On Friday, four speakers spoke at the Central Coast Economic Forecast at the Alex Madonna Expo Center in San Luis Obispo.
The Central Coast Economic Forecast is an annual event designed to help local community members, businesses and non-profits better understand the economy and plan for the future.
One of the four speakers, Dr. Chris Thornberg, focused on the concept of "narrative versus reality" and the California economy.
The message from Dr. Thornberg to the hundreds of people in attendance — the California economy is perfectly fine.
“Don't blame the economy. It’s the narrative that's broken," Thornberg said.
He provided the audience with a new way to look at California's economy.
“If you want to know the way the economy is going, you have to look at both the narrative and the objective reality. Narratives drive choices, but it's economic reality that determines the outcome of those particular choices,” Thornberg said.
San Luis Obispo City Manager Whitney McDonald shared her thoughts on the concept.
“The differences between the narratives versus realities of our economy are important to remind ourselves when we hear, feel, and experience things in the community. At the same time, I think the narratives do create reality and we're here to help step into that conversation,” McDonald said.
Thornberg, founder of the independent research and consulting firm Beacon Economics LLC, also spoke about the California housing market.
“The real story of housing is not a lack of sales but a lack of supply,” Thornberg said.
McDonald says the city acknowledges the lack of housing supply and is taking action. She says housing has been one of the city’s goals for years and the city was recently identified as a pro-housing jurisdiction by the state.
McDonald says policies are in place in San Luis Obispo to help support additional housing.
“We need to continue supporting additional housing in our communities to continue our economic growth. An increase in population does increase our economic growth and I think it's a good reminder of what it does for us as a region. Housing growth helps support growth in our economy and labor force,” McDonald said.
Eric Prater, Superintendent of San Luis Coastal Joint Unified School District, agrees.
“We need to have a place that draws people in. We live in a wonderful place but now we need to make it accessible for those who want to live here and grow their business,” Prater said.
