Wednesday, July 15, 2015

What is the growth rate when California goes full spiral?

California unemployment rate in red vs real gdp growth in blue. California leads the recession and unemployment spikes when aggregate growth drops to 2%. We are on the edge, the White House bean counters just predicted a 2% growth this year.

Import and export prices took a 5% dive, YoY. California is a transport anc cargo economy, as is Illinois a traffic hub. If trucks and trains slow, then Illinois is a goner.  If pacific trade slows, California goes spiral.  Silicon Valley gadget sales are down 5%, so California capital gains taxes are gone. Add in the draught and the Obamacare fraud and California may be on its way.

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