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Thread: California's economy is now the 5th-biggest in the world, and has overtaken the United Kingdom

  1. #1

    California's economy is now the 5th-biggest in the world, and has overtaken the United Kingdom

    New economic data puts the California economy at $2.747 trillion — bigger than most nations.

    The ranking puts in fifth in the world, just ahead of the United Kingdom, which is on $2.625 trillion.

    The difference is striking given California's population of 40 million to the UK's 66 million.

    California's economy is so large, and has grown so quickly, that it is now the fifth-biggest in the world all by itself, according to US government data.

    Figures released on Friday by the US Department of Commerce put California's effective GDP from 2017 at around $2.747 trillion. It said the state's economy grew by 3.4% in the past year.

    That growth puts it ahead of the United Kingdom, which has a GDP of $2.625 trillion, according to data published last month by the International Monetary Fund.

    Here is how the 15 largest world economies look if you also include US states (in bold) as separate entities:

    1. United States $19.391 trillion
    2. China $12.015 trillion
    3. Japan $4.872 trillion
    4. Germany $3.685 trillion
    5. California $2.747 trillion
    6. United Kingdom $2.625 trillion
    7. India $2.611 trillion
    8. France $2.584 trillion
    9. Brazil $2.055 trillion
    10. Italy $1.938 trillion
    11. Texas $1.696 trillion
    12. Canada $1.652 trillion
    13. New York $1.547 trillion
    14. South Korea $1.538 trillion
    15. Russia $1.527 trillion

    According to the Associated Press, California's boom has been especially pronounced because of its thriving tech, entertainment and agricultural industries.

    The difference is even more stark in light of the respective economies' populations: Britain has around 66 million inhabitants, compared to California's 40 million.

    The United Kingdom has experienced sluggish growth in the past year and many consider its future economic prospects in peril because of its impending exit from the European Union, characterised by fraught negotiations.

    It also highlighted currency fluctuations which helped increase the US dollar figure for California's economy at the expense of Britain's.

  2. #2
    Senior Member L.T. Fan's Avatar
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    Quote Originally Posted by BipolarFan View Post
    New economic data puts the California economy at $2.747 trillion — bigger than most nations.

    The ranking puts in fifth in the world, just ahead of the United Kingdom, which is on $2.625 trillion.

    The difference is striking given California's population of 40 million to the UK's 66 million.

    California's economy is so large, and has grown so quickly, that it is now the fifth-biggest in the world all by itself, according to US government data.

    Figures released on Friday by the US Department of Commerce put California's effective GDP from 2017 at around $2.747 trillion. It said the state's economy grew by 3.4% in the past year.

    That growth puts it ahead of the United Kingdom, which has a GDP of $2.625 trillion, according to data published last month by the International Monetary Fund.

    Here is how the 15 largest world economies look if you also include US states (in bold) as separate entities:

    1. United States $19.391 trillion
    2. China $12.015 trillion
    3. Japan $4.872 trillion
    4. Germany $3.685 trillion
    5. California $2.747 trillion
    6. United Kingdom $2.625 trillion
    7. India $2.611 trillion
    8. France $2.584 trillion
    9. Brazil $2.055 trillion
    10. Italy $1.938 trillion
    11. Texas $1.696 trillion
    12. Canada $1.652 trillion
    13. New York $1.547 trillion
    14. South Korea $1.538 trillion
    15. Russia $1.527 trillion

    According to the Associated Press, California's boom has been especially pronounced because of its thriving tech, entertainment and agricultural industries.

    The difference is even more stark in light of the respective economies' populations: Britain has around 66 million inhabitants, compared to California's 40 million.

    The United Kingdom has experienced sluggish growth in the past year and many consider its future economic prospects in peril because of its impending exit from the European Union, characterised by fraught negotiations.

    It also highlighted currency fluctuations which helped increase the US dollar figure for California's economy at the expense of Britain's.
    I have issues with this. California is overtaxed and their budget is more than strained. Businesses are leaving the state by droves andreal estate is past thr saturation level in overvaluation.
    Since Day One

  3. #3
    Quote Originally Posted by L.T. Fan View Post
    I have issues with this. California is overtaxed and their budget is more than strained. Businesses are leaving the state by droves andreal estate is past thr saturation level in overvaluation.

  4. #4

    Noticing More Neighbors? California Population Nears 40 Million

    If you've been feeling more cramped in California lately, a new report will answer why.

    The Golden State added approximately 309,000 new residents last year, according to new numbers released by the California Department of Finance. The year-to-year 0.78 percent bump in population growth means that an estimated 39,810,000 people call California home as of Jan. 1, 2018.

    Los Angeles is far and away California's most populous city with an estimated 4,054,400 residents, according to the report. San Diego follows with 1,419,845 residents. San Jose checks in as the third-most populated city with 1,051,316 residents.

    San Francisco (883,963 residents) and Oakland (428,827 residents) were the only other Bay Area cities among the 10 most populated cities in the state, according to the latest numbers.

    When it comes to growth, Chino Hills led the way with a 4.6 percent increase in population surge this past year, according to the report. Dublin, which now features a population of 63,241 people, was labeled as the second-fastest growing city in the state. Newark — now home to 47,467 residents — was third with a 3.9 percent hike in population.

    California as a whole in 2017 added roughly 85,000 housing units to shelter the swelling population, according to the report.

    Los Angeles beat out all other cities by adding 13,852 housing units. San Diego (5,961 units), San Francisco (4,464 units), Irvine (3,798 units) and San Jose (2,590 units) followed suit, respectively.

  5. #5
    The United States is on track to achieve the second-longest economic expansion in its history. Unemployment is at a 17-year low. And California’s state budget has a multibillion-dollar surplus.

    So why is its longtime governor, Jerry Brown, issuing prophecies of doom?

    “What’s out there is darkness, uncertainty, decline and recession,” Mr. Brown said recently after presenting his final budget to legislators.

    California has accounted for about 20 percent of the nation’s economic growth since 2010, significantly more than its share of the population or overall output. But Mr. Brown, in his final year in office, has raised the question on the minds of those paid to think about the economy: How long can this last?

    For California and the nation, there is a long list of things that could go wrong. A surging budget deficit could stoke higher interest rates. And if the recent upheaval in stocks signals a longer-term decline, it would hurt California in particular because its budget relies heavily on high earners whose incomes rise and fall with the market. President Trump’s moves to upend longstanding trade arrangements could be a setback for the state, home of the country’s biggest port complex. And because the growth of the technology industry has played a huge role in California’s recent boom, a drop in company valuations or in venture capital investments would reverberate swiftly through the state’s economy and tax receipts.

    “I don’t think there’s any reason to believe we are going to have a recession this year or the next year,” said Christopher Thornberg, founding partner of Beacon Economics, a consulting firm in Los Angeles, referring to Mr. Brown’s grim forecast. “He’s just pointing out the obvious, which is that things feel good now but there is going to come a time when all hell is going to break loose — and we better be ready for it.”

    Mr. Brown’s statements highlight California’s distinction as a state of high highs and low lows. From the recession of the early 1990s to the 2001 dot-com crash to the housing collapse of a decade ago, downturns often end up being more pronounced in the state than elsewhere. The next recession, whenever it comes, will almost certainly land harder here than it does in the rest of the country. And that boom-bust pattern is especially tough on California’s budget — something that Mr. Brown, who was first elected governor more than four decades ago, knows well.

    In 2009, as the last recession took hold, California state revenue fell 19 percent, versus 8 percent for state revenues nationwide, according to Moody’s Analytics. There has been a strong rebound since then, but the gains are unlikely to last. That is because California’s government relies on a heavily progressive income tax that generates most of its revenue from a relatively small number of wealthy taxpayers whose incomes are erratic.

    Even a blip in the stock market can punch holes in the state’s budget. And because stock prices have more than doubled during Mr. Brown’s term, it seems like a good bet that whoever succeeds him will face challenges. If and when that day comes, any proposal to increase taxes will probably be unpopular. Mr. Brown already raised income taxes to address the state’s last budget mess, and California taxpayers took a further hit as a result of the new tax bill, which curbed the deductibility of state and local taxes on federal returns.

    “His successor gets a world in which revenues are more volatile,” without the option of raising taxes, said David Crane, a lecturer in public policy at Stanford University and a former adviser to Mr. Brown’s predecessor, Gov. Arnold Schwarzenegger. “That’s a really tough world to operate in.”

    A recession would also further expose problems that have festered for decades. Across California, cities and school districts are having trouble keeping up with ballooning pension obligations, squeezing teacher salaries and state services. In warning about budget troubles to come, Mr. Brown was making a case for adding more of today’s surplus to the state’s rainy day fund to cushion the blow of the next downturn.

    Mr. Brown’s final State of the State speech also included plenty of optimistic notes and pushes for big spending in the future on items mostly outside the state’s general fund. He talked about “setting the pace for the entire nation” and embracing big infrastructure projects like a high-speed rail line despite doubts about its viability as costs mount.

    “You have all of these projects that he wants to do,” said Stephen Levy, the director of the Center for Continuing Study of the California Economy, an independent research organization. “He’s saying, this year may be rosy, but watch out, it ain’t going to continue. And I agree.”

    Even in prosperity, California has plenty of problems. The bulk of its recent gains have flowed to wealthier coastal cities, leaving inland areas behind, and a severe housing shortage has led to punishing rent increases and rising homelessness.

    Still, economists generally agree that the state’s long-term prospects are bright. It is home to many of the world’s most valuable and innovative companies, and it attracts an outsize portion of the skilled work force and venture capital financing, helping it create new industries as old ones slow down or fade away.

    And recession forecasting is a tough business even for those whose livelihoods depend on it, like Ed Del Beccaro, a senior managing director in the Walnut Creek office of Transwestern, a commercial real estate brokerage. He manages a team of brokers and travels around the Bay Area giving speeches and forecasts to chambers of commerce and other business groups.

    “Two years ago I was predicting a recession in September of 2017, and in October I said we were going to have a recession at the end of 2018,” he said. “Today I think that unless we get bombed by North Korea, we will have a pretty amazing two years of growth.”

    With a sudden spurt in demand for office space, Mr. Del Beccaro said, he is hiring new workers and spending more on marketing to prospective clients. “I was just authorized to go out and get more brokers and offer them incentives to hopefully get them to switch over from other companies,” he said.

    But winter will come eventually, and when it does, Mr. Brown’s counsel about planning ahead may help shape how California weathers it.

  6. #6
    Senior Member pdom's Avatar
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    Quote Originally Posted by L.T. Fan View Post
    I have issues with this. California is overtaxed and their budget is more than strained. Businesses are leaving the state by droves andreal estate is past thr saturation level in overvaluation.
    Dying of thirst will doom Californians before affordable housing shortage or joblessness. That's the good news, assuming God doesn't punish us in the next couple years with the Big One. If all that's overcome, it's a slow, painful death with the declining non-Hispanic white population that will leave this state as one big ghetto. Post-quake Haiti will look like a paradise.

  7. #7
    Senior Member L.T. Fan's Avatar
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    Quote Originally Posted by BipolarFan View Post
    If you've been feeling more cramped in California lately, a new report will answer why.

    The Golden State added approximately 309,000 new residents last year, according to new numbers released by the California Department of Finance. The year-to-year 0.78 percent bump in population growth means that an estimated 39,810,000 people call California home as of Jan. 1, 2018.

    Los Angeles is far and away California's most populous city with an estimated 4,054,400 residents, according to the report. San Diego follows with 1,419,845 residents. San Jose checks in as the third-most populated city with 1,051,316 residents.

    San Francisco (883,963 residents) and Oakland (428,827 residents) were the only other Bay Area cities among the 10 most populated cities in the state, according to the latest numbers.

    When it comes to growth, Chino Hills led the way with a 4.6 percent increase in population surge this past year, according to the report. Dublin, which now features a population of 63,241 people, was labeled as the second-fastest growing city in the state. Newark — now home to 47,467 residents — was third with a 3.9 percent hike in population.

    California as a whole in 2017 added roughly 85,000 housing units to shelter the swelling population, according to the report.

    Los Angeles beat out all other cities by adding 13,852 housing units. San Diego (5,961 units), San Francisco (4,464 units), Irvine (3,798 units) and San Jose (2,590 units) followed suit, respectively.
    Mostly border jumpers into sanctuary status.
    Since Day One

  8. #8
    Senior Member L.T. Fan's Avatar
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    Quote Originally Posted by BipolarFan View Post
    The United States is on track to achieve the second-longest economic expansion in its history. Unemployment is at a 17-year low. And California’s state budget has a multibillion-dollar surplus.

    So why is its longtime governor, Jerry Brown, issuing prophecies of doom?

    “What’s out there is darkness, uncertainty, decline and recession,” Mr. Brown said recently after presenting his final budget to legislators.

    California has accounted for about 20 percent of the nation’s economic growth since 2010, significantly more than its share of the population or overall output. But Mr. Brown, in his final year in office, has raised the question on the minds of those paid to think about the economy: How long can this last?

    For California and the nation, there is a long list of things that could go wrong. A surging budget deficit could stoke higher interest rates. And if the recent upheaval in stocks signals a longer-term decline, it would hurt California in particular because its budget relies heavily on high earners whose incomes rise and fall with the market. President Trump’s moves to upend longstanding trade arrangements could be a setback for the state, home of the country’s biggest port complex. And because the growth of the technology industry has played a huge role in California’s recent boom, a drop in company valuations or in venture capital investments would reverberate swiftly through the state’s economy and tax receipts.

    “I don’t think there’s any reason to believe we are going to have a recession this year or the next year,” said Christopher Thornberg, founding partner of Beacon Economics, a consulting firm in Los Angeles, referring to Mr. Brown’s grim forecast. “He’s just pointing out the obvious, which is that things feel good n;now but there is going to come a time when all hell is going to break loose — and we better be ready for it.”

    Mr. Brown’s statements highlight California’s distinction as a state of high highs and low lows. From the recession of the early 1990s to the 2001 dot-com crash to the housing collapse of a decade ago, downturns often end up being more pronounced in the state than elsewhere. The next recession, whenever it comes, will almost certainly land harder here than it does in the rest of the country. And that boom-bust pattern is especially tough on California’s budget — something that Mr. Brown, who was first elected governor more than four decades ago, knows well.

    In 2009, as the last recession took hold, California state revenue fell 19 percent, versus 8 percent for state revenues nationwide, according to Moody’s Analytics. There has been a strong rebound since then, but the gains are unlikely to last. That is because California’s government relies on a heavily progressive income tax that generates most of its revenue from a relatively small number of wealthy taxpayers whose incomes are erratic.

    Even a blip in the stock market can punch holes in the state’s budget. And because stock prices have more than doubled during Mr. Brown’s term, it seems like a good bet that whoever succeeds him will face challenges. If and when that day comes, any proposal to increase taxes will probably be unpopular. Mr. Brown already raised income taxes to address the state’s last budget mess, and California taxpayers took a further hit as a result of the new tax bill, which curbed the deductibility of state and local taxes on federal returns.

    “His successor gets a world in which revenues are more volatile,” without the option of raising taxes, said David Crane, a lecturer in public policy at Stanford University and a former adviser to Mr. Brown’s predecessor, Gov. Arnold Schwarzenegger. “That’s a really tough world to operate in.”

    A recession would also further expose problems that have festered for decades. Across California, cities and school districts are having trouble keeping up with ballooning pension obligations, squeezing teacher salaries and state services. In warning about budget troubles to come, Mr. Brown was making a case for adding more of today’s surplus to the state’s rainy day fund to cushion the blow of the next downturn.

    Mr. Brown’s final State of the State speech also included plenty of optimistic notes and pushes for big spending in the future on items mostly outside the state’s general fund. He talked about “setting the pace for the entire nation” and embracing big infrastructure projects like a high-speed rail line despite doubts about its viability as costs mount.

    “You have all of these projects that he wants to do,” said Stephen Levy, the director of the Center for Continuing Study of the California Economy, an independent research organization. “He’s saying, this year may be rosy, but watch out, it ain’t going to continue. And I agree.”

    Even in prosperity, California has plenty of problems. The bulk of its recent gains have flowed to wealthier coastal cities, leaving inland areas behind, and a severe housing shortage has led to punishing rent increases and rising homelessness.

    Still, economists generally agree that the state’s long-term prospects are bright. It is home to many of the world’s most valuable and innovative companies, and it attracts an outsize portion of the skilled work force and venture capital financing, helping it create new industries as old ones slow down or fade away.

    And recession forecasting is a tough business even for those whose livelihoods depend on it, like Ed Del Beccaro, a senior managing director in the Walnut Creek office of Transwestern, a commercial real estate brokerage. He manages a team of brokers and travels around the Bay Area giving speeches and forecasts to chambers of commerce and other business groups.

    “Two years ago I was predicting a recession in September of 2017, and in October I said we were going to have a recession at the end of 2018,” he said. “Today I think that unless we get bombed by North Korea, we will have a pretty amazing two years of growth.”

    With a sudden spurt in demand for office space, Mr. Del Beccaro said, he is hiring new workers and spending more on marketing to prospective clients. “I was just authorized to go out and get more brokers and offer them incentives to hopefully get them to switch over from other companies,” he said.

    But winter will come eventually, and when it does, Mr. Brown’s counsel about planning ahead may help shape how California weathers it.
    You used this article to prove a point? Did you even read it?
    Last edited by L.T. Fan; 05-07-2018 at 07:31 PM.
    Since Day One

  9. #9
    Senior Member fortsbest's Avatar
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    https://www.ocregister.com/2017/06/2...fornia-budget/

    OPINION
    What citizen taxpayers should know about the California budget
    ap_17131664352319
    AP Photo/Rich Pedroncelli Gov. Jerry Brown gestures to a chart show balanced budgets are followed by large budget deficits while discussing his $124 billion revised state budget plan, Thursday, May 11, 2017, in Sacramento, Calif.
    5 COMMENTS
    By JON COUPAL |
    June 24, 2017 at 12:04 am
    California voters are pretty good at figuring out what is going in the state capital when it hits them directly. For example, recent polling shows that citizen awareness of the $5.2 billion annual gas and car tax is very high and, incidentally, very negative.

    But the same can’t be said when it comes to the more complicated and arcane actions of our state politicians such as the annual California state budget process. While Californians are painfully aware that taxes are very high (they’ve been watching their friends and neighbors moving out of state at record pace) they typically have little comprehension of where their tax dollars go. That’s not surprising since California ranks dead last in budget transparency according to a recent study by U.S. News & World Report.

    Nonetheless, here are the main takeaways that every California taxpayer should know.

    First, the budget is huge – over $125 billion in general fund spending – by far the largest budget in California history. Since the recovery began after the great recession, taxpayers have infused California’s General Fund with $41 billion and special funds by $28 billion. That translates into a 63 percent increase since 2010. And property owners have done their part as well. With real estate values fully recovered (and then some) property tax revenues are up 72 percent. This is where our schools get the lion’s share of their money.

    Second, the budget is only balanced if you ignore debt. The majority party is practically breaking their arms trying to pat themselves on the back for a “balanced budget.” This is like a family celebrating the fact that they paid all their bills this month but ignoring the fact that they have a mortgage that is way beyond their means over the long term. California’s pension debt is, by some measurements, close to a trillion dollars.

    Third, the budget is, as usual, full of tricks and questionable accounting. One of the more dubious ploys involves borrowing from special funds. This year, there’s a proposal to borrow $6 billion (with a “b”) from the state’s Surplus Money Investment Fund to reduce the unfunded liability of the state’s pension fund, PERS. While there is agreement that appropriating more money to PERS now helps to reduce unfunded liability in the future, that payment should come from current revenue, not a special account designed to cover ongoing operating expenses. Let’s call this for what it is: Paying your Visa bill with your MasterCard.

    The budget is being praised for adding a couple billion more to the state’s rainy day fund (technically called the Budget Stabilization Account) bringing it to over $8.4 billion. But recall during the last recession, the budget shortfall was many times that amount. Thus, while it seems like a lot of money, the state’s reserve funds remain woefully inadequate. You can’t save a penny a day for a couple of years and think it will be enough to fix the roof when it collapses.

    Other trickery includes several dozen so-called “trailer bills.” These are supposed to be budget related bills – many are not – that can pass with a simple majority vote and are not subject to citizen referendum. Because they can be jammed through on short notice without citizen recourse, they are a favorite tool of the majority party to effectuate big policy changes. Two examples of this are the gutting of the California Board of Equalization – one of the few state tax agencies in America actually accountable to voters – and a blatantly political power grab by changing the law as it relates to recall elections designed solely to throw a lifeline to a tax-and-spend democrat who cast the deciding vote on the gas and car tax hike.

    Bottom line? The majority party has adopted laws and policies which will unquestionably push state spending permanently higher by expanding programs, increasing welfare costs and giving their political funders – labor unions – higher compensation via costly collective bargaining agreements. Our elected leadership is driving California right off the cliff. Thelma & Louise would be proud.

  10. #10
    Senior Member L.T. Fan's Avatar
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    Don’t let BiPo see this. He will think it’s a very positive addition to his earlier post.
    Since Day One

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