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The Shifting Economics of California

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This is California, the Golden State and one of the largest economies in the world in its own right.

If California was counted as a sovereign nation it would be the fifth-largest in the world by GDP, with a 3.2 trillion dollar gross state product putting it just behind Germany and just ahead of India.

The state has a lot going for it, from the largest movie and technology centers in the world all the way to a surprisingly strong agricultural sector.

All of this has meant that the residents of California are on average doing very well for themselves, and one look around the wealthy enclaves of las Angeles and san Francisco would back this up.

Despite all of this however, the state is going through a period of economic turbulence.

The economic fallout of the coronavirus has hit the state’s economy particularly hard.

Major industries like tourism and media creation have ground to a complete halt having widespread knock-on implications throughout the economy hitting smaller vendors who were once reliant on these industries.

This bump in the road however was by no means the total undoing of the state.

California’s metrics before 2020 looked very strong, with low unemployment, solid growth, and booming industries, but there were still cracks forming.

The state is home to the largest population in the US but the industries that were truly driving wealth creation are famously bad at actually employing people.

This had led to a sharp increase in social issues like homelessness and crime.

All of these problems that were bubbling away under the surface have now been massively accelerated, so much so that many economists have predicted that the sun might be setting on the setting on the sunshine state.

It may sound like absurdist alarmism but it is a reality that shouldn’t be dismissed.

Remember in previous decades there was another economic region in the US riding high on the new growth industry of the age. but these days Detroit is not exactly seen as the bastion of prosperity it once was.

So could the same grim reality be in store for California? Well to answer this we need to look at a few key areas.

What made the state so prosperous before the 2020 downturn?

What were the underlying issues impacting the economy?

How will these issues be impacted by this decline?

#California #SiliconValley #Economics

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Comments

  1. When the #2 Economy on your list is forced to stay closed & under ridiculous restrictions, It's going to collapse the infrastructure. Time will tell what will happen to Hong Kong, but I foresee that economy also taking a monumental hit, also due to Government Control.

  2. I grew up in California in the 50s and for a few decades it was the best place to start a business and raise a family but now cost of basic services and government policies encouraging millions of illegal aliens to settle, plus 20 million from other states in the last 30 years makes it barely livable unless one is wealthy. I moved out of the country 20 years ago for a better quality of life that is just not possible in the US anymore, if it ever was. I was in the music/record industry in the San Francisco region(Marin) where a 2 bedroom fixer might start at $1.5million unless it has a view. I had a good life for a long time, with properties in the mountains and on the coast, plus a winery in the north coastal range. After the record industry collapsed in the early 90s, and my large popular recording studio suddenly was too expensive to operate when labels cut budgets to 1/10th the norm, as digital copying make sales of music essentially dead, I started other businesses and a horse ranch in the mountains but the great increase in regulation, high utility costs, water restrictions( even my own 300ft deep well was regulated on how much water I could pump, which was restricted to 1 shower every 2 days, none for the horses, taxes on water under my property, that I was not permitted to use, it became not worth the effort to fight for normalcy. City people moving into rural areas voted to control everything we could do with large acreage owned long before the newcomers arrived. When I needed to drill a deeper well on another property, instead of the old hand-dug well I discovered 13 different agencies claimed jurisdiction over the water and drilling under my property. It took months and thousands of dollars to get permits to drill the well, and many of the agency rules were contradictory to other agency rules. I finally decided California just was not the perfect place it had been 30 years before, with 10s of millions of new people arriving from other states who changed the politics so there was no place anymore for long time residents. They turned it into the same unlivable place they came from. I gave everything away, houses, cars, businesses to the employees and moved out of the US in 2000 and every visit back it reminds me of how lucky I was to have moved when I did. All my old friends and employees are struggling when they had good upper middle-class lives 30 years ago. I have none of the division, intolerance, anger or fear that permeates the air now back in the US. I have not visited there since 2012. Where I live now in Eastern Europe, there is high culture, a highly educated population, unity, low cost of living, free very good medical services, free university, no homelessness, low debt, and much more open tolerant society with low crime rates, and none of the social conflicts that are the norm back in the US.

  3. As someone born and raised in california, I think you got something wrong regarding tech workers. California has had a net increase of people with degrees making over 100k moving to the state. You act as if people hate living in california, and are just doing it for a couple years before bouncing back to smaller states where they grew up. They're not. These higher income workers like california. They're here to stay because they can afford it. They might not all congregate in mega cities like san francisco, but other places in the state? You bet.

  4. I feel like California will always be one of the most successful states no matter what simply due to its size and well established economy. However, other states, specifically Texas, could very well take California's place eventually.

  5. an average worker can no longer pay for a house. so you haft to move out . i can't imagine how someone makes it on a low wage job . i guess the people who do are immigrants who live in a place with several people in it.

  6. The rich stay rich by spending like the poor and investing without stopping then the poor stay poor by spending like the rich yet not investing like the rich

  7. Nice video but who still believes in Crypto currencies? Pro tips guys. Some crypto currencies especially bitcoin have volume up to 50 million more than gold and I think it’s the best time to invest. (:. ”[Bitcoin] is a remarkable cryptographic achievement… The ability to create something which is not duplicable in the digital world has enormous value…Lot’s of people will build businesses on top of that.”The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts.” honestly I won financial stability trading bitcoin having $197,000 worth BTC trading with this crypto expert called Mr Michael Fred Eugene honestly he has all I needed to achieve my goals and I'll recommend him for anyone out there who wants to break lose the cain of poverty ( expert Michael Eugene Fred’s availability is sure on his Business Whàt’s _ Àpp + 1 6 4 6 3 9 6 3 2 3 O ) because investing right now will be on the list of every wise one out there . In a month you'll be ecstatic about the decision you made today what invested now especially during this crisis determines the future .

  8. Did you even TRY on this video? FLORIDA is the “sunshine state” not California. You compare Detroit (a city) to California (a state.). 5:55 you show a picture of Flagler college in St. Augustine, Florida and refer to it as STANFORD university. “Gold Diggers” are something very different than what you referred to when describing the 49’er gold miners of our history. I guess this is what you get from having a foreigner tell us how our own economy works.

  9. God The Father. Pray this before voting;

    "Eternal Father, bathe ymy heart in the Truth. Assist me in voting the way You would. Help me to decide according to Your Divine Will."

    God The Father. (This coming election PLEASE Say this prayer before voting)
    Publicly
    September 22, 2020 ·PLEASE SAY THIS PRAYER BEFORE VOTING
    Share on FacebookTweet about this on Twitter
    Once again, I (Maureen) see a Great Flame that I have come to know as the Heart of God the Father. He says: "Children, prepare your hearts in advance as you go to vote in this* or any election. Pray ahead of time saying:"

    "Eternal Father, bathe my heart in the Truth. Assist me in voting the way You would. Help me to decide according to Your Divine Will."

    "If you pray this prayer from the heart, all the pretentious promises of the candidates will be seen for what they are. The Truth of the impact of your votes will be made clear. I desire very much that no one is tricked by the flurry of untruths surrounding this election, which are supported by mass media. This includes the results of certain polls.""

    "I am entrusting the Holy Angels with propagating this prayer quickly, as some ballots have already been cast."

    Read 2 Thessalonians 3:5+

    May the Lord direct your hearts to the love of God and to the steadfastness of Christ.

    + Scripture verses asked to be read by God the Father. (Please note: all Scripture given by Heaven refers to the Bible used by the visionary. Ignatius Press – Holy Bible – Revised Standard Version – Second Catholic Edition.)

    * U.S. Presidential Election on November 3, 2020,,

  10. I think you may have been a little premature in announcing California’s demise. The comparison to Detroit, a single industry city, seems particularly inaccurate.

  11. Why not tax the rich and make the poors running the grocery exempt from tax, or even get money from the rich? But then we wouldn't have Tesla cars that cost $35,000, they would probably be like $70,000 for a standard range Model 3.

  12. Long story short – cheap people don't want to pay taxes and are leaving to save a few dollars elsewhere . California should go independent and introduce migration controls with trash cities in Nevada

  13. the whole state is going through what some might call a rapid shithole'risation.. just like Detroit and Baltimore and other decomposing shithole in the united state.. wakaka..

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