Is California in trouble financially?

Yes, California is facing significant financial trouble, characterized by multi-year budget deficits projected to reach tens of billions annually, driven by higher spending, reduced revenues after a booming period, and potential stock market volatility, requiring deep spending cuts or revenue increases despite a generally strong economy and tech sector growth.

Is California's economy in trouble?

California's economy has seen zero net job growth since the pandemic ended with 5.6% unemployment - highest in the nation. As Newsom positions for a presidential run, economic challenges including poverty and homelessness deserve more attention than political feuds.

How financially stable is California?

The Golden State has taken a remarkable turn in terms of its financial health in the past decade. Balanced budgets and improved cash flows have led to credit rating upgrades and stable outlooks. California is now the world's fourth-largest economy with a GDP of $4.1 trillion.

Is California in debt now?

This state debt is equivalent to approximately $8,000 per person nationally. With $497 billion in liabilities, California had the largest state government debt as of the end of the 2023 fiscal year, the most recent year for which complete data are available.

Is California becoming unlivable?

America has been under a global climate crisis for a long period of time – chaos is now interfering with our livable climate and if we don't do anything to preserve it, parts of California could submerge as soon as 2040. California is becoming unlivable, and we're not just talking about the traffic.

Why California’s Economy Looks Broken (But Isn’t)

What is the #1 overpopulated state?

The #1 most populous state in the U.S. is California, consistently leading with nearly 40 million residents, followed by Texas and Florida, though it's important to distinguish between total population and population density, where New Jersey ranks highest.
 

Why are so many leaving California?

California's population growth has slowed notably in the last few years amid a surge of people leaving the state for other parts of the country. The state's high cost of living is a key driver of this out-migration.

Which US state has the biggest debt?

California has the most total state debt by a large margin, exceeding $1 trillion when including local governments, but states like New York, New Jersey, and Connecticut often rank highest for debt on a per capita basis, reflecting different fiscal realities and obligations. California leads in sheer volume due to its large population and liabilities, including significant unfunded pension obligations, while per capita measures highlight the burden on individual residents in other states.
 

Who owns over 70% of the US debt?

No single entity owns over 70% of U.S. debt, but roughly 70-80% is held domestically by U.S. investors and institutions like the Federal Reserve, Social Security, mutual funds, and banks, with the rest held by foreign investors, mainly Japan, China, and the U.K. It's a mix of internal (government-to-government) and public (investors) holdings, with domestic investors holding the largest share of the public debt.
 

How many Americans have $20,000 in credit card debt?

While exact real-time figures vary, recent data from early 2025 suggests around 23% of Americans who have maxed out their credit cards owe over $20,000, indicating a significant portion of cardholders are in high debt, though the broader population figure is lower, with about 6% of all credit card holders holding balances above $20,000 as of late 2023. Overall, total U.S. credit card debt is over $1.2 trillion, with the average household carrying substantial debt, driven by inflation and everyday expenses. 

Which state is no. 1 in economy?

California is the #1 state with the largest economy by Gross Domestic Product (GDP), representing about 14.5% of the total U.S. GDP, followed by Texas, New York, and Florida. California's economy is so large that it ranks as the fourth-largest economy globally if it were a country, surpassing nations like Japan, according to data from the BEA and IMF.
 

Why is California's poverty rate so high?

Steep housing costs in the state are pushing more people into poverty, with housing the single largest cost in most family budgets, the report said. The problem is especially pronounced for renters. More than a quarter, or 27.1%, of California renters experienced poverty in 2024, compared with 11.1% of homeowners.

What states are in financial trouble?

As of mid-2025, recent studies by WalletHub https://finance.yahoo.com/news/florida-now-2nd-most-financially-190300951.html, WalletHub https://www.fox13news.com/news/states-have-most-people-financial-distress-study-finds, WFSB identify Texas, Florida, Louisiana, Nevada, and South Carolina as the most financially distressed states, based on metrics like credit scores, debt searches, and bankruptcy filings, with the South generally showing more struggles, while states like Hawaii, Vermont, and Alaska fare best.
 

Is California a declining state?

Despite the common myth of a continually declining population, California has only saw a short period of population loss in its 174 year history — during the peak of the COVID pandemic, when it decreased by 379,544 people (which represents about 1% decrease over those two years), according to the U.S. Census Bureau.

What is the poorest state in the United States?

Mississippi is consistently ranked as the poorest state in the U.S., experiencing the highest poverty rates, lowest median household incomes, highest child poverty, and significant food insecurity, followed closely by states like Louisiana, New Mexico, West Virginia, and Kentucky, often due to factors like limited job diversity and lower wages, particularly in the Southern region. 

Why can't the US get out of debt?

We have slower income growth, so we have fewer resources with which to pay our debt. Paul Solman: That is fewer tax revenues, which would mean borrowing even more. Plus, lower growth means less demand from businesses to borrow money for investment, which also tends to lower rates.

What percent of Americans are 100% debt free?

About 23% of Americans are 100% debt-free, according to recent Federal Reserve data, meaning they have zero debt across all categories like mortgages, student loans, and credit cards, though figures can vary slightly by source and definition, with younger adults (Gen Z) showing higher rates of debt freedom and older adults often carrying more, notes WalletHub, National Debt Relief, and the Urban Institute. 

Who was the last president to balance the US budget?

The last president to oversee balanced federal budgets was Bill Clinton, achieving surpluses for four consecutive years from fiscal years 1998 to 2001, following the passage of the Balanced Budget Act of 1997, marked by higher revenues from tax increases on the wealthy and a booming economy, combined with spending cuts and bipartisan efforts. 

Why is California in so much debt?

But even before Trump retook office, California already faced a structural money problem, in part due to the state's heavy reliance on wealthy earners' income tax and capital gains, which rise and fall with the stock market.

Which US state is the most financially stable?

There isn't one single "most" stable state, as rankings vary, but Utah, South Dakota, North Dakota, Florida, and Wyoming consistently rank high for government fiscal stability, showing strong cash, low debt, and funded pensions. For individual financial well-being, Colorado and Utah often lead due to rising incomes and high discretionary spending, while Vermont stands out for responsible resident borrowing habits. 

Why has California gone downhill?

The primary cause of the exodus is the high cost of living (and especially the cost of housing), followed by issues such as crime, politics, pollution, and traffic.

What is the #1 cause of death in California?

Heart disease and cancer consistently remain the top two leading causes of death in California, followed by accidents (unintentional injuries), stroke (cerebrovascular diseases), and Alzheimer's disease, though the specific order and inclusion of COVID-19 can vary slightly by year and data source. These chronic conditions and injuries account for a significant portion of overall mortality in the state. 

What is the #1 state people are moving out of?

While it varies by report, New York, California, and Illinois consistently rank as top states people are leaving, often due to high costs, taxes, and housing, with New Jersey also frequently appearing, especially in percentage-based data. New York often leads in absolute population loss, while California loses massive numbers, and Illinois sees significant outflows, primarily to Southern states like Florida, North Carolina, and Texas.