California was once the wonderland where dreams come true. From Disney and Hollywood to its lush landscape and powerful politics, it seemed like a utopia of diversity, forward-thinking ideas and the picture of economic health.
California’s per-capita income and gross domestic product were soaring thanks to a thriving agricultural industry, a booming tech sector and what was then lower unemployment rates. In 2022, the state had the fifth largest economy in the world, boasting a higher GDP than most developed countries.
More millionaires lived in California than ever before with data showing their number grew 66% from 2019 to 2021.
As California slowly adopted more progressive policies, even right-wing America had to nod to its thriving economy.
What went wrong with California’s economy?
But California’s booming economy has taken a hit lately, thanks to liberal policies that have taken root. Things like tax hikes, hefty regulations and policies were progressive but failed to produce positive outcomes. According to The Economist, “The state faces three overlapping challenges: rising unemployment, growing fiscal strains and population outflows.”
The California Center for Jobs and the Economy found that California’s economy may actually drop from fifth best in the world. The state’s GDP growth was 32nd in the nation last year thanks to revenue drops from rising unemployment, among other factors.
There are a few indicators of where the state’s economy is heading. The…
