Senior Economist Jerry Nickelsburg and the rest of the team at the UCLA Anderson Forecast have been making the media rounds lately. This is what happens when they release a pair of forecasts for the U.S. and California that describe the national economy as "stalled," tell us that they don't forecast a recession because the economic sectors that typically cause recessions when they become weak are already so weak they can't really get much weaker and that "the differential between Coastal California and Inland California has begun to widen and the specter of long-term economic stagnation in Inland California has reared a not very pretty head."
The sluggish economy and turmoil in the financial markets, meanwhile, remain a huge budgetary threat. Lawmakers stitched together California's spending plan in June by building in a $4-billion windfall from a rebounding economy. It is unclear whether that money will materialize.
"The recovery is stalled out," said Jerry Nickelsburg, senior economist at the UCLA Anderson Forecast. "Slow growth means less income; less income means less tax revenue."
Last week KNBC reporter Conan Nolan attended the UCLA Anderson Forecast conference, then decided to invite Nickelsburg in studio. The result were the pair of videos below, in which Nickelsburg elaborates on a range of topics from the bifurcated state ecomomy to the potential impacts of economic instability in Greece.