Sean Hannity tried to paint Governor Gavin Newsom into a corner during a prime-time interview back in 2023. During the Fox News interview, Hannity framed California as a state in decline, citing migration trends and claiming Newsom was overseeing an exodus of residents. But Newsom’s response turned the narrative on its head, revealing a different reality: California remains not only strong, but central to the economic engine of the United States.
What to Know…
California’s economy remains dominant, posting rapid GDP growth, record surpluses, and creating more than a quarter of all new U.S. jobs in 2025.
The state leads in innovation and research, producing more scientists, patents, and Nobel laureates than any other state while driving national progress in tech and clean energy.
Despite political narratives about population loss, California continues to outperform—its strong tax base even helps subsidize poorer red states through higher federal contributions.
When pressed on why California is “losing” 800 people a day while Florida gains nearly 1,000, Newsom quickly broadened the context. “Eighteen states saw population declines,” he said, “and California’s was only 0.3%.” He added that Hannity’s selective framing ignored red states that fared worse, and more importantly, ignored the fact that more Floridians moved to California than the number of Californians who moved to Florida.
Then came the numbers that make California impossible to write off. In 2021, the state posted a stunning 7.8% GDP growth rate, one of the fastest anywhere on the planet. That growth wasn’t a rebound fluke; it was part of a consistent trend. In July of 2025, California’s economy contained over 18.0 million nonfarm jobs, with California accounting for one out of every nine of the nation’s 159.5 million nonfarm jobs, underscoring its role as the tent pole of the U.S. economy.
In the two fiscal years of 2021 and 2022, California ran an operating surplus totaling $177.7 billion. It’s a staggering figure, proof that the state isn’t just surviving but thriving while many others are tightening belts. Economists now project that California is on track to become the fourth-largest economy in the world, surpassing entire countries like India, the United Kingdom, and France.
The reasons are structural, not situational. California leads the nation in research and development, venture capital, and patent creation. Its universities produce more scientists and Nobel laureates than any other state. Silicon Valley remains the global center of innovation, Hollywood continues to define global culture, and the Central Valley feeds much of the country. Together, these sectors form a diversified economic ecosystem that no other state can match.
Also, California consistently pays far more in federal taxes than it receives in return, effectively subsidizing poorer red states like Alabama, Missouri, and Louisiana that depend heavily on federal aid to balance their budgets.
Newsom didn’t waste the opportunity to deliver a closing jab. “With all due respect,” he told Hannity, “Florida doesn’t even come close, eat your heart out, Texas. California continues to be the dominant economic engine for America.”
For all the political rhetoric about people “fleeing California,” the numbers tell a different story: the Golden State isn’t fading. It’s evolving and leading, no matter what right-wingers like Hannity would have you believe. From clean energy and technology to entertainment and agriculture, California’s blend of innovation, diversity, and dynamism keeps it at the top of the global economy.
California’s strength isn’t just size; it’s vision.