California’s recovery isn’t what it seems:
In the period from 1990 to 1996, California’s real gross domestic product grew by 8 percent, while between 2008 and 2013, its economy has only grown by 3 percent. Notable here is that in the 79 months after the July 1990 recession, California’s civilian non-institutionalized population grew by 5 percent, compared to 9 percent in the 79 months after the most recent recession. This combination of weak economic performance and stronger eligible working-age population growth means previously acceptable labor market growth isn’t adequate. A recovery that doesn’t provide enough jobs for the working population isn’t a true recovery. And that is where Sacramento’s comeback story falls apart.
Take away the high-paying tech sector around the San Francisco Bay Area, and about all California would be left with is winemaking, pot growing, and office buildings full of Hollywood types — which isn’t nearly enough to sustain a population of over 35 million.