Californians cry foul on reports of state's economic boom

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Mica Soellner
·5 min read
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After a year and a half of shuttered businesses, social distancing, and masking up, California is finally returning to normalcy.

The Golden State, which implemented some of the strictest lockdown measures in the country since the onset of the COVID-19 outbreak in early 2020, fully reopened as of 12:01 a.m. on Tuesday.

'A LOT OF COWBOYS OUT HERE': RURAL CALIFORNA EMBRACES LOCKDOWN DEFIANCE

The climb out of lockdown coincided with a Monday report by Bloomberg that credited California with the No. 1 economy in the country, pointing to the pandemic as a reason for its expanded GDP, job creation, and increase in household incomes.

"If anything, COVID-19 accelerated California's record productivity," the report read, adding the state defied critics who often claim the state's policies are "bad for business."

The report was cited by Gov. Gavin Newsom, Rep. Ted Lieu, and MSNBC Morning Joe host Joe Scarborough.

"Thank you to the people of California for powering CA to the #1 state economy," Lieu said in a tweet. "California is moving forward because most Californians believe in science and don’t wake up every day trying to own the libs. We have better things to do."

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But, some Californians are skeptical of the boom trickling down to them.

"The California economy is No. 1 in the country? I can't believe that," said Terry Rapoza, a resident of Redding vocal about his opposition to the state lockdown orders. "That's hard to believe because I know that a lot of vacation spots, a lot of places are still shut down. I know a lot of businesses have left."

Yorba Linda Mayor Peggy Huang said she wasn't surprised by the state's strong economic statistics but said the data is likely skewed due to the overwhelming presence of California's innovative industries, such as Big Tech.

"We're very diverse, given you have very strong agriculture to very strong aerospace," Huang, a Republican, told the Washington Examiner. "Silicon Valley is constantly putting out innovative companies. And I think that might be one of the reasons why you can see the diverse economy help keep the GDP and what these figures show."

Huang added: "For California, a state that's heavily dependent on capital gains tax, it's gonna look really good ... But it doesn't go down to the lower people, which is why the people in Silicon Valley are hitting it rich. They're doing really well. But the people on Main Street, the Mom and Pops on Main Street, are not."

Huang said her city, which sits about 35 miles outside of Los Angeles, has a 4.9% retail vacancy rate, and the labor shortage has been hard on local businesses as they try to return to normal.

Steve Knauf, who owns Steve’s Sportsmans Cafe in Mariposa, said finding workers has been a struggle for many restaurants and local retail shops.

"We can't find people (to work)," Knauf told the Washington Examiner.

Knauf, who refused to shut his restaurant down for the duration of the pandemic, called the state's lockdowns "ridiculous" and said he is in disbelief about the state's strong economic performance.

"Everybody in this state is destitute. You can't throw enough money to this state," Knauf said. "South Dakota is the state. That's the model state. They never shut down."

The labor shortage is something that Cottonwood Barbershop owner Woody Clendenen has also noticed.

Clendenen, who also made headlines for refusing to close his business, blames generous state unemployment grants for the gap.

California offered different benefits for unemployment throughout various periods of the pandemic, with the highest being at the peak of March 29 to July 25, 2020. The state granted unemployed people $167 per week plus $600 per week of unemployment due to the coronavirus. Unemployed individuals could also qualify for Pandemic Unemployed Assistance for up to 86 weeks.

"I think every single business owner I've talked to is looking for help," Clendenen told the Washington Examiner. "Some businesses are actually having to close because there’s not enough work."

Robbie Nelson, who has owned the Airport Bar & Grill Inn Mariposa for 13 years, agrees with Clendenen and said she sees "Help Wanted" signs all over her community.

"Why would people want to work when they make more on unemployment?" Nelson told the Washington Examiner.

Nelson also kept her restaurant open throughout the pandemic and is dubious about the idea of California's rapid economic comeback.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

Without disobeying state orders by staying open, Nelson said she wouldn't have been able to afford her monthly expenses.

"I don't think (California) has the best economy by far," Nelson said. "I offered to close down and do what they wanted if the doctor of the health department in our county was willing to sign a paper and say he would pay my monthly bills ... I had friends that lost their businesses because they abided by the state orders, but I fought it."

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Tags: News, California, Economy, Coronavirus, Gavin Newsom

Original Author: Mica Soellner

Original Location: Californians cry foul on reports of state's economic boom

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