"Consider the work of God;
For who can make straight what He has made crooked?"
The BEA revised California’s real GDP growth downward from 2009 to 2011 in each of three years by a cumulative 2.6 percent, the third-largest negative revision in the nation.Read the whole thing here.
In other words, California’s economy shrank an additional 2.6 percent before it grew 3.5 percent.
So, in the past five years California’s real GDP contracted 0.3 percent, one of ten states where economic activity was less in 2012 than it was in 2008.
By contrast, the BEA revised Texas’ growth upward by 0.5 percent from 2009 to 2011.
Texas’ newly revised real GDP growth from 2009 to 2012 was 13 percent.
From 2009 to 2012, California’s share of the U.S. economy shrank from 13.1 percent to 12.9 percent while Texas’ portion of the American economy increased from 8.2 percent to 9 percent.
Some critics might contend that Texas’ economic boom is wholly due to the revitalization of the Lone Star State’s oil and gas fields through fracking. However, if the entire mining sector is removed from the calculations, Texas’ economy would have still grown at a faster pace than California’s from 2009 to 2012. Further, California has about two-thirds of the nation’s proven shale oil reserves in the vast Monterey Shale formation—that the Golden State makes the political choice not to allow the extraction of this underground wealth can’t be held against Texas.
Update (6/20): TPPF informs us that this is actually a year old piece that came out in June 2013; our bad.