Is California in Recession? (Part XI)

November employment figures are out. Time to re-evaluate this assessment from a year ago in Political Calculations that California was in recession.

Going by these [household survey based labor market] measures, it would appear that recession has arrived in California, which is partially borne out by state level GDP data from the U.S. Bureau of Economic Analysis. [text as accessed on 12/27/2017]

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Factors in Unemployment Dynamics

That’s the topic of a new FEDS Note that I just published with Hie Joo Ahn. Here’s what we discuss:

The U.S. unemployment rate averaged 8.4% during the first five years of recovery from the Great Recession of 2007-2009, the weakest recovery on record. But as the expansion continued, unemployment continued to decline and by 2018 reached the lowest levels in almost half a century. Why did unemployment remain so high for so long, and what factors contributed to the recent lows?

Year in Review, 2018: Readers’ Suggestions?

Last year’s review was subtitled “Fighting against the Normalization of Lying”, with entries on Stephen Moore’s estrangement from the truth, Ironman’s misunderstanding of consumer surplus, and Donald Trump’s confusion over debt vs deficits, among others.

Put in suggestions for this year (preferably from the Econbrowser archives or comments); some candidates: the oil embargo of 1967 , recession in California , the miracle of Wisconsin’s manufacturing revival since the tax credit (hint: there is no miracle) , or how we won the trade war with China before the leaves fell .

On Recession: Hassett, Prediction Markets, and Markets

From NewsMax:

Council of Economic Advisers Kevin Hassett said he is willing to bet, based on the economy and indicators, that there will not be a recession any time soon, even though the markets have fluctuated a great deal this year.

“The U.S. economy is booming,” Hassett told Fox News’ “America’s Newsroom.” “We got data on Friday that jacked up our growth estimate for the fourth quarter all the way above 3 percent. We’re rocketing along at 3 percent growth, and the markets haven’t reflected the good news.”

Meanwhile, Hassett said that he would “take that bet” that there is not a recession coming in the next year

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