Over the past decade, the state of California has been one of the fastest growing economies in the United States. This substantial growth positioned California as the largest economy in the United States, with gross domestic production of approximately $2.3 trillion in fiscal year 2014. The state of California also ranked eighth in largest economies in the world, surpassing countries like Italy and Russia (Young, 2014). Although many factors have led to this growth, the most influential have been linked to high investment by private industries and increases in international trade and the real estate sector. The state of California accounts for 13.2% of U.S. production, and after falling behind the U.S. growth rate compared to 2008, California has seen a steady recovery. After 2012, the state consistently achieved higher percentage growth rates than the United States, reaching 2.8% in 2014, compared to 2.2% for the United States as a whole (Garosi and Sisney, 2015 ). Since 2004, the state of California has increased its GDP by 29%. The state started with a GDP of $1,643,908 in 2004 and steadily increased its GDP to $2,305,921 in 2014. The state only faced a decline due to the depression when in 2009, its GDP decreased by 4%, from $1,997,225 to $1,915,723. Although this decline was due to a combination of variables, the largest declines were in the commerce sector, with a decline of 6.4%, and in the private industry sector, with a decline of 5%. %. The private industry sector alone has grown 40% since 2004 and now accounts for approximately 85% of California's state output. With projected growth rates of 2.8%, California's GDP is expected to be in the middle of paper......over the past decade, one can conclude that the state and economic experts do not have failed to create mechanisms that could help and promote growth in marginal cities that are slowing down the economic growth of the state. Different regulations, as well as incentives, could be implemented in these cities to promote job creation and thus reduce the unemployment rate. As GDP has expanded, the cost of living has also increased for California citizens, causing millions of people who do not have equal access to high disposable personal income to live in poverty. In the long term, this huge gap between developments in different areas could actually harm the economy of the state of California, by dividing the population between poor and rich areas, and making it impossible for the poorest population to support the overall burden. state's high cost of living.