A Fair and Sustainable Economic Recovery Program for California

By Robert Pollin - Political Economy Research Institute (PERI), June 2020

The COVID-19 pandemic has generated severe public health and economic impacts in California, as with most everywhere else in the United States. This report proposes a recovery program for California that is capable of exerting an effective counterforce against the state’s economic collapse in the short run while also building a durable foundation for an economically viable and ecologically sustainable longer-term recovery. This is an anti-austerity recovery agenda, including the following main elements:

Establishing Effective Public Health Interventions. This will generate millions of jobs through allowing the state to recover safely. Some of the industries in which workers have been hardest hit include restaurants and hotels, in-person retail trade, and health care. Workers in these industries all need to be provided with adequate Personal Protection Equipment so they can perform their jobs safely. They also need their rights at work to be fully protected, including the right to paid sick leave.

Upgrading California’s Public Infrastructure. California’s economy would receive a major boost, both in terms of short-run stimulus and longer-term productivity, by undertaking a large-scale public infrastructure investment program now. The study estimates that $25 billion in annual infrastructure investments in California will generate about 315,000 jobs within the state. Roughly half of these jobs will be in the construction industry, including new opportunities for carpenters, electricians, glaziers, plumbers, pipefitters, and construction laborers. Most of the rest of the jobs will be in manufacturing and a range of services.

Clean Energy Investments and High Road Job Creation. This study estimates that public and private investments in California to achieve the state’s mandated emissions and climate stabilization goals are capable of generating about 725,000 jobs in 2020 – 2021 through $80 billion in public and private investments in 2020 – 2021, and larger numbers thereafter to 2030. These investments will entail both: 1) greatly enhancing the state’s level of energy efficiency, including through deep energy retrofits to public buildings; and 2) massively expanding the state’s supply of clean renewable energy sources, starting with solar and wind power. New job opportunities will open for, among other occupations, carpenters, machinists, environmental scientists, secretaries, accountants, truck drivers, roofers and agricultural laborers.

Just Transition for All Displaced Workers. Some workers in California’s oil and gas industry will experience displacement over time through the state’s clean energy transition. This study estimates that about 1,400 oil and gas workers will be displaced per year between 2021 – 2030 and another 1,400 will voluntarily retire each year. All of these workers require Just Transition support, including pension guarantees, health care coverage, wage insurance, and retraining support, as needed. In addition to the oil and gas industry, a substantial share of jobs in hard-hit service industries such as restaurants, hotels and retail are likely to not return in the aftermath of the recession. Workers in these industries also need just transition support, including the extension of 100 percent unemployment insurance, Medicare health insurance coverage while unemployed, wage insurance, and high-road job training and placement support.

Download (PDF).

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author.