California’s Economy: A Delusion of Grandeur
Gov. Gavin Newsom’s constant reminders that California’s economy “leads the nation” as well as being a model for social justice are delusional. To be sure, California has a huge GDP, paced largely by high real estate prices and the stock value of a handful of tech companies, but it is not widely seen as a place for class mobility, and it is slowly ceding its dominance, even in tech-related industries.
A Study Reveals the Reality
In contemporary California, home to four of the world’s seven most valued tech firms, tech bros and real estate speculators occupy what Lenin called “the commanding heights,” while the reality on the ground is far less ethereal. The view from where most Californians reside is revealed in a new study sponsored by Chapman University: “Is California Losing Its Mojo?,” by business professors Marshall Toplansky (Chapman) and Kenneth Murphy (UC Irvine).
A Decline in GDP Growth
Historically, the report notes, California has outpaced the rest of the country in terms of the growth of its goods and services. However, that pace of GDP growth in the state has dropped significantly since 2022, with the measure now lagging when compared with other states. The distribution of jobs and wealth is even more worrisome.
A Poor Bet for Blue-Collar Professions
California has been a particularly poor bet for blue-collar professions, such as manufacturing, the traditional path to upward mobility for minorities and non-college educated people. Bureau of Labor Statistics data, analyzed by Lightcast, shows California has lagged far behind places like Utah, Nevada, Texas, and Arizona over a decade.
The Future of California’s Economy
Can California get its mojo back? After all, many of the state’s assets — research universities, leading tech firms, and the lifestyle appeal — have not disappeared. First, Newsom and other state cheerleaders have to stop using the size of the economy as a cover for real problems. Whatever the state’s strengths, as the Chapman report puts it, low-wage jobs overtaking advanced industry work is not sustainable.
A Conclusion
Gavin Newsom can talk all he wants about California’s bounty, but the road the state’s Democrats have set for us has been profoundly regressive. California’s economy is not a model for social justice, and it is time to acknowledge the reality on the ground.
FAQs
Q: What is the main issue with California’s economy?
A: California’s economy is paced largely by high real estate prices and the stock value of a handful of tech companies, but it is not widely seen as a place for class mobility, and it is slowly ceding its dominance, even in tech-related industries.
Q: What is the study "Is California Losing Its Mojo?" about?
A: The study, sponsored by Chapman University, reveals that California’s GDP growth has dropped significantly since 2022, and the distribution of jobs and wealth is even more worrisome.
Q: What is the problem with California’s job market?
A: California has been a particularly poor bet for blue-collar professions, such as manufacturing, and most new jobs in California aren’t concentrated in high-wage sectors.
Q: Can California get its mojo back?
A: Yes, but it requires acknowledging the reality on the ground and stopping the use of the size of the economy as a cover for real problems.
