California Passes Great Depression Unemployment Numbers, Newsom Warns Public Numbers Are ‘Lagging’


Last week Gavin Newsom alerted California’s to the true economic devastation that the Coronavirus has brought us and again today on PBS, the Governor reminded us of the historic number of unemployments that the United States is facing.

  • Over 38 million unemployed in the United States
  • Over 4 million unemployed in the state of California

“We’re dealing with Depression-era unemployment. We’re north of 20% in this nation. The numbers that are coming out publicly are lagging and the reality is we are north of 25% in California,” said Newsom.

Newsom is comparing these numbers to the Great Depression, and he’s right. The Great Depression, at it’s worst, had a 24.9% unemployment rate.

Recently the Western States Pact, a coalition of west-coast states bonded together by their approach to COVID-19, penned a letter to President Trump asking for $1 trillion dollars be allocated to helping state and local governments. However, Trump and many others are concerned that is not their duty to  bail out states. Trump has singled out Democratic states like California on the issue but Newsom and other leaders are pleading with the President that this crisis goes beyond political lines.

“It’s not a blue state or a red state issue,” said Newsom. “I live in a sate of 56 counties, 26 of them went for Donald Trump overwhelmingly in the last election. They’re American citizens, they’re Californians, I care about each and every one of them and I hope Republicans in the Senate do as well.”

The Governor further defended his request by reminding listeners that the United States Government was created on a foundation of mutuality and commonwealth to it’s states. He believes that the federal government is compelled by duty and morals to help local government through this incredibly tough time.

The state of California, though it started the fiscal year with a economic surplus, is set to burn through their reserves as they attempt to soften the blow that the SARS-CoV-2 pandemic has brought. A $54 billion deficit for 2020 was recently projected by the state.

 

 

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