How financially prepared is California for the coronavirus recession?

How financially prepared is California for the coronavirus recession?

California's streets are empty, schools across the state have shuttered and businesses have closed their doors. The drastic measures being taken to contain the COVID-19 outbreak in California are creating a new dimension to the disaster: The pandemic — which has already claimed 68 lives and infected a confirmed 3,243 people in the state as of Thursday morning — will exact a heavy economic toll.

Anticipating a coming surgein cases of the fast-spreading virus, Gov. Gavin Newsom has quickly mobilized resources and expanded his order for roughly 40 million Californians to continue sheltering in place in the coming weeks. The sharp shift in economic output could hit California hardest among all states. 

“This is really going to be a recession unlike anything we have ever seen before,” said Dr. Mark Duggan, a Stanford University economist and director at the Stanford Institute for Economic Policy Research. “Usually with recessions,” he explained, “it’s somewhat gradual. This will be just an instantaneous change in the economy.”

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