- Feb 5, 2006
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California Defies Doom With No. 1 U.S. Economy
The Golden State has no peers when it comes to expanding GDP, raising household income, investing in innovation and a host of other key metrics.
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By adding 1.3 million people to its non-farm payrolls since April last year -- equal to the entire workforce of Nevada -- California easily surpassed also-rans Texas and New York. At the same time, California household income increased $164 billion, almost as much as Texas, Florida and Pennsylvania combined, according to data compiled by Bloomberg. No wonder California's operating budget surplus, fueled by its surging economy and capital gains taxes, swelled to a record $75 billion.
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If anything, Covid-19 accelerated California's record productivity. Quarterly revenue per employee of the publicly-traded companies based in the state climbed to an all-time high of $1.5 million in May, 63% greater than its similar milestone a decade ago, according to data compiled by Bloomberg. The rest of the U.S. was nothing special, with productivity among those members of the Russell 3000 Index, which is made up of both large and small companies, little changed during the past 10 years.
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While pundits have long insisted California policies are bad for business, reality belies them.
I wouldn't take any economist or pundit who predicted California's doom seriously until they do some self reflection and admit their career was a miserable failure until this point.