Other than the fact that California is my favorite place in America, California also seems to have a faster growing economy than that of the Nation. Unemployment will drop to 5% in early 2017, according to a new report by the UCLA Anderson Forecast.
Wages and salaries in the state, not adjusting for inflation, will grow about 5.7% this year, according to the projections. Which means that Californians will learn $60 billion more in wages than in 2015.
http://www.latimes.com/business/la-fi-ucla-economic-forecast-20160406-story.htm
Although those are all good signs for California's economy, their are a couple things I wanted to note. I know that California is also running on a very high deficit. I am curious to see whether this deficit will affect the future economy since it does not seem to be mentioned in the article. It is a good sign that salaries will grow at 5.7%. This being said the article does note that this does not account for inflation. I would like to see the inflation values to gain a true sense of how much wealthier workers of the state will be. Even with these concerns in mind it is certainly good for California to see strong numbers in many significant statistics. I'm just curious to see if the projections considered the factors I mentioned in their analysis, or their reasoning for leaving them out.
ReplyDeleteCalifornia's economy has been thriving for quite some time now. The big question is, is this growth sustainable for the long run? Salaries may grow at 5.7%, but this probably has a lot to do with the target increase of minimum wage to $15 by 2020. I have a feeling that this will actually raise the unemployment rate and jobs will be lost do to this drastic increase in minimum wage. The state will not be able to afford to pay everyone currently in the minimum wage active work force at a $15 rate. I am very curious to see where the California economy is in 5 years. I hope everything works out within the state.
ReplyDeleteThis is very encouraging to hear considering that California has the largest economy of any state. In fact, California's GDP was only less than eighth countries in the entire world in 2014. The lowered unemployment rate might lead to greater inflation though. I will pay attention to this going forward.
ReplyDeleteI have only heard good things about the Californian Economy, but never heard exactly one reason why. One sign of their prosperity is their new law to increase minimum wage to $15 an hour and I wonder if, in the long run, will positively or negatively affect their already strong economy.
ReplyDeleteI have only heard good things about the Californian Economy, but never heard exactly one reason why. One sign of their prosperity is their new law to increase minimum wage to $15 an hour and I wonder if, in the long run, will positively or negatively affect their already strong economy.
ReplyDeleteIt will be great for the state to have some more economic growth before unemployment jumps because of the increase in minimum wage laws. The goverment raised the minimum wage to $15 but this will definitely have a backlash on the progress the state is making. As the government can force people to pay $15/hour but they cant make people worth the $15 an hour due to which we might see a rise in unemployment rates.
ReplyDeleteAs minimum wages are raised in California, I can see the actual prices most items in the state rising in response to the overall higher income of most people, resulting in lower total income and higher interest rates, as well as a greater increase in people who shop across the borders to more tax free states, a phenomenon common in Massachusetts with people going to Rhode Island, or New Hampshire and vice versa for the lower taxes on certain items. This could prove disastrous to those that are bound to be let go as the initial wage increases kick in, raising unemployment while further requiring higher numbers of people to go on welfare for longer periods of time. Keep in mind that California had just increased its minimum wage from $8 an hour in 2013, to $10 an hour by end of 2015. The state had just finished adjusting the wage, and it is already being raised again.
ReplyDeleteWill mentioned earlier the deficit California is running, but I don't see it playing a major role or being a game changer for the spending habits of the state. We as a country are also running a major deficit, with no end in sight.
The fact that California’s economy may be growing faster than the nations economy is outstanding. I am surprised that unemployment will drop to 5% by early 2017 with the minimum wage increase. Is the personal income in California mainly increasing because of the minimum wage increase or is it due to other factors? I also wonder if this is going to cause more people to move to California in hope for jobs. This growth is also great for the overall economy! It might be safe to assume that the question of another recession is gone.
ReplyDeleteIts good to see that California's economy is doing so well, but really isn't a huge surprise because it has always been one of our countries top state economy. i think it will be interesting to see what the unemployment rate actually does because with the increase in minimum wage to $15/hour
ReplyDeleteIt is very encouraging to see the continual growth of such a large state economy such as California. Low unemployment rates and rising wages point to a healthy and booming job market, partially due to the continued success of Silicon Valley, however there is no guarantee that this will be sustainable in the future. Several people have already mentioned the minimum wage increase which will go into effect, and it's worth watching in the future to see if this affects the current success.
ReplyDeleteI think it is pretty awesome to see that California is growing very fast. It will be interesting to see what will happen when the $15 minimum wage kicks in. Will it slow down the economy growth, or will it increase it? I think it will most likely decrease the growth because unemployment will rise. Only time will tell.
ReplyDeleteI agree with Brad, I'm interested to see how the $15 minimum wage will effect the job market and what unemployment rates will look like after that kicks in.
ReplyDeleteIt is interesting to hear this because I am from California and I have also recently heard about the $15 minimum wage. However, this can be deceiving because even though their is a higher minimum wage people still have to pay for expenses. California is a very expensive place to live in because rent, gas prices and other living expenses are so high. Even though we will have a better economy and higher minimum wage prices will continue to rise.
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