CA is world’s 6th largest economy, but 37th worst STATE economy
There’s been a lot of hype this month about CA now having the world’s sixth largest economy. And the state DID do well in 2015 compared to the other states, after lagging for several years.
Well, actually, not.
California has 39 million people — 43% larger than the 2nd largest state (Texas). Such GDP comparisons don’t tell us much in terms of the PROSPERITY of a nation. Or a state.
The proper comparison is PER CAPITA GDP. Using that more meaningful figure, CA is the 10th most prosperous state.
But an even MORE accurate comparison is to take the per capital GDP and adjust it for COL. Because of California’s high taxes, crazy utility laws, stifling regulations (paid by consumers) and sky-high housing costs, CA in 2014 ranked WAY down in 37th place. Only 13 states were worse.