Californians Pessimistic About Economic Future, Link Disparities to Racial Discrimination, Survey Finds

Most Californians aren’t feeling optimistic about the economic future of the state.

A new survey released Wednesday by the Public Policy Institute of California found that more than 60% of Californians believe children growing up in the state will be worse off financially than their parents. Nearly 70% believe the gap between rich and poor in their part of the state is getting wider.

The survey also found that Californians link economic disparities to racial and ethnic discrimination.

“Overwhelming majorities of Californians – including nine in 10 African Americans – say that racial and ethnic discrimination contributes to economic inequality in the U.S.,” said Mark Baldassare, PPIC president and CEO.

Nearly 60% of Californians also believe there will be periods of widespread unemployment or depression in the coming year, the survey found.

Those at the lower end of the income scale have already been experiencing financial hardships. More than 40% of households earning less than $40,000 a year have seen their work hours cut or their pay reduced in the last year. The same amount reported cutting back on their food to save money.

The negative affects of the COVID-19 pandemic aren't being felt equally around the state, either.

“The pandemic is continuing to have a disproportionate impact on Californians with lower incomes and on Latino households,” Baldassare said.

Of Latinos, 44% are very worried that either they or someone in their family will become sick from the coronavirus. That’s higher than Asians, African Americans or white adults. Nearly 40% of Latinos are also very worried COVID-19 will have a negative impact on their finances or their families’ finances, again higher than other demographic groups.

But the negative view of the economy doesn’t appear to be hurting Gov. Gavin Newsom. Nearly 60% of adults approve of how Newsom is handling the economy.