Gavin Newsom, Governor of California | Official website
California continues to play a significant role in the United States economy, contributing more to the federal government than it receives. As the largest "donor state," California provides approximately $83 billion more to the federal government compared to what it gets back, nearly three times that of any other state.
A Bloomberg column highlights California's importance, stating: “It should go without saying California is critical to US economic dominance globally, accounting for more than 14% of US’s $28 trillion of GDP as measured by the World Bank and more than 50% greater than the next largest state by the size of its economy — Texas.”
Economist Paul Krugman described California as “an economic and technological powerhouse” that subsidizes other states through federal budgeting. He noted that without California, “America would be a lot poorer and weaker than it is.”
In 2022, data showed that California contributed nearly $700 billion to the federal government. The state's influence on national prosperity is clear: "Simply put, as California goes — so goes the country."
California ranks as the world's fourth-largest economy with a growing population and record-high tourism spending. It leads in Fortune 500 company headquarters for two consecutive years.
The state excels in new business starts, venture capital funding access, manufacturing, high-tech industries, and agriculture. It stands as the leading agricultural producer and manufacturing hub in the U.S., with over 36,000 firms employing over 1.1 million people.
These manufacturing firms have been pivotal in creating new industries and supplying global markets with goods such as aerospace products, computers and electronics, and zero-emission vehicles.
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