To: Critics of California
From: Columnist with a trusted spreadsheet
Again: Quarter-billion-dollar mood swings
Voters – All parties working under state law have spoken. Governor Gavin News’s costly withdrawal attempt failed miserably and Californians could fight a similar battle next year!
I will let others think about the social issues and political strategies behind voting while thinking about dollars and cents. My analysis is simple: don’t bet against California.
In my three-and-a-half decades as a resident of the state, the California economy has proven its resilience with an amazing desire to revive itself. It has survived the collapse of savings and loans, a major blow to the aerospace industry, a power crisis, a dot-com technology crash, mortgage meldowns and many epidemics.
Yes, it’s a different business scene today, with lots of ups and downs. There are challenges ahead. And we’re no longer the smooth engine in the state – but still an economic giant.
But the never-ending sound from the doom-and-gloom crowd in California is exhausting. If winning a statewide election is a goal, perhaps “California will soon collapse” or “it wasn’t like before” are not great messages.
Let me consider 13 “talking points” …
1. Large picture: Forget the fifth largest economy in the world. See State Growth in Gross Domestic Product, a broad measure of commercial production. The California economy grew at an annual rate of 7. US% over the last quarter of a century, compared to US% growth. And most recently, California’s economy has grown at an annual rate of 3.9% over the past five years, vs. 2.9% nationally.
2. Recruitment: Executives may complain about California’s business climate, but hiring patterns suggest that these comments are a wish list rather than a reality. In the last 10 years – including the economic blows of the epidemic – California has added 2 million jobs, making it the largest employment opportunity in the country. On a percentage basis, the 14% gain ranked 14th best.
3. Government Bankruptcy: The state has paid its bills in the epidemic again – and then some. Its biggest earners have done very well in the recession, increasing income tax receipts. The result is the irresistible enormity of a budget surplus. And for those who think the state’s pension fund could be broken, Calpers reported a 21% investment gain for its most recent fiscal year. This pushed the assets to 82% of the required funds – from 71% a year ago.
4. Corporate exit: Companies often need significant incentives to leave California. Take the football pro riders who left Oakland for Lock Vegas, showing the temptation of ভ 5,050 million in Nevada official gifts. In contrast is Rams, who left St. Louis for Los Angeles. Owner Stan Crowe received zero tax dollars and instead set aside $ 5 billion in private cash for the development of the Sophie Stadium and its surroundings.
5. Corporate Exit, Part 2: Aren’t these handouts “crony capitalism”? For example, Walt Disney Co. is transferring 2,000 imaginer jobs to Orlando. The announcement took a swipe at California’s business climate but did not mention a key motivation: Disney is in line for a বির 500 million tax break associated with the transfer.
6. Congress: California lost a seat in the U.S. House of Representatives because its population did not grow fast enough. Yes, increase. In the 10 years used to determine congressional representation, California added 2.2 million residents 10 10% of all U.S. growth and the third-largest gain. Its sub-equivalent was 6% increase-yes, increase-offender.
7. People depart: There is no deportation. In the last 10 years of census immigration data, the lowest part of the country of its residents in California has moved to another state. Here’s how: There’s a 1.6% chance that your family member, neighbor, or colleague has become a former California. By 2019, California has risen to third place with 1.7% of residents leaving.
8. House price: According to the Federal Home Price Index, California homes appreciated 20% in the year ended June – the 11th best among states. For more than five years, California has achieved 52% of home quality – the 17th best in the state. If there is any public transport, it certainly does not show how much people will pay to live here.
9. Poverty: Yes, California’s lowest ranking ranking in 2020 shows that our million million people live in poverty – 15. %% of the population. And it is not acceptable. But since 2012, California’s poverty rate has fallen by 2.9 million – the largest improvement among states. This reduced the number of poverty by 33%. The share of poor residents fell 8.4 percentage points – connected to Arizona for the biggest improvement.
10. Train somewhere: Somewhere? Did you know that the Central Valley of California has a population of 4.3 million? If it were a state, it would be the 27th most populous. Is it a huge problem that the state’s bullet train project ২ approved in 2000 when Newsom was mayor of San Francisco প্রথমে first helps an area that is often overlooked by coastal power structures?
11. Start-up Cash: We might be good to start companies and keep them. See what investors have to offer to entrepreneurs in this state. California companies raised billions of dollars in venture capital last year – the main fund for fleeing companies. That was half of the nation and 119% from 2016 – a bigger gain than Texas or Florida.
12. Taxes: When WalletHub saw the tax burden by state – collection vs. revenue – California ranked 10th highest. The state ranks fourth-highest in terms of income tax but 19th lowest for property tax and 17th lowest for sales and excise tax. The recent tax bite seems bigger than 2017, when then-President Trump signed into law a $ 10,000 limit for state and local tax exemptions. This has hurt many taxpayers in California.
13. Gas tax: Just a reminder. In 2017, a state gas tax increase law was signed by the then government. Jerry Brown. It included an automated, annual lifestyle adjustment. In 2018, a ballot initiative to repeal the tax failed. So by this summer’s gas tax increase-way, not a penny per gallon is in the sixth-tenth-news. It’s your neighbor’s fault!
Jonathan Lansner is a business columnist for the Southern California News Group. He can be reached at [email protected]