California Is the Poorest State in the Country

I was born and bred in California, and I absolutely love it here. It is home, and there is nowhere else I’d rather be.

But California has its problems, and when I read articles full of breathless hubris like this one in Politico, I get concerned. The article states:

But while California has plenty of problems, from worsening wildfires to overpriced housing to that troubled bullet-train project that became the latest target of presidential mockery, there’s one serious hitch in the GOP plan to make California a symbol of Democratic dysfunction and socialistic stagnation: It’s basically thriving.

“California is doing awesome,” says Congressman Ted Lieu, an immigrant from Taiwan who co-chairs the policy and communications committee for the House Democratic Caucus. “It’s a beautiful, welcoming, environmentally friendly place that proves government can work. Who wants to run against that?”

California is now the world’s fifth-largest economy, up from eighth a decade ago. If it’s a socialist hellhole, it’s a socialist hellhole that somehow nurtured Apple, Google, Facebook, Tesla, Uber, Netflix, Oracle and Intel, not to mention old-economy stalwarts like Chevron, Disney, Wells Fargo and the Hollywood film industry. California firms still attract more venture capital than the rest of the country combined, while its farms produce more fruits, nuts and wine than the rest of the country combined. During the Great Recession, when the state was mired in a budget crisis so brutal its bond rating approached junk and it gave IOUs to government workers, mainstream media outlets were proclaiming the death of the California dream. But after a decade of steady growth that has consistently outpaced the nation’s, plus a significant tax hike on the wealthy, California is in much sounder fiscal shape; while federal deficits are soaring again, the state has erased its red ink and even stashed $13 billion in a rainy day fund.

Yes, California is a beautiful place, and we do a good job of trying to protect it. Yes, we are lucky to be the bread basket of the country, a function of our fertile land and climate, as well as the water we take from other places. Yes, we seemed to have recovered from our budget crisis… for now.

And yet, California continues to be the poorest state in the country, according to the Census Bureau’s Supplemental Poverty Measure, which takes into account cost of living. Yes, that’s right. When I first read this, it surprised me too. And then it didn’t.

The Politico article cited above mentioned the housing problems here, but it doesn’t cite the poverty metrics. Most articles don’t. No one challenges the numbers, they just choose to ignore them. But being the poorest state in the country does not align with our values, and we need to reconcile this with all of the stuff that is great about this state.

The best explanation of the root causes responsible for many of our problems is California Crackup, by Joe Mathews and Mark Paul. I highly recommend it.