ENTREPRENEUR PERSPECTIVE

California: Is America's Largest Economy Losing Its Momentum?

What is happening to the world's 4th largest economy?

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California has always been seen as a “miniature model” of a developed economy – a place that converges both the strengths and weaknesses of modern capitalism.

  • It is the center of technological innovation, global entertainment, and large-scale agriculture.

But at the same time, it is also a land of economic inequality, high taxes, exorbitant housing prices, and a series of legal barriers causing businesses and residents to leave in increasing numbers.

The story of “California collapsing” is not new. The media continuously reports on rising unemployment rates, record budget deficits, an exodus from the state, and the government's confusion in dealing with long-term issues.

But if we only look at the surface, we might miss the complex nature and intrinsic vitality of this economy — an economy that has now surpassed Japan to become the world's 4th largest with nominal GDP reaching 4.1 trillion USD (according to IMF and BEA).

California economy is now the world's 4th-largest, topping Japan

In this article, Viet Hustler will dissect each layer of issues with readers – to clarify: whether California is truly on the brink of “collapse”, or just going through an inevitable adjustment cycle of a maturing super-state?

  1. From Silicon Valley to Hollywood: The Foundations Keeping California at World No. 4

  2. Fragile Budget Relying on Just 1% of the Population

  3. Internal Leakage: When the Talented Come and Then Leave

  4. Housing Crisis – The Biggest Bottleneck for the Future

  5. Is California About to “Collapse”? – When the Old Cushion Is Gone and Risks from Trump's Policies

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