Energy Crisis Wreaking Havoc on California Economy.

• Position: Brief Article

California's output of goods and services could shrink by as much as 1.1 percent next year, and unemployment could rise more than 1 percentage point more than it otherwise would, due to higher electricity costs and blackouts. The study was prepared by the Anderson Business Forecast at UCLA and Cambridge Energy Research Associates. The assessment of the effects of the electricity shortage is one of the gloomiest to date. It contrasts with the views of some experts who have argued that, however inconvenient the energy crisis, the actual economic impact will prove relatively minor. Higher residential and commercial electricity rates will do the most harm by cutting disposable income and...