C ALIFORNIA’S STATE MOTTO is “Eureka!” (Greek for “I found it!”). This begs the question: What did you find? Any of us who live here will tell you: We found our slice of paradise, a place where we can thrive and prosper. Many of us might argue it’s the best place in the world to live. And yet, the notion persists that California is not a good place to do business. When did this become conventional wisdom in some quarters? Could it be envy (understandable, right?) or is it based on hard facts? Let’s take a closer look. State’s economy There’s no disputing California’s elevated economic standing in the country or, for that matter, the world. While it’s obvious to most how vast and diverse the
state is, it’s still a revelation to many that California’s economy—with its $3.6 trillion gross state product (GSP) in 2022—isn’t only the largest of any state in the country, it’s also is the largest sub-national economy in the world. That’s to say, if California were its own nation, it would rank as the world’s fifth-largest economy, larger than that of Great Britain’s. Nor is there any question about California’s leadership in key economic metrics including technology, finance, agriculture, shipping and trade, media, business services and manufacturing. This leadership adds to the state’s prominent reputation, both domestically and abroad, as sort of an economic unicorn among states. But even the most robust economies can fall prey to economic trends and government policies that have an impact on their prosperity. While California hasn’t been immune to these circumstances, it certainly has shown
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