California Natural Resources California Is Essay

Oil was tucked deep in the belly of the earth and was often mixed with brine. It required innovations in drilling and refinery. In timber production, it demanded innovation in the felling of trees, sawing mills and processing of wood. California was the first place to have an offshore drilling station. Water had to be moved for long distances for hydroelectric power and irrigation. Technological innovations allowed all this demands to be met and increase output which had the net effect of a rapid growth of California's economy.

With prospectors flocking to California in the mid-18th century to 19th century, supportive institutions were created to foster growth in region. The U.S. government made policies which favored the economic growth of California. It was granted instant statehood in 1850. Californians took the reins of government and setting up policies which favored the growth of the industries. The state also levied taxes on foreign firms and waived the same on local ones. This gave local industries an edge. Securing water was essential to various industries such as mining, agriculture and hydroelectric generation.The U.S. government ceded control of water to the state and adopted the California practices on the state's land. Attempts to have a centralized control of the groundwater were met with resistance by concerned parties. This allowed the exploitation of ground water in the same way oil was, (Walker, 2001, p. 22). The government also offered promotions and subsidies to various industries which benefitted economy of California in a great way. An example is the money poured into the coffers of central pacific by the U.S. government which allowed the big four industries to flourish.

California is the ideal example of where capitalism and use of natural wealth can bring about rapid economic growth to a nation. This interplay between the capitalism system and the natural resources is exemplified through the historical utility of the resources, as simple as water all the way to the complex resources like gold and silver that needed engineers for extraction, well organized labor and administration that ensured such tenets….....