10 states develop a coordinated economic opening plan

Ten U.S. states plan, independently of the White House, to resume economic activity suspended due to the coronavirus. These states account for a significant portion of the American economy.

On Monday, three West Coast states, led by California Governor Gavin Newsom, and seven East Coast states, led by New York Governor Andrew Cuomo, announced that they are developing coordinated regional plans to open the economy.

With the exception of Massachusetts, all these states are led by Democrat governors.

In the fourth quarter of 2019, those ten states together accounted for 38.3 per cent of GDP, which underscores how much the American economy depends on the most populous states.

According to Bureau of Economic Analysis statistics, California and New York are the first and third most populous states, respectively, accounting for about 23 per cent of GDP.

Coordinated action plans were announced after President Donald Trump stated that it was his prerogative to decide whether to open the economy. The White House is preparing its plans, which are expected to be announced shortly.

But Trump also made it clear that he would prefer to leave the matter to the governors. “I would prefer it if they made a decision,” the president said at a daily press conference.

In addition to those states, Texas and Florida make the largest contributions to GDP, which together account for 14 percent. The governors of both states are Republicans.

The states of the northeast – New York, New Jersey, Connecticut, Delaware, Pennsylvania, Rhode Island and Massachusetts – intend to coordinate efforts to gradually resume economic activity, but the final decisions will be made by each state based on its own needs, Kuomo explained.