Top 10 States make up 55 Percent of United States GDP (6 of the top 10 States have Unemployment Rates over 10 Percent.)
t should come as no surprise that the economic production of each state is not evenly divided. There are many variables including population, industrial base, and regional specialties. With this deep recession it is important to get an understanding of how things are divided in the United States. It is easy to get into the mode of thinking everything is evenly divided or the recession is being felt equally across state lines. It is not. Some states like California had historical housing bubbles that saw real estate prices in some areas triple in 10 years only to come crashing down. Other areas like Texas had minor real estate appreciation. In the United States 10 states make up 55 percent of all GDP. The U.S. in 2008 had a GDP of $14.16 trillion and these states produced $7.89 trillion of that amount.Let us take a look at how this breaks down:
When we start narrowing down the big economic states, we can also look at their local dynamics to get a better understanding of why this recession has made it so difficult for jobs to be created. In fact, we have yet to see a month of positive job growth since the recession started back in December of 2007. The national official unemployment rate is 9.8 percent. Out of the top 10 states, 6 have unemployment rates over 10 percent:
Think of the local dynamics of a few of these states. California and Florida had enormous housing bubbles and the repercussion of a bursting bubble are still being dealt with. These states are still losing jobs since a large part of their industries revolved around the housing market. New York and New Jersey have big industries around the financial industry. Now that the stock market has recovered, certain institutions are taking in gigantic profits since some of their competitors collapsed while the government selectively decided to bailout a few chosen. But still, employment in these sectors do not come close to rivaling the peak of what we saw earlier in the decade.
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