Economy of California

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The economy of California is a dominant force in the economy of the United States, with California paying more to the federal system than it receives in direct monetary benefits.^[1]

California State Quarter

1 Economic regions
2 Industries
3 Gross domestic product (GDP)
- 3.1 California's gross state product
4 California as an independent nation
- 4.1 Rankings from different sources
5 Per capita personal income
6 Tax burden
7 Housing
8 25 wealthiest places in California
9 30 poorest places in California
10 References
11 Notes
12 See also
13 External links

[edit] Economic regions

California is also the home of several significant economic regions such as Hollywood (entertainment), the California Central Valley (agriculture), Tech Coast and Silicon Valley (computers and high tech), and wine producing regions such as the Napa Valley, Sonoma Valley and Southern California's Santa Barbara and Paso Robles areas.

[edit] Industries

Agriculture (including fruit, vegetables, dairy, wine and marijuana) is a major California industry. In 2004 agriculture brought in $31.68 billion in revenue, making it more than twice the size of any other state's agriculture industry. In fact, California is the world's fifth largest supplier of food and agriculture commodities.^[1] Agriculture accounts for just slightly over 2% of California's $1.55 trillion gross state product.

The Hollywood sign is the most well-known symbol of California's huge entertainment industry.

Other major industries include:

aerospace

entertainment, primarily television by dollar volume, although many movies are still made in California

light manufacturing including computer hardware and software, and the mining of borax.

California also draws significant revenue from international trade and tourism. The exports of goods made in California totaled $94 billion in 2003.^[2] Nearly $40 billion of that total was computers and electronics, followed by agriculture, non-electrical machinery, transportation, and chemicals.^[3] Total direct travel spending in California reached $82.5 billion in 2004, a 7.4% increase over the preceding year.^[4] Los Angeles County receives the most tourism in the state.^[5]

Oil drilling has played a significant role in the development of the state. There have been major strikes in the Bakersfield, Long Beach, Los Angeles and off the California coast.

Historically, California's economy has been controlled by huge corporations such as the Southern Pacific Railroad, Standard Oil of California and the Pacific Gas and Electric Company.

[edit] Gross domestic product (GDP)

California is responsible for 13% of the United States' gross domestic product (GDP). The state's GDP is at about $1.7 trillion (as of 2006).

The GDP increased at an annual rate of 3.1% in the first quarter of 2005.^[6]

[edit] California's gross state product

According to the California Department of Finance, California's gross state product is $1.543 trillion .^[7]

According to the Bureau of Economic Analysis, California's gross state product is $1.727 trillion (2006 data, last updated Thursday, June 07, 2007).^[8]

According to the California Legislative Analyst's Office, "California's gross state product is nearly $1.5 trillion..." ("Gross product in 2003", released in 2004).^[9]

[edit] California as an independent nation

California compared to other countries GDP is in the same range as Spain, Italy and China (corresponding with the Department of Finance figures)

See also Comparison between U.S. states and countries nominal GDP

The economy of California is often cited for how it would compare to other countries if California was an independent nation. The statistic quoted varies widely (usually placing California between 7th and 10th)^[10]^[11]^[12], depending on the source.

The two main issues are:

determining California's gross state product
determining the gross domestic product (GDP) for various countries

[edit] Rankings from different sources

[edit] The World Factbook

According to The World Factbook published by the CIA, if California was an independent state, it would have had the first largest economy in the world in 2005.^[13]

[edit] California Legislative Analyst's Office

According to the California Legislative Analyst's Office, if California was an independent state, it would have had the eighth largest economy in the world.^[14]

[edit] California Department of Finance

According to the California Department of Finance, if California was an independent state, it would have had the seventh largest economy in the world.^[15]

The rankings are:^[16]

(2005 estimates)

The rankings are:^[17]

(2005 data)

The rankings are:^[18]

(2003 data)

[edit] Per capita personal income

Per capita personal income was $38,956 as of 2006, ranking 11^th in the nation.^[19] Per capita income varies widely by geographic region and profession. The Central Valley has the most extreme contrasts of income, with migrant farm workers making less than minimum wage. While some coastal cities include some of the wealthiest per-capita areas in the U.S., notably San Francisco and Marin County, the agricultural central counties have some of the highest poverty rates in the U.S. The high-technology sectors in Northern California, specifically Silicon Valley, in Santa Clara and San Mateo counties, are currently emerging from economic downturn caused by the dot.com bust, which caused the loss of over 250,000 jobs in Northern California alone. Recent (Spring 2005) economic data indicates that economic growth has resumed in California, although still slightly below the national annualized forecast of 3.9%. The international boom in housing prices has been most pronounced in California, with the median property price in the state rising to about the half-million dollar mark in April 2005.

[edit] Tax burden

California's overall tax burden of $10.66 per $100 of personal income is slightly above the $10.43 average for the United States.^[20]

[edit] Housing

The international boom in housing prices has been most pronounced in California, with the median property price in the state rising to about the half-million dollar mark in April 2005. Orange County, Ventura County and the San Francisco Bay Area have the highest median prices, each approaching $650,000.^[21] The least expensive region is the Central Valley, with a median price of $2.^[22]

Various real estate markets in California are currently considered to be in a housing bubble.

[edit] 25 wealthiest places in California

Vineyards, such as this one in Mendocino County, are an important component of the state's economy.

Thanks to the state's powerful economy, certain California cities are among the wealthiest on the planet. The following list is ranked by per capita income:

Belvedere, California – Marin County – $113,595
Rancho Santa Fe, California – San Diego County – $113,132
Atherton, California – San Mateo County – $112,408
Rolling Hills, California – Los Angeles County – $111,031
Woodside, California – San Mateo County – $104,667
Portola Valley, California – San Mateo County – $99,621
Newport Coast, California – Orange County – $98,770
Hillsborough, California – San Mateo County – $98,643
Diablo, California – Contra Costa County – $95,419
Fairbanks Ranch, California – San Diego County – $94,150
Hidden Hills, California – Los Angeles County – $94,096
Los Altos Hills, California – Santa Clara County – $92,840
Tiburon, California – Marin County – $85,966
Sausalito, California – Marin County – $81,040
Monte Sereno, California – Santa Clara County – $76,577
Indian Wells, California – Riverside County $76,187
Malibu, California – Los Angeles County – $74,336
Del Monte Forest, California – Monterey County – $70,609
Piedmont, California – Alameda County – $70,539
Montecito, California – Santa Barbara County – $70,077
Palos Verdes Estates, California – Los Angeles County – $69,040
Emerald Lake Hills, California – San Mateo County – $68,966
Loyola, California – Santa Clara County – $68,730
Blackhawk-Camino Tassajara, California – Contra Costa County – $66,972
Los Altos, California – Santa Clara County – $66,776

See complete list of California locations by per capita income

[edit] 30 poorest places in California

Also, due to California's considerable and increasing wealth disparities, many communities are among the poorest in the western world. The following list is ranked by increasing per capita income, first number is state ranking: