3 Ways the War in Ukraine Will Impact the Bay Area

Thomas Smith

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Photo by Chaiwat Hanpitakpong on Unsplash

Yesterday, many news outlets reported that Russia had begun an offensive war against the country of Ukraine. That conflict appears to be continuing and growing in intensity this morning. Over 40 casualties were reported as of this morning, and many more are likely be reported as the conflict continues.

Ukraine and Russia can feel far away. But there are several ways that the war in Ukraine is likely to impact life here in the Bay Area.

Gas Prices May Increase

Gas prices in the Bay Area were already extremely high. They had topped out at more than $5.00 per gallon in many places over the weekend. Some of this was in anticipation of a likely Russian attack on Ukraine. But now that the attack has begun, world energy markets will likely continue to be disrupted. That will likely push gas prices in America, and especially here in California, even higher.

Workers May Be Disrupted

Bay Area regions like Silicon Valley rely on workers from all over the world. Many skilled workers come here from both Russia and Ukraine to work in Bay Area software and other high tech companies. Those workers may be unable to return home due to the conflict. They may also have family members at home who are directly affected by the war.

Tax Revenues May Drop

California taxes capital gains as income. That makes our state budget very dependent on the conditions of stock markets and other financial markets. If markets drop over the long term, people don't make as much money from investments. That means less taxes, and thus less revenue for the state.

Markets dropped sharply this morning on news of the war. They could go back up again, as markets are always volatile. But they could also remain lower in the long term, impact our state's tax revenues and also the Bay Area.

Visit the Bay Area Telegraph for an in-depth analysis of the impact of the war in Ukraine on the Bay Area.

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Award-winning entrepreneur, and the co-founder and CEO of Gado Images. Thomas writes, speaks and consults about artificial intelligence, privacy, food, photography, tech, and the San Francisco Bay Area. As a professional photographer, Thomas' photographic work regularly appears in publications worldwide. Pitches/news tips: tom@gadoimages.com

Lafayette, CA
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