Let's look at this more closely.
Let's first look at the CNN-Moody's
Back-to-Normal Index:
The Back-to-Normal Index
The pandemic economy is far from normal. So Moody’s Analytics and CNN Business have partnered to create a proprietary Back-to-Normal Index, comprised of 37 national and seven state-level indicators. The index ranges from zero, representing no economic activity, to 100%, representing the economy returning to its pre-pandemic level in March.
In other words, this index uses a
broad range of economic indicators,
not "almost purely on unemployment" as you suggest.
Furthermore, this index evaluates the performance of all 50 states.
Now let's look at the UCLA Anderson Forecast.
First off, it's exactly that, a
forecast. They are projecting into the future how much they
think states will recover.
Then the Yahoo article does not actually link to the forecast report, it only links to the
UCLA Anderson Forecast homepage:
Last week, this argument got a boost with the publication of
a new report by economists at the University of California, Los Angeles. According to the latest quarterly UCLA Anderson Forecast, not only did big states with more stringent COVID measures end 2020 with fewer infections per capita, they also tended to post better economic growth numbers last year than states with fewer restrictions.
What exactly is the "new report" referenced by the Yahoo article?
The
UCLA Anderson Forecast homepage includes articles on topics such as:
- Cathay Bank | UCLA Anderson Forecast U.S.-China Economic Report (no date)
- The Impact of Fiscal Stimulus (dated November 16, 2020)
- California Dreaming - Jerry talks California's pandemic recovery on ABC7 (dated April 8, 2021)
- UCLA Predicts U.S. Economy Will Have Record Growth in 2021 (dated March 26, 2021)
- How California Weathered The Pandemic Financially And What The Future Holds (dated March 17, 2021)
- California will recover from the pandemic faster than the U.S., forecast says (dated March 10, 2021)
- Interview with Conan Nolan - Jerry talks 2021 recovery expectations on NBC4 (dated January 3, 2021)
- Commercial Real Estate Survey (dated Winter 2021)
What is the "new report" referenced in the Yahoo article?
Now let's look at the UCLA Anderson Forecast's data source:
We generally view economic performance through the lens of gross domestic product. On average, GDP declined in 2020, and it declined everywhere. But those declines were smaller in states with more stringent nonpharmaceutical interventions than states with less stringent NPIs.
In other words, the
UCLA Anderson Forecast is
only looking at GDP.
But certainly they looked at all states? No!
The states that were considered for this analysis are basically the states that produce most of the U.S. GDP — states with a population of 5 million or greater.
On average, conservative states have much lower populations that liberal states. How convenient to ignore most of the conservative states that have recovered well!
And then there's this:
According to the latest quarterly UCLA Anderson Forecast, not only did big states with more stringent COVID measures end 2020 with fewer infections per capita, they also tended to post better economic growth numbers last year than states with fewer restrictions.
And this:
The data we have for 2020 is pretty conclusive.
So, in an economic recovery, they are using data that's nearly 6 months old!
Now let's look at another statement in the article that is patently false:
First, California had more stringent interventions and a lower infection rate than either Texas or Florida, two states to which it’s often compared. Yet California also performed better with respect to GDP than either Texas or Florida. Second, the same pattern showed up across all big states.
Really?
The article then
immediately contradicts itself:
There were two outliers: New York and Michigan. Both had stringent NPIs but lost a lot of ground in terms of GDP.
Those are two pretty big "outliers"!
Then the article includes little nuggets like this:
It’s true that if unemployment is your metric, California has a very high rate relative to Florida.
Yeah, we all know unemployment is not an important metric.
Remember the
UCLA Anderson Forecast was written by people who collect their salaries from the State of California.
The Back-to-Normal Index was jointly created by CNN and Moody's. CNN certainly cannot be accused of being pro-conservative.
Let's see how the Back-to-Normal Index graded the 12 most populous states:
- Florida: 101%
- Georgia: 96%
- Virginia: 93%
- Ohio: 92%
- North Carolina: 91%
- Texas: 91%
- California: 90%
- New Jersey: 90%
- Michigan: 89%
- Pennsylvania: 86%
- Illinois: 81%
- New York: 79%
Of the two reports, I know which one I believe and which one is written by cheerleaders for the State of California.