dduncan4163
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Bill Maher Rips Republicans Over Californias Booming Economy
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dduncan4163
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mrorange211
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dduncan4163
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dduncan4163
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I agree especially on the the drought, but what he said about Kansas, and Louisiana are completely true. All those tax cuts for the rich didn't create jobs and end end result was a huge deficit with massive cuts to education and roads and infrastructure in general. Brow back and Jindal has been disasters
I've had some family move to California in 2014 and so far they are doing very well.
tumscalcium
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dduncan4163
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California Makes America'''s Economy Great - Bloomberg View
Most of what makes America great is happening in California, where on Tuesday voters will decide the largest of the presidential primaries. The horse-race reportage from the campaign trail gets caught up in delegate counts and the daily back and forth, but beneath all that there is a consensus about the challenges facing the world: globalization, urbanization, climate change. California is addressing them better than any country, while simultaneously setting an example as the world's most diverse and dynamic economy.
If the state were stacked up against nations, California would be the seventh-largest economy, with an equivalent gross domestic product greater than Brazil's. It's not just big, but also booming. California had a 3.29 percent growth rate last year, more than five times that of No. 3 Japan, almost twice No. 4 Germany, about half again as much as No. 5 U.K., almost three times No. 6 France and a third more than No. 1 U.S.
Fastest-growing state economies in the first three quarters of 2015.
California last year created the most jobs of any state, 483,000, more than the second- and third-most-populous states Florida and Texas combined (they added 257,900 and 175,700) and at a faster rate than any of the world's developed economies. The pace of employment growth was almost triple the rate of job creation for the 19 countries that make up the euro zone and more than 3.5 times that of Japan, according to data compiled by Bloomberg.
The high taxes and ubiquitous regulation critics cite when assailing Golden State government are proving no impediment to business and investment. They may even be a benefit, as public policy and people's preferences converge. Four of the world's 10 largest companies are based in California. Two of them -- Alphabet and Facebook -- were conceived in the past 18 years. San Francisco-based Wells Fargo, the world's largest bank by market capitalization, routinely outperforms any of its peers from Wall Street.
California produces almost all of the country's almonds, apricots, dates, figs, kiwifruit, nectarines, olives, pistachios, prunes and walnuts among dozens of crops that make it No. 1 in the U.S., with an equivalent GDP from agriculture, forestry and hunting totaling more than $37.7 billion, dwarfing No. 2 Iowa's $12.1 billion, according to data compiled by Bloomberg. No state comes close to California in manufacturing totaling $255.6 billion. Texas is next with $239.1 billion. The trailing 12-month revenue from California technology companies totaled $732 billion, or 53 percent of all tech revenues in the U.S.
While all of the 10 largest companies by market cap are U.S.-based, in 2009, only one California company made the top 10. That said, 35 of the top 500 are based in California, and their market cap is 11.9 percent of the world's biggest 500. Analysts today are more bullish on California-based companies in the Russell 3000 Index than they are for companies in any other state. The 482 companies in the Russell 3000, which are based in California, produced a total return of 144 percent during the past five years, easily beating the 114 percent return for non-California companies during the same period. Companies based in Texas, which perennially boasts that it is the best state for business with the lowest taxes and least regulation, returned 55 percent, according to Bloomberg data.
With a population approaching 40 million, California is known for its diversity. But it's not just the people; the industries are diverse as well. The state's largest companies are in banking, biotechnology, communications equipment and other technology hardware, health care, online retail, integrated oil and gas, movies and entertainment, semiconductors, and various software fields. In contrast, more than 60 percent of the largest publicly traded Texas firms are tied to oil and gas.
No state comes close to California in recognizing the peril of global warming and addressing it with policies that expand the opportunity to develop clean or alternative energy. Among the 127 North American companies in the Bloomberg Americas Clean Energy Index, 26 are based in California, with average revenue growth of 11 percent -- 2 percent more than the average for the rest of the sector across the continent. Texas has three companies in the group, with revenue growth of 2 percent. During the past 12 months, the clean energy companies based in California spent an average 25 percent of their revenue on research and development and a median of 16 percent. Non-California firms spent an average of 13 percent and a median of 1 percent.
The payoff for investors owning the shares of California clean energy companies is huge compared with returns from similar firms outside the state: An average gross margin of 42 percent, turning $100 of sales into $42 gross profit compared to a gross margin of 31 percent for non-California clean energy during the past 12 months. Analysts also say the shares of the California clean energy companies will gain 40 percent during the next 12 months compared with a predicted 23 percent for the non-California firms.
California's outstanding performance across so many metrics isn't a fluke -- if you ask Jerry Brown, the longest-serving governor of the state, now in his fourth term.
"Climate change is real" and "a number of politicians have their head in the sand," Brown said during an interview with Bloomberg TV's Emily Chang this year. "It's a global challenge, but America can provide a lot of leadership and initiative," he said, adding that California "is committed to mobilize countries and states reducing their carbon footprint."
The jobless rate of California versus the U.S.
California still suffers from too much poverty, and its unemployment rate remains above the national average at 5.3 percent. But the state's jobless rate is falling faster and California's per-capita income is rising faster than the rest of the country, resulting in the greatest divergence since 1946. While California is No. 11 in per-capita income, its income growth is outpacing all of the top 5 per-capita-income states since 2007. That's part of the backdrop for the state's longstanding commitment to increase aid to the poor, sick and elderly. "We have a rich safety net," said Governor Brown. "Now is it up to the global standard? There's always more to do."
In the market for state and local government debt, where the lowest borrowing cost is an expression of confidence, the interest rate on California securities is the lowest among the most-populous states, according to Bloomberg data. Municipal bonds sold by California are averaging 1.68 percent, or 17 basis points less than the average cost of borrowing for all U.S. municipalities. That's the widest, or most favorable, advantage during the past four years when the difference was 15, 14 and 4 basis points. Even Texas, which has a higher credit rating than California, is forced to pay higher rates of interest on its debt than California, according to Bloomberg data.
Global traders share a similar perception of California's creditworthiness, even as Governor Brown anticipates slower revenue growth as the economy cools. In the market for credit-default swaps, where people pay the equivalent of an insurance policy premium to protect against the loss of value of bonds issued by governments, California's premium declined the most of any state during the past five years.
That's another way of saying that when investors look for a safe bet, they look to California.
Most of what makes America great is happening in California, where on Tuesday voters will decide the largest of the presidential primaries. The horse-race reportage from the campaign trail gets caught up in delegate counts and the daily back and forth, but beneath all that there is a consensus about the challenges facing the world: globalization, urbanization, climate change. California is addressing them better than any country, while simultaneously setting an example as the world's most diverse and dynamic economy.
If the state were stacked up against nations, California would be the seventh-largest economy, with an equivalent gross domestic product greater than Brazil's. It's not just big, but also booming. California had a 3.29 percent growth rate last year, more than five times that of No. 3 Japan, almost twice No. 4 Germany, about half again as much as No. 5 U.K., almost three times No. 6 France and a third more than No. 1 U.S.
Fastest-growing state economies in the first three quarters of 2015.
California last year created the most jobs of any state, 483,000, more than the second- and third-most-populous states Florida and Texas combined (they added 257,900 and 175,700) and at a faster rate than any of the world's developed economies. The pace of employment growth was almost triple the rate of job creation for the 19 countries that make up the euro zone and more than 3.5 times that of Japan, according to data compiled by Bloomberg.
The high taxes and ubiquitous regulation critics cite when assailing Golden State government are proving no impediment to business and investment. They may even be a benefit, as public policy and people's preferences converge. Four of the world's 10 largest companies are based in California. Two of them -- Alphabet and Facebook -- were conceived in the past 18 years. San Francisco-based Wells Fargo, the world's largest bank by market capitalization, routinely outperforms any of its peers from Wall Street.
California produces almost all of the country's almonds, apricots, dates, figs, kiwifruit, nectarines, olives, pistachios, prunes and walnuts among dozens of crops that make it No. 1 in the U.S., with an equivalent GDP from agriculture, forestry and hunting totaling more than $37.7 billion, dwarfing No. 2 Iowa's $12.1 billion, according to data compiled by Bloomberg. No state comes close to California in manufacturing totaling $255.6 billion. Texas is next with $239.1 billion. The trailing 12-month revenue from California technology companies totaled $732 billion, or 53 percent of all tech revenues in the U.S.
While all of the 10 largest companies by market cap are U.S.-based, in 2009, only one California company made the top 10. That said, 35 of the top 500 are based in California, and their market cap is 11.9 percent of the world's biggest 500. Analysts today are more bullish on California-based companies in the Russell 3000 Index than they are for companies in any other state. The 482 companies in the Russell 3000, which are based in California, produced a total return of 144 percent during the past five years, easily beating the 114 percent return for non-California companies during the same period. Companies based in Texas, which perennially boasts that it is the best state for business with the lowest taxes and least regulation, returned 55 percent, according to Bloomberg data.
With a population approaching 40 million, California is known for its diversity. But it's not just the people; the industries are diverse as well. The state's largest companies are in banking, biotechnology, communications equipment and other technology hardware, health care, online retail, integrated oil and gas, movies and entertainment, semiconductors, and various software fields. In contrast, more than 60 percent of the largest publicly traded Texas firms are tied to oil and gas.
No state comes close to California in recognizing the peril of global warming and addressing it with policies that expand the opportunity to develop clean or alternative energy. Among the 127 North American companies in the Bloomberg Americas Clean Energy Index, 26 are based in California, with average revenue growth of 11 percent -- 2 percent more than the average for the rest of the sector across the continent. Texas has three companies in the group, with revenue growth of 2 percent. During the past 12 months, the clean energy companies based in California spent an average 25 percent of their revenue on research and development and a median of 16 percent. Non-California firms spent an average of 13 percent and a median of 1 percent.
The payoff for investors owning the shares of California clean energy companies is huge compared with returns from similar firms outside the state: An average gross margin of 42 percent, turning $100 of sales into $42 gross profit compared to a gross margin of 31 percent for non-California clean energy during the past 12 months. Analysts also say the shares of the California clean energy companies will gain 40 percent during the next 12 months compared with a predicted 23 percent for the non-California firms.
California's outstanding performance across so many metrics isn't a fluke -- if you ask Jerry Brown, the longest-serving governor of the state, now in his fourth term.
"Climate change is real" and "a number of politicians have their head in the sand," Brown said during an interview with Bloomberg TV's Emily Chang this year. "It's a global challenge, but America can provide a lot of leadership and initiative," he said, adding that California "is committed to mobilize countries and states reducing their carbon footprint."
The jobless rate of California versus the U.S.
California still suffers from too much poverty, and its unemployment rate remains above the national average at 5.3 percent. But the state's jobless rate is falling faster and California's per-capita income is rising faster than the rest of the country, resulting in the greatest divergence since 1946. While California is No. 11 in per-capita income, its income growth is outpacing all of the top 5 per-capita-income states since 2007. That's part of the backdrop for the state's longstanding commitment to increase aid to the poor, sick and elderly. "We have a rich safety net," said Governor Brown. "Now is it up to the global standard? There's always more to do."
In the market for state and local government debt, where the lowest borrowing cost is an expression of confidence, the interest rate on California securities is the lowest among the most-populous states, according to Bloomberg data. Municipal bonds sold by California are averaging 1.68 percent, or 17 basis points less than the average cost of borrowing for all U.S. municipalities. That's the widest, or most favorable, advantage during the past four years when the difference was 15, 14 and 4 basis points. Even Texas, which has a higher credit rating than California, is forced to pay higher rates of interest on its debt than California, according to Bloomberg data.
Global traders share a similar perception of California's creditworthiness, even as Governor Brown anticipates slower revenue growth as the economy cools. In the market for credit-default swaps, where people pay the equivalent of an insurance policy premium to protect against the loss of value of bonds issued by governments, California's premium declined the most of any state during the past five years.
That's another way of saying that when investors look for a safe bet, they look to California.
dduncan4163
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California's economy expected to outpace that of U.S. this year - LA Times
California's economy expected to outpace that of U.S. this year
alifornia's economy will grow faster this year than the national economy, and unemployment will drop to 5% in early 2017, according to a new report by the UCLA Anderson Forecast.
Personal income in California will increase more slowly than it has in recent years, when the state's economy was bouncing back from the high unemployment of the recession.
In 2016, personal income in California will grow 3.6%, compared with 4.5% in 2015, the report said.
SIGN UP for the free California Inc. business newsletter >>
"It's not worrying. It's actually an encouraging sign," said Jerry Nickelsburg, an economist at UCLA and coauthor of the report. "The fact that we are getting close to full employment means we should be growing at a slower rate, unless there is a faster growth in innovation and capital accumulation."
See the most-read stories this hour >>
Unemployment is expected to hit 5% in the first quarter of 2017, he said. The jobless rate in California was 5.5% in February.
Wages and salaries in the state, not adjusting for inflation, will grow about 5.7% this year, according to the projections. That's down from 7.5% last year. That means Californians will earn $60 billion more in wages than in 2015.
Total employment, which has been growing at more than 2% since 2012, will grow 1.9% this year, and tick down to 1% growth in 2017.
The U.S. economy overall will expand 2.7%, the report said. UCLA economist David Shulman said concerns about a recession "have subsided."
Financial markets, which were volatile the first two months of the year, have calmed. That could change and U.S. growth could be hampered if Britain decides to leave the European Union, the report said.
Shulman also said that extreme rhetoric in the presidential campaign raised the specter of upending the global system of trade. "Trade wars usually do not lead to prosperity," he noted in the report.
California's economy expected to outpace that of U.S. this year
alifornia's economy will grow faster this year than the national economy, and unemployment will drop to 5% in early 2017, according to a new report by the UCLA Anderson Forecast.
Personal income in California will increase more slowly than it has in recent years, when the state's economy was bouncing back from the high unemployment of the recession.
In 2016, personal income in California will grow 3.6%, compared with 4.5% in 2015, the report said.
SIGN UP for the free California Inc. business newsletter >>
"It's not worrying. It's actually an encouraging sign," said Jerry Nickelsburg, an economist at UCLA and coauthor of the report. "The fact that we are getting close to full employment means we should be growing at a slower rate, unless there is a faster growth in innovation and capital accumulation."
See the most-read stories this hour >>
Unemployment is expected to hit 5% in the first quarter of 2017, he said. The jobless rate in California was 5.5% in February.
Wages and salaries in the state, not adjusting for inflation, will grow about 5.7% this year, according to the projections. That's down from 7.5% last year. That means Californians will earn $60 billion more in wages than in 2015.
Total employment, which has been growing at more than 2% since 2012, will grow 1.9% this year, and tick down to 1% growth in 2017.
The U.S. economy overall will expand 2.7%, the report said. UCLA economist David Shulman said concerns about a recession "have subsided."
Financial markets, which were volatile the first two months of the year, have calmed. That could change and U.S. growth could be hampered if Britain decides to leave the European Union, the report said.
Shulman also said that extreme rhetoric in the presidential campaign raised the specter of upending the global system of trade. "Trade wars usually do not lead to prosperity," he noted in the report.
dduncan4163
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L.A. economy is poised to grow in 2016 and 2017, report says - LA Times
California economy is poised to grow in 2016 and 2017, report says
Employers in Los Angeles and the rest of California will keep hiring in the next two years but at a slightly slower pace than in 2015, a new report said.The state is poised to add more than 650,000 jobs this year and next, pushing down the current 7% unemployment rate to about 5.9% by 2017, according to an annual forecast released Wednesday by the Los Angeles County Economic Development Corp.
After climbing 3% in 2015, nonfarm jobs are expected to rise 2.4% this year and 1.6% in 2017, the report said. The slower pace of growth will also be reflected in the United States overall, and is a natural slowdown more than six years after the Great Recession ended, said Robert Kleinhenz, the groups chief economist.
------------
FOR THE RECORD:
Unemployment rate: An article in the Feb. 18 Business section about the state's economy said the Los Angeles County Economic Development Corp. forecast that California's current unemployment rate, stated as being 7%, would decline to about 5.9% by 2017. The group's report misstated the state's current unemployment rate, which is an annualized rate of 6.2%. The report also misstated the group's prediction for unemployment in 2017, which is about 5.5%.
------------
The California economy will continue to add jobs at a faster pace than the nation, Kleinhenz said. Both will see slower job growth in 2016 than they have seen in the last couple of years.
See the most-read stories this hour >>
The flip side of slower hiring is that workers will see their hours increase and more people will find full-time work instead of part-time jobs, Kleinhenz said. That also translates into sort of less-outright job growth, he added.
In 2015, Los Angeles County added 96,700 jobs, an annual growth rate of 2.2%. Its unemployment rate was 6.7%, lagging behind some other counties such as Orange County, which had a jobless rate of 4.4%, and San Diego County, which had a rate of 5.1%.
Now that Los Angeles County is back to a point that economists consider full employment, wage growth should follow, the report said. Per capita income is forecast to rise 3.9% this year and 4.9% in 2017, up from 3.6% in 2015.
The countys major industries are expected to enjoy gains.
See more of our top stories on Facebook >>
The healthcare sector is projected to add nearly 29,000 jobs in the next two years. Professional, scientific and technical services, which will benefit from a boom in areas such as Silicon Beach, are forecast to add 21,700 new positions.
The construction sector should also see jobs grow by 9,800, bolstered by the tight housing market and also expectations that interest rates will rise in the future.
Construction is still well below the peak before the Great Recession, Kleinhenz said, but we are looking at real strength in the housing sector this year.
A slowdown in Chinas economy is having a mixed impact on California and the Southland.
Exports to China are dropping, but Chinese investors are sinking more money into the Golden State. Foreign direct investment to the United States jumped by more than 30% in 2015, with California getting over 20% of it, according to the report by the Rhodium Group.
At the ports of Los Angeles and Long Beach, imports were flat in 2015 compared with the previous year, Kleinhenz said. Goods on outbound containers were down 10% because of the strong dollar and economic weakness in U.S. international trade partners.
But even with the pressures, trade-related jobs increased last year and are expected to grow in the next two years, Kleinhenz said.
We should see a good year for the local ports, but it will be one where things are a little bit out of the usual balance, he said. We will see strength in imports, but we wont see the strength in exports that we have seen in the last couple of years.
Southern California's tourism industry broke records in 2015, but the visitor pace and job growth are expected to slow somewhat because of the strong dollar, the report said.
Employment in L.A. County's signature motion picture and sound recording industry was essentially flat in 2015 but could benefit from a recent expansion of the California Film Tax Credit program, according to the report.
The construction industry is expected to post healthy job gains in the Southland and much of the state as builders try to meet demand from millennial generation house hunters who are being stymied by a record low supply of new single-family homes.
California economy is poised to grow in 2016 and 2017, report says
Employers in Los Angeles and the rest of California will keep hiring in the next two years but at a slightly slower pace than in 2015, a new report said.The state is poised to add more than 650,000 jobs this year and next, pushing down the current 7% unemployment rate to about 5.9% by 2017, according to an annual forecast released Wednesday by the Los Angeles County Economic Development Corp.
After climbing 3% in 2015, nonfarm jobs are expected to rise 2.4% this year and 1.6% in 2017, the report said. The slower pace of growth will also be reflected in the United States overall, and is a natural slowdown more than six years after the Great Recession ended, said Robert Kleinhenz, the groups chief economist.
------------
FOR THE RECORD:
Unemployment rate: An article in the Feb. 18 Business section about the state's economy said the Los Angeles County Economic Development Corp. forecast that California's current unemployment rate, stated as being 7%, would decline to about 5.9% by 2017. The group's report misstated the state's current unemployment rate, which is an annualized rate of 6.2%. The report also misstated the group's prediction for unemployment in 2017, which is about 5.5%.
------------
The California economy will continue to add jobs at a faster pace than the nation, Kleinhenz said. Both will see slower job growth in 2016 than they have seen in the last couple of years.
See the most-read stories this hour >>
The flip side of slower hiring is that workers will see their hours increase and more people will find full-time work instead of part-time jobs, Kleinhenz said. That also translates into sort of less-outright job growth, he added.
In 2015, Los Angeles County added 96,700 jobs, an annual growth rate of 2.2%. Its unemployment rate was 6.7%, lagging behind some other counties such as Orange County, which had a jobless rate of 4.4%, and San Diego County, which had a rate of 5.1%.
Now that Los Angeles County is back to a point that economists consider full employment, wage growth should follow, the report said. Per capita income is forecast to rise 3.9% this year and 4.9% in 2017, up from 3.6% in 2015.
The countys major industries are expected to enjoy gains.
See more of our top stories on Facebook >>
The healthcare sector is projected to add nearly 29,000 jobs in the next two years. Professional, scientific and technical services, which will benefit from a boom in areas such as Silicon Beach, are forecast to add 21,700 new positions.
The construction sector should also see jobs grow by 9,800, bolstered by the tight housing market and also expectations that interest rates will rise in the future.
Construction is still well below the peak before the Great Recession, Kleinhenz said, but we are looking at real strength in the housing sector this year.
A slowdown in Chinas economy is having a mixed impact on California and the Southland.
Exports to China are dropping, but Chinese investors are sinking more money into the Golden State. Foreign direct investment to the United States jumped by more than 30% in 2015, with California getting over 20% of it, according to the report by the Rhodium Group.
At the ports of Los Angeles and Long Beach, imports were flat in 2015 compared with the previous year, Kleinhenz said. Goods on outbound containers were down 10% because of the strong dollar and economic weakness in U.S. international trade partners.
But even with the pressures, trade-related jobs increased last year and are expected to grow in the next two years, Kleinhenz said.
We should see a good year for the local ports, but it will be one where things are a little bit out of the usual balance, he said. We will see strength in imports, but we wont see the strength in exports that we have seen in the last couple of years.
Southern California's tourism industry broke records in 2015, but the visitor pace and job growth are expected to slow somewhat because of the strong dollar, the report said.
Employment in L.A. County's signature motion picture and sound recording industry was essentially flat in 2015 but could benefit from a recent expansion of the California Film Tax Credit program, according to the report.
The construction industry is expected to post healthy job gains in the Southland and much of the state as builders try to meet demand from millennial generation house hunters who are being stymied by a record low supply of new single-family homes.
dduncan4163
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How California Bested Texas - The New Yorker
How California Bested Texas
Back in 2011, the Texas economy was doing so well, and Californias so poorly, that the Democratic lieutenant governor of California, Gavin Newsom, travelled to Austin to seek advice from an unlikely mentor: the Republican governor of Texas, Rick Perry. When Newsom returned, he remarked, appreciatively, Theyre aggressive, were not. They know what theyre after, we dont.
Ten years earlier, in 2001, Texass G.D.P. was equal to about fifty-six per cent of Californias. By 2011, that figure had risen to sixty-seven per cent. After Newsoms visit, the gap continued to narrow, and by 2013 it stood at seventy per cent. That year, Perry took out radio ads in California, telling business owners there, Building a business is tough, but I hear building a business in California is next to impossible. This is Texas Governor Rick Perry, and I have a message for California businesses: Come check out Texas.
California Governor Jerry Brown, a Democrat, dismissed the ad as barely a fart, but some observers assumed that he was only feigning nonchalance. By then, a narrative had been established about the states differing fortunes, thanks partly to Perrys bid for the Republican Presidential nomination the previous year, during which he made much of the Texas Miracle. While California was struggling to recover from the recession, Texas was thriving. Along with faster G.D.P. growth, Texas boasted a much lower unemployment rate, and from 2009 to 2012 it was responsible for the most new business establishments in the U.S.more than a fifth of the country-wide totalwhile Californias number fell. In October, 2013, Timemagazine published a cover article by the economist Tyler Cowen proclaiming that Texas represented Americas future; the accompanying illustration showed all the fifty states rearranged, like puzzle pieces, into the shape of Texas. Commentators chalked up the states success to factors like affordable housing, a business-friendly regulatory environment, and the lack of a state income tax. By contrast, Californias top income-tax rate and its housing costs were among the highest in the nation, and its business regulationsparticularly those having to do with the environmentwere seen as especially onerous and costly.
These days, though, no one is talking about the lessons California should learn from Texas. Californias economy is improving, and its budget is finally balancedpartly because of budget cuts and a voter-approved tax hike in 2012, and partly because the stock-market boom has translated into more tax receipts from Californias wealthiest residents (the ones with those high income-tax rates). These changes happen to come as Texas, the nations biggest oil-producing state by far, is grappling with a collapse in oil prices, which has depressed the price of a barrel of West Texas Intermediate crude oil to under fifty dollars a barrel for the first time in more than five years. It will be several months before the government publishes figures on G.D.P. and business creation for the period coinciding with the drop in oil prices, but already there are signs of trouble. Michael Feroli, the chief U.S. economist at JPMorgan Chase, said in December, We think Texas will, at least, have a rough 2015 ahead, and is at risk of slipping into a regional recession. The Texas budget, too, could be hurt by lost oil and gas taxes.
Brown, who was sworn in on Monday for a second consecutive term as governor of California (his fourth, including a stint from the late seventies to the early eighties), must have enjoyed a moment of schadenfreude if he happened to scan the Wall Street Journalon his way to the inauguration. In an article on how the oil slump could hurt Texas, Jon Hilsenrath and his colleagues wrote, Some Texans sobered by memories of past energy busts are bracing for a fall. The argument among economists and business leaders isnt whether the state will be hurt, but how badly.
The concerns about Texass fortunes speak to a misperception of the states recent boom, and of Californias bust. Texass outperformance of California had a lot to do with factors beyond the control of politicians like Perry and Newsomnamely, the importance of real estate to Californias economy, and the importance of oil to Texass. In 2008, the real-estate and rental-and-leasing sectors were responsible for about sixteen per cent of Californias G.D.P., almost double the proportion in Texas. So it was inevitable that California was hit harder by the housing crash that sparked the recession than Texas was. At the same time, Texas benefitted disproportionately from a rise in oil prices in recent years. Oil and gas extraction makes up about eleven per cent of Texass economy, compared with one per cent of Californias. In 2008, the year the recession began, the price of a barrel of West Texas Intermediate crude oil hit a record, topping a hundred and forty dollars a barrel; the price fell later that year, but it recovered relatively fast, reaching a hundred dollars again by 2011. Mark Muro, the policy director at the Brookings Institutions Metropolitan Policy Program, told me that the recent natural-gas boom, coupled with rising oil prices, has been largely responsible for Texass growth, in G.D.P. as well as in employment and new business establishments, since the recession. The role of policy measures like low taxes and the light regulation of businesses was probably overstated, he said.
If all the booms and busts of recent years have taught states anything, Muro said, its that it is dangerous to rely too much on one industry for economic growthespecially if that industry is as volatile as real estate or oil. After the last time oil prices crashed, in 1986, bringing the Texas economy down with them, the state government made a point to broaden its economy into other areas. In the wake of the recent recession, the governors office and others claimed that Texas has successfully expanded into industries outside of the oil sectorespecially the kinds of newer, fast-growing ones, such as tech, that have made places like Silicon Valley so successful. The Internet scene in Austin was particularly celebrated. Texas has made a concerted long-term effort to build a broadly diversified economy that allows job creators from a wide variety of sectors and industries to thrive here, Lucy Nashed, a press secretary for Perry, told me. She said that will allow the state economy to weather the inevitable ups and downs of the economic cycle better than less diversified economies. But, Muro noted, The question is, given what is happening in oil and gas, how far along has that diversification proceeded in Texas?
The simplest way to gauge Texass diversification is to look at the current percentage of G.D.P. from oil-and-gas extraction compared with the level prior to the last oil crash. In 1985, the year before the crash, about fourteen per cent of Texass G.D.P. derived from oil-and-gas extractionthree percentage points higher than the level in 2012, the most recent year for which data is available. Thats not a huge change, but its certainly significant. Muro and his colleagues at Brookings wanted to explore the nature of this diversification further, though, so they compiled a list of fifty advanced industriesthe kind that invest a great deal in research and development, and that attract highly educated workers from science, technology, engineering, and math fieldsand tried to find out where these industries are concentrated geographically. (Such industries are important because they tend to grow faster than more established sectors, pay high wages, and have long supply chains, which means their growth ripples into other parts of the economy.)
The researchers findings were somewhat surprising. Texas has a significant presence in five of the fifty advanced industries. That makes it the twelfth most diverse stateless diverse than California, which is involved in fourteen advanced industries, but more so than New York, the third-most-populous state. But three of the five advanced industries present in Texas are related to the energy sectorfor instance, manufacturing of petroleum and coal productswhich means they could be vulnerable to the oil crash, too. By this measure, Texas is not monolithically tied to oil and gas, but its highly oriented towards it, Muro told me. One would have to wonder about the implications of the gas crash.
To be fair, Texas is better prepared than it was in 1986partly because of policy measures by Perry and his predecessors. The economy has become more diverse, even if it hasnt progressed as far as some might hope. Plus, the state gets a smaller proportion of its budget revenue from oil and gas taxes than it did before 1986. Texas is also more reliant on the sales tax nowadays, which could be helpful if lower gas costs lead people to spend more money elsewhere.
California, meanwhile, still has plenty of problems of its own. For all of the wealth Silicon Valley has produced, even since the recession, its businesses employ remarkably few peopleabout eight thousand at Facebook, for exampleand those workers tend to come from elite backgrounds. Thats one reason why, despite the success of Facebook and others, Californias unemployment rate is still among the highest in the nation, and why unemployment varies so astonishingly across the state, from about four per cent in Silicon Valley to twenty-three per cent in Imperial County, which borders Mexico and Arizona. The states cost of living also remains high. Browns inaugural address skimmed over these issues, but Newsom, standing in a hallway outside the chambers where the speech took place, was available to comment. It seemed that he was no longer concerned about Californias relative weakness when compared with Texas but rather about the inequities within his own state. There are two Californias, he told the Sacramento Beea very wealthy coastal economy, in contrast to a struggling inland economy.
How California Bested Texas
Back in 2011, the Texas economy was doing so well, and Californias so poorly, that the Democratic lieutenant governor of California, Gavin Newsom, travelled to Austin to seek advice from an unlikely mentor: the Republican governor of Texas, Rick Perry. When Newsom returned, he remarked, appreciatively, Theyre aggressive, were not. They know what theyre after, we dont.
Ten years earlier, in 2001, Texass G.D.P. was equal to about fifty-six per cent of Californias. By 2011, that figure had risen to sixty-seven per cent. After Newsoms visit, the gap continued to narrow, and by 2013 it stood at seventy per cent. That year, Perry took out radio ads in California, telling business owners there, Building a business is tough, but I hear building a business in California is next to impossible. This is Texas Governor Rick Perry, and I have a message for California businesses: Come check out Texas.
California Governor Jerry Brown, a Democrat, dismissed the ad as barely a fart, but some observers assumed that he was only feigning nonchalance. By then, a narrative had been established about the states differing fortunes, thanks partly to Perrys bid for the Republican Presidential nomination the previous year, during which he made much of the Texas Miracle. While California was struggling to recover from the recession, Texas was thriving. Along with faster G.D.P. growth, Texas boasted a much lower unemployment rate, and from 2009 to 2012 it was responsible for the most new business establishments in the U.S.more than a fifth of the country-wide totalwhile Californias number fell. In October, 2013, Timemagazine published a cover article by the economist Tyler Cowen proclaiming that Texas represented Americas future; the accompanying illustration showed all the fifty states rearranged, like puzzle pieces, into the shape of Texas. Commentators chalked up the states success to factors like affordable housing, a business-friendly regulatory environment, and the lack of a state income tax. By contrast, Californias top income-tax rate and its housing costs were among the highest in the nation, and its business regulationsparticularly those having to do with the environmentwere seen as especially onerous and costly.
These days, though, no one is talking about the lessons California should learn from Texas. Californias economy is improving, and its budget is finally balancedpartly because of budget cuts and a voter-approved tax hike in 2012, and partly because the stock-market boom has translated into more tax receipts from Californias wealthiest residents (the ones with those high income-tax rates). These changes happen to come as Texas, the nations biggest oil-producing state by far, is grappling with a collapse in oil prices, which has depressed the price of a barrel of West Texas Intermediate crude oil to under fifty dollars a barrel for the first time in more than five years. It will be several months before the government publishes figures on G.D.P. and business creation for the period coinciding with the drop in oil prices, but already there are signs of trouble. Michael Feroli, the chief U.S. economist at JPMorgan Chase, said in December, We think Texas will, at least, have a rough 2015 ahead, and is at risk of slipping into a regional recession. The Texas budget, too, could be hurt by lost oil and gas taxes.
Brown, who was sworn in on Monday for a second consecutive term as governor of California (his fourth, including a stint from the late seventies to the early eighties), must have enjoyed a moment of schadenfreude if he happened to scan the Wall Street Journalon his way to the inauguration. In an article on how the oil slump could hurt Texas, Jon Hilsenrath and his colleagues wrote, Some Texans sobered by memories of past energy busts are bracing for a fall. The argument among economists and business leaders isnt whether the state will be hurt, but how badly.
The concerns about Texass fortunes speak to a misperception of the states recent boom, and of Californias bust. Texass outperformance of California had a lot to do with factors beyond the control of politicians like Perry and Newsomnamely, the importance of real estate to Californias economy, and the importance of oil to Texass. In 2008, the real-estate and rental-and-leasing sectors were responsible for about sixteen per cent of Californias G.D.P., almost double the proportion in Texas. So it was inevitable that California was hit harder by the housing crash that sparked the recession than Texas was. At the same time, Texas benefitted disproportionately from a rise in oil prices in recent years. Oil and gas extraction makes up about eleven per cent of Texass economy, compared with one per cent of Californias. In 2008, the year the recession began, the price of a barrel of West Texas Intermediate crude oil hit a record, topping a hundred and forty dollars a barrel; the price fell later that year, but it recovered relatively fast, reaching a hundred dollars again by 2011. Mark Muro, the policy director at the Brookings Institutions Metropolitan Policy Program, told me that the recent natural-gas boom, coupled with rising oil prices, has been largely responsible for Texass growth, in G.D.P. as well as in employment and new business establishments, since the recession. The role of policy measures like low taxes and the light regulation of businesses was probably overstated, he said.
If all the booms and busts of recent years have taught states anything, Muro said, its that it is dangerous to rely too much on one industry for economic growthespecially if that industry is as volatile as real estate or oil. After the last time oil prices crashed, in 1986, bringing the Texas economy down with them, the state government made a point to broaden its economy into other areas. In the wake of the recent recession, the governors office and others claimed that Texas has successfully expanded into industries outside of the oil sectorespecially the kinds of newer, fast-growing ones, such as tech, that have made places like Silicon Valley so successful. The Internet scene in Austin was particularly celebrated. Texas has made a concerted long-term effort to build a broadly diversified economy that allows job creators from a wide variety of sectors and industries to thrive here, Lucy Nashed, a press secretary for Perry, told me. She said that will allow the state economy to weather the inevitable ups and downs of the economic cycle better than less diversified economies. But, Muro noted, The question is, given what is happening in oil and gas, how far along has that diversification proceeded in Texas?
The simplest way to gauge Texass diversification is to look at the current percentage of G.D.P. from oil-and-gas extraction compared with the level prior to the last oil crash. In 1985, the year before the crash, about fourteen per cent of Texass G.D.P. derived from oil-and-gas extractionthree percentage points higher than the level in 2012, the most recent year for which data is available. Thats not a huge change, but its certainly significant. Muro and his colleagues at Brookings wanted to explore the nature of this diversification further, though, so they compiled a list of fifty advanced industriesthe kind that invest a great deal in research and development, and that attract highly educated workers from science, technology, engineering, and math fieldsand tried to find out where these industries are concentrated geographically. (Such industries are important because they tend to grow faster than more established sectors, pay high wages, and have long supply chains, which means their growth ripples into other parts of the economy.)
The researchers findings were somewhat surprising. Texas has a significant presence in five of the fifty advanced industries. That makes it the twelfth most diverse stateless diverse than California, which is involved in fourteen advanced industries, but more so than New York, the third-most-populous state. But three of the five advanced industries present in Texas are related to the energy sectorfor instance, manufacturing of petroleum and coal productswhich means they could be vulnerable to the oil crash, too. By this measure, Texas is not monolithically tied to oil and gas, but its highly oriented towards it, Muro told me. One would have to wonder about the implications of the gas crash.
To be fair, Texas is better prepared than it was in 1986partly because of policy measures by Perry and his predecessors. The economy has become more diverse, even if it hasnt progressed as far as some might hope. Plus, the state gets a smaller proportion of its budget revenue from oil and gas taxes than it did before 1986. Texas is also more reliant on the sales tax nowadays, which could be helpful if lower gas costs lead people to spend more money elsewhere.
California, meanwhile, still has plenty of problems of its own. For all of the wealth Silicon Valley has produced, even since the recession, its businesses employ remarkably few peopleabout eight thousand at Facebook, for exampleand those workers tend to come from elite backgrounds. Thats one reason why, despite the success of Facebook and others, Californias unemployment rate is still among the highest in the nation, and why unemployment varies so astonishingly across the state, from about four per cent in Silicon Valley to twenty-three per cent in Imperial County, which borders Mexico and Arizona. The states cost of living also remains high. Browns inaugural address skimmed over these issues, but Newsom, standing in a hallway outside the chambers where the speech took place, was available to comment. It seemed that he was no longer concerned about Californias relative weakness when compared with Texas but rather about the inequities within his own state. There are two Californias, he told the Sacramento Beea very wealthy coastal economy, in contrast to a struggling inland economy.
dduncan4163
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California is now world's 6th-largest economy - Sacramento Business Journal
California now worlds 6th-largest economy
Take that, France!
California now has the worlds sixth-largest economy after surpassing France and India in 2015, according to new gross domestic product data from the International Monetary Fund.
Enlarge
Welcome to California, the sixth-largest economy in the world.
Katherine Welles
The numbers show a rebound from 2014 when the state had slipped one spot to 8th place following a surge by Brazil, which has a population of 200 million. But Brazil was beset by recession last year and fell back to 10th place in the latest ranking.
The U.S. has the worlds largest economy with a GDP of $17.9 trillion. China placed second with a GDP of $10.9 trillion, followed by Japan, Germany and the United Kingdom.
After those countries, the Golden State took sixth place with a GDP of $2.4 trillion. California also tied with Oregon for the state with the highest jump in GDP last year by percentage, according to data released Tuesday by the federal Bureau of Economic Analysis.
California now worlds 6th-largest economy
Take that, France!
California now has the worlds sixth-largest economy after surpassing France and India in 2015, according to new gross domestic product data from the International Monetary Fund.
Enlarge Welcome to California, the sixth-largest economy in the world.
Katherine Welles
The numbers show a rebound from 2014 when the state had slipped one spot to 8th place following a surge by Brazil, which has a population of 200 million. But Brazil was beset by recession last year and fell back to 10th place in the latest ranking.
The U.S. has the worlds largest economy with a GDP of $17.9 trillion. China placed second with a GDP of $10.9 trillion, followed by Japan, Germany and the United Kingdom.
After those countries, the Golden State took sixth place with a GDP of $2.4 trillion. California also tied with Oregon for the state with the highest jump in GDP last year by percentage, according to data released Tuesday by the federal Bureau of Economic Analysis.
dduncan4163
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California economy is projected to grow faster than U.S. through 2020 - LA Times
California economy is projected to grow faster than U.S. through 2020
Iron workers fabricate rebar walls at Gerdau's San Bernardino Reinforcing Steel Plant as part of the New Wilshire Grand Project, under construction in downtown Los Angeles. The construction industry has grown jobs at one of the fastest rates in California over the last year.
(Mel Melcon / Los Angeles Times)
Chris Kirkham
California's economic growth will continue to outpace the rest of the nation over the next five years, according to a new forecast, though the expansion is expected to slow after next year.
Despite recent turmoil in the financial markets and slowing growth in China, the Los Angeles County Economic Development Corp.'s annual forecast predicted continued job growth and economic output in the state through 2020.
Job gains next year will continue to be driven by growth in construction, professional and technical services, and transportation and warehousing tied to international trade, the report found.
The forecast from the LAEDC expects job growth of 2.9% this year and 2.4% next year, compared with 2.1% and 1.8% for the nation overall. A similar report released this week by the UCLA Anderson Forecast pegged job growth in California at 2.2% next year and 1.4% in 2017.
The UCLA report also predicted that California's unemployment rate will continue to dip to 4.8% in 2017, the same rate as the U.S. overall. California's unemployment rate is currently at 6.1%, higher than the U.S. rate of 5.1%.
Can California's economy keep its momentum?
In Southern California, the fastest job gains through 2020 are expected in the Inland Empire, followed by Orange County, Ventura County and Los Angeles County. Employment growth in Los Angeles County is typically slower than other parts of the Southland because of its sheer size.
For international trade tied to the ports of Los Angeles and Long Beach, the LAEDC forecast projects that consumers in the U.S. will still drive continued growth in imports. But it cautions that exports could suffer in the short term if the economies of China and its trading partners continue to slow.
In the long run, however, the report predicts that China's economy will shift more toward a consumer-driven economy, benefiting California exports such as computer products and crops such as almonds. "Rising incomes and stronger purchasing power will fuel Chinese demand for U.S. goods and benefit the Los Angeles economy," the report found.
We're No. 8: California near top of world's largest economies
The housing market recovery is expected to continue next year, as employment growth boosts household income. But wage growth has not kept pace with rising home prices -- a particular problem in California.
And the problem doesn't show signs of improving. The LAEDC report found that only 30% of California households could afford to buy a home at the median price in the second quarter of this year, down from 34% in the first quarter.
"If demand continues to outstrip supply, especially in metro areas with strong job growth,
affordability problems will become even more acute," the report concluded.
California economy is projected to grow faster than U.S. through 2020
(Mel Melcon / Los Angeles Times)
California's economic growth will continue to outpace the rest of the nation over the next five years, according to a new forecast, though the expansion is expected to slow after next year.
Despite recent turmoil in the financial markets and slowing growth in China, the Los Angeles County Economic Development Corp.'s annual forecast predicted continued job growth and economic output in the state through 2020.
Job gains next year will continue to be driven by growth in construction, professional and technical services, and transportation and warehousing tied to international trade, the report found.
The forecast from the LAEDC expects job growth of 2.9% this year and 2.4% next year, compared with 2.1% and 1.8% for the nation overall. A similar report released this week by the UCLA Anderson Forecast pegged job growth in California at 2.2% next year and 1.4% in 2017.
The UCLA report also predicted that California's unemployment rate will continue to dip to 4.8% in 2017, the same rate as the U.S. overall. California's unemployment rate is currently at 6.1%, higher than the U.S. rate of 5.1%.
In Southern California, the fastest job gains through 2020 are expected in the Inland Empire, followed by Orange County, Ventura County and Los Angeles County. Employment growth in Los Angeles County is typically slower than other parts of the Southland because of its sheer size.
For international trade tied to the ports of Los Angeles and Long Beach, the LAEDC forecast projects that consumers in the U.S. will still drive continued growth in imports. But it cautions that exports could suffer in the short term if the economies of China and its trading partners continue to slow.
In the long run, however, the report predicts that China's economy will shift more toward a consumer-driven economy, benefiting California exports such as computer products and crops such as almonds. "Rising incomes and stronger purchasing power will fuel Chinese demand for U.S. goods and benefit the Los Angeles economy," the report found.
The housing market recovery is expected to continue next year, as employment growth boosts household income. But wage growth has not kept pace with rising home prices -- a particular problem in California.
And the problem doesn't show signs of improving. The LAEDC report found that only 30% of California households could afford to buy a home at the median price in the second quarter of this year, down from 34% in the first quarter.
"If demand continues to outstrip supply, especially in metro areas with strong job growth,
affordability problems will become even more acute," the report concluded.
CardsNVols
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dduncan4163
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Why California is both liberal utopia and tech boom central | MSNBC
California has been having a pretty good year.
Parts of the nations most populous state have long functioned as progressive havens, but the past few years in particular have pushed a progressive influence across the state as a whole. Under Democratic Gov. Jerry Brown and the current state legislature which is controlled, in both chambers, by a Democratic supermajority California this week became the first state in the nation to enact a ban on plastic grocery bags, citing environmental concerns. The states other recent progressive accomplishments include a 2013 law hiking the minimum wage from $8 to $10 by 2016; expanded access to abortion providers; stronger legal protections for temporary workers; an unprecedented new gun control regulation; and a ban on the use of gay panic defenses to get reduced jail time.
Californias left-leaning governance has led conservatives across the country to bemoan the states supposed lack of economic freedom. The conservative business group ALEC (American Legislative Exchange Council) listed Calfornia as #47 out of 50 on its most recent annual economic outlook ranking, citing (among other things) high income taxes and employee compensation costs. Similarly, the libertarian-leaning Mercatus Center identifies California as the second-worst state in the country when it comes to economic freedom. New York came in dead last.
There have been some pretty important accomplishments on the workers side. Maurice Emsellem of the National Employment Law Project
Yet while other parts of the country are still mired deep in the fallout of the Great Recession, the Golden State has been setting the pace for economic growth and job creation. In fact, a recent Business Insider analysis found California to have the second fastest growing economy in the United States, outstripped only by Colorado. Another analysis by the left-leaning Center for Economic and Policy Research determined that California led the entire country in the rate of its employment growth between 2013 and 2014, ending that time period with nearly 3% higher employment than it had going in. Its been a pretty remarkable couple of years, said Maurice Emsellem of the National Employment Law Project (NELP). Theres plenty that still needs to be done, but there have been some pretty important accomplishments on the workers side. That has something to do with Gov. Brown and the composition of the legislature, but it also has something to do with all the organizing thats been going on in California for a number of years.
The minimum wage hike and temporary worker bill were just part of a suite of legislation aimed at lifting standards for low-wage workers. Other laws included new healthy and safety regulations, protections against retaliation for immigrant workers, and a law preventing government employers from asking job applicants about their criminal records during the early stages of hiring.
Emsellem said these laws would hopefully ensure the fruits of recovery and economic growth are more widely shared across the state. Right now, California ranks as one of the most unequal states in the country in terms of income.
What all these reforms are doing is trying to make sure that everybodys participating in the improvements that are finally taking place in the economy, he said. These issues of inequality are holding the economy back if not everybody can participate.
University of California, Berkeley economist Enrico Moretti was skeptical that the reforms would do much good in the long run. The recent economic growth, he said, has mostly occurred independent of state politics; you might say despite state politics.
The main engine of this recovery is the tech sector in the Bay Area. Berkeley economist Enrico Moretti
The main engine of this recovery is the tech sector in the Bay Area, said Moretti. The recoverys very uneven across the state. There are parts of the state where essentially there are still in recession, especially in the central part of the state.
But while the states left-leaning politics might have little to do with its modest economic boom, it doesnt appear to be holding it back much either. And some economic observers are a little more bullish about Californias prospects for spreading prosperity beyond the Bay: A recent City National Bank report found that the states Inland Empire region in posted the third highest growth rate of all Californian metropolitan areas in the second quarter of 2014.
California isnt just trying to make strides in worker protections: The state has also led for years when it comes to environmental regulations. In 2006, Republican Gov. Arnold Schwarzenegger signed the states Global Warming Solutions Act, which among other provisions requires California to reduce greenhouse gas emissions to 1990 levels by the year 2020. The Environmental Protection Agency cited that law favorably when it unveiled its recent proposal to cut power plant emissions across the United States.
California does a lot, probably more than anyone else, said Kathryn Zyla, managing director of the Georgetown Climate Center at Georgetown Universitys law school. The Global Warming Solutions Act, she said, was intended to act as an umbrella policy under which the state has a lot of other goals to achieve those reductions.
Since that bills passage, California has passed a slate of other reforms aimed at improving energy efficiency and boosting its renewable energy infrastructure. Last October, Gov. Brown partnered with seven other U.S. governors to encourage the manufacture of 3.3 million zero-emission electric vehicles by 2025.
The state has also aimed to encourage adaptation in part through a Climate Adaption Strategy mandated by Gov. Schwarzenegger in 2009. Although Republican leadership has often said that state-mandated mitigation and adaptation measures tend to kill jobs and hikes energy bills, Zyla said Californias experience suggests otherwise.
California has had energy policy for decades, and theres been quite a bit of analysis on what those policies have done to the economy, she said. Theyve generally been pretty positive.
Case in point: A report [PDF] from UC Berkeley making the case that energy efficiency measures had actually saved California households $56 billion over three decades. Those savings, according to the report, created 1.5 million jobs in the state.
Theyve put in place many of these policies that many people fear would have a damaging effect on the economy, and theyve show their economy will still grow over time, said Zyla.
California has been having a pretty good year.
Parts of the nations most populous state have long functioned as progressive havens, but the past few years in particular have pushed a progressive influence across the state as a whole. Under Democratic Gov. Jerry Brown and the current state legislature which is controlled, in both chambers, by a Democratic supermajority California this week became the first state in the nation to enact a ban on plastic grocery bags, citing environmental concerns. The states other recent progressive accomplishments include a 2013 law hiking the minimum wage from $8 to $10 by 2016; expanded access to abortion providers; stronger legal protections for temporary workers; an unprecedented new gun control regulation; and a ban on the use of gay panic defenses to get reduced jail time.
Californias left-leaning governance has led conservatives across the country to bemoan the states supposed lack of economic freedom. The conservative business group ALEC (American Legislative Exchange Council) listed Calfornia as #47 out of 50 on its most recent annual economic outlook ranking, citing (among other things) high income taxes and employee compensation costs. Similarly, the libertarian-leaning Mercatus Center identifies California as the second-worst state in the country when it comes to economic freedom. New York came in dead last.
There have been some pretty important accomplishments on the workers side. Maurice Emsellem of the National Employment Law Project
Yet while other parts of the country are still mired deep in the fallout of the Great Recession, the Golden State has been setting the pace for economic growth and job creation. In fact, a recent Business Insider analysis found California to have the second fastest growing economy in the United States, outstripped only by Colorado. Another analysis by the left-leaning Center for Economic and Policy Research determined that California led the entire country in the rate of its employment growth between 2013 and 2014, ending that time period with nearly 3% higher employment than it had going in. Its been a pretty remarkable couple of years, said Maurice Emsellem of the National Employment Law Project (NELP). Theres plenty that still needs to be done, but there have been some pretty important accomplishments on the workers side. That has something to do with Gov. Brown and the composition of the legislature, but it also has something to do with all the organizing thats been going on in California for a number of years.
The minimum wage hike and temporary worker bill were just part of a suite of legislation aimed at lifting standards for low-wage workers. Other laws included new healthy and safety regulations, protections against retaliation for immigrant workers, and a law preventing government employers from asking job applicants about their criminal records during the early stages of hiring.
Emsellem said these laws would hopefully ensure the fruits of recovery and economic growth are more widely shared across the state. Right now, California ranks as one of the most unequal states in the country in terms of income.
What all these reforms are doing is trying to make sure that everybodys participating in the improvements that are finally taking place in the economy, he said. These issues of inequality are holding the economy back if not everybody can participate.
University of California, Berkeley economist Enrico Moretti was skeptical that the reforms would do much good in the long run. The recent economic growth, he said, has mostly occurred independent of state politics; you might say despite state politics.
The main engine of this recovery is the tech sector in the Bay Area. Berkeley economist Enrico Moretti
The main engine of this recovery is the tech sector in the Bay Area, said Moretti. The recoverys very uneven across the state. There are parts of the state where essentially there are still in recession, especially in the central part of the state.
But while the states left-leaning politics might have little to do with its modest economic boom, it doesnt appear to be holding it back much either. And some economic observers are a little more bullish about Californias prospects for spreading prosperity beyond the Bay: A recent City National Bank report found that the states Inland Empire region in posted the third highest growth rate of all Californian metropolitan areas in the second quarter of 2014.
California isnt just trying to make strides in worker protections: The state has also led for years when it comes to environmental regulations. In 2006, Republican Gov. Arnold Schwarzenegger signed the states Global Warming Solutions Act, which among other provisions requires California to reduce greenhouse gas emissions to 1990 levels by the year 2020. The Environmental Protection Agency cited that law favorably when it unveiled its recent proposal to cut power plant emissions across the United States.
California does a lot, probably more than anyone else, said Kathryn Zyla, managing director of the Georgetown Climate Center at Georgetown Universitys law school. The Global Warming Solutions Act, she said, was intended to act as an umbrella policy under which the state has a lot of other goals to achieve those reductions.
Since that bills passage, California has passed a slate of other reforms aimed at improving energy efficiency and boosting its renewable energy infrastructure. Last October, Gov. Brown partnered with seven other U.S. governors to encourage the manufacture of 3.3 million zero-emission electric vehicles by 2025.
The state has also aimed to encourage adaptation in part through a Climate Adaption Strategy mandated by Gov. Schwarzenegger in 2009. Although Republican leadership has often said that state-mandated mitigation and adaptation measures tend to kill jobs and hikes energy bills, Zyla said Californias experience suggests otherwise.
California has had energy policy for decades, and theres been quite a bit of analysis on what those policies have done to the economy, she said. Theyve generally been pretty positive.
Case in point: A report [PDF] from UC Berkeley making the case that energy efficiency measures had actually saved California households $56 billion over three decades. Those savings, according to the report, created 1.5 million jobs in the state.
Theyve put in place many of these policies that many people fear would have a damaging effect on the economy, and theyve show their economy will still grow over time, said Zyla.
Carl Pickens
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Blog: Money's leaving California in a hurry
$15 Minimum Wage Sends California Businesses Fleeing | The Daily Caller
California Won't Fall Into The Sea -- It's Moving To Texas Instead | Stock News & Stock Market Analysis - IBD
California's Carls Jr. Says So Long, Golden State | Stock News & Stock Market Analysis - IBD
$15 Minimum Wage Sends California Businesses Fleeing | The Daily Caller
California Won't Fall Into The Sea -- It's Moving To Texas Instead | Stock News & Stock Market Analysis - IBD
California's Carls Jr. Says So Long, Golden State | Stock News & Stock Market Analysis - IBD
dduncan4163
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Happy days are here again: California economy booming - MyNewsLA.com
Powered by a rebounding job market, the state and national economy are on an upward trend that should see increased consumer spending and a drop in unemployment in the coming year, according to a Los Angeles County Economic Development Corporation forecast released Wednesday.
By several measures, Californias economy is thriving, according to the forecast. Following a 3 percent increase in 2014, non-farm jobs are expected to grow by 2.9 percent in 2015, and then slow slightly to 2.4 percent in 2016. The unemployment rate stood at 6.3 percent in July and is expected to decline to 5.8 percent in 2016.
With further improvements anticipated for the labor market, personal income and total taxable sales should increase by 4.9 percent and 4.5 percent respectively this year, with similar or better gains in 2016.
Economists noted that most areas of the state have recovered the jobs that were lost during the recession, leading to a demand for more skilled workers.
Expanding the benefits of the states economic growth to a larger share of the population is the next big step, according to the report. Meeting this challenge will require attracting skilled workers to the state, increasing college enrollment and completion rates, upgrading the states physical infrastructure and careful management of the states finances and water resources.
The report noted that the five-county Los Angeles region had an estimated gross domestic product of more than $1 trillion in 2014, making it the 16th largest economy in the world. Los Angeles County placed 21st on the list, with an estimated gross product of over $634 billion.
Contributing to the strength of the economies of California and Southern California are strong and well-developed technology, manufacturing, entertainment and tourism sectors, according to the report. Also underlying their success is openness to international trade, particularly in Southern California, which, in addition to being one of the nations largest consumer markets, serves as the primary conduit for trade and travel between the U.S. and Asia.
The report noted that the nations economy is being bolstered by the so- called Millennials, who now outnumber Baby Boomers and are reaching their late- 20s and early 30s, the prime period for forming new households and becoming first-time homeowners.
Those life cycle events were delayed by the Great Recession but have the potential to drive economic growth for the next several years, just as occurred with the Boomers in the 1970s and 1980s, according to the report. As Millennials form households and occupy dwellings as renters or owners, they are likely to buy a wide range of consumer durable goods as well as non- durable goods, unleashing a significant ripple effect through the economy.
Powered by a rebounding job market, the state and national economy are on an upward trend that should see increased consumer spending and a drop in unemployment in the coming year, according to a Los Angeles County Economic Development Corporation forecast released Wednesday.
By several measures, Californias economy is thriving, according to the forecast. Following a 3 percent increase in 2014, non-farm jobs are expected to grow by 2.9 percent in 2015, and then slow slightly to 2.4 percent in 2016. The unemployment rate stood at 6.3 percent in July and is expected to decline to 5.8 percent in 2016.
With further improvements anticipated for the labor market, personal income and total taxable sales should increase by 4.9 percent and 4.5 percent respectively this year, with similar or better gains in 2016.
Economists noted that most areas of the state have recovered the jobs that were lost during the recession, leading to a demand for more skilled workers.
Expanding the benefits of the states economic growth to a larger share of the population is the next big step, according to the report. Meeting this challenge will require attracting skilled workers to the state, increasing college enrollment and completion rates, upgrading the states physical infrastructure and careful management of the states finances and water resources.
The report noted that the five-county Los Angeles region had an estimated gross domestic product of more than $1 trillion in 2014, making it the 16th largest economy in the world. Los Angeles County placed 21st on the list, with an estimated gross product of over $634 billion.
Contributing to the strength of the economies of California and Southern California are strong and well-developed technology, manufacturing, entertainment and tourism sectors, according to the report. Also underlying their success is openness to international trade, particularly in Southern California, which, in addition to being one of the nations largest consumer markets, serves as the primary conduit for trade and travel between the U.S. and Asia.
The report noted that the nations economy is being bolstered by the so- called Millennials, who now outnumber Baby Boomers and are reaching their late- 20s and early 30s, the prime period for forming new households and becoming first-time homeowners.
Those life cycle events were delayed by the Great Recession but have the potential to drive economic growth for the next several years, just as occurred with the Boomers in the 1970s and 1980s, according to the report. As Millennials form households and occupy dwellings as renters or owners, they are likely to buy a wide range of consumer durable goods as well as non- durable goods, unleashing a significant ripple effect through the economy.
dduncan4163
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Will California's booming economy pay off in pupil spending? | Daily Mail Online
SAN FRANCISCO (AP) Soaring tax revenues have carried per-pupil education spending in California beyond where it stood before the recession, but even the record sum proposed by Gov. Jerry Brown is unlikely to reverse the state's standing as a comparative miser when it comes to investing in public schools, advocates and education officials said.
Brown, a Democrat known for preaching fiscal restraint, released a budget plan last week that would boost state spending per student to $10,591 in the next fiscal year, compared to $8,564 per student in 2007 and $7,008 during the worst of the recession. The rebound stems from a constitutional amendment that guarantees schools a minimum level of annual funding, an amount that grows considerably, as now, during good economic times.
While expressing gratitude, lawmakers and school officials noted that with California consistently ranking in the bottom 10 in state-by-state rankings of school expenditures, student-teacher ratios and other measures, the latest infusion may not be enough to get the state to the national average, never mind the top of the charts.
FILE - In this May 15, 2012 file photo, Ritter Elementary School elementary students practice their math skills in Los Angeles. Soaring tax revenues have brought per-pupil education spending in California beyond pre-recession levels, but even the new record sum proposed by Gov. Jerry Brown is unlikely to reverse the state¿s standing as a comparative miser when it comes to investing in public schools, advocates and education officials said. (AP Photo/Damian Dovarganes, File)
"We have to be aware of the fact that even though we have increased our funding in education, we're still number 40-something in the nation, so we're still far, far behind in terms of adequately funding our schools in comparison to other states," said Assemblywoman Shirley Weber, D-San Diego, who heads the Assembly budget committee.
Brown's proposal would increase the state's overall K-12 spending to $51 billion, or $1.4 billion more than the current year. The figure reflects both cuts attributed to projected enrollment declines and more than $3.2 billion in new funds.
Most of the money $2.8 million would go toward accelerating one of Brown's signature initiatives: a new school funding formula that directs extra funds to schools with the most students learning to speak English, from low-income families or living in foster care.
Brown said the funding would bring the formula close to full implementation, a milestone the state originally did not expect to reach until 2020. The funding formula also encourages districts to set class sizes kindergarten through third grades at no more than 24.
Even if California ideally would be spending more on its schools, redistributing the money it does spend could narrow the achievement gap in a state where half the students are eligible for free school meals and 22 percent are learning to speak English, Education Trust-West Executive Director Ryan Smith said.
"The governor's kept his promise in creating a more equitable funding system. It's now up to policy makers, districts and schools to live up to their end of the bargain in getting results for students," Smith said.
Mike Walsh, a Butte County school board member who serves as vice president of the California School Boards Association, said school leaders are thankful for what would be a fourth consecutive year of budget growth following the same number of painful cuts.
At the same time, they are mindful that schools also are being tasked with carrying out instructional, staffing and testing reforms linked to the new funding formula and the Common Core standards all of which cost money, Walsh said.
"It's not like we are arguing to be #1 in spending. We are just suggesting that we are moving in the right direction but still have a lot to do to get back to average in spending, even if it was just to hire more teachers to do the work we have been asked to do."
State-by-state comparisons of per-pupil funding are based on federal data that typically are a few years old. Education Week's Quality Counts report, a respected ranking system that accounts for regional living costs and poverty rates, last week listed California at 46th among the states with per-student spending of $8,213 in 2013, far below the national average of $11,667.
Since then, schools have received sizable funding bumps thanks to revenue from income tax growth, observed Public Policy Institute of California Research Associate Paul Warren. Increases in 2014-15 and 2015-16 may already have gotten California to the national average, although it likely will be another two years before state-by-state standings can confirm that, Warren said.
And while Brown's 2016-17 budget takes a more modest approach, "things are probably going to be rosier in June than they are now," if negotiations with the Legislature and higher-than-anticipated tax revenues yield a bigger payoff for schools, he said.
The new proposal "is the standard Jerry Brown woe-is-me budget, which personally I think is the best approach for schools," Warren said. "Let's not get overly excited about how much money is out there, let's put it out in a paced way so they can absorb it, and not get out ahead of yourself and have to cut because you overspent."
SAN FRANCISCO (AP) Soaring tax revenues have carried per-pupil education spending in California beyond where it stood before the recession, but even the record sum proposed by Gov. Jerry Brown is unlikely to reverse the state's standing as a comparative miser when it comes to investing in public schools, advocates and education officials said.
Brown, a Democrat known for preaching fiscal restraint, released a budget plan last week that would boost state spending per student to $10,591 in the next fiscal year, compared to $8,564 per student in 2007 and $7,008 during the worst of the recession. The rebound stems from a constitutional amendment that guarantees schools a minimum level of annual funding, an amount that grows considerably, as now, during good economic times.
While expressing gratitude, lawmakers and school officials noted that with California consistently ranking in the bottom 10 in state-by-state rankings of school expenditures, student-teacher ratios and other measures, the latest infusion may not be enough to get the state to the national average, never mind the top of the charts.
FILE - In this May 15, 2012 file photo, Ritter Elementary School elementary students practice their math skills in Los Angeles. Soaring tax revenues have brought per-pupil education spending in California beyond pre-recession levels, but even the new record sum proposed by Gov. Jerry Brown is unlikely to reverse the state¿s standing as a comparative miser when it comes to investing in public schools, advocates and education officials said. (AP Photo/Damian Dovarganes, File)
"We have to be aware of the fact that even though we have increased our funding in education, we're still number 40-something in the nation, so we're still far, far behind in terms of adequately funding our schools in comparison to other states," said Assemblywoman Shirley Weber, D-San Diego, who heads the Assembly budget committee.
Brown's proposal would increase the state's overall K-12 spending to $51 billion, or $1.4 billion more than the current year. The figure reflects both cuts attributed to projected enrollment declines and more than $3.2 billion in new funds.
Most of the money $2.8 million would go toward accelerating one of Brown's signature initiatives: a new school funding formula that directs extra funds to schools with the most students learning to speak English, from low-income families or living in foster care.
Brown said the funding would bring the formula close to full implementation, a milestone the state originally did not expect to reach until 2020. The funding formula also encourages districts to set class sizes kindergarten through third grades at no more than 24.
Even if California ideally would be spending more on its schools, redistributing the money it does spend could narrow the achievement gap in a state where half the students are eligible for free school meals and 22 percent are learning to speak English, Education Trust-West Executive Director Ryan Smith said.
"The governor's kept his promise in creating a more equitable funding system. It's now up to policy makers, districts and schools to live up to their end of the bargain in getting results for students," Smith said.
Mike Walsh, a Butte County school board member who serves as vice president of the California School Boards Association, said school leaders are thankful for what would be a fourth consecutive year of budget growth following the same number of painful cuts.
At the same time, they are mindful that schools also are being tasked with carrying out instructional, staffing and testing reforms linked to the new funding formula and the Common Core standards all of which cost money, Walsh said.
"It's not like we are arguing to be #1 in spending. We are just suggesting that we are moving in the right direction but still have a lot to do to get back to average in spending, even if it was just to hire more teachers to do the work we have been asked to do."
State-by-state comparisons of per-pupil funding are based on federal data that typically are a few years old. Education Week's Quality Counts report, a respected ranking system that accounts for regional living costs and poverty rates, last week listed California at 46th among the states with per-student spending of $8,213 in 2013, far below the national average of $11,667.
Since then, schools have received sizable funding bumps thanks to revenue from income tax growth, observed Public Policy Institute of California Research Associate Paul Warren. Increases in 2014-15 and 2015-16 may already have gotten California to the national average, although it likely will be another two years before state-by-state standings can confirm that, Warren said.
And while Brown's 2016-17 budget takes a more modest approach, "things are probably going to be rosier in June than they are now," if negotiations with the Legislature and higher-than-anticipated tax revenues yield a bigger payoff for schools, he said.
The new proposal "is the standard Jerry Brown woe-is-me budget, which personally I think is the best approach for schools," Warren said. "Let's not get overly excited about how much money is out there, let's put it out in a paced way so they can absorb it, and not get out ahead of yourself and have to cut because you overspent."
dduncan4163
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The Advanced Energy Business Is Booming In California
California is home to the largest advanced energy industry in the country, according to the first-ever industry-wide survey released by the Advanced Energy Economy Institute. At 431,800 jobs, advanced energy is bigger by employment in California than the motion picture, television, and radio industries; mining and quarrying; semiconductors; and aerospace. Advanced energy jobs grew 5 percent in the past yearmore than double the overall state job growth rateand is on track to grow 17 percent in the coming year, to more than 500,000 workers, based on employer hiring plans.
While California is widely recognized as a national leader in energy policy, jobs directly related to the industry have not been quantified until now. The survey of more than 2,000 businesses, conducted by BW Research Partnership, a workforce and economic development research firm, found that, among the 10 states that have studied these industries, California has the largest advanced energy workforce in the country. It is also second in the country, tied with Massachusetts, for percentage of the states overall workforce employed in advanced energy, at 2.4 percent; only Vermont, at 4.3 percent, has a higher concentration of workers in this broad economic sector.
California is the nations leader in advanced energy policy, that much we already knew, said Graham Richard, CEO of AEE and the AEE Institute. Now we also know that California is on the way to half a million people employed in the advanced energy industry by next year. Advanced energy companies are not only making Californias energy system better and cleaner. They are also creating jobs and contributing toward economic prosperity for the state.
The full California Advanced Energy Survey is available at California Jobs Report - Employment Survey.
Findings of the survey include the following:
Overall, building energy efficiency is the largest segment of the advanced energy industry, supported by Californias policy commitment to energy conservation, advanced building codes and energy efficiency incentives. More than 300,000 Californians are employed making buildings, homes and businesses more energy efficient.
Californias leadership on energy efficiency has spurred innovation across the state and has enabled companies to flourish, said Alex Laskey, President of Opower. There is a huge and growing opportunity in California for energy efficiency to have a positive impact on the environment, on households savings, and on job creation.
The survey also showed that advanced electricity generation technologies, including wind and solar power, are major components of the advanced energy economy in California. Nearly 73,000 people are employed in the solar industry in California, full or part-time. Growth over the past 12 months has been particularly dramatic, with workers spending more than half their time on solar up 16 percent from last year.
For nearly 30 years, SunPower has been proud to call California our home, while developing innovative clean energy technologies and creating California jobs and economic opportunity, said Howard Wenger, president of business units for SunPower, a global provider of solar technology and energy services. The future of the advanced energy industry in California is bright, and we look forward to continuing our work providing clean and affordable energy solutions.
Though employment totals are smaller, advanced grid technologies, especially electric vehicle and energy storage, have also established footholds in the California economy.
Electric vehicle adoption in California is well ahead of the rest of the country, said Thomas Ashley, Director, Utility & Regulatory Affairs, PlugShare. That makes California an ideal place to provide app-based electric vehicle services and smart charging programs to integrate electric vehicles and the electricity grid. Our company is growing and sees significant
California is home to the largest advanced energy industry in the country, according to the first-ever industry-wide survey released by the Advanced Energy Economy Institute. At 431,800 jobs, advanced energy is bigger by employment in California than the motion picture, television, and radio industries; mining and quarrying; semiconductors; and aerospace. Advanced energy jobs grew 5 percent in the past yearmore than double the overall state job growth rateand is on track to grow 17 percent in the coming year, to more than 500,000 workers, based on employer hiring plans.
While California is widely recognized as a national leader in energy policy, jobs directly related to the industry have not been quantified until now. The survey of more than 2,000 businesses, conducted by BW Research Partnership, a workforce and economic development research firm, found that, among the 10 states that have studied these industries, California has the largest advanced energy workforce in the country. It is also second in the country, tied with Massachusetts, for percentage of the states overall workforce employed in advanced energy, at 2.4 percent; only Vermont, at 4.3 percent, has a higher concentration of workers in this broad economic sector.
California is the nations leader in advanced energy policy, that much we already knew, said Graham Richard, CEO of AEE and the AEE Institute. Now we also know that California is on the way to half a million people employed in the advanced energy industry by next year. Advanced energy companies are not only making Californias energy system better and cleaner. They are also creating jobs and contributing toward economic prosperity for the state.
The full California Advanced Energy Survey is available at California Jobs Report - Employment Survey.
Findings of the survey include the following:
- California is home to 43,700 businesses serving advanced energy markets.
- About half of all advanced energy-related companies surveyed expect to add employees during the coming year, for more than 70,000 new jobs, pushing advanced energy employment past a half-million jobs in 2015.
Overall, building energy efficiency is the largest segment of the advanced energy industry, supported by Californias policy commitment to energy conservation, advanced building codes and energy efficiency incentives. More than 300,000 Californians are employed making buildings, homes and businesses more energy efficient.
Californias leadership on energy efficiency has spurred innovation across the state and has enabled companies to flourish, said Alex Laskey, President of Opower. There is a huge and growing opportunity in California for energy efficiency to have a positive impact on the environment, on households savings, and on job creation.
The survey also showed that advanced electricity generation technologies, including wind and solar power, are major components of the advanced energy economy in California. Nearly 73,000 people are employed in the solar industry in California, full or part-time. Growth over the past 12 months has been particularly dramatic, with workers spending more than half their time on solar up 16 percent from last year.
For nearly 30 years, SunPower has been proud to call California our home, while developing innovative clean energy technologies and creating California jobs and economic opportunity, said Howard Wenger, president of business units for SunPower, a global provider of solar technology and energy services. The future of the advanced energy industry in California is bright, and we look forward to continuing our work providing clean and affordable energy solutions.
Though employment totals are smaller, advanced grid technologies, especially electric vehicle and energy storage, have also established footholds in the California economy.
Electric vehicle adoption in California is well ahead of the rest of the country, said Thomas Ashley, Director, Utility & Regulatory Affairs, PlugShare. That makes California an ideal place to provide app-based electric vehicle services and smart charging programs to integrate electric vehicles and the electricity grid. Our company is growing and sees significant
G0 BIG 0RANGE
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https://www.biggerpockets.com/forum...forecast-more-companies-will-leave-california
Oppressive levies on businesses will cause statewide exodus - The Orange County Register
https://www.linkedin.com/pulse/more-companies-leaving-california-robert-bj-hicks
Tech pipeline to Texas: Tax money, people flow out of Bay Area - San Francisco Chronicle
Oppressive levies on businesses will cause statewide exodus - The Orange County Register
https://www.linkedin.com/pulse/more-companies-leaving-california-robert-bj-hicks
Tech pipeline to Texas: Tax money, people flow out of Bay Area - San Francisco Chronicle
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California Achieves Economic Growth Without Growing Emissions
California Achieves Economic Growth Without Growing Emissions
by Bill Roth on Tuesday, Jul 7th, 2015
A San Francisco resident performs an annual cleaning on rooftop solar panels.California is proving to the rest of America that economic success does not require increased pollution.
The state recently reached an economic development milestone: It is achieving superior and sustained economic growth while also reducing climate changing pollution.
At a time when the California economy is growing faster than the U.S. economy, the California Air Resources Board reports that the state has reduced greenhouse gas emission by 1.5 million metric tons.
Breaking the link between economic growth and pollution
Since the Industrial Age, the foundation of economic development has been that increased pollution was a necessary evil to achieving economic success. The public policy positions of fossil-fueled electric utilities, the oil industry and the U.S. Chamber of Commerce has been, and continues to be, that America cannot afford more environmental regulation. They have held this position since the 1960s Clean Air Act. Their defense of pollution is that a community must accept increased environmental impacts or face economic stagnation.
The facts could not be further from the truth. Since the passage of the Clean Air Act in 1963, and subsequent increased regulation of pollution through amendments in 1970, 1977 and 1990, the U.S. economy has tripled in size. What the Clean Air Act did challenge was the competitive positioning of companies that gained economic advantage through pollution. These regulations forced businesses to successfully compete on price, product performance and environmental protection.
The International Energy Agencys 2014 report further advances the delinking of pollution growth and economic growth. The Energy Information Agency reports that, for the first time in recorded modern human history, the world has achieved economic growth while also reducing greenhouse emissions. This achievement was driven by shifts to renewable energy and increased energy efficiency by China, the U.S. and other nations. The EIA reports that the U.S. use of energy and economic growth has decoupled as we continue to increase our energy efficiency.
California pioneers the carbon-free economy
California is moving past the question of whether pollution is necessary for economic success. It is pioneering a new economic model where economic success is achieved by eliminating, not containing, greenhouse emissions. The scale of Californias success in growing its economy while reducing its GHG emissions deserves the attention of all states.
Californias economy is booming even in the face of a historic drought exacerbated by global warming. For all the public attention on the economic success achieved by the great state of Texas, Californias economy is twice the size of the Lone Star States and is creating more jobs. Californias economy has grown to be the seventh largest economy in the world and is larger than Brazils, Russias and Italys. Only the U.S., plus China, Japan, Germany, France and the United Kingdom, have larger economies.
What state would not like to lure the companies now headquartered in California? They include Disney, Apple, Twitter, Facebook, Tesla, SolarCity, HP and Genetech. Californias San Francisco metro area accounts for over 40 percent of all venture capital invested in the United States. Boston, at 11 percent, ranks a distant second.
To ignore California is to turn a blind eye to the world capital of innovation. While some pundits compare California to Greece in terms of its economy or Russia in terms of its centralized controls, the economic reality could not be further from the truth. California has bet big on entrepreneurship and technology innovation. Its bet on entrepreneurship and innovation has resulted in the state leading the U.S. in agriculture, technology and manufacturing revenue growth.
Californias economic success has not come through taxpayer subsidies used by most states to pay a business to locate a plant. It doesnt have an economic development government agency, nor does it fund economic development. California pursues economic development by creating markets for disruptive technologies to drive down their unit prices through economies of scale. The states Million Solar Roofs initiative created the domestic market for rooftop solar that is now challenging grid power prices across the U.S. Californias pricing of carbon emissions is driving automobile innovations. The California electric car market now accounts for 1 out of every 2 electric cars sold in America.
The proof of Californias strategy is that, since the 2001 peak in the states carbon intensity, it has achieved a 23 percent reduction even while its GDP has grown by 6.6 percent.
The green economic revolution
The green economic revolution I projected in 2007 is now a reality. China, Germany and California are investing in technologies and public policies that will delink economic success and pollution. The question is no longer if, but how quickly, this new economic model will replace the Industrial Age.
Significant barriers to this green economic revolution do exist. But they are not technological or economic. The barrier to the new economic model being pioneered by California comes from states and companies still dependent on pollution to win competitive advantage.
While these states and companies can retard our countrys path to a cleaner and stronger economy, they cannot stop the green economic revolution. Americas free marketplace will continue to open the door for companies that provide consumers with price competitive in me, on me and around me solutions. Companies that deliver products that cost less and mean more in terms of improved human health will win.
California is providing this. It is only a matter of time when the California path to economic development will become the norm for all states.
California Achieves Economic Growth Without Growing Emissions
by Bill Roth on Tuesday, Jul 7th, 2015
The state recently reached an economic development milestone: It is achieving superior and sustained economic growth while also reducing climate changing pollution.
At a time when the California economy is growing faster than the U.S. economy, the California Air Resources Board reports that the state has reduced greenhouse gas emission by 1.5 million metric tons.
Breaking the link between economic growth and pollution
Since the Industrial Age, the foundation of economic development has been that increased pollution was a necessary evil to achieving economic success. The public policy positions of fossil-fueled electric utilities, the oil industry and the U.S. Chamber of Commerce has been, and continues to be, that America cannot afford more environmental regulation. They have held this position since the 1960s Clean Air Act. Their defense of pollution is that a community must accept increased environmental impacts or face economic stagnation.
The facts could not be further from the truth. Since the passage of the Clean Air Act in 1963, and subsequent increased regulation of pollution through amendments in 1970, 1977 and 1990, the U.S. economy has tripled in size. What the Clean Air Act did challenge was the competitive positioning of companies that gained economic advantage through pollution. These regulations forced businesses to successfully compete on price, product performance and environmental protection.
The International Energy Agencys 2014 report further advances the delinking of pollution growth and economic growth. The Energy Information Agency reports that, for the first time in recorded modern human history, the world has achieved economic growth while also reducing greenhouse emissions. This achievement was driven by shifts to renewable energy and increased energy efficiency by China, the U.S. and other nations. The EIA reports that the U.S. use of energy and economic growth has decoupled as we continue to increase our energy efficiency.
California pioneers the carbon-free economy
California is moving past the question of whether pollution is necessary for economic success. It is pioneering a new economic model where economic success is achieved by eliminating, not containing, greenhouse emissions. The scale of Californias success in growing its economy while reducing its GHG emissions deserves the attention of all states.
Californias economy is booming even in the face of a historic drought exacerbated by global warming. For all the public attention on the economic success achieved by the great state of Texas, Californias economy is twice the size of the Lone Star States and is creating more jobs. Californias economy has grown to be the seventh largest economy in the world and is larger than Brazils, Russias and Italys. Only the U.S., plus China, Japan, Germany, France and the United Kingdom, have larger economies.
What state would not like to lure the companies now headquartered in California? They include Disney, Apple, Twitter, Facebook, Tesla, SolarCity, HP and Genetech. Californias San Francisco metro area accounts for over 40 percent of all venture capital invested in the United States. Boston, at 11 percent, ranks a distant second.
To ignore California is to turn a blind eye to the world capital of innovation. While some pundits compare California to Greece in terms of its economy or Russia in terms of its centralized controls, the economic reality could not be further from the truth. California has bet big on entrepreneurship and technology innovation. Its bet on entrepreneurship and innovation has resulted in the state leading the U.S. in agriculture, technology and manufacturing revenue growth.
Californias economic success has not come through taxpayer subsidies used by most states to pay a business to locate a plant. It doesnt have an economic development government agency, nor does it fund economic development. California pursues economic development by creating markets for disruptive technologies to drive down their unit prices through economies of scale. The states Million Solar Roofs initiative created the domestic market for rooftop solar that is now challenging grid power prices across the U.S. Californias pricing of carbon emissions is driving automobile innovations. The California electric car market now accounts for 1 out of every 2 electric cars sold in America.
The proof of Californias strategy is that, since the 2001 peak in the states carbon intensity, it has achieved a 23 percent reduction even while its GDP has grown by 6.6 percent.
The green economic revolution
The green economic revolution I projected in 2007 is now a reality. China, Germany and California are investing in technologies and public policies that will delink economic success and pollution. The question is no longer if, but how quickly, this new economic model will replace the Industrial Age.
Significant barriers to this green economic revolution do exist. But they are not technological or economic. The barrier to the new economic model being pioneered by California comes from states and companies still dependent on pollution to win competitive advantage.
While these states and companies can retard our countrys path to a cleaner and stronger economy, they cannot stop the green economic revolution. Americas free marketplace will continue to open the door for companies that provide consumers with price competitive in me, on me and around me solutions. Companies that deliver products that cost less and mean more in terms of improved human health will win.
California is providing this. It is only a matter of time when the California path to economic development will become the norm for all states.
dduncan4163
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Carl Pickens
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dduncan4163
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https://www.bisnow.com/los-angeles/...nt-fed-expected-to-raise-interest-rates-53258
Fueled by the states economic growth, Californias unemployment rate is expected to steadily decline to 4.9% by the end of 2017, according to a December forecast by UCLA economists at the Anderson School of Management. In preparing the forecast, senior economist Jerry Nickelsburg analyzed the states recent economic data, including trade through Californias ports, international arrivals at LAX and SFO, state government finances, residential construction and employment. He noted that port activity in September was at a historic high and international passenger arrivals at LAX and SFO reached record numbers over the past year. Sales tax also ticked up slightly, but is still below pre-recession levels, Jerry said. Meanwhile, residential construction is still on the upswing, and California job gains are impressive, according to LA Biz. According to the California Employment Development Department, the state gained 463,000 jobs October 2014 to October 2015up 2.9%. The UCLA report forecasts a total of 2.6% job growth in 2015, then a tapering to 2.1% in 2016 and 1.4% in 2017. IN 81 DAYS! DON'T MISS THE THE FIFTH ANNUAL BISNOW LODGING INVESTMENT SERIES -- National 09.21.2016 Anderson School economist David Shulman also predicted the Fed will begin normalizing interest rates this month, ending its zero interest policy, because there is near full employment and the financial crisis is long over. Nevertheless, Shulman wrote, employment remains healthy, with the economy generating jobs at a 200,000-a-month clip that will bring with it further declines in the unemployment rate to 4.6%. Ongoing job growth and expected wage increases will drive consumer spending in 2016, leading to the first 3% growth in GDP since 2005 and pushing inflation above 2%. However, housing and commercial construction, along with a boom in the automobile industry, will be sources of economic strength. [BIZ]
Fueled by the states economic growth, Californias unemployment rate is expected to steadily decline to 4.9% by the end of 2017, according to a December forecast by UCLA economists at the Anderson School of Management. In preparing the forecast, senior economist Jerry Nickelsburg analyzed the states recent economic data, including trade through Californias ports, international arrivals at LAX and SFO, state government finances, residential construction and employment. He noted that port activity in September was at a historic high and international passenger arrivals at LAX and SFO reached record numbers over the past year. Sales tax also ticked up slightly, but is still below pre-recession levels, Jerry said. Meanwhile, residential construction is still on the upswing, and California job gains are impressive, according to LA Biz. According to the California Employment Development Department, the state gained 463,000 jobs October 2014 to October 2015up 2.9%. The UCLA report forecasts a total of 2.6% job growth in 2015, then a tapering to 2.1% in 2016 and 1.4% in 2017. IN 81 DAYS! DON'T MISS THE THE FIFTH ANNUAL BISNOW LODGING INVESTMENT SERIES -- National 09.21.2016 Anderson School economist David Shulman also predicted the Fed will begin normalizing interest rates this month, ending its zero interest policy, because there is near full employment and the financial crisis is long over. Nevertheless, Shulman wrote, employment remains healthy, with the economy generating jobs at a 200,000-a-month clip that will bring with it further declines in the unemployment rate to 4.6%. Ongoing job growth and expected wage increases will drive consumer spending in 2016, leading to the first 3% growth in GDP since 2005 and pushing inflation above 2%. However, housing and commercial construction, along with a boom in the automobile industry, will be sources of economic strength. [BIZ]
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