It’s common for the remaining California boosters (almost ALL of whom are far to the left of center) to smugly assert that “If California were a country, it would have the world’s 6th largest economy.” Referencing this ranking, “Comedian” Bill Mayer recently delivered this smug progressive punchline to Republicans — “Scoreboard, bitches!!“
To entertain his carefully screened liberal audiences, Mayer relies on “talking points” rather than economic analysis. Indeed, how else could he be a progressive? By not digging deeper into such matters, he periodically demonstrates his profound economic illiteracy. Certainly in this case!
Granted, using just GDP (Gross Domestic Product) as a benchmark, this GDP boast is technically a true assertion.
https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)
It’s also an incomplete assertion. And definitely a misleading assertion when talking about comparing the prosperity of California with the other states. Indeed, the more detailed analysis below cuts the legs out from under the California booster bunch.
California’s four immediate national “competitors” are France, India, Italy and Brazil — all economic basket cases. This fact should alert one that using simple GDP as a measure of a country’s prosperity can be remarkably misleading. Indeed, under this gonzo standard, the people of China are more prosperous than the folks living in California.
Touting CA as the most prosperous state simply because of its high GDP ranking as a country (again, compared to the other states) is just plain silly. CA has over 39.3 million people, far larger than any other state. 2nd largest is Texas with over 27.6 million people, with the other 48 states tailing off quickly in population.
A much more legitimate comparison is the PER CAPITA GDP of the states. After all, THAT’s what people want to know about the prosperity of a state or country — not the GROSS GDP figure without considering the size of the population.
Fortunately I found good sources for this information, and just got more recent figures. All the data I’ll be citing from this point forward comes from the listed sources on my posted Excel spreadsheet, available on Google Drive for anyone to access.
I might add that this Excel spreadsheet online is worth visiting, as you can fool around with the rankings and the order of the states. You can play with it, but you can’t change it. My son Steve is an Excel expert, and was the key to making this information both readable and accessible — yet protected.
First, let’s look at the 2015 PER CAPITA GDP rank of states. We don’t count “Columbia.” D.C. has by FAR the richest per capita GDP compared to any state — almost TRIPLE the best state. But this rip in the space-time continuum doesn’t operate by the normal rules of wealth physics — if it WERE a state, we’d nickname it the “Looter State,” given its source of wealth (taxation). Hence we ignore D.C. in this ranking comparison (oh, we also ignore it because it’s NOT a state!). Here’s that ranking of these 50 states (plus the U.S. average):
| State | GDP(Millions) | GPDRank | Population | Per CapitaGDP | GDP PerCapita Rank |
| New York | $1,455,568 | 3 | 19,994,125 | $72,800 | 1 |
| Connecticut | $262,212 | 23 | 3,630,717 | $72,220 | 2 |
| North Dakota | $53,686 | 46 | 743,437 | $72,213 | 3 |
| Alaska | $54,256 | 45 | 768,335 | $70,615 | 4 |
| Massachusetts | $478,941 | 12 | 6,817,391 | $70,253 | 5 |
| Delaware | $66,150 | 41 | 950,149 | $69,621 | 6 |
| Wyoming | $40,170 | 49 | 589,054 | $68,194 | 7 |
| New Jersey | $579,379 | 8 | 9,003,477 | $64,351 | 8 |
| Washington | $449,404 | 14 | 7,212,218 | $62,311 | 9 |
| California | $2,448,467 | 1 | 39,340,198 | $62,238 | 10 |
| Minnesota | $334,780 | 16 | 5,526,730 | $60,575 | 11 |
| Maryland | $365,209 | 15 | 6,097,060 | $59,899 | 12 |
| Illinois | $771,896 | 5 | 12,933,292 | $59,683 | 13 |
| Texas | $1,639,375 | 2 | 27,643,720 | $59,304 | 14 |
| Nebraska | $112,208 | 35 | 1,902,994 | $58,964 | 15 |
| Colorado | $318,600 | 18 | 5,470,274 | $58,242 | 16 |
| Oregon | $228,120 | 25 | 4,022,717 | $56,708 | 17 |
| Virginia | $480,876 | 11 | 8,512,360 | $56,492 | 18 |
| Hawaii | $79,595 | 38 | 1,442,754 | $55,169 | 19 |
| Iowa | $171,532 | 30 | 3,130,191 | $54,799 | 20 |
| Rhode Island | $56,323 | 43 | 1,041,028 | $54,103 | 21 |
| New Hampshire | $71,632 | 39 | 1,327,461 | $53,962 | 22 |
| Louisiana | $253,517 | 24 | 4,721,354 | $53,696 | 23 |
| Pennsylvania | $684,313 | 6 | 12,887,827 | $53,098 | 24 |
| South Dakota | $45,415 | 48 | 864,291 | $52,546 | 25 |
| Wisconsin | $300,699 | 20 | 5,803,454 | $51,814 | 26 |
| Ohio | $599,093 | 7 | 11,570,379 | $51,778 | 27 |
| Kansas | $149,090 | 31 | 2,927,950 | $50,920 | 28 |
| North Carolina | $509,718 | 9 | 10,115,740 | $50,389 | 29 |
| Nevada | $141,204 | 33 | 2,813,238 | $50,193 | 30 |
| Indiana | $331,126 | 17 | 6,643,266 | $49,844 | 31 |
| Utah | $148,225 | 32 | 3,016,311 | $49,141 | 32 |
| Georgia | $501,241 | 10 | 10,303,378 | $48,648 | 33 |
| Missouri | $290,713 | 22 | 6,080,530 | $47,810 | 34 |
| Michigan | $468,029 | 13 | 9,876,279 | $47,389 | 35 |
| Vermont | $29,750 | 50 | 628,061 | $47,368 | 36 |
| Tennessee | $310,276 | 19 | 6,621,626 | $46,858 | 37 |
| Oklahoma | $179,835 | 29 | 3,920,864 | $45,866 | 38 |
| Montana | $45,799 | 47 | 1,033,786 | $44,302 | 39 |
| Florida | $893,189 | 4 | 20,270,461 | $44,064 | 40 |
| Arizona | $298,204 | 21 | 6,791,173 | $43,911 | 41 |
| Kentucky | $194,578 | 28 | 4,456,414 | $43,662 | 42 |
| Alabama | $209,382 | 26 | 4,881,756 | $42,891 | 43 |
| New Mexico | $90,810 | 37 | 2,135,288 | $42,528 | 44 |
| Maine | $55,137 | 44 | 1,330,413 | $41,444 | 45 |
| Arkansas | $123,424 | 34 | 3,014,732 | $40,940 | 46 |
| South Carolina | $199,256 | 27 | 4,872,009 | $40,898 | 47 |
| Idaho | $65,202 | 42 | 1,648,438 | $39,554 | 48 |
| West Virginia | $71,123 | 40 | 1,860,832 | $38,221 | 49 |
| Mississippi | $106,880 | 36 | 3,017,806 | $35,416 | 50 |
| National Figures | $17,813,607 | 322,207,338 | $55,286 |
As we can see from this chart, California is NOT the most prosperous state. PER CAPITA, it’s the 10th most prosperous state — nothing to brag about, but pretty good.
Now let’s adjust the per capita state GDP for the cost of living (COL) in each state. California’s COL is 36.2% higher than the national COL average. Only the isolated island state of Hawaii is worse. Here’s the ranking of the states with this important modification (“Adjusted GDP Rank” — the right hand column):
| State | GDP(Millions) | GPDRank | Population | Per CapitaGDP | GDP PerCapita Rank | COLIndex | GDP Per CapitaAdjustedfor COL | AdjustedGDP Rank |
| North Dakota | $53,686 | 46 | 743,437 | $72,213 | 3 | 0.974 | $74,141 | 1 |
| Wyoming | $40,170 | 49 | 589,054 | $68,194 | 7 | 0.920 | $74,124 | 2 |
| Delaware | $66,150 | 41 | 950,149 | $69,621 | 6 | 1.024 | $67,989 | 3 |
| Texas | $1,639,375 | 2 | 27,643,720 | $59,304 | 14 | 0.910 | $65,169 | 4 |
| Nebraska | $112,208 | 35 | 1,902,994 | $58,964 | 15 | 0.908 | $64,938 | 5 |
| Illinois | $771,896 | 5 | 12,933,292 | $59,683 | 13 | 0.962 | $62,040 | 6 |
| Minnesota | $334,780 | 16 | 5,526,730 | $60,575 | 11 | 0.993 | $61,002 | 7 |
| Iowa | $171,532 | 30 | 3,130,191 | $54,799 | 20 | 0.916 | $59,824 | 8 |
| Washington | $449,404 | 14 | 7,212,218 | $62,311 | 9 | 1.086 | $57,377 | 9 |
| Louisiana | $253,517 | 24 | 4,721,354 | $53,696 | 23 | 0.940 | $57,123 | 10 |
| Indiana | $331,126 | 17 | 6,643,266 | $49,844 | 31 | 0.874 | $57,030 | 11 |
| Virginia | $480,876 | 11 | 8,512,360 | $56,492 | 18 | 0.999 | $56,548 | 12 |
| Kansas | $149,090 | 31 | 2,927,950 | $50,920 | 28 | 0.902 | $56,452 | 13 |
| Ohio | $599,093 | 7 | 11,570,379 | $51,778 | 27 | 0.928 | $55,795 | 14 |
| Colorado | $318,600 | 18 | 5,470,274 | $58,242 | 16 | 1.045 | $55,734 | 15 |
| Connecticut | $262,212 | 23 | 3,630,717 | $72,220 | 2 | 1.318 | $54,795 | 16 |
| New York | $1,455,568 | 3 | 19,994,125 | $72,800 | 1 | 1.354 | $53,766 | 17 |
| North Carolina | $509,718 | 9 | 10,115,740 | $50,389 | 29 | 0.938 | $53,719 | 18 |
| New Jersey | $579,379 | 8 | 9,003,477 | $64,351 | 8 | 1.203 | $53,492 | 19 |
| Georgia | $501,241 | 10 | 10,303,378 | $48,648 | 33 | 0.910 | $53,460 | 20 |
| Alaska | $54,256 | 45 | 768,335 | $70,615 | 4 | 1.328 | $53,174 | 21 |
| Utah | $148,225 | 32 | 3,016,311 | $49,141 | 32 | 0.931 | $52,783 | 22 |
| Wisconsin | $300,699 | 20 | 5,803,454 | $51,814 | 26 | 0.985 | $52,603 | 23 |
| Missouri | $290,713 | 22 | 6,080,530 | $47,810 | 34 | 0.910 | $52,539 | 24 |
| Tennessee | $310,276 | 19 | 6,621,626 | $46,858 | 37 | 0.895 | $52,355 | 25 |
| Oklahoma | $179,835 | 29 | 3,920,864 | $45,866 | 38 | 0.879 | $52,180 | 26 |
| South Dakota | $45,415 | 48 | 864,291 | $52,546 | 25 | 1.013 | $51,872 | 27 |
| Michigan | $468,029 | 13 | 9,876,279 | $47,389 | 35 | 0.914 | $51,848 | 28 |
| Pennsylvania | $684,313 | 6 | 12,887,827 | $53,098 | 24 | 1.032 | $51,451 | 29 |
| Kentucky | $194,578 | 28 | 4,456,414 | $43,662 | 42 | 0.903 | $48,353 | 30 |
| Maryland | $365,209 | 15 | 6,097,060 | $59,899 | 12 | 1.243 | $48,189 | 31 |
| Alabama | $209,382 | 26 | 4,881,756 | $42,891 | 43 | 0.894 | $47,976 | 32 |
| Massachusetts | $478,941 | 12 | 6,817,391 | $70,253 | 5 | 1.467 | $47,889 | 33 |
| Nevada | $141,204 | 33 | 2,813,238 | $50,193 | 30 | 1.058 | $47,441 | 34 |
| Arkansas | $123,424 | 34 | 3,014,732 | $40,940 | 46 | 0.890 | $46,000 | 35 |
| New Hampshire | $71,632 | 39 | 1,327,461 | $53,962 | 22 | 1.174 | $45,964 | 36 |
| California | $2,448,467 | 1 | 39,340,198 | $62,238 | 10 | 1.362 | $45,696 | 37 |
| New Mexico | $90,810 | 37 | 2,135,288 | $42,528 | 44 | 0.945 | $45,003 | 38 |
| Arizona | $298,204 | 21 | 6,791,173 | $43,911 | 41 | 0.978 | $44,898 | 39 |
| Rhode Island | $56,323 | 43 | 1,041,028 | $54,103 | 21 | 1.212 | $44,640 | 40 |
| Florida | $893,189 | 4 | 20,270,461 | $44,064 | 40 | 0.991 | $44,464 | 41 |
| Montana | $45,799 | 47 | 1,033,786 | $44,302 | 39 | 1.016 | $43,605 | 42 |
| Oregon | $228,120 | 25 | 4,022,717 | $56,708 | 17 | 1.306 | $43,421 | 43 |
| Idaho | $65,202 | 42 | 1,648,438 | $39,554 | 48 | 0.925 | $42,761 | 44 |
| Mississippi | $106,880 | 36 | 3,017,806 | $35,416 | 50 | 0.853 | $41,520 | 45 |
| South Carolina | $199,256 | 27 | 4,872,009 | $40,898 | 47 | 1.006 | $40,654 | 46 |
| West Virginia | $71,123 | 40 | 1,860,832 | $38,221 | 49 | 0.978 | $39,081 | 47 |
| Vermont | $29,750 | 50 | 628,061 | $47,368 | 36 | 1.241 | $38,169 | 48 |
| Maine | $55,137 | 44 | 1,330,413 | $41,444 | 45 | 1.113 | $37,236 | 49 |
| Hawaii | $79,595 | 38 | 1,442,754 | $55,169 | 19 | 1.928 | $28,615 | 50 |
| National Figures | $17,813,607 | 322,207,338 | $55,286 | 1.000 | $55,286 |
So, after making the proper adjustments, we find that high-cost California has a lower per person GDP than all but 13 states. It turns out that our Golden State is not so golden after all.
Our dismal “37th” ranking has not changed in three years. Currently the per capita U.S. GDP national average is 20.7% higher than California. Here’s an additional thought: If California is such a prosperous state, how come we have the highest poverty rate in the NATION?? FACT: California’s real poverty rate (the new Census Bureau standard adjusted for COL) is easily the worst in the nation at 23.4%. We are 57.3% higher than the average for the other 49 states (up from 48.8% higher last year). Indeed, the CA poverty rate is 17.0% higher than 2nd place Nevada.
http://www.census.gov/content/dam/Census/library/publications/2014/demo/p60-251.pdf page 9
BTW, it’s interesting to look at the California per capita GDP (GDP adjusted for population, but unadjusted for COL) compared to the other COUNTRIES. While we are 6th in the world in aggregate GDP, we rank about 19th when one factors in the population to get the per capita figure. To adjust these figures further for the COL differences is beyond the scope of this article, but such an analysis would move CA much further down the “country” ranking. And indeed, if we included these two adjustments (population and cost of living), 36 of our states would have a higher adjusted GDP “country” rating than California!
If you want to take the countries’ COL into consideration and do the math, here’s the link comparing national COL figures (it’s rather complicated):
http://www.numbeo.com/cost-of-living/rankings_by_country.jsp