I've been wondering about this since that Time Magazine cover story back in October - how can California's high tech firms generate enough new jobs to save the entire state? I mean, as we all know by now if California were an independent nation it would have either the seventh, eighth or tenth (depending on who you ask) largest economy in the world.

Now we have some answers - it won't. Check out: "High Tech Won't Save California's Economy".

They even have charts to prove it - Silicon Valley's San Mateo and Santa Clara Counties had very slight job growth between 1990 and 2009 while Los Angeles County lost jobs (and added almost a million people).

Key quote?

Therein lies California's dilemma. The ability to generate large amounts of wealth on a narrow job base isn't enough to support a state of 37 million people. Brazil generates enormous wealth too, and supports lavish stores like Daslu, where you can't walk in off the street, but there's a helipad on the roof – and a favela just down the street. But Brazil doesn't have a middle class economy.

Labels: California, economy, recession