Four speakers spoke at the Central Coast Economic Forecast at the Alex Madonna Expo Center in San Luis Obispo on Friday.

The Central Coast Economic Forecast is an annual event designed to help local community members, businesses and nonprofits better understand the economy and plan for the future.

One of the four speakers, Dr. Chris Thornberg, focused on the concept of “narrative versus reality” and the California economy.

Dr. Thornberg’s message to the hundreds in attendance: California’s economy is doing just fine.

“Don’t blame the economy. It’s the narrative that’s broken,” Thornberg said.

He gave the public a new way to view the California economy.

“If you want to know how the economy is doing, you have to look at both the narrative and objective reality. Narratives drive choices, but it’s economic reality that drives the outcome of those particular choices,” Thornberg said.

San Luis Obispo City Manager Whitney McDonald shared her thoughts on the concept.

“It is important to remember the differences between the stories and realities of our economy when we hear, feel and experience things in the community. At the same time, I think stories create reality and we are here to contribute to that conversation,” McDonald said.

Thornberg, founder of independent research and consulting firm Beacon Economics LLC, also spoke about the California real estate market.

“The real story in housing is not a lack of sales but a lack of supply,” Thornberg said.

McDonald says the city recognizes the housing shortage and is taking action. She says housing has been a focus of the city for years and the city was recently identified as a pro-housing jurisdiction by the state.

McDonald says policies are in place in San Luis Obispo to help support additional housing.

“We must continue to support the creation of additional housing in our communities to continue our economic growth. An increase in population does increase our economic growth and I think it’s a good reminder of what it does for us as a region. Growth in the housing sector helps support the growth of our economy and workforce,” McDonald said.

Eric Prater, superintendent of the San Luis Coastal Common Unified School District, agrees.

“We need a place that attracts people. We live in a wonderful place, but now we need to make it accessible to those who want to live here and grow their businesses,” Prater said.