California’s economy is now bigger than in the UK, and it was surprisingly stable after the great recession, based on the technology, agriculture and Hollywood.
Now California is among the cities most affected by the virus. Governor Gavin Newsom took extreme measures, and ordered every resident over 65 years of age to stay in their homes and forbidding Californians to visit hospitals and nursing homes, if relatives are not on the verge of death.
He has announced plans to purchase hotels to accommodate 150 000 homeless in the state and asked for the closure of bars, night clubs, restaurants and wineries.
The Governor expressed confidence that the state will be able to endure the consequences, putting the budget surplus in the amount of $ 21 billion and cash available of approximately $ 16 billion.
Truck drivers were laid off and are forced to sell their rigs. Those who are still working have postponed the oil change and maintenance to stay afloat.
“We pick and choose which bills to pay, “said 30-year-old Joe Martz, the driver of the truck that transports containers from the ports of Los Angeles and long beach to warehouses in southern California.
Restaurants are closing, and realtors say that buyers are pulling the proposal because of the weakened stock portfolios left them scared and reduced the amount of cash for down payments.
Even the most optimistic economists now predict a recession.
“For the first time in 10 years, I thought, “Well, this is something that can eventually lead us to a recession,” said Chris Thornberg, founding partner of the consulting firm Beacon Economics.