California To Become the World's Fourth Largest Economy

 

California Set To Become World’s 4th Largest Economy. Who is Left Out?

November 16, 2022 | By Mauricio Torres Jr.

A few weeks ago news broke that California is set to become the world’s 4th largest economy — larger than Germany and the United Kingdom if the state were an independent nation. State leaders celebrated the news as evidence of their success. 

Yet, despite California becoming the world’s 4th largest economy, we know too many Californians are struggling to make ends meet. A real marker of success is ensuring that every resident has a roof over their head, access to food and clean drinking water, the opportunity to get a higher education, and a robust safety net to fall on when things get tough. But right now that is not a reality. 

California is set to become the world’s 4th largest economy — larger than Germany and the United Kingdom if the state were an independent nation. This strong economy should ensure that every resident has a roof over their head, access to food and clean drinking water, the opportunity to get a higher education, and a robust safety net to fall on when things get tough.

“Ensuring all Californians have the resources they need to afford food, housing, child care, and meet all of their basic needs should be our state’s real measure of economic success.” 

Yet, despite California becoming the world’s 4th largest economy, too many Californians are left out of our state’s economic success. As leaders celebrate California’s strong economy, we have to remember those that are continuously shut out from accessing our state’s wealth, and we must take collective action to create an inclusive economy.

This fall about 2 in 3 California households with incomes under $35,000 had trouble affording basic needs like housing, groceries, and diapers. For Black, Latinx, and other Californians of color, the challenge is often greater. This is a result of historical and continued policies that create and exacerbate racism and discrimination across our state, creating disparities in earnings, well-being, and wealth building.

As inflation and high housing costs continue to take a toll on Californians, state leaders must ensure that our public policies create an economy that benefits every Californian, not just corporations and those at the top.

One way California can help distribute our state’s great wealth is by strengthening existing tax credits like the California Earned Income Tax Credit, commonly known as the CalEITC, which puts cash into the pockets of California workers, their families, and young working adults with low incomes.