Can California weather another recession?

"The only big California sector showing robust health was “information,” reflecting the unfortunate truism that the Silicon Valley-centered technology industry continues to prop up an otherwise lackluster overall economy."

"Were the oft-predicted recession to finally hit, the most obvious effect would be on the state budget. It is highly dependent on income taxes paid by a handful of high-income Californians, particularly on their investment gains and particularly in the tech-heavy San Francisco Bay area."

However, the impact would not be confined to the budget. We could see unemployment, which has been at record-low levels recently, skyrocket as it did a decade ago with collateral impacts on housing, retail sales and virtually every other economic activity.

We would also see a new debate over whether California’s high taxes, high labor and housing costs and high levels of regulation have, as critics allege, made the state less attractive to job-creating investment and more vulnerable to recession.

https://www.google.com/amp/www.mercurynews.com/2017/12/03/walters-could-california-be-seeing-the-onset-of-a-recession/amp/

https://www.mercatus.org/publication/weathering-next-recession-how-prepared-california