How California Became a Warning to the World

Many still see California as the home of a ‘new progressive era’. It is often viewed as an exemplar of social equity, one that reflects, as a New York Times column put it, ‘the shared values of our increasingly tolerant and pluralistic society’. In truth, far from embodying an egalitarian ethos, it is pioneering a new kind of almost feudal society. A relative handful of oligarchs and a vast bureaucratic ‘clerisy’ lord it over a massive class of what are essentially serfs.

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California is not only home to by far the highest number of billionaires in the US. But it also suffers the highest proportion of Americans living in poverty and the widest gap between middle- and upper-middle-income earners of any state. It endures among the US’ highest rates of unemployment, as well as massive net outmigration, an exodus that has increased sharply since 2019. It also has 30 per cent of the nation’s homeless population, with some now living in ‘furnished’ caves.

Ed Morrissey

Capital flight has doomed California. The billionaires stick around because they can afford to get rent-seeking policies from the progressives they back. Compliance costs for their businesses have an economy of scale that smaller businesses don't have, too. The poor can't afford to relocate. The middle class is leaving and taking its more modest capital with it, though, for greener and saner pastures elsewhere. That's why California's wealth has become so stratified, and why it will be impossible to reverse even if the state's politicians are inclined to try. And they're not

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