Barely hanging on in California

Hang on, it's a long way down

The once Golden State has become an over 

priced, over populated asphalt jungle.

(Orange County Register Editorial)  -  California remains the Golden State for most of us, a place of opportunity and fantastic weather. But for an increasing number of our residents, it is a place of perpetual economic struggle.

The difficulties are detailed in a new study by United Ways of California, “Struggling to Get By: The Real Cost Measure in California 2015.” The RCM is a new formula that takes into account California’s high cost of living.

It found that 31 percent of Californians were living in poverty in 2012-13. That’s higher than the 23.4 percent poverty rate, the worst in the nation, found in an October 2014 study by the U.S. Census Bureau.

A big cause, obviously, is the high cost of housing. According to a March analysis by the California Legislative Analyst, “Today, an average California home costs $440,000, about two–and-a-half times the average national home price ($180,000).”

Another big factor is the ongoing exodus from the state of decent-paying jobs for workers with few skills, Bill Watkins told us; he’s the executive director of the Center for Economic Research and Forecasting at California Lutheran University. “California used to manufacture Firebirds and Camaros,” he said, until General Motors’ Van Nuys assembly plant closed in 1992. Aerospace also has been hit hard by consolidation and moves to other states.

On the positive side, Tesla opened a plant in Fremont in 2010. But it was not part of a new trend, and the electric car company picked Nevada for its new battery plant.

California’s population continues to grow because of immigration from other countries. But Mr. Watkins also pointed to the net domestic migration of California residents to other states, especially Texas and Arizona.

Unfortunately, ongoing government actions will make poverty even worse. Minimum wage increases statewide and in such cities as Los Angeles and San Francisco will destroy the crucial first jobs for many of the young and low-skilled. Assembly Bill 32, the Global Warming Solutions Act of 2006, continues to drive up manufacturing costs. Possible higher taxes, ironically, to deal with poverty, will kill more jobs.

Things will change only when voters put into office pro-growth politicians.

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How about the quality of life?
People who deliberately want to live like this are mentally ill.