An AT&T technician works on fiber optic cables used for the expansion of AT&T U-verse Internet service in the Chinatown neighborhood in Los Angeles. We have jobs in Southern California, but we're not doing as well as Northern California. Why? The SoCal economy has some structural problems.
Yesterday, Pepperdine University’s Graziadio School of Business, in partnership with Beacon Economics, released its outlook for the California economy—exactly one day after UCLA’s Anderson Forecast came out.
Beacon principal and founder — and frequent KPCC guest on "Airtalk" and "The Patt Morrison Show — Chris Thornberg gently ribbed the Bruin economists. "Yesterday was the rookie game," he said. "Today in the slam-dunk contest!"
The Anderson Forecast for the U.S., California, and L.A. economies is cautiously optimistic. Pepperdine and Beacon are more bullish.
But there is one big difference between the two forecasts, and it comes down to an analysis on the changing — or not changing — economic geography of the state.
The UCLA economists say that California is two states — the recovering coastal regions and the still-depressed inland areas. A cratered housing market and unemployed construction workers are what’s holding back inland California. Meanwhile, in the Bay Area, Silicon Valley is hiring.