California Comes in Last in Personal Income Growth

Net earnings in 2022 grew most in Idaho, Texas, Nevada, Florida and Arkansas, but the Golden State ranked 50th

WSJ editorial. Excerpts:

"lockdown states would have been expected to record a stronger rebound last year compared to 2021 when many of their restrictions were still in effect. That’s not what happened.

Net earnings last year grew most in Idaho (12.5%), Texas (11.5%), Nevada (10.8%), Florida (10.7%), Arkansas (10.7%), North Carolina (10.4%) and Tennessee (10.2%)."

"earnings growth in nearly all lockdown states fell below the national average (8%). California ranked last (5%) while Maryland (5.5%), Massachusetts (6.2%), Hawaii (6.2%) and New York (6.7%) also significantly trailed the national average. One reason is population migration during the pandemic: Fewer workers equals lower earnings.

States with the greatest earnings growth in 2022 also had large population inflows from high-tax states."

"Even subtracting oil and gas, Texas’s earnings grew at twice the rate of California’s."

"Earnings in information fell by 3.5% in California last year but climbed 6.2% nationwide and surged by double digits in many states, including Florida (18.5%), Texas (19.2%) and Idaho (26%). California and Maryland were the only two states in which information earnings declined."

"the Golden State posted slow earnings growth across many industries. Its food and accommodation growth (7.1%) was the second lowest in the country and less than half of the national average (15.5%). Could one culprit be the law that Democrats passed last year creating a state council to dictate wages and work conditions at fast-food franchises?"