The Hollowing of California

I don’t think that Francis Wilkinson is reading the statistics correctly in his Bloomberg piece on Californians moving to Texas:

According to a Sacramento Bee review of Census data, “Every year from 2000 through 2015, more people left California than moved in from other states.”

The departures are, in some broad sense, linked to a failure of liberalism. “The people leaving tend to be relatively poor, and many lack college degrees,” the Bee reported. “Move higher up the income spectrum, and slightly more people are coming than going.”

In other words, while California is a very nice place to be rich, and is attracting more affluent people as a result, it’s hard to get by there if you’re poor or working class, especially in California’s marquee cities.

What I think is happening is that those with from one standard deviation below median income to one standard deviation above median income, i.e. from family incomes of about $40,000 to family incomes of about $80,000, particularly the native born, are leaving California in large numbers and being replaced by immigrants from the extreme ends of the income distribution. If you think those leaving are the poor, you’ve been living in an affluent neighborhood too long.

When he was defeated in his bid for re-election to the U. S. Congress, the frontiersman (and general character) Davy Crockett famously declaimed “You can all go to hell. I’m going to Texas.” I think that’s pretty much what’s happening in California now.

The Golden State is in the midst of a great experiment to determine whether a state can build a viable economy based on the affluent, the poor, and public retirees. I wish them all the luck in the world but I don’t think it’s a model open to most other states and not to Illinois in particular.

4 comments… add one
  • michael reynolds Link

    Gee, it doesn’t look hollow. There still seems to be quite a bit of traffic on the 101. I just went to check the mail and literally none of the houses on my street are boarded up.

    Over the last five years, California has outperformed the nation in just about every important economic metric. Yes, the state is big, accounting for about 12 percent of the nation’s population. But its share of economic growth has been even bigger.

    California accounted for 17 percent of job growth in the United States from 2012 to 2016, and a quarter of the growth in gross domestic product.

    https://www.nytimes.com/2017/06/05/us/california-today-how-california-helps-the-us-economy.html

    I wonder how we manage to be the economic engine and yet be hollowed out?

    Meanwhile, in Texas:

    Texas’ economic engine sputtered for a second consecutive month, the Texas Workforce Commission reported Friday, adding 9,500 jobs in March — essentially flat after a February during which the state posted lackluster employment numbers.

    While Texas’ jobless rate has typically hovered at or near the national number, in March, the state’s seasonally adjusted unemployment rate ticked upward to 5 percent, while the U.S. rate declined to 4.5 percent.

    Texas’ unemployment was up from 4.6 percent in March of last year.

    California, meanwhile, has seen its jobless rate decline, from 5.6 percent in March 2016, to 4.9 percent last month.

    Still, economists say Texas’ job growth over the year tells the bigger story — and by that measure, the Lone Star State was on pace with its West Coast rival.

    https://www.dallasnews.com/business/economy/2017/04/21/texas-unemployment-rate-ticks-upward-surpasses-californias

  • I wonder how we manage to be the economic engine and yet be hollowed out?

    Simple. The incomes of people with high incomes are growing, the number of people with low incomes is growing, while the number of people earning middle incomes declines.

    According to the Census Bureau’s Supplemental Poverty Index, which takes into account the cost of living, California has the highest rate of poverty in the nation. By comparison Texas’s poverty rate is quite low because of the relatively low cost of living there.

  • Guarneri Link

    CA is the very model of income inequality progressives claim to be concerned about. More like an African or Latin American dictatorship.

  • Andy Link

    “Gee, it doesn’t look hollow. There still seems to be quite a bit of traffic on the 101. I just went to check the mail and literally none of the houses on my street are boarded up.”

    Well, if things are good for the Marin County 1 percenters, then the rest of the State must be fine.

    I do hope California can stop hemorrhaging it’s middle class as it will stop the Californication of many other states.

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