Most Californians anticipate bad economic times in the year ahead, new survey finds

If you’ve felt dreary about the economy lately, you’re not alone.

Against a backdrop of stubborn inflation, rising prices and a looming recession, 69% of Californians said they expected bad economic times in the next year, according to a new survey from the Public Policy Institute of California. That’s up 12 percentage points from April and 17 percentage points from last November.

“The purpose of this poll is to hand it to lawmakers and show them, ‘Here’s what the people are experiencing, here’s how they’re thinking,’” said Mark Baldassare, PPIC president and CEO. “This is the voice of the people speaking very loudly that this is a time of great economic concern for them.”

Despite their gloomy views on the economy, voters were on their way Tuesday re-electing Democratic supermajorities in the Assembly and the Senate. Baldassare attributes this disconnect to political polarization. Of the likely voters surveyed, 54% said they approved of how Gov. Gavin Newsom was handling the issue of jobs and the economy, and 44% disapproved. Broken down by ideology, 82% of those who approved of Newsom’s performance self-identified as Democrats, and 90% of those who disapproved said they were Republicans.

Researchers based the survey results on interviews with 2,307 California adults, over a thousand of whom make less than $40,000 a year. The annual survey provides a rare look into how lower-income Californians feel about the economy overall as well as their personal finances.

Over 50% said at least one member of their household had driven less in the last 12 months to save money on gasoline, while a third said someone in their household had reduced meals or cut back spending on food to save money.

Nearly a quarter of Californians say the lack of well-paying jobs in their region is problematic, and residents who make less than $40,000 are more likely to hold this belief. For 23% of Californians, the shortage of good jobs has made them seriously consider leaving the state.

Looking long term, a strong majority of Californians — over 70% — say the gap between rich and poor people is widening, and 67% fear that California’s children today will be worse off than their parents. A similar percentage say the state government should do more to address economic inequality.

Affordable housing is a key step in closing that economic gap, and a heavy majority of Californians across the political spectrum say they’d support government action to improve access. Over 75% support the creation of more affordable rental units for lower-and middle-income residents, and 73% would back policies that ease permitting requirements and increase housing production so poorer and middle-class Californians can afford to purchase homes.

Gov. Gavin Newsom signed two major housing bills in September. Assembly Bill 2011 and Senate Bill 6 simplify the project approval process to varying degrees and make it easier for developers to convert underutilized commercial buildings, like empty office space and vacant parking lots, into housing. The laws take effect in July 2023.

Increased access to education could also help slow the widening economic gap. Two-thirds said they’d support legislation to eliminate tuition at public two-year and four-year colleges. Seventy-five percent of lower-income residents support tuition-free public colleges.

“At times like this, people look to leadership,” Baldassare said. “They’ll look to their newly reelected governor and their state representatives and ask, ‘What are you going to do about this?’”

This story was originally published November 10, 2022 at 5:00 AM with the headline "Most Californians anticipate bad economic times in the year ahead, new survey finds."