In Sunday’s column, Dan Walters discusses the uneasiness which plagues California’s economy as we near the eighth year of expansion — “only two years shorter than the longest recovery since World War II,” according to Gov. Brown.
Walters highlights, as many observers have, the extreme fluctuations in state tax revenue when the economy begins to hit rough patches. As an illustrating example, in the 2008 recession, California faced a budget crisis fueled by a complicated tax code and spend-happy budgets in previous years that made substantial cuts to existing services necessary.
However, Walters notes that other threats loom. With the rampant unaffordability here, the supply of low-wage workers is dwindling as they are unable to buy homes or pay rent with their salaries.
We are potentially on the precipice of another disaster, Walters cautions, but we may have time to do something about it.
To get Walters’ perspective, read more here: California economy humming, but high poverty persists