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California Now World's 5th Largest Economy, Surpassing UK

nytimes.com

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Re: California Now World's 5th Largest Economy, Surpassing UK

#21

Post by nradov »

ProfessorLayton wrote: post #15

The question is what is CA going to do when its municipalities indirectly cap GDP via their terrible housing policies. The entire state is under a slow boil by NIMBYism that will eventually choke its otherwise impressive economy.

I'm not a NIMBY myself, but most of them would claim that preserving quality of life for existing residents is more important than maximizing GDP or making space for newcomers. If you want to improve housing policies then you'll have to find a way to counteract those objections.

Re: California Now World's 5th Largest Economy, Surpassing UK

#23

Post by nradov »

ddoolin wrote: post #9
Circumnavigate wrote: post #3

5th largest in the world and yet where is all of the money going? California is in a huge deficit.

California has a high amount of debt, particularly per household, when compared to (some) other U.S. states. However, the last few years under governor Brown have led to a budget surplus for those years, which is commonly attributed to the tax hikes of Proposition 30, among better spending decisions. We're looking at a pretty substantial surplus for this year's budget, which will be finalized in June, and lawmakers h…

Exactly. Fund the existing pension liabilities now while money is relatively cheap. Then transition all state employees to defined contribution retirement plans going forward so that it will be closer become impossible to ever have underfunded pension plans in the future.

Re: California Now World's 5th Largest Economy, Surpassing UK

#24

Post by nradov »

carbocation wrote: post #10
genefriend wrote: post #6

Earlier quoted context omitted.

California budget deficit: $1.6 billion California GDP: $2.7 trillion I think California will be fine.

"Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery." (Though, in the end, I agree with you.)

There's really no sensible comparison between an individual on a fixed income versus a sovereign with taxing authority.

Re: California Now World's 5th Largest Economy, Surpassing UK

#25

Post by dmode »

This is truly incredible and speaks to the amazing spirit of people and government of California. These numbers become even more incredible when you consider that UK has 66 million people. And CA is also a net donor state when it comes to Federal taxes. If you add that spending back, the economy would be even bigger. Most articles here and in the internet speak to a dislike of California. But for me, everyday I feel lucky to live here.

Re: California Now World's 5th Largest Economy, Surpassing UK

#26

Post by DrScump »

jedberg wrote: post #12
Circumnavigate wrote: post #3

5th largest in the world and yet where is all of the money going? California is in a huge deficit.

Your data is a bit out of date. California has a surplus now. There is an underfunded pension but the payments aren't due for many years in the future.

  California has a surplus now.
What budget year are you talking about, where an actual surplus was evident when the budget year closed?

Projections are just projections and can be seriously wrong. A projected $2.8 billion surplus[0] quickly changed to being a $1.6 billion deficit[1].

[0] https://www.scpr.org/news/2016/11/17/66216/california-analys...

[1] http://www.latimes.com/politics/la-pol-sac-jerry-brown-budge...

Re: California Now World's 5th Largest Economy, Surpassing UK

#27

Post by DrScump »

ddoolin wrote: post #9
Circumnavigate wrote: post #3

5th largest in the world and yet where is all of the money going? California is in a huge deficit.

California has a high amount of debt, particularly per household, when compared to (some) other U.S. states. However, the last few years under governor Brown have led to a budget surplus for those years, which is commonly attributed to the tax hikes of Proposition 30, among better spending decisions. We're looking at a pretty substantial surplus for this year's budget, which will be finalized in June, and lawmakers h…

  the last few years under governor Brown have led to a budget surplus for those years
no, it wasn't a surplus. 2017 showed a $1.6 Billion deficit[0].

[0] http://www.latimes.com/politics/la-pol-sac-jerry-brown-budge...

Re: California Now World's 5th Largest Economy, Surpassing UK

#29

Post by DrScump »

jlmorton wrote: post #19
genefriend wrote: post #6

Earlier quoted context omitted.

California budget deficit: $1.6 billion California GDP: $2.7 trillion I think California will be fine.

Where do you come up with a $1.6 billion deficit? There is currently a $6.1 billion surplus, which actually understates the strength of the budget, given debt deleveraging.

http://www.latimes.com/politics/la-pol-sac-jerry-brown-budge...

Re: California Now World's 5th Largest Economy, Surpassing UK

#30

Post by rak00n »

nradov wrote: post #21
ProfessorLayton wrote: post #15

The question is what is CA going to do when its municipalities indirectly cap GDP via their terrible housing policies. The entire state is under a slow boil by NIMBYism that will eventually choke its otherwise impressive economy.

I'm not a NIMBY myself, but most of them would claim that preserving quality of life for existing residents is more important than maximizing GDP or making space for newcomers. If you want to improve housing policies then you'll have to find a way to counteract those objections.

How about existing residents who rent in CA cities? Your argument doesn't stand.
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