The state of California as a whole can be considered a financial center of the United States if for no other reason than California is responsible for approximately 14 percent of America’s Gross Domestic Product (GDP). As of 2004, this GDP was around $1.5 trillion, a figure that allows California to be the number one state in this category.

Industry

California’s largest industry is agriculture with dairy products, wine, fruit, and vegetables contributing largely to the state’s economy. Aerospace falls into a second place finish, followed by the entertainment empire that is largely located in the state. California is also a large player in the computer and software business. The state is the home of one of the nation’s largest venture capital areas, Silicon Valley, which boasts an enormous number of powerful high-tech companies in its region.

Population

California has a population of close to 36,000,000. California’s population is extremely diverse with nearly 27 percent of the population being foreign born. However, approximately 6 percent of these foreign born residents are living in the state as illegal aliens. The total population of the state makes it the United States’ largest state since over 12 percent of the total American population is made up of Californians. The shear number of people in the state alone provides a basis for why California is such a great financial center in the United States.

Money

The average California resident earns approximately $35,000, while the state has some of the largest differences between lower and upper classes in the United States. This is because many of migrant farm workers make up a hefty percentage of the population and work in the agricultural industry that is prevalent in the state. These farm workers usually make close to minimum wage and are very poor, while the richer areas of California, such as Beverly Hills, have residents that are among the wealthiest in the country.

Companies

California is home to some of the largest companies in America with many of these companies appearing on the list of Fortune 500 companies. Some of California’s largest Fortune 500 companies include Chevron Texaco, Hewlett-Packard, Safeway, and Intel. These large corporations are a contributing factor as to why California is one of the nation’s most important financial centers.