Opinion: Fourth-largest economy? Californians can’t even afford essentials

California s climb to the world s fourth-largest financial market marks a milestone and illustrates a paradox Fueled by innovation and ambition we ve cradled industries of the future and amassed extraordinary wealth But for the everyday Californians who keep the lights on in our world-leading financial sector this newfound prominence is at odds with their daily struggle to make ends meet The trophy we re hoisting surpassing Japan in gross domestic product is tarnished by a jaded reception from the average Californian facing rising housing medical care and food costs This paradox calls into question whether GDP is the best measure of financial success for state policymakers If we re first in homelessness and first in the cost of everyday goods does being fourth in GDP matter As the glad-handing and horn-tooting settles down this milestone is also a chance for state and local policymakers to reflect on their economic priorities For Gov Gavin Newsom California isn t just keeping pace with the world we re setting the pace but our pace doesn t matter if GDP is the wrong race and we re last in affordability which is what matters bulk to everyone living here When we take into consideration the high and increasing costs of living California is the th-largest commercial sector barely beating Italy and trailing both France and the UK where the cost of everyday goods are about a third or less of what they are in California as measured by the Consumer Price Index The price index helps us understand the average cost of everyday goods like milk eggs transportation robustness care and housing for that area Unlike GDP it can measure inflation and gauge how expensive it is to live in one place versus another California has led the world in this measure of expensiveness since when our price index surpassed that of the U S The persistence of inflation is not certain statistical trend It reflects structural pressures a housing industry distorted by supply constraints and political inertia a labor force both indispensable and precariously housed and a tax regime that funds ambition while threatening the economic vitality of working families A healthy and equitable California financial sector must reconcile advancement with governance and dynamism with discipline It s not just about size To Newsom s credit his administration issued a first-of-its-kind State Economic Blueprint earlier this year with much less pomp and circumstance than the GDP announcement in April This transformative plan focuses on bottom-up regional economic planning to strengthen local economies and help communities deal with the affordability dilemma A few might call this part of the abundance agenda but California s leaders don t need to look to distant political commentators for an agenda They should look to local organizations such as Valley Vision for example just two miles from the Capitol Established in the mid- s decades before the abundance agenda was ever discussed Valley Vision began helping the Sacramento region cope with economic upheaval caused by the shutdown of local military bases which had provided jobs to residents Utilizing a so-called triple bottom line approach they called on businesses to work across sectors governments to look past their boundaries and people to think beyond their zip codes in the interest of the wider region Related Articles From Apple to GM tariffs to cost companies tens of billions Blighted San Jose rise site owner faces fines and penalties Credit union eyes HQ and branch campus with San Jose property purchase Nvidia South Bay shopping spree tops million with new property buys Federal Reserve leaves key rate unchanged as it sees hazard of higher prices and higher unemployment The development is that at present while we still struggle with affordability Sacramento s local market system is more diverse resilient and has the building blocks necessary to ensure future prosperity for all of its residents That is if policymakers can come to a consensus and address costs for consumers California must reconcile the gulf between its image as a land of opportunity and the lived experience of those priced out of that dream Otherwise our latest global economic ascent marks not the beginning of a new era but the high watermark of an unsustainable model Aref Aziz is a marketer campaign consultant and protocol expert who has helped California local governments raise revenue to fund transportation and school infrastructure projects He wrote this commentary for CalMatters