Is California really going into a recession?

R.A. Heim
walletPhoto byAndres SiimononUnsplash

You've probably wondered if California is entering a recession.

Before we dive into that, let's talk a little about recessions. A recession is typically caused by a combination of factors, including a decline in consumer spending, an increase in unemployment, a decrease in business investment, a decrease in exports, and a decrease in government spending. Other factors that can contribute to a recession include a decrease in the money supply, an increase in interest rates, and a decrease in the availability of credit.

According to the Public Policy Institute of California in a November survey, 69% of Californians said they expect bad economic times in the next year. That being said, California’s economy looks strong on many measures. The state has recovered the 2.7 million jobs lost during the pandemic, and then some. California jobs are growing at a faster pace than in the US overall. In addition, wages are up 15% as of October 2022 when compared to three years ago. (source)

Last October Governor Newsom said, “While critics often say California’s best days are behind us, reality proves otherwise – our economic growth and job gains continue to fuel the nation’s economy.”

Do you agree with Governor Newsom or do you think California is going into a recession?

Please feel free to share your thoughts in the comments. If you enjoyed this article, please share it with friends or family on social media.Thanks!

Disclaimer: Please note that this article is only for educational and informational purposes.If you'd like these articles sent right to your phone, you can download the Newsbreak App here with this link. I receive a small commission at no cost at all to you. Thanks!

Comments / 108

Published by

Writing about news you care about.

Spokane, WA

More from R.A. Heim

Comments / 0