California's economy rivals UK's -- thanks to leftist policies? Or something else entirely

Appley's picture
Rank: Gorilla | 556

New Bloomberg article claims, as title suggests, that California is going to have the 5th largest GDP in the world.

California is the chief reason America is the only developed economy to achieve record GDP growth since the financial crisis of 2008 and ensuing global recession, according to data compiled by Bloomberg

Here we have some numbers Bloomberg throws at us (and for your convenience),

  1. "The trailing 12-month revenue from California technology companies is $720 billion, or 54 percent of the U.S. industry, according to data compiled by Bloomberg."
  2. "Far from losing jobs overseas, California keeps creating them with an unemployment rate declining to 4.9 percent from 5.7 percent in 2016, faster than the national average."
  3. "The 467 California-based firms in the Russell 3000 Index produced a total return of 185 percent since 2012, easily surpassing the 94 percent for the index, according to data compiled by Bloomberg"
    (Note, "Technology driving the clean energy boom is the reason California companies lead most of their peers in U.S.")
  4. "California's borrowing cost is 0.15 percentage points lower than the average for states and municipalities and has declined to just 0.24 percentage points more than the U.S. pays on its debt, down from 1.97 percentage points in 2013"
  5. "...bonds sold by California's municipalities produced a total return of 2.3 percent since November, outperforming the benchmark for the U.S., according to data compiled by Bloomberg"
    (Followed by, "The growing popularity of bonds sold by California issuers is a consequence of the state's more rigorous regulation of the market, specifically legislation signed by Brown last year")

As the title of the Bloomberg article would have you think, the article seems to be written with the purpose of highlighting Trump's failures. Yet the numbers are surely speaking for themselves.
Bloomberg suggests that California's growth is attributed to laws promoting cleaner energy, government accountability, and protection of undocumented immigrants.
"Investors see security in the state with more protections for immigrants and more regulations"

And I'm not buying into an article so obviously laced with strong political undertones. What is really going on with California's economy? I can only imagine the real explanation behind California's growth is the frequent growth (and collapse) of tech start-ups. Bloomberg points out that clean energy-focused maneuvers by companies are a major contributor to California's growth.

There's something suspicious about this article's constant nodding towards leftist policies as being the reason behind California's growth. So, what is really the case -- are good companies' growth simply outpacing regulation's pull on them? Or perhaps there is something to be said about regulation's role in continued California's growth?

What are your thoughts behind these numbers? From your understanding of California's markets and industries nested there, what could possibly be driving California's metrics?

Feel free to discuss and share whatever comes to mind.