The Breakdown

Explaining Southern California's economy

Visual Aid: The awful story of income in California after the financial crisis

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28823 full

The above chart from the Federal Reserve tells two amazing stories about California and money. As you can see, per capita personal income — all income in the state at a given time, divided by the population at that time — moved on an ever-ascending upward trajectory from the Great Depression on, right through numerous postwar recessions, until...

The financial crisis of 2008-09, when it fell off a cliff, pretty much for the first time since the Fed started keeping track of this data. Personal income is now recovering, but it still hasn't returned to trend. 

So California incomes aren't as recession-proof as they once were. And if a new trend asserts itself, with incomes falling with each new recession, life in the Golden State will be a lot bumpier than it has been in the past. But the drama in the chart is really all about what happened up to 2008. California was a good place to go, if you wanted you income to go up, up, up.

Follow Matthew DeBord and the DeBord Report on Twitter.

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