The Multiplier Effect On California's Economy

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The point here is quite clear that the agriculture's indirect percentage on California's economy is more than 2%. The multiplier effect is always there. Within San Joaquin Valley agriculture accounts for 34.7% of regional employment and 31% of labor income. The Southern California is not an agriculture industry and still it accounts for large revenue. Due to multiplier effect, the Southern California generates 450,00 jobs and $ 25 billion in labor income. The multiplier effect states that every job created in agriculture create 2.7 jobs. The each dollar creates $2.3 of economy value. In conclusion, the impact is more than the actual 2%.

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