T. Logan Dayne

Gavin Newsom has a history of referring to California as a “Nation-State”. He would boast about its GDP and its economic superiority but it appears reality may show how fragile that claim is. Despite Newsom’s statement saying, “California continues to lead the nation’s economic recovery, getting more people back to work and off the unemployment rolls than the rest of the country. But we know more work is needed to bolster the economy and help offset higher costs that families are dealing with right now,”

California is still behind both Florida and Texas when it comes to non-farm jobs. In fact, a set of factors may bring economic uncertainty back into California, one of which is COVID-19 scares, again. Berkeley and L.A. are once again implementing mask mandates as officials also urge children as young as 5 years of age to get the COVID-19 booster. Bernick, former Director of California’s labor department stated that, “The picture that emerges … is of a state economy that is continuing to recover, but in danger of stalling or going backward in light of the latest news on inflation and interest rate hikes.”

Continually increasing prices may serve to put any California progression back. The median price to sustain a single family in the state is scratching $900,000, despite sales dropping at 8.5%. Gas prices take up a big chunk of that. California has the highest gas prices in the nation breaking a new record even for the state as it hit $6.07. Gas hikes set to take place July 1st, pushed by Newsom himself, are set to increase that number even further. If economists are to be believed, this looks to put California especially behind in economic growth as its economy becomes stagnant. 

Photo Cred: David Crane, Los Angeles Daily News/SCNG