The Trump tariffs are creating unnecessary economic chaos. But, terrible as they are, Californians, and Santa Cruz County residents, are continuing to be hit with cost of living increases that are undermining the todays and tomorrows for too many people — younger families, seniors and anyone in between those age groups not making upwards of $250,000 a year.

Doom and gloom? Last week Gov. Gavin Newsom boasted that California in 2024 overtook Japan to become the world’s fourth-largest economy, stating, “While we celebrate this success, we recognize that our progress is threatened by the reckless tariff policies of the current federal administration.”

No doubt, at least on the tariffs. But a closer look shows the state’s GDP would rank 11th in the world when adjusted for purchasing power, according to a report by the California Center for Jobs and the Economy. This report reflects how the state’s high costs diminish living standards as Californians earn more on average than people in the rest of the country, but their paychecks don’t go as far.

So, while a majority of Californians approve of the way Newsom is handling his job (figures buoyed by party affiliation), 54% of Californians in the latest Public Policy Institute of California poll say things in the state are going in the wrong direction.

When asked about economic conditions in California, 69% said they think they’ll have bad times financially during the next 12 months.

As the accompanying commentary from former Public Utilities Commission President Loretta Lynch declares, we’re paying the second highest utility rates in the nation, which she blames on a too-cozy relationship between the commission and utility giants such as PG&E, which recently proposed another rate increase, following six last year. Nearly 1 in 5 households is behind on utility payments in California.

Insurance rates, reflecting the state’s vulnerabilities to wildfire, have soared and many county residents in forested areas have seen their insurance canceled, and have had to move onto the state’s FAIR plan, which offers minimal coverage at high prices.

Statewide, unemployment is rising, with 54,800 jobs lost during the first three months of this year.

Then there’s the price of gasoline. Think prices are high now in California at an average $4.80 a gallon? Just wait. UC Berkeley economist Severin Borenstein warned last week that prices might rise $1 a gallon if the state “does it right,” although the impact could “be many dollars per gallon.”

Higher prices are expected after Valero said this month it will “idle, restructure, or cease refining operations” at its Benicia refinery by April 2026. Other refiners, including Phillips 66, have also announced they’re leaving. The refiners blame onerous regulations including the state’s low-carbon fuel standard and cap-and-trade program.

Losing refineries will increase the risk of supply shortages and price spikes. Unfortunately, few refineries outside the state can produce California’s mandated clean fuel. So whenever a California refinery has a problem or shuts down, gas prices surge.

Then, of course, there’s housing. To afford a typical home in the state where the median sale price is $884,350, Californians need to earn nearly $200,000.

For much of Santa Cruz County, $884,350 won’t buy much in terms of housing, as median prices along the coast are in the $1.35 million range — unaffordable for teachers, cops and those working in tourism-dominated jobs such as restaurants and hotels. Rents here are the highest in the nation in terms of affordability.

Is this all the result of Trump’s election? Some of it, yes. And since Newsom seems likely to run for president in 2028 it’s in his interest to say it is. Unfortunately, many issues California faces predate Trump. Democrats have controlled state government for nearly two decades and the result is a scarcity of jobs, energy and housing.

And that’s why proposed tax increases, including one circulating in Santa Cruz that would create more affordable housing and the expected ask to pay for a $4 billion coastal train and trail, face waves of economic uncertainty moving even further onshore.