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...
[ View Full Essay]