Conference Presentation, Panel, Fireside Chat
Bettering California's Business Climate
- California's economy is projected to rank seventh globally if granted independent immigration laws, potentially reaching sixth place contingent on currency fluctuations, and is expected to surpass Brazil in GDP to become the second-largest economy provided growth trends continue.
- Bioscience leadership is anticipated to define 24th-century global power with California positioned as a primary leader due to patent dominance, though competitive pressure may arise from China committing more dollars to the sector in its next five-year plan.
- The state is expected to eliminate an $11 billion debt wall by 2017 assuming continued economic growth and fiscal discipline, while a $100 billion infrastructure program leveraging 3.25% credit costs could pay for itself through increased tax revenues despite inflation risks.
- Demographic shifts anticipate Latinos surpassing people of European descent as the largest ethnic group by the end of the current year, with 41% of China's wealthiest entrepreneurs expected to relocate primarily to California and the US.
- Economic growth may not be rapid enough to sustain middle-class jobs compared to service or entry-level roles, and without immigration policy changes, the US risks educating entrepreneurs who return to countries like China, Japan, or the UK to export products to California.
- The film and TV tax credit program is projected to grow to $1.5 billion starting in 2015, making California the second-largest such program behind New York, while a potential reduction in marginal tax rates could stop business and individual exodus.
- Women-led firms are expected to grow at five times the national rate of male-led firms, though venture capital access may decline relative to talent supply; equal capital access could impact US GDP by 6% to 9%, and adding women to corporate boards is viewed as a fiduciary consideration.
- Detroit's industrial decline is cited as a warning against industry concentration, urging the retention of state-educated talent to avoid similar futures.
- The Milken Institute expects to publish approximately 50 research and policy pieces in the coming year, maintaining a rate of one per week.