Topic > Exploring California's Economic Growth and Challenges

For the past decade, the state of California has been one of the fastest-growing economies in the United States. The substantial growth positioned California as the largest economy in the United States, with gross domestic production of approximately $2.3 trillion for fiscal year 2014. The state of California also ranked eighth among the largest world economies, surpassing countries such as Italy and Russia (Young, 2014). Although many factors have led to this growth, the most influential have been related to high investments by private industries and increases in international trade and real estate. The state of California accounts for 13.2% of US output and after the decline Behind the US percentage growth rate compared to 2008, California has seen a steady recovery. After 2012, the state consistently achieved higher percentage growth rates than the United States, reaching 2.8% over 2014 compared to 2.2% for the total United States (Garosi & Sisney, 2015). Since 2004, the state of California has increased its GDP by 29%. The state started with a GDP of $1,643,908 dollars in 2004 and steadily increased its GDP reaching $2,305,921 dollars in 2014. The state only faced declines as a product of the Depression when in 2009 its GDP fell by 4% from $1,997,225 dollars to $1,915,723 dollars. Although this decline was produced by a combination of variables, the largest declines occurred in the commercial sector which decreased by 6.4% and in the private industry sector which decreased by 5%. The private industry sector alone has grown 40% since 2004 and now accounts for approximately 85% of the state of California's output. With projected growth rates of 2.8%, California's GDP is projected to remain... mid-paper... over the past decade, one can conclude that state and economic experts have failed to create mechanisms that they could help and promote growth in those fringe cities that slow the state's economic growth. Various regulations and incentives could be implemented in these cities to promote job creation and thus reduce the unemployment rate. As GDP has expanded, the cost of living has also increased for California citizens, forcing millions of people who do not have equal access to high disposable personal income to live in poverty. In the long term, this huge gap between the development of different areas could really harm the economy of the state of California, dividing the population into poor and rich areas and making it impossible for the poorer population to bear the overall situation. high cost of living in the state.