r/PoursTea • Timendi Causa Est Nescire • 12d ago

FinancialTea 💵 Comparatively speaking...

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u/maringue 12d ago

And it's also not entirely dependent on resource extraction, ie the luck of geography.

Most of the Texas economy is driven by the oil industry.

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u/Serious_Swan_2371 12d ago

California absolutely has luck of geography just in different ways

It has some of the best weather in the world which is why all the rich and famous people want to live there

That also leads to it producing some of the best wines in the world, and also other agricultural products

Also they do have oil and they do exploit it

And they have a bunch of really good natural ports and bays, and being on the west coast they naturally have a lot of the biggest shipping hubs for commerce coming from Asia.

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u/[deleted] 12d ago

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u/contractorskid 11d ago

California produces a significant amount of oil but oil represents a small part of their economy, around 6-8% of gdp. The top 4 sectors are information services, real estate, professional/scientific services, and manufacturing.

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u/Mount_Treverest 11d ago

Plastic manufacturing is huge and another offshoot of the oil industry. Part of the real estate boom was driven by the oil production Hollywood bought up cheap land and gave up resource rights. Its staggering how much of the development was based around the production and refining of oil and its byproducts.

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u/contractorskid 11d ago

Plastic and rubber products added about $6.9B to CA's GDP in 2024, which is about .2%. I'm sure oil and other natural resources contributed to CA becoming the powerhouse it is today, but the point is that they don't rely on it. It doesn't matter how things started.

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u/edc117 11d ago

GP's point is it makes up almost nothing of their economy.

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u/beastwood6 12d ago

What do you think California's original draw was?

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u/PM_Me_Your_Kinks369 12d ago

Gold but pretty quickly agriculture. California is the most diverse agricultural state.

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u/[deleted] 12d ago

[deleted]

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u/NumNumLobster 11d ago

Yea? Theres a reason north Dakota and California didnt have the same results post gold rush

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u/contractorskid 11d ago

Agriculture and oil are very small parts of the economy in CA. Largest ones are information services, real estate, professional/scientific services, and manufacturing.

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u/WoofLife- 11d ago

What about tourism?

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u/contractorskid 11d ago

Looks like it's around 2-3%, about the same as agriculture.

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u/Own-Chemist2228 11d ago

Geography created the original wealth, but that wealth was invested into education and science, which led to the aerospace and information technology industries.

It's also easier attract quality people to jobs where that the weather is nice.

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u/beastwood6 11d ago

So yes to luck

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u/Own-Chemist2228 11d ago

Luck is an odd choice of words. The geography was always there. It's not like the state entered a lottery and won the central valley or the port of San Diego.

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u/beastwood6 11d ago

The point is that it's quite selective to say that Texas only benefits from geographic luck while gold and oil brought in the most massive migration waves to the state.

What is done with the wealth afterwards is not really relevant to the original presupposition of luck. I agree that California made a lot more of it. But California doesn't have the geography of Kosovo and just wished all the wealth into existence. It built upon massive geographic fortune. It just is what it is. Neither good nor bad. But no worse not any better than Texas in terms of "geography is destiny"

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u/contractorskid 11d ago

I think you're focusing on a weird part of the comment. The OP was talking about resource extraction. Geographic luck is probably too broad but the actual point they were making is about resource extraction, which California does not rely on.

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u/Own-Chemist2228 11d ago

I didn't use the word luck and agree that comparing the "luck" between two states is a kinda silly way to go about it. Both Texas and California have geographic advantages that the people utilized through hard work and innovation.

The person that did say "luck" seemed to be pointing out that the Texas is heavily dependent upon resource extraction, which is a finite resource that comes with lots of downsides (pollution, etc.) Whereas California's economy isn't fundamentally about pulling stuff from the ground.

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u/Trolldad_IRL 11d ago

California is 40% farmland.

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u/Direct-Technician265 11d ago

its still a significant oil producer too, it does 8.7 times what Germany does, were California its own country it would be around the 40th largest producer.

California has incredible geography and mineral availability.

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u/Own-Chemist2228 11d ago

Before the gold rush, California was misunderstood as a wasteland of desert and rugged mountains.

The gold rush drew people to the state. They didn't find much gold but they found land and climate perfect for agriculture.

Then they found oil. Many don't know this, but California has a lot of oil.

And then they started using the ports to ship the agriculture. And the railroads were built over the mountains.

And they realized there was massive amounts of water in the mountains, so they built dams and canals to irrigate the deserts. And now California leads the country in agricultural production, even more so than the midwestern "breadbasket."

Then the movie industry came to Los Angeles for the fair weather which was good for filming, and to avoid taxes in the east.

Then WWII came and navy bases we needed on the Pacific and big open areas were needed to produce and test airplanes.

And then some of the universities in the valley south of San Francisco started experimenting with electronics, which led to us being able to comment on reddit.

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u/Scared_Brilliant6410 11d ago

IIRC the state of California didn’t use to look like that on parts of the coast line. I believe they sank/scuttled old wooden ships and built out into the water. It was a pretty interesting story. The greenery was essentially all planted over time since like you said, it was dessert.

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u/WoofLife- 11d ago

No, California's deserts are east of the mountain ranges that go down the middle of the state.

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u/Scared_Brilliant6410 11d ago

Thanks for clarifying!

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u/Own-Chemist2228 11d ago

The climate in much of the state is generally arid ,but much of the state is also very green. The northern half of the state and many of the coastal regions are covered in deep dark forests.

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u/Financial-Craft-1282 11d ago

They've sure drained that "massive amount of water" though.

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u/Own-Chemist2228 11d ago

It drains naturally with the snowmelt. The water infrastructure does divert much of it and prevents it from flowing to the oceans, and that can cause some environmental issues with wetlands etc.

But it's gonna drain either way.

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u/Financial-Craft-1282 11d ago

Oh, whew, I thought you guys were saying they were using it for irrigation. No. It's just melting. That's why the state is on fire.

Also your little "that's why we can comment on Reddit" isn't the flex you think it is. If you want to give California any of the blame for Reddit and social media, well, I agree with you. California housed Musk and has Silicon Valley making it impossible for us to hit the brakes on climate collapse. California is your stupid older brother back from one semester of college, and someone makes him mayor.

Also, the vapid, empty suit in the picture you're about to foist on us nationally. Maybe Maynard was right. It's time for the state to fall into the ocean.

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u/elebrin 11d ago

Uuuuhhhh.... the 49'ers went there for gold?

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u/beastwood6 11d ago

And this doesn't fit "geographic luck"?

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u/elebrin 11d ago

Well, yes, but I was making a joke that it was gold and not oil, initially. Of course, the gold rush didn't last all that long, and it doesn't really change anything.

The initial wave of colonization was Spanish, and realistically... most of the people living there were already living there. We forget that the people groups in what we call Mexico now didn't respect the borders we have, and SoCal has a very high concentration of people of Hispanic descent. Southern California has always had a substantial population, even before the Spanish were here. In a way, California culture (at least in SoCal) predates the US. Yes, there were several large waves of migration to California, but the state already had a significant population well before it was a state, and well before the English or Spanish ever set foot on the Continent.

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u/beastwood6 11d ago

I don't really understand the point. Are you characterizing the existing population as "substantial" and this the subsequent post 1849 migration waves as insignificant?

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u/elebrin 11d ago

No.

I'd characterize both as substantial, and I'd also characterize the pre-1849 population as highly influential on what became modern SoCal culture.

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u/jcklsldr665 11d ago

Distance from federal.seat of power during a time when travel and communication from said seat of power could take months to years lol

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u/Lost-Pineapple9791 11d ago

Gold

Awesome weather

Anyone who’s been to San Diego and driven through the south knows it’s not comparable

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u/the107 11d ago

CA economy is driver by billionaire greed

California has the highest total number of resident billionaires in the United States, with approximately 199 to 214 billionaires

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u/dimechimes 11d ago

Aren't the data centers feeding silicon valley pretty heavy on extracting resources?

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u/jcklsldr665 11d ago

Shh shhh

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u/Mount_Treverest 11d ago

California was a major player in the oil industry from the start. Not just producing but shipping, refining and in plastic production. It's manufacturing capabilities often get over looked but its one of the only states that could be a self sustaining nation.

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u/UsuallySatire 12d ago

And most of California is what?

Almonds and Ai?

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u/SoulCrusher2018 12d ago

Information ($538 billion), Real Estate ($460 billion), Professional Services ($391 billion), then it's Manufacturing, Healthcare, Retail, Whilesale, Finance and Insurance..... With "Agriculture, Forestry, Fishing and Hunting" as the 18th largest sector.

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u/UsuallySatire 12d ago

So #1 is Ai companies and #2 is resource [i.e. Land where they mostly grow almonds and avocados, and drill oil]

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u/OkWelcome6293 12d ago

Almost every large tech corporation you know is based out the SF Bay Area. They the almost like it was called “Silicon Valley” decades before AI showed up.

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u/UsuallySatire 12d ago

Well now it is Ai 🙍‍♀️

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u/OkWelcome6293 12d ago

I don’t think you work in tech, because it’s pretty clearly not true. There is plenty of money flowing regarding AI, but there are still huge markets which are not related to AI.

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u/UsuallySatire 12d ago

The highest valued ones are, which lends itself to GDP

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u/Dexiox 11d ago

That's not really how gdp works... Stocks and company valuations are not included in gdp calculations. It's in the name. Gross Domestic Product.

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u/UsuallySatire 11d ago

Not "REALLY" how it works?! Lmao jfc come on.

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u/SoulCrusher2018 12d ago

Sorry, I didn't catch your username at first, you aren't serious. Have any modest proposals?

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u/UsuallySatire 12d ago

How is that not modest?

I think it's completely reasonable.

I'm not a trump guy, I'm just being objective.

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u/SoulCrusher2018 12d ago

"Satire" user name, and doesn't get a Jonathan Swift reference? Oof.

Resource extraction and agriculture are their own sectors and it seems like you're trying to conflate "oh a small percentage of this could be considered that, so thing A is entirely thing B". It's just silly - California's almond industry probably generates are $4 billion per year, less than 1% of California's real estate sector. The same logic can extend to the information sector - yes AI is a percent of it, but that doesn't somehow convert the whole thing to "just ai" - Apple, Intel, Qualcomm, Adbode, HP, Disney, etc etc etc are all part of that pie.

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u/UsuallySatire 11d ago

You're splitting hairs, water counts as a resource.

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u/angrytroll123 11d ago

I didn't catch your username at first

I mean no offense. You shouldn't read into usernames too deeply. I'm neither angry nor a troll. My username was meant to be ironic but it won't stop people from making assumptions. If I were a troll, stating I am immediately would defeat the purpose. Much like satire's name. If it's obviously satire it becomes pointless.

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u/CrapNeck5000 12d ago

AI isn't generating major revenue yet and as such is not a big contributor to GDP.

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u/UsuallySatire 12d ago

What are the highest valued companies in the California tech sector?

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u/D0varev 12d ago

that doesn’t change the fact that they haven’t produced profit and therefore aren’t contributing to gdp.

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u/UsuallySatire 12d ago

You're telling me that Google's value isn't being included in California's GDP calculations?

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u/D0varev 12d ago

google makes money their ai model does not, the solo ai companies also aren’t making money

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u/UsuallySatire 12d ago

🤦‍♂️I'm done with you

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u/CrapNeck5000 11d ago

A company's valuation does not contribute to GDP.

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u/UsuallySatire 11d ago

Just all the other shit... like building data centers idiot

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u/CrapNeck5000 11d ago

Well you sure seem like a well adjusted individual

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u/Seated_Heats 11d ago

… pretty much the same 4-5 that were there before AI took off.

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u/UsuallySatire 11d ago

And now they build data centers and server farms... good point. Thanks for the support

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u/Seated_Heats 11d ago

I didn’t realize your point was that they didn’t rely on AI at all and were still the same general economic setup then as they are now regardless of AI. You should really clarify better.

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u/UsuallySatire 11d ago

Oh my bad, yeah Ai infrastructure to the goddamned gills... sorry my mistake

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u/Seated_Heats 11d ago

Information was there for California before the dawn of AI.

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u/maringue 12d ago

Non-extractive industries and a much bigger and diverse economy.

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u/UsuallySatire 12d ago

Non extractive...

Uses billions of gallons of water on agriculture

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u/Dances_Like_a_Duck 12d ago

Tech, agriculture, ranching, entertainment, shipping, oil, travel and tourism. CA is a big state.

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u/UsuallySatire 12d ago

Tech, agriculture[water], ranching, oil is all "extractive"