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As coronavirus spreads, fears of taking down California's economy

Original post made on Mar 11, 2020

As the stock market tumbled and oil prices collapsed on Monday, Gov. Gavin Newsom's top economic officials sought to project calm from the world's fifth-largest economy in the wake of the coronavirus pandemic.

Read the full story here Web Link posted Wednesday, March 11, 2020, 12:31 PM

Comments (15)

Posted by Calvin Morales
a resident of another community
on Mar 11, 2020 at 3:55 pm

Maybe now California will consider returning to its true roots...agriculture.

Outside of POTUS45's proposed tariffs on Chinese manufactured goods, we don't havfe a problem with the folks arriving from China.

They don't work in the fields & seem to prefer the nicer communities like Palo Alto.


Posted by Tom
a resident of Portola Valley
on Mar 12, 2020 at 6:51 am

California will suffer greatly from this virus and the Trump Bear Market.

Trump bans travel from part of Europe, yet allows travel from South Korea - 2nd most cases in the world. Allows travel from Britain, who has more cases than 12 other European countries.

Promised a million tests two weeks ago, and as of the weekend delivered maybe 75,000?

The man looked horrible on TV last night. A reality-TV actor out of his depth. Asked for 2 billion, Congress told him to take 8 billion - why isn't it being spent on tests and reinforcing hospitals NOW?

We knew about the virus months ago - what are FEMA's plans? Are National Guard medical units ready to set mobile hospitals to assist regular hospitals with testing this month, and a potential deluge of patients next month?

I pray Trump didn't get the virus from his friends at CPAC. Cruz and Gaetz, too. That said, it looks like Tom Hanks will be the positive face of this epidemic. Trump appeared last night as the scared leader - too little too late? Let us pray he sees the light.

Let us pray that someone competent takes charge.


Posted by What happened to Tom Hanks?
a resident of College Terrace
on Mar 12, 2020 at 12:53 pm

What happened to Tom Hanks?


Posted by Long Time Resident
a resident of Old Palo Alto
on Mar 20, 2020 at 6:25 am

Scary story.
Gun shops have seen a huge increase in sales of handguns [portion removed.]
The panic buying on toilet paper and other items got them nervous.

As someone who is now classified as elderly, high risk, and small family of 2, I don't belong to Costco.
It is too much to carry, and we have no where to store excess amounts of anything.
The last thing I would think of buying is a handgun.

[Portion removed.]


Posted by Long Time Resident
a resident of Old Palo Alto
on Mar 22, 2020 at 7:48 am

Another scary story.
CalPERS retirement fund just lost a phenomenal 69 million dollars in their investments.
This will certainly impact local governments, schools, taxpayers and some state and local public workers. You can read more here in the Sacramento Bee.

Web Link

Cities, counties and schools will have to pay CalPERS more in the years to come to help make up for the losses, putting pressure on them to raise taxes or reduce public services.

Who is their Chief Investment Officer now? What did he overly invest in?


Posted by Long Time Resident
a resident of Old Palo Alto
on Mar 22, 2020 at 8:06 am

Correction: That should have been 69 billion.


Posted by Resident
a resident of Another Palo Alto neighborhood
on Mar 22, 2020 at 8:58 am

I'm no economist, but I can understand that this cannot go on for long economically speaking. People need to work to earn money to live, employers cannot keep paying people who are not working to keep a business going. Money doesn't come from outer space, it is the result of people doing their work and others paying for it.

Am I wrong in wondering just where the government is going to find all this money it is being asked for in stimulus packages and handouts?

As I said, this can't go on for long.


Posted by Trump fired the national pandemic team
a resident of Greenmeadow
on Mar 22, 2020 at 9:28 am

> Am I wrong in wondering just where the government is going to find all this money

Same place when they gave trillions to corporations to use for stock buybacks to artificially inflate stock prices (which came crashing down in the Trump Bear Market anyway, so we got nothing but debt.)

Always funny how some get concerned about the deficit only after republicans hand money out to billionaires and corporations. Remember when Bush cut top rates and capital gains taxes? Sure, let's cut corporate taxes so Fortune 500 companies don't pay taxes!

Netflix,
Amazon,
Chevron,
Delta Airlines,
Eli Lilly,
General Motors,
Gannett,
Goodyear Tire and Rubber,
Halliburton,
IBM,
Jetblue Airways,
Principal Financial,
Salesforce.com,
US Steel,
Whirlpool, and more

"91 Fortune 500 companies paid no federal income tax in 2018" Web Link


"here, billionaires, take this - we don't care about the deficit!"

Then, a year later...

"What?!?!? Spend money to help those hurt from the Trump Pandemic responses? Are you crazy?!?!? Look at the deficit!!"


Staggering hypocrisy, combined with executive malfeasance = The Trump Pandemic Response


Posted by Resident 1-Adobe Meadows
a resident of Adobe-Meadow
on Mar 22, 2020 at 9:56 am

I have to shake my head at the above responses. How old are these people? My parents went through WW2 when this state was the Pacific theatre with military bases from end to end building planes and ships. All groups got to be middle class since the manufacturing on such an extensive basis employed all people. Then we went through the cycle of closing bases so homes could be built on those properties - but wait - those bases have contaminated soil which prevents home building.

Our central valley used to be the agricultural and farming joy of abundance. Competing forces about water have changed the productivity level.

Our so-called business base is now technology oriented - we are not building products - we are creating and selling APPS. So the labor market is now truncated by they type of industry we have let dominate this area and state.

That did not happen within the last three years of the current administration - it is a many year events which started long ago.

I think our school system is not teaching US and state history - people are just reading FB and going nuts. FB only employs a limited type of expertise. It is not building the middle class.


Posted by Resident 1-Adobe Meadows
a resident of Adobe-Meadow
on Mar 22, 2020 at 1:05 pm

So I went to Jiffy Lube on El Camino to take advantage of a coupon and because the work was overdue. Yes they are open and I was the only customer. A man and his son walk in and they ask if they take the Apple App. No - they take credit cards. The man did not have a credit card and they left. They took the time to drive over there, have a due date for maintenance, and have no credit card for payment. And they expect an automotive maintenance business to take the Apple App. That tells you where this economy is going, And how limited it is. How can we be the 6th biggest economy in the world when all we do is work via an APP?

And you think that is all about the current administration? Of where - the federal government or the state government? This state has a problem and it has nothing to do with the federal government.


Posted by Trump fired the national pandemic team
a resident of Greenmeadow
on Mar 22, 2020 at 2:44 pm

> This state has a problem and it has nothing to do with the federal government.

Wrong.

If the Feds had provided ample testing starting back in January (when the insider-trading senators started selling their stock) we would have been able to curtail this.

If the Feds had started to ramp up supplies of key medical gear back in January (when the insider-trading senators started selling their stock) we would have been better prepared.

If the face-painted Fed had taken this seriously back in January (instead of saying 15 cases will go down to zero) we would have avoided a lot of the carnage to come.


Taking an anecdote about about an un-banked person and spinning it about the whole state? Uh, okay.


Posted by musical
a resident of Palo Verde
on Mar 22, 2020 at 3:12 pm

^ Chevron is my bread & butter. Last annual report I got is for 2018, showing global pre-tax income of $20.5 billion, and total global income taxes of $5.7 billion, or 27.8%. You can look it up, audited by Price Waterhouse. Then we pay federal and state tax on our dividends. Shareholder meeting in San Ramon is always interesting.


Posted by Trump fired the national pandemic team
a resident of Greenmeadow
on Mar 22, 2020 at 4:12 pm

> total global income taxes of $5.7 billion, or 27.8%.

They don't tell you about US federal income tax?


Another study - "Key Findings:
The 379 profitable corporations identified in this study paid an effective federal income tax rate of 11.3 percent on their 2018 income, slightly more than half the statutory 21 percent tax

91 corporations did not pay federal income taxes on their 2018 U.S. income. These corporations include Amazon, Chevron, Halliburton and IBM. An ITEP study released in April 2019 examined 2018 Fortune 500 filings released to date and found 60 companies paid zero in federal income taxes. Now, all companies have released their 2018 financial filings, and this report reflects that.

Another 56 companies paid effective tax rates between 0 percent and 5 percent on their 2018 income. Their average effective tax rate was 2.2 percent."

Web Link


Posted by Resident 1-Adobe Meadows
a resident of Adobe-Meadow
on Mar 22, 2020 at 7:05 pm

[Portion removed.] All of the companies listed manufacture a product(s), have supply chain management in which they buy from other companies, and huge equipment inventory. Is this person a tax expert? NO. These companies hire multitudes of people from all economic strata - it is called JOBS. JOBS for all strata of the society. All have a huge work-in-process part of their tax portfolio - all have a huge liability concerning their retirement plans, all have heavy equipment which is subject to depreciation schedules that are part of the tax portfolio. The majority of those companies listed have union workers. the unions are taking apart of those workers pay.

[Portion removed.]


Posted by @Adobe-Meadow
a resident of Mountain View
on Mar 22, 2020 at 7:34 pm

Amazing to think that you actually believe what -45 and his minions put out, despite massive evidence to the contrary.

And to make matters worse, you insist that people who do not believe -45's lies are somehow mentally ill or RV dwellers.

Trust me, chuckles: On January 20, 2021, you will be in for a whole world of hurt, because your cult leader will be wearing handcuffs...


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