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flag California’s economy stagnates amid homelessness, housing shortages, and a growing budget deficit, with unemployment at 5.5%—the highest in the nation—despite efforts to resist federal policies.

flag California’s persistent challenges—homelessness, housing shortages, high living costs, stagnant job growth, underperforming schools, and a multi-billion-dollar budget deficit—stem from long-standing structural issues predating President Trump’s policies. flag Despite Governor Gavin Newsom’s 2018 election, the state’s economy remains sluggish, with a 5.5% unemployment rate—the highest in the nation—and job losses in July and August 2025. flag Employment growth has failed to keep pace with labor force expansion, and housing and fiscal crises remain unresolved. flag While state leaders emphasize resistance to federal actions, these national conflicts distract from deeper, ongoing problems that threaten California’s future prosperity.

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