Please ensure Javascript is enabled for purposes of website accessibility
All That Glitters Isn't Gold for Many in CA's 4th-Largest World Economy
bill-new-mug-002
By Bill McEwen, News Director
Published 2 years ago on
October 25, 2022

Share

A Bloomberg analysis that predicted California would soon pass Germany as the world’s fourth-biggest economy is attracting widespread attention.

But all that glitters is not gold, says Dr. Sanjay Varshney, a highly respected finance professor at Sacramento State and the founder of a wealth management firm.

Varshney told CBS News Sacramento that while economic growth is good news, it is misleading to glorify California’s gains without pointing out its clear problems.

“Look at everything that we have to pay for, and you’re gonna find the answer that California is increasingly becoming less and less affordable for the ordinary people, and we are creating this huge gap between the ‘haves’ and the ‘have nots,'” Varshney said.

Tech Billionaires Mask the Realities of State’s Economy

The professor also says that while Silicon Valley’s high-tech industries flourish other components of the economy sputter.

“Those are the multimillionaires and billionaires in the Bay Area who skew the numbers. The rest of us in California, we are all struggling to make ends meet,” said Varshney.

According to the California Poverty Measure, 28.7% of the state’s residents are poor or near poor. That’s down from 34.0% in 2019.

In addition, CalMatters reported earlier this month that the number of homeless people in California increased by at least 22,500 over the past three years to a nation-leading 173,800.

Newsom Promotes Glowing Bloomberg Analysis

California Gov. Gavin Newsom, who faces challenger state Sen. Brian Dahle in the Nov. 8 election, quickly touted the Bloomberg prediction on social media Monday.

Economists calculated the state’s gross domestic product at $3.357 trillion last year. Although California’s new GDP won’t be known until 2023, estimates suggest it may have already caught Germany. Soaring energy costs related to the Ukraine war are ravaging the German economy.

RELATED TOPICS:

DON'T MISS

FUSD Trustees Name Misty Her as Interim Superintendent. National Search Yet to Start

DON'T MISS

Gov. Newsom Appoints Judges for Fresno, Merced Counties

DON'T MISS

Assemblymember Soria Dodges Questions About Defamation Lawsuit

DON'T MISS

Israel Briefs US on Evacuation Plan for Palestinians Ahead of Planned Rafah Assault

DON'T MISS

Canadian Police Make 3 Arrests in Sikh Separatist’s Slaying That Sparked a Spat with India

DON'T MISS

Three Arrested for Trespassing, Posting Flyers at Fresno Synagogue and Church

DON'T MISS

As They Search for a Superintendent, Fresno Trustees Flunk Econ 101

DON'T MISS

Universities Negotiate End to Protests, Open Dialogue on Investment Policies

DON'T MISS

Fresno Approves Hydrogen Contract for New Buses. How Far is the Filling Station?

DON'T MISS

Heavy Rains Over Texas Have Led to Water Rescues, School Cancellations and Orders to Evacuate

UP NEXT

Gov. Newsom Appoints Judges for Fresno, Merced Counties

UP NEXT

Assemblymember Soria Dodges Questions About Defamation Lawsuit

UP NEXT

Israel Briefs US on Evacuation Plan for Palestinians Ahead of Planned Rafah Assault

UP NEXT

Canadian Police Make 3 Arrests in Sikh Separatist’s Slaying That Sparked a Spat with India

UP NEXT

Three Arrested for Trespassing, Posting Flyers at Fresno Synagogue and Church

UP NEXT

As They Search for a Superintendent, Fresno Trustees Flunk Econ 101

UP NEXT

Universities Negotiate End to Protests, Open Dialogue on Investment Policies

UP NEXT

Fresno Approves Hydrogen Contract for New Buses. How Far is the Filling Station?

UP NEXT

Heavy Rains Over Texas Have Led to Water Rescues, School Cancellations and Orders to Evacuate

UP NEXT

Google, Justice Department Make Final Arguments About Whether Search Engine is a Monopoly

Bill McEwen,
News Director
Bill McEwen is news director and columnist for GV Wire. He joined GV Wire in August 2017 after 37 years at The Fresno Bee. With The Bee, he served as Opinion Editor, City Hall reporter, Metro columnist, sports columnist and sports editor through the years. His work has been frequently honored by the California Newspapers Publishers Association, including authoring first-place editorials in 2015 and 2016. Bill and his wife, Karen, are proud parents of two adult sons, and they have two grandsons. You can contact Bill at 559-492-4031 or at Send an Email

Israel Briefs US on Evacuation Plan for Palestinians Ahead of Planned Rafah Assault

12 hours ago

Canadian Police Make 3 Arrests in Sikh Separatist’s Slaying That Sparked a Spat with India

13 hours ago

Three Arrested for Trespassing, Posting Flyers at Fresno Synagogue and Church

13 hours ago

As They Search for a Superintendent, Fresno Trustees Flunk Econ 101

13 hours ago

Universities Negotiate End to Protests, Open Dialogue on Investment Policies

14 hours ago

Fresno Approves Hydrogen Contract for New Buses. How Far is the Filling Station?

16 hours ago

Heavy Rains Over Texas Have Led to Water Rescues, School Cancellations and Orders to Evacuate

16 hours ago

Google, Justice Department Make Final Arguments About Whether Search Engine is a Monopoly

16 hours ago

Anchovy Feast Draws the Most Sea Lions to SF’s Fisherman’s Wharf in 15 Years

16 hours ago

Captain Sentenced to 4 Years for Criminal Negligence in Fiery Deaths of 34 Aboard Scuba Boat

16 hours ago

FUSD Trustees Name Misty Her as Interim Superintendent. National Search Yet to Start

In a show of unity that has been absent in the Fresno Unified boardroom for more than a month, trustees voted 7-0 to appoint Deputy Superint...
Local Education /

10 hours ago

Local Education /
10 hours ago

FUSD Trustees Name Misty Her as Interim Superintendent. National Search Yet to Start

11 hours ago

Gov. Newsom Appoints Judges for Fresno, Merced Counties

12 hours ago

Assemblymember Soria Dodges Questions About Defamation Lawsuit

12 hours ago

Israel Briefs US on Evacuation Plan for Palestinians Ahead of Planned Rafah Assault

13 hours ago

Canadian Police Make 3 Arrests in Sikh Separatist’s Slaying That Sparked a Spat with India

13 hours ago

Three Arrested for Trespassing, Posting Flyers at Fresno Synagogue and Church

13 hours ago

As They Search for a Superintendent, Fresno Trustees Flunk Econ 101

14 hours ago

Universities Negotiate End to Protests, Open Dialogue on Investment Policies

MENU

CONNECT WITH US

Search

Send this to a friend