California’s Economy

Meet the new feudalism, same as the old feudalism:

As late as the 80s, California was democratic in a fundamental sense, a place for outsiders and, increasingly, immigrants—roughly 60 percent of the population was considered middle class. Now, instead of a land of opportunity, California has become increasingly feudal. According to recent census estimates, the state suffers some of the highest levels of inequality in the country. By some estimates, the state’s level of inequality compares with that of such global models as the Dominican Republic, Gambia, and the Republic of the Congo.

At the same time, the Golden State now suffers the highest level of poverty in the country—23.5 percent compared to 16 percent nationally—worse than long-term hard luck cases like Mississippi. It is also now home to roughly one-third of the nation’s welfare recipients, almost three times its proportion of the nation’s population.

Like medieval serfs, increasing numbers of Californians are downwardly mobile, and doing worse than their parents: native born Latinos actually have shorter lifespans than their parents, according to one recent report. Nor are things expected to get better any time soon. According to a recent Hoover Institution survey, most Californians expect their incomes to stagnate in the coming six months, a sense widely shared among the young, whites, Latinos, females, and the less educated.

Some of these trends can be found nationwide, but they have become pronounced and are metastasizing more quickly in the Golden State. As late as the 80s, the state was about as egalitarian as the rest of the country. Now, for the first time in decades, the middle class is a minority, according to the Public Policy Institute of California.

Read the whole thing, especially about how the economically ignorant techno-oligarchs in Silicon Valley are perfectly content to wreck the economy in the rest of the state.

I wonder, though, if that poverty number is real poverty, or fake poverty?

There are two things that make this correction really rather important. The first being that everyone else measures poverty after all the things that are done to alleviate it. Thus any comparison across countries is going to leave the US looking very bad indeed: for others are talking about the residual poverty left after trying to do something about it and the US is talking about the poverty before alleviation. Very different things I hope you’ll agree.

The second reason it’s important is that the only way anyone’s ever really found to reduce the number living in poverty is to give the poor money n’stuff so that they’re no longer living in poverty. But if we don’t count the money n’stuff that is being given to the poor then we’re not going to be able to show that giving the poor money n’stuff alleviates poverty, are we?

They don’t want to show that. If people realized the programs were actually working to keep people out of poverty (though they also have the effect of reducing higher aspirations), then it would be hard to justify ever-growing big government.

One thought on “California’s Economy”

  1. native born Latinos actually have shorter lifespans than their parents

    The word “actually” suggests that this was a surprise, but I’d have thought that this was the *expected* result of combining the “healthy migrant effect” and “regression to the mean”. What’s the difference between first-generation American Latino lifespan and the lifespan of their cousins who didn’t immigrate?

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