A Glimpse of the Future – California 2040 Economy – Part two of three-part series on what California will be like in 20 years.
by Rob Werner
In November 2020, the media claimed the U.S. was in recession. Some key economic indicators supported this finding. However, employment rates, inflation and production had not yet suffered economic problems. It was still labeled the “Trump Recession.”
Democrats took the presidency. Reforms were initiated to help the people and stop the “Trump Recession.” The American economy continued to do well, first experiencing major problems in 2022. The media praised Democrats for delaying the disasters generated by Trump’s policies.
National programs were adopted to improve quality of life. College graduates with large debts were given financial assistance and a second chance. The federal minimum wage was raised to ensure living wages. Universal healthcare became a reality. Regulations ensured businesses met higher standards and stopped taking advantage of consumers.
All immigrants were given residential rights and privileges of citizens.
Trump’s trade policies and environmental standards were replaced with standards set by the United Nations. Our country and consumers benefited from lower-cost imports.
Inflation rose, exceeding that of the Carter administration. Unemployment constantly rose. Businesses failed to be competitive within the world market and went bankrupt. Small businesses failed to survive inflation and raising minimum wages.
To pay increased costs and ensure economic equality, inheritance, corporate and income taxes were increased. The country returned to Roosevelt’s progressive tax rate of ninety percent.
These taxes increased business failures, decreased startups, and decreased research and innovations. The government assured us that we could rely on them to spend money where needed.
The “Trump Recession” was relabeled the “Trump Depression.” People claimed it was a long-term, predictable outcome from his policies. Many argued that those who supported Trump should be banned from receiving government assistance.
Based on Medicare, we have universal healthcare. It was the only program with insurance company support. We now have restrictions and ever-increasing delays. Many are life-threatening. There are those who claim that the government and insurance industry save money when the elderly die while waiting for treatment.
There are also complaints that the current system discourages the discovery of new medicines and treatments, and research is suppressed due to a lack of incentive.
The superrich have created offshore treatment centers.
To permanently establish a living wage, California adopted annual inflationary increases. It is not working. California’s inflation is the highest in the nation. High-paying big box stores like Costco do well, but Walmart and Target have been devastated. To survive, they utilize restocking and baggage robots. Buyers are now required to scan their purchases and return their carts or pay an extra charge.
Many restaurants have converted to eateries where food is cyber-ordered. Food is produced by machinery and routed to customer compartments in the store for pickup. Customers then have a limited time to access the compartments or the items are discarded, making room for the next customer.
Entry-level jobs are constantly being eliminated, causing a growing class of unemployed.
China is our major trading partner and foreign investor. With our trade imbalance and dependency, economists conclude that our economy would collapse without China’s assistance. China is the world’s leading economy. For these reasons, the United Nations and World Bank have replaced the U.S. Dollar with the Chinese People’s Currency.
Communism is considered the dominant economic system.