Bloomberg says that California is about to pass Germany as the world’s fourth-largest economy. California continues to do better than the U.S. and other countries in terms of GDP growth, company market value, green energy, and other areas.
“People who don’t like California often say that its best days are behind it, but our economic growth and job gains continue to fuel the nation’s economy,” Governor Newsom said. “California’s values and spirit of entrepreneurship have helped it become the fourth largest economy in the world. We’ll keep putting more resources into industries that will be important in the future, like clean energy and renewable energy.” California’s strength, leadership, and our recipe for success make me very proud.
These are some of the most important things to learn from Bloomberg’s data:
- “In many fields, California does better than the US and the rest of the world.” This is especially important for green energy, which is California’s fastest-growing business.
- “The growing gap between California’s 379 companies with a market value of at least $1 billion shows the state’s direction the clearest.”
- California’s tech markets have grown by 184%, 54%, and 58% over the past three years, with sales of 63%, 95%, and 115% more in hardware, media, and software, respectively.
- “Creating jobs is a very strong area. In July, unemployment dropped to 3.9%, which was the lowest level since records began being kept in 1976… Texas now has more unemployed people than California does.
Governor Newsom has put in place a $52 billion aid plan to help Californians deal with rising prices and inflation. It gives $26 billion in direct payments, $15 billion in tax breaks and grants for businesses, and more. It is the biggest and most complete stimulus program in the country.
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Bloomberg says the fastest-growing business in California is now green energy. Governor Newsom has put even more effort into clean energy and zero-emission vehicles (ZEVs). He has put in place a $10 billion plan to make it easier for Californians to buy ZEVs and build up the state’s charging network. Six times as many jobs are now in clean energy in California as in fossil fuels, and ZEVs are now one of the state’s most popular products.
Gavin Newsom knows all about the news stories about earthquakes, wildfires that won’t go out, droughts, people without homes, and businesses leaving California for Texas to avoid taxes and rules. This is not new. A 1994 cover story in Time Magazine said, “A string of disasters rocks the state to the core, forcing Californians to ponder their fate and the fading luster of its golden dream.” California’s governor remembers that article.
Still, “the California dream is still alive and well,” the 40th governor of the state said in a Zoom interview a month before he was likely to be re-elected.
He’s right. Since the beginning of the pandemic and now during this time of high prices, California’s economy has been pretty strong. So much so that California’s GDP is about to pass Germany’s and become the fourth biggest in the world, after the US, China, and Japan. In 2015, it passed Brazil (No. 7) and France (No. 6), and in 2017, it passed the UK (No. 5). Many of California’s current numbers won’t be released until 2023, but estimates say the state may have already caught up to Germany. At least one prediction says California is ahead by $72 billion, based on the state’s recent growth rate.