Regulations aimed at preventing the spread of COVID-19 did not sacrifice California’s economy. States that took a more pragmatic approach to the pandemic did not see any financial backing from limited regulation, according to a new report.
Survey results from UCLA Anderson Forecast Director Jerry Nickelsburg said he was “opposite” to the story common to some COVID-19 opposition opponents that public health orders undermine economic recovery.
Among the larger states, those with strict pandemic rules worked as well, and in some cases were superior to laissez-faire states. California’s GDP did not shrink in 2020 compared to Texas and Florida’s GDP. All of these outperformed the entire United States.Washington I had Some of the toughest The country’s pandemic restrictions had the lowest GDP loss of any major power.
“The group simply can’t find evidence that the economy has been adversely affected by the intervention, as measured by the shrinking GDP,” Nickelsburg said.
The discovery was supported by similar data from Scandinavia, where Sweden was touted as an international model for under-regulatory pandemics. Instead, the country had up to four times as many COVID-19 cases as Finland, Norway and Denmark, all of which worked at least economically as well.
Regulations may have helped offset some of the negative effects of business closures by helping customers navigate the relative risks of going out and shopping, Nickelsburg said. ..
“In restricted states, the states signal what is safe and what isn’t,” he said. “In unrestricted states, individuals make that decision, and some states voluntarily withhold requests.”
California’s economy was also helped by the fact that unemployment is concentrated in industries that require a lot of human contact, according to the report.
At the same time, industries such as technology that allow employees to work from home have had far less employment and wage cuts, isolated the state’s economy and recently accelerated recovery. According to the report, San Francisco, Silicon Valley and East Bay all saw faster employment growth than the United States as a whole between December and March.
The large number of undismissed workers also helped us to float in housing, one of California’s largest industries.
“The fact that low interest rates and high-income earners generally did not lose their jobs meant a strong demand for housing,” said Nickelsburg. “That’s why the construction industry went well.”
California’s stricter COVID rules did not hurt the economy – Times-Herald Source link California’s stricter COVID rules did not hurt the economy – Times-Herald