Something Weird Is Happening in California
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California, the US's third largest state, ranks as the world's 4th or 5th economy all by itself. With an output over $3.5 trillion, Californians are among the globe's top producers. But despite its growth, the state faces challenges: global pressures, population decline, and social problems.
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You have a typo in the video, California was taken from Mexico in 1848, not 1948. (see 4:14min in the video)
Thx
Hi😊 I know you have a video about Norway's economy, but it's 4 years ago. Can you do an updated one and put Norway on the list?
It's was just refreshing to find out it wasn't a squarespace ad
The date also messed me up 1948 is after ww2 we had a pacific fleet and everything by then
@@samfederer8125 I laughed when I saw that one. Whoopsie!!!
I usually agree with your videos but I feel you did not criticize California nearly enough for its (mostly self-induced) housing crisis. California is one of the hardest states to build in and its suburban sprawl has caused more land to be made unavailable to smarter construction practices. People are leaving California because they can no longer afford California, not because of stagnating industry. Florida, for example, last year issued nearly double the amount of building permits than all of California, those young professionals who cannot afford to live in LA or NYC will move to Orlando or Houston instead.
OTOH, Florida performs way worse on all social index measures than Cali. Child care, health, toxic waste dumping, protection of ocean economics, and they let their condos collapse, because they let the real estate maffia, all the thug-friends of #CheetoJeebus tramp run roughshod over the already poor building codes they have.
And people are coming because they can afford it
CA has a resources problem, particularly water drought in recent years. Land can be an issue too as commutes of 30-100 miles per day become common.
Other states don't have a problem because their economies can't be compared.
It will take years to fix our housing shortage, and we may lose a lot of potential talent before we do. Cheers from the Bay Area.
@@ezyryder11 many foreigners want to move to Cali. Yeah they won’t build enough to increase supply in a meaningful way, but even then new construction unit sales are more expensive than existing unit sales.
One thing I'd like to add is how cost of living in California has skyrocketed even in areas that aren't mega rich. San Diego, which is where I've lived my whole life, is now by some metrics the most expensive place in the US to live. We do not have a massive tech industry, it's just one company (Qualcomm) and some other bits and bobs like Lockheed Martin which are no longer nearly as relevant. Households require three incomes if someone isn't making at least $40 per hour at a full time job, which are not exactly common here like they would be in LA or SF. There's no mystery why people are leaving in droves when you look at what it actually takes to stay here.
Those two industries would make entire nations.. just goes on to say how impressive the US is.
San Diego is only reasonable because of its military presence. Without them the state would have collapsed long ago. The military should take over to make it safe.
Yes but it’s where a large population of old people go to retire
I’ve lived in SD ever since starting university, I left last year even though I made over $40 an hour. I just couldn’t afford a down payment I SD or anywhere in the state and with the way rents were that wasn’t going to change any time soon and house prices were only going one direction. I miss that place like crazy but short of making a metric buttload of money over night or California outlooks and policies drastically changing I probably won’t live there again
I’m born and raised here and there’s ALOT more companies here than just Qualcomm lol….
Apple employs 1000 people here in San Diego and they’re on track to hire 5000 in the next couple years….
Hp was here and there’s a TON of defense contractors in town too…
It's been a rough year with losses from failed banks and government, real estate crashes, a struggling economy, and downturns in stocks and dividends. It feels like everything has been going wrong.
What a terrible year it is…
That is why I work with Samuel Peter Descovich, who introduced me to a better Financial community, a verified agency where I learned how money works and how to create it, as well as free books, courses, and daily lectures.
You also get to meet new people, which was the best decision I ever made.
Thank you for sharing your experience. Your coach was simple to discover online. I did my research on him before I wrote to him. He appears knowledgeable based on his online resume.
I found his extraordinary resume when I searched for his name on Google. I count it a gift that I went over this remark
people that didnt use those failed banks werent affected by the banks failure
I knew it was going to be like this as soon as Biden was elected. How did I know? Because America is suffering from global policies, just the same as all the Western nations. Biden is not really running the country, the Global Elite are. Same things are going on in Canada, Western Europe and as far away as Australia. The massive downturn is intentional. The Global Elite NEED the Western nations driven into the dirt or their NWO plans and Great Reset will not succeed. Their destructive policies are turning the Western nations into Fascist States with very serious problems. Crime is climbing along with inflation and the costs of taking care of way too many immigrants living in poverty. Economies are all in recession with worse times ahead as they’re being starved of energy. Things are going to keep getting worse and that is intentional.
The public needs to pay attention to the following Global policies:
30x30 Policy = 30% of the lands in all Western nations will be off limited to the public by 2030
Information Policies = Social Media and Alternative Media will be prohibited from content that differs from Gov. propaganda
Revised WHO Membership Agreement = WHO will be given near unlimited powers when they declare a Public Heath Emergency
The Western citizens are going to have their lives changed dramatically by 2030. It will be very much like living in the Soviet Union or in China or in Orwell’s dystopian future described in his novel, “1984”. If Trump is elected, he will try to prevent it happening in the US, but the opposition to his desire to keep Americans free people will be very formidable.
I was born and raised there, I left in 1991 because it was clear to me that if you were not already on the property ladder you would at best be a renter for life and even then only with roommates. But, if there was any break in income or just a split with roommates you could easily end up homeless, and once you go homeless it is a very serious danger you will not be able to get out of that. People who inherit or get lucky enough to land a 6 figure job could barely get by, but otherwise you simply could not make enough money to survive there.
Great video as always
Nice
Great
Nice
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How California can address its greatest weakness which is its high housing costs, it must be willing to do what Japan, the country with the lowest homeless rate in the world, is doing, and that is to remove building restrictions except those for safety. It must be willing to sacrifice property value for affordable housing.
I say it's a problem that solves itself. If nobody wants to live there then nobody is going to buy a house that you'd need to sell a heart, liver, two kidneys, and brain to afford.
Newsom passed a couple bills removing restrictions last January. California is building everywhere, but these things take time.
@@tfkia356 Newsom alone is enough reason to leave Cali
Japan is in an entirely different situation: their population has been declining over the past decade while California’s growth has only slowed down in the past couple of years.
@@trevinbeattie4888 There are other factors, but eliminating building restrictions has been a core reason. Pulling back on building restrictions have been shown to ease housing prices in other places as well.
Currently I'm just being smart and frugal with my money, I'm in the green 47% over the last 23 months and l've accumulated over $700K in pure profits from DCA’ing into stocks, ETFs, dividends and futures. However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look.
Yeah, financial advisors could make a lot of difference, particularly in a market such as this. Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look. I have been using an FA since 2019, and I return at least $21k ROI, and this does not include capital gain.
Mind if I ask you to recommend how to reach this particular coach you using their service? Seems you've figured it all out unlike the rest of us.
There are many you could potentially find online. I personally work with Kate Elizabeth Amdall , and she's been spectacular. But there are also many others you could check out yourself.
I just checked her out now and I've sent an email. I hope she gets back to me soon. I've been thinking of doing this for a long time now, and I've procrastinated enough already.
The film industry moved out west for one reason - sunshine.
Early films had to use natural light as much as possible as artificial light was neither bright enough, or controllable enough. The east coast (New Jersey mostly, because of Edison), had too many cloudy days.
California offered more sunshine, and near year round shooting weather.
oh wow, that's cool to know
Homeless people love ❤️ California.
Movie industry has been moving out of state.
@@yfa6244 some production, yes. But it always has (see ‘location shoot’)….but the deal making? - still in California.
Georgia is now the film capital of the country
I would like to see a median income per capita as compared to the mean. Income is top-heavy.
$38,576 is the median individual income in California at the end of 2022.
This is Econ 101 and EE keeps failing. If you can't trust even basic statistics being presented correctly, what else is wrong?
@@Ushio01 And the median household income was $84,097 as of the 2020 census.
@@KevinJDildonikwell the leaderboards are more about the strength of the economy in global markets vs how good it is to live there. High median income has a lot benefits on the global economy but it isn’t the the most important measure when it comes to brute strength
@@Ushio01That is shockingly low for somewhere so incredibly expensive. Hard to blame everyone for leaving. Let's just hope they don't turn the rest of the US into California as well!
Great video as always. The Mexican Cession was in 1848 not 1948.
I had to do a double take😂
@@pappaslivery Ah yes... few people remember the Mexican-American war of 1948. WWII had just finished and Mexico decided that *NOW* would be a perfect time to invade the only nuclear superpower on earth. It did not end well for Mexico.
@@pappasliverysame! It's just a typo I believe.
That threw me off for a sec too.
I was thinking California was a state in both world wars and the gold rush was 1800s something is off.
I am honestly surprised there was no mention of the self-inflicted housing crisis going on there. There was a slight mention of cost of living increases but it definitely was not emphasized as much as it should have been
If it's self-inflicted, then every major metro center in the country and the world has also self-inflicted it.
@@hawkname1234 Every city in the world has self-inflicted it though, it was common ideology over the past few decades to raise house prices.
Yes , they are self inflicted . The causes are understood , and shared by major met areas which are NOT Californian.
So it's got little to do with the peculiarities of California and something to do with the governance.
The fact you point out undermines the premise that this has to do with Cali history ,and likewise , the video .
This is a pretty surface level analysis of California and barely got into the gravity of the current situation facing California, it's quite literally becoming unliveable
Where? It's a very large state. I've been to San Jose. Carmel/Monterey. Paso Robles. Morro Bay. Los Olivos. Burbank. Palm Springs and Ventura. All beautiful, vibrant communities that appeared to have a lot of content people living there. Where do you live in California that is so unlivable that you would generalize it as the entire state?
@@StanH1966Wherever we pay road taxes, but have potholes and other dangerous conditions such as lanes that are too narrow and guardrails that aren't repaired. Where tenants don't have to pay rent for months/years. Where police won't respond to traffic accidents "unless someone was hurt." Where our children are taught about imaginary genders. Where homelessness and drug use is tolerated, but free speech is regulated. That's some of the issues that infest the state and they pretty much covers all of the cities. I could continue, but I realize it all falls on deaf ears. Enjoy your Utopia.
@@StanH1966 Stockton
San Bernardino,Oakland,Compton,Lancaster,Vallejo,Modesto,Victorville,Huntington Park,Aliso Viejo,Yorba Linda,Irvine,Laguna Niguel,Murrieta,Mission Viejo,Thousand Oaks,San Ramon,Lake Forest,Camarillo,Barstow,Inglewood,Red Bluff,Lake Elsinore,Hemet,West Covina,Pico Rivera,Long Beach,Venice Beach,Norwalk,Twentynine Palms,Landers,Indio,Desert Hot Springs,Cathedral City,Mexicali, and many more
@@Fun4GAgrass is always greener............. i've been to other states, other countries. while i agree we have everything you said, except for this "lanes that are too narrow"--cause i have no clue where you got this, especially compared to basically any other country in the entire world, ..... i also have never seen another state without their share problems, and with more opportunities to enjoy life. heck, i would even say, there is no single country or place in the entire world with more opportunities and variety within driving distance.
i would however say, i do think that the true limiting factor to how far you'll explore life in california is definitely money. so yes, if you ain't got much of that, you also probably will not be doing half of what california has to offer. but even without money, there's so much nature in the mountains, plains, deserts, and oceans that maybe it doesn't even matter.
i think this is something @economicsexplained failed to explain about the unique situation of California. the video cites a combination of luck among other things, but california has evolved to have more variety of activities in a single location than basically any other location in the entire world. and that's part of its story.
@@St1gCom - I wonder why your reply isn’t posted for everyone to see? Is it CZcams censorship, of did you delete you post? Strange, because it was respectful.
I think this video skipped over a major transition industry for California: finance. After all, what was San Francisco doing between the 1850s gold rush and 1970s+ tech boom? Turns out it was acting as a secondary financial hub to NYC, which is why SF is home to companies like Wells Fargo, Charles Schwab, and VISA, as well as one of the few US Mint locations.
California had a financial kick start in 1849’ers found GOLD, and a lot of it!
Surprisingly...another major transition industry in California was oil. In 1914 California produced nearly a quarter of world oil production. That's the modern equivalent of Saudi Arabia, Russia, and Kuwait combined.
Charles Schwab is now headquartered in Texas.
@@adamoliver4094 he conveniently forgot to say that under LA lies the biggest urban oil reserve in the world and there are a lot of oil wells even today hidden behind tall fences or artificial towers. Oil was a big industry in California for quite some time.
For a while, aerospace was California's largest industry.
CA is losing people because of housing costs. Everything else you mentioned is such a distant reason they're statistically insignificant
Housing costs, property crime, and homelessness.
@@jeffmorris5802homelessness is a symptom of housing costs. If housing was affordable California would not have the homeless problem it has today.
@@dex6316It’s a homeless paradise thanks to their laws and weather
@@Dog-ss9ef I'd be careful with the word "paradise", as most of these people are still "living" very tormented and sad lives. Homeless women get raped on a daily basis. But yeah, in California they're less likely to die in the streets because of the protective laws and warmer weather.
@@dex6316 If you don't have a home it is almost inevitable you will end up mentally ill. If you have a home it is easier to deal with an existing or developing mental illness. Lower cost of housing helps prevent and deal with mental illness easier. It is a self-reinforcing loop.
I've lived in California for most of my life and I can say it in one phrase:
Value of time.
Every human being on Earth gets a number of years, months, days, hours, minutes, and seconds on this Earth. Corporations do not. When we give corporations the power to influence laws then those laws will stop favoring those that eat, drink, sleep, breathe, and die. And corporations will continue on, perpetuating that system in ever-more-profitable ways.
GET MONEY OUT OF POLITICS.
That's never going to happen without violence.
@@civicboi96 You're right. Violence is getting worse anyway
@@civicboi96 Maybe violence needs to happen.
Yup Citizens United destroyed America; thanks Republicans
How? Most people vote for things that will help them financially, thats how democracy works.
I moved out of California because even as a well-paid tech worker, the need to pay child support (effectively support two households) meant that I had to look for effective ways to reduce my cost of living, which in my case meant moving to Nevada. Also, the regulatory and political situation in California has become untenable, with once-vibrant cities like San Francisco becoming cesspools of crime and squalor.
It’d be nice if you didn’t vote the same way that made CA a cesspool. You know, seeing as how you’re running from you’re own bad decisions.
@@corys7604 Yeah right, I made the bad decision of having been born there. 🙄
you made the bad decision of voting for democrats is what hes referring to @@iron5wolf
@@corys7604 that's a bit of a leap. And a mean spirited one at that.
@@corys7604have you actually looked at CA voting demographics and voting blocs? Or are you just mimicking what you see or hear other people say? This is a genuine question, as well as a gentle rebuke of your ignorance.
I don't think he mentioned it, but California's weather plays huge role as well. Great weather attracts a lot of wealthy people. Also, California really lucked out cause they have everything that world need: fossil fuels and farms
The Golden State
This comment sums it up perfectly
Yeah, I thought the biggest reason the film industry boomed there was the weather. They could film year-round, and there were mountains, beaches, forests, farms, desserts, etc all close together. The weather is why they can grow high-value crops that can't be grown anywhere else in the US. I thought the founders of Intel setup the company there mainly because they liked the climate.
Just too many rules and regulations to access
Agriculture is rapidly hitting a wall as California is running dams dry year after year and they're already making other states limit their usage of the Colorado River. Water tables are dropping, and they're more ans more seeing their limited rains come in storms and floods rather than usable steady rains or as snow pack.
Judging by their treatment of natural gas and coal they're also increasingly likely to ban oil exploitation to protect the environment, its already too difficult to mine and refine some minerals in the area, especially minerals that need a lot of energy and water to refine and mine like lithium, so they may just shoot themselves in the foot there.
I think we sometimes understate the importance of Hollywood to California as a brand. Like California to many people outside the US, IS THE US. It has rhe ability to attract people from around the country and the world to the state, and gives it enormous influence. There's no comparable entertainment industry in the world.
nah, if u mention the US to most people outside the US they know at least a few cities, namely LA, Las Vegas, Miami, New York, Boston, Chicago, San Francisco and Washington DC, mostly bc these cities appear in a lot of entertainment, some made in cali some not
With its specialized agriculture (namely fruits, nuts, and rice), concentration of high-tech efforts, and substantial military defense activities, it's no wonder CA has been the trendsetter for the rest of America and the world for at least the past century. Even with what seems like so many people "escaping" the Golden State, there's still plenty more of the big four industries (ag, tech, entertainment, and defense) that CA can generate.
@@doujinflip And people wouldn't be leaving if it wasn't for the insane housing prices for the most part. Everything else is just a variation of problems in most other places and often not the worst or the best.
High housing prices exist in certain cities in isolation across the US: Austin, Charlotte, Chicago, NYC, DC. But nowhere else is it across an entire state where the vast majority of the people live. Yolo county (yes, that is an actual county in california), doesn't count with a population of under 220k.
May it be utterly destroyed.
@@FlanPoirotas someone with a Ukrainian girlfriend and lots of European friends, Hollywood is definitely the biggest influence on US perceptions. New York is certainly huge as well and theirs a very weird obsession with the Lincoln memorial, but from my experience for most quintessential American cultural icons that captivate foreigners it’s yellow school buses, then the Hollywood sign, times square, Golden Gate Bridge , Statue of Liberty, Lincoln Memorial, Las Vegas as a whole, LA stars, NYC taxi cabs (the famous ones aren’t driven anymore though). But still when my gf got here the main thing she kept saying just walking around Boston was everything was like in a movie. Clearly everything that pulled her to the US came from movies she had seen. New York and LA were by far the biggest attractions though
Thanks for the bit about East Coast licensing for the cameras, I didn't know that!
In return: At the time that film got a foothold in Cali real estate was significantly cheaper, allowing the studios to buy those huge lots that they could build sets on. Those are critical because in many cases it's actually easier and cheaper to build, say, Rome, than it is to actually go and shoot there. Moreover there's a lot of truly beautiful and varied country in Cali-- part of why we got so many Westerns-- and the weather is amenable to outdoor filming as well.
It's interesting that the "Movie Industry" is motivated "to be" in a place with good weather, sunny 300 days a year,
with at least some open spaces, usually flat and sandy soils (so they can very easily dig, move the earth and then
"build the sets", houses, buildings, shops, etc.) also handy to the people in the industry, including the "set builders".
With all the Californian Movies made, including hundreds of Westerns (mainly in the 50's, 60's & 70's) Could there
be another place, that would be ideal for the "NEW" Movie Studios of the future? In the United States, places like
Florida, would be a shoe-in, Texas, Arizona, Utah, Louisiana etc. and in Europe, you cannot go past Andalusia as
"the place" to set-up new Movie Studios, with Westerns already made there in the past, in fictional settings as well
as in real life. Andalusia would be ideal "spot" for "Making Movies" - 300 days a year.
Lots of things missed or slightly off with this video unfortunately:
* The Mexican Cession happened in 1848 (not 1948 as depicted in the graphic)
* Berkley is (one of the campuses for) the University of California
* There was no mention of Stanford University, despite there being an image of it and called the University of California (this is particularly triggering)
* No mention of Sandhill Road and the venture capital which fuels the tech industry. Literally billions of dollars wrapped up in startups and other tech businesses
* No mention of industrialists who helped build the railway to connect California (Leland Stanford, Crocker, Mark Hopkins, Huntington)
* No real mention of the housing and infrastructure problems which are slowing down growth (and the problems with HSR which could in theory alleviate some of those problems)
Mexican succession occurred in 1848, not 1948. 4:14
yeah, I was like, there is no way that happened right after the second world war.
Boston was competing to become the tech hub of the country, and a major contributor that had California win out was that non-compete’s were illegal. This allowed a free exchange of talent, higher wage growth, and greater competition, accelerating innovation and growth.
How about the weather? New England has snowstorms.
@@daniellarson3068 The effect of weather, although definitely a consideration, is probably not as strong as the effect law and regulation. MA, NY, and IL are still world-leading hubs of economic activity despite not having sunnier weather like the poorer South.
@@NotYowBusiness exactly. Although weather I’m sure was a factor, I’m more or less referring to the sheer brainpower in the area coupled with the right policies to unleash the full potential of said brainpower.
Exactly right! People rarely bring up the point you make, but it is a good one. In the early 1980s I had a six-month internship at IBM in San Jose, CA. I still remember the HR person walking us through the new employee paperwork and telling us to cross out the standard "non-compete" section of the employee agreement, because it was illegal in California. The rapid pace of people moving between companies both spread knowledge around and forced companies to be compelling places to work in order to retain top technical talent. Any mediocre companies got left in the dust.
Thanks for the explanation, the reason why the first tech innovators chose CA was unclear in the video.
California is losing people because of TERRIBLE POLITICS and high costs for EVERYTHING!!! Especially GAS and HOUSING.
The average person just cannot go out and buy a $60k+ electric car to deal with California's artificially inflated gas prices and The California government is actively HOSTILE TO MIDDLE-CLASS AND POOR PEOPLE. And one of the worst states to start a legitimate small business in.
GDP is also a TERRIBLE METRIC to go by when assessing the "average person's well-being and wealth". There are companies HEADQUARTERED here that barely employ anyone in California and outsource all their labor and work to other states and countries, so they appear to be bringing in massive amounts of money but aren't actually helping the average Californian.
Off topic but thank you for making these videos! Watching these has become a fun little routine for me during lunch. You can count on one fan from California.
I live with my parents in San Diego and work full time. I can confirm that the cost of living (mainly due to exorbitant housing costs) has exploded over the past couple of years. I don’t know if I will ever be able to afford to own a home here in the future, which is a very depressing thought given I am only 23. Unless you manage to make 70k a year or more, this state doesn’t really have a future for you-which means it doesn’t have a future for young people and working class people. I would leave but you can’t beat not having to pay rent.
I’m making 130k in SD and still it’s tough 😅
Its actually even tougher for those making more than the amount you mention because of the ridiculous taxes here. But yes housing is the most egregious sin here in California mostly self induced by artificially limiting supply and regulating the industry to the bone
@@richardtorres4253 I’m making only 38k working for the county district attorney’s office 😭
I'm in a pretty similar boat in LA, working full time as a 23 year old and barely making enough to rent if I had to (thanks to family, I do not). If it wasn't for family, I could probably still swing a studio, but I would more than likely have to leave. Buying a house or condo is totally out of the question right now, and likely will be for several years to come.
The World Economic Forum (billionaires of the world) said you will:
“Own nothing and be happy.”
Feel it yet?
You forgot to mention California’s petroleum industry. According to Time Magazine 100 years ago Standard Oil of California - now Chevron- was also to largest producer of Oil in the USA.
Lumber as well, which was double edged in the lumber industry was keeping back the wildfires until they were basically ended in the 90s.
Standard Oil, along with General Motors, Firestone Tire and Rubber, Phillips Petroleum, Mack Truck, and gullible, moronic politicians all congregated , with the result being the loss of what could've been one of the best rail-based public transit systems anywhere in the modern world!
Literally the biggest problem is homelessness, the crime associated with it, and the cost of living crisis, and this was barely grazed on. I have an engineering degree and with an entry level salary I could barely afford to live with roommates and was basically forced out of San Diego.
California’s biggest problem is the leadership.
Waited for the "something wierd" to get talked about, but it never did. Most people watching these kind of channels already know about the trend of people and companies moving away from the state (even people that don't, b/c a lot of these people might have moved near them). I think you might have been better off talking about the shared trend in these high cost of living places as a whole... But I think you already did that plenty when it started during covid.
Yea, I don't feel like he does click bait titles on purpose either, I think overall just misnamed and honestly just rose-colored glasses about the state, they got huge problems that were not talked about here. I personally would never move there.
I think the weird thing is that a non resource based economy is getting Dutch disease and that it can’t get a hold on it because it’s a state with limited powers to increase taxes and restrict movement
@stephenmoreira2204 lol huge problems? What huge problems compared to other states? Florida is going to start flooding as they barely offer sea level. Texas cost of living is going up and their "cheap homes" are costing more and more, plus the property taxes increase substantially and have the same issues of being to expensive. It's too hot and cold there so homeless will die easier.
The wierd problem was the duch disease without natural resources
@@rudysal1429 It's not really a laughing matter I hope all the best for Cali.
Gigantic homeless problem that needs to be resolved. Most recent actions look like it's in the right direction but going to be painful, it is going to need the help of other states.
Cali has great salaries on paper but most can't even afford a home and will be out of reach for their entire lives, I became a home owner at 25, and this is important because home ownership is greatly tied to family wealth throughout your families' generations.
You seem to want a state vs state comparison and brush away its faults, that will end up addressing nothing.
I guarantee the reason people are primarily leaving California is housing costs. Everything else is tertiary.
People will complain about taxes, grocery costs, etc, but housing costs are what people who are leaving told me.
The need for apartments is critical, but the old generation(which is a significant majority) prefer to not change anything about the zoning laws, because they prefer to “Not change the character of their area”.
Adding other factors such as AirBnB and such, and California becomes the land of the rich
It's mind-boggling that San Jose, despite the presence of tech economy, still looks like a glorified suburb, instead of actually building a mix of housing. Doesn't help that they're not relocating Mineta Airport either to allow for taller buildings. All the tech people end up competing for existing housing in places like San Fran instead of actually living in San Jose.
@@HenryMidfields it’s like they’re stuck in the 60s, with badly planned, repetitive houses that are 15-20 min away(walking)from basic needs stores such as markets and pharmacies.
BUILD APARTMENTS, PEOPLE!!!
Its politics and personal values thats the strongest components. As companies are free to move and people vote with their values as well as their wallet I expect Cali to not only be overtaken by Texas but to be begging for government bailouts by 2030.
Pretty much. Most of the ex-calis I've met here in TX are either a) retirees who can't afford to live in CA on their pensions, and b) work-from-home professionals who can work anywhere, so choose a cheaper place to live.
I live in Temecula, CA. I make $25/hour working 40 hours a week. 75% of my income goes towards rent, utilities, and gas to get to work that doesn't include phone payment, liability insurance or food. I have no car payment no health insurance and no savings and I don't qualify for any government assistance as I'm considered "middle class". Sure I made better money at my last job making $20 an hour working 80 hours a week but I basically just slept for a few hours and worked the rest. Its basically impossible to live a comfortable life here. But I'm sure I'm just soft and need to "work harder" California is a dumpster fire.
It will be interesting to see how the California economy withstands the growing water crisis in the west over the next few decades. Agriculture will likely be the first industry on the chopping block.
the wef is destroying agriculture and farmer's lives by gavin newsom's waste of our dam water. gavin and the dems are purposefully destroying the states (WEF agenda).
That would have major implications to the entire country as California feeds the nation.. most people don’t realize that California has the highest agricultural production in the nation..
@@bman6502 I agree. That's why this is really a national crisis. There's plenty of water it's just on the other side of the country. Somehow we need to get it over here. I would like to add that most of California's agriculture is shipped overseas. Just eliminating exports would alleviate the problem. But that's uncapitalistic.
Wait... so growing crops in the DESERT is a BAD idea?!?!?!!!?!!?!
The growing water crisis in California is man made.
There is a myriad of solutions that could give plenty of cheap water to the masses. Guessing who put stop on that?
Note: Berkeley is the University of California. There is also the UC system that includes UCLA, UCSB etc
I think he is confusing 'Berkeley'' with Stanford.
Also the Cal State University system exists
Yeah, I think it was weird he didn’t talk about Stanford.
EE: makes video about income inequality problem in CA economy
EE: ranks CA higher than last time using a scale that DOESN'T include income inequality
EE: dUtCh diSEaSe
Also EE: claims the state it just gave a higher rating to than last time is "a state in decline"
If it's declining, then so should its rating?
Same as Chicago, People cant afford to live there. Isn't about choice. People have to leave now or lose everything and still forced to leave later.
Understated and you sure took a while to make a video on this subject
Was that year on the gold rush supposed to be 1848 instead of 1948? I'm pretty sure CA was founded before WW2...
What? You don't remember the famous Cold War-era Mexican Cessation of 1948? We had to take CA before the commies did!
Such a small but crazy error to those who noticed.
I had a chuckle with this lol
Always heard it was "forty-niners".
@@johng4093 it started in 48 but really picked up in 49, hence the nickname
Small note: 7:17 "Berkeley" is the first University of California, so it commonly gets the de facto title. Now the University of California system has 10 campuses throughout the state
Yes I think he meant to say Berkeley and Stanford. He showed shots of Stanford but never mentioned it by name.
@@henryspaniel5133was prolly also a mix up because he showed shots of ucla as well
@@henryspaniel5133 Stanford ERASURE!!
For the City of Los Angeles in particular (not the county), it very easy to see how much it's not worth living here. People pay almost $2k in a shady area like Panorama City (not city despite name), if you want to live somewhere nice the premium is insanely high. Because there's so many people work is generally over-working for pay you could get elsewhere while not being pushed to exhaustion every day. I know people say Arizona, Nevada, Texas get hot but when you're holding on to double the income at the end of the year you can let some of that go for AC during the summer to live comfortably something that people in the San Fernando Valley (40% area in the City of Los Angeles) can't say yet possibly afford.
The only way to live semi-comfortably in California at lower-income levels is if you own a house/condo paid off already. But this still won't solve the quality of life problem, in the City of Los Angeles particularly despite having A Quarter to double the size the police force of surrounding cities the quality of life is significantly worse. That aspect makes it feel difficult to even live here when you have the best possible financial outcome. You can't live peacefully cause you have to worry if the speeding cars will one day hit you, if you'll be robbed next... like how can you even sleep peacefully knowing your neighbor was mugged and left for dead?
Even most I know in fortunate situations are considering leaving
Great insights!
"Nobody can predict the future, least of all economists"
He said the thing!!! 🤣🤣🤣
And those will have an effect on the economy of California as well, in attracting talent especially.
Just made it 69 likes.
@@EconomicsExplained Yeah like Peter Schiff? Totally didn't predict the future with the '08 crash
Peter Schiff made a lot of predictions every year. He was wrong about all of them except one, the '08 crash.@@Jay_in_Japan
The World Economic Forum (billionaires of the world) said:
“You will own nothing and be happy.”
I feel lower classed people are being priced out slowly but surely of everything.
You know who can predict the future? The people with the power to shape it aka WEF
The congestion in the LA area is also quite awful if you have to commute in it.
Me and my wife recently vacationed in southern California twice and both times the traffic was such a kill joy. We felt so bad for everyone who drives it daily. Just horrendous.😢
we've got to have some barriers to entry LOL. Imagine if there were no traffic jams, and it was as cheap as living in Oklahoma?!!??? Literally, everyone would live here.
@@samirbitar806 That was California pre-war, not only that but much of what is now built up city was full of farms and orchards, Simi Valley, Pasadena, and what is now the I-880 corridor were some of the most ideal places on earth to live. There was a time, from the mid 19th to the mid 20th century, when California was a venerable paradise, sadly those days are now long gone.
I thought LA was bad. I went to SF and found out it was nothing in comparison. My god what a parking lot
I refuse to work in LA because I know a few days of bad traffic will lose me a job
Take a drink every time he says “comparative advantage”
Just found the channel, wow....such great content!
As an Oregon native, hearing you pronounce the name correctly and not like “or-ay-gawn” just made my day.
Meanwhile, Nevada continues to get verbally abused by everyone.
i'm one of those persons who moved out of the region .. california got wealthy for a lot of variables but then found itself with population centers in the worst places for urban sustainability, the same variables that attract people to those areas are the same variables that cause all those massive disasters in california... the beautiful scenery is on top of a massive earthquake zone, beautiful cliffs overlooking the ocean are actually mud slopes prone to erosion and flooding, the beautiful valleys are prone to collect large air pollutions because of the natural air pressure/climate zone they're at... and thus all the environmental regulations and building codes in those areas and people don't understand all that and don't even really want to be educated on those topics.... it'll take a few generations but california will eventually find its balance... the californian politicians look at social issues but don't look at the causes of the social issues and really don't care about those causes ... in the end, califonia just has too many people living in the wrong areas...same issue occurs throughout the world and not just california... there really isn't a response/solution to these issues other than stop allowing these mega cities to develop (i mean who's got a crystal ball that can see 200 years in the future and decide where people should settle and build)
I just hope you didn't move to a state with different values and now continue to it's for the policies that made your previous state unlivable
@@stsk7 i definitely do NOT agree with california's policies... to me, california is one of the worst states when it comes to conserving resources and it's because of its political policies of appeasement to individua segments of the population and corporations... just take the "water problem" , there's ample water resources but california chooses to waste water instead of using available treatment methods and also in the years past instead of storing their allotment of water continued to waste it on some of the most insane uses...
I just listened to Victor Davis Hanson's take on Ca. And I have to say you did a better job explaining it. I live in Fresno, it is one of the places of all time.
@@stsk7jokes on you don’t you we Californians will slowly Creep out to every surrounding state in infect it LiBErAlISm
@@stsk7 Unfortunately most of us are of this type of breed and we need to be publicly humiliated and scorned.
I currently live in CA, and as it right now, I'm planning to leave CA, it is just to difficult to keep up with the living costs. In my case, me living here I'm always in a financial survival mode.
This missed the major influence on the growth of California: Federal govenment spending. Startiing with WWII the amount of spending on military personnel and bases, defense industries and even ship building gave the state huge infusions of capital and drew a largely technically skilled population into the state at the expense of many others. At several times over the last eighty years as much as one out of every four persons in California worked for the military, a federal, state or local government or in an industry financed and funded by the defense industrial complex.
Also, look at the billions of dollars wasted on stuperhighways in SoCal! If the region retained its rail-based infrastructure, it'd be much better off than it presently is!
Last time I was this early water rights were still available to claim
CA also has multiple deep water ports for shipping. These longshoreman jobs also pay really well
I left because every job was either a scam, or they wanted 50 year experience for a entry level. Registering your car was $500+, then the scam of smogging. Used to tell you what needed to be fixed, but now if you don't pass smog they still charge you $100+ and don't tell you how to pass. Even a place in the middle of a bad neighborhood was expensive. Not to mention, you rarely get to live where you work because you can't afford it. So you would spend hours a day in the car and traffic. And a lot of people there are rude, selfish, and lack morals. Even the police were corrupt, like steal your car corrupt. And you didn't have the right to defend yourself. Even if you get beat up, they'll tell you its mutual combat and both will have to be arrested if you wanted to press charges. Never going back. Not even if you paid me 10 million dollars.
California has almost perfect geography, it is truly blessed.
One factor I think has a big impact but wasn't mentioned was the weather. It has made it a very attractive place to live and work.
As a Californian I think it's great that other states are pulling opportunity from CA because we need the competition. The bureaucracy has become bloated because, I would argue, we've been TOO successful. Our leaders have not been pushed to be more efficient because no matter what mistakes they made our economy covered for it.
Very well said. I agree completely
I also agree. Look at a state like Texas. They manage to pull in a good sum of money yet provide reasonable cost of living and reasonable state income tax rates. They feel very welcoming to businesses and high earners. California needs to learn from Texas how to provide a good environment for companies and individuals to thrive.
@@comfixitTexas has its own issues. And real estate prices have been increasing quickly in its largest cities.
I think a major part of the homeless crisis in CA is the weather. Where would you rather be homeless, in TX where they have 100 degree temps all summer with 80% humidity or in CA where it is 72 and sunny all year long? You couple the great weather with social policies that don’t require folks to stay off drugs and tolerate illegal open air drug markets and it’s no wonder homelessness is so bad.
@@comfixit Absolutely no one should be taking any example from Texas. Our state government will sacrifice ANYTHING to attract businesses no matter what the cost to the average Texan is, of course companies are going to start coming here. Companies are always attracted to the places that exploits and neglects its people the most. Deregulation is the bane of the self-respecting working person.
Too many blame governmental practices on the lack affordable housing and ignore the fact that Californians themselves often vote down proposed affordable housing laws, placing their own property values above the needs of fellow Californians seeking smaller and cheaper homes. The Real Estate organizations there lobby very successfully but not just directly to politicians but also to middle income people who in turm actually suffer the most in keeping California so expensive
I'm sure you guys caught it already but just a heads up: the Mexican cession was in 1848 and not 1948. I know you guys know, just for an edit to the video! Great video as always though, love seeing this kind of deep dives on different US states-would love to see Texas next!
What was meant you said California had to compete with other states that had unfair advantages, like Texas that has lower taxes, subsidized by natural resources? How is having lower taxes an unfair advantage, and how do natural resources subsidize lower taxes in anyway?
Small correction. 'Berkeley' and 'The University of California' were the same institution before UCLA was founded in 1919 when the UC System was created
This is the only thing you noticed in need of correction?
@@timhaldane7588He’s probably a Cal or UCLA alumnus, or just someone familiar with the UC system. I noticed it too while watching, and that’s why his comment caught my attention. Not much deeper than that.
I mean UC Berkeley is still called Cal 💁
Yeah I noticed that too. I think he meant to say Stanford (located in Silicon Valley) or UCLA
Nice to see a balanced view on CA. You are dead right on high value industries forcing up salaries in lower industries and government funded jobs. At my child's former nursery in Mountain View, a 4 day working week teacher is paid $112K annually and still has to have subsidized rental accommodation in a complex owned by the nursery.
Crazy, seems like making $100-125k in some parts of CA is like making $40k elsewhere. That's insane.
That's basically the correct ratio. It's not just the cost of homes, but the cost of everything is higher; gas, food, electricity... California is either the most expensive or second in the US for good and services. It is not uncommon for people to commute 30-60 miles (one way) to get to work, because the cost of homes that are close to where most jobs are, is far beyond the average salary.@@gotseoul123
@@gotseoul123 that's what happens when a large part of the workforce is making a six figure salary, everyone's buying power is up and that makes prices go up which is a vicious cycle. one thing to note in this scenario is no appreciable wealth is being created.
@@sinewave999 (Strictly bay area perspective) I think it's just a coping mechanism for the underlying problem: stupidly unaffordable housing. Outdated zoning laws and NIMBYism make it illegal if not impossible to build anything other than single family homes. Prop 13 made it so the OG homeowners are grandfathered in to extremely low property tax rates, so they don't wanna sell. The properties that do go on the market often get gobbled up straight cash by wealthy foreign investors or domestic IPO cashouts.
Making 100K+ is good money, that’s better then the average working class person.
"Universities like Berkeley... and the University of California..." I see now why UC Berkeley is doing weird branding stuff to help people understand that it's part of the University of California.
One other limiting factor is the education level in CA is close to the bottom of all the states--and that was before 2020. Due to extended school shutdowns, we'll be pumping out graduates less educated and less prepared than we were even 10 years ago. I'd predict it will take at least a generation to resolve the impact, but it's another nail in the coffin and why, if I didn't have family in CA, I would have moved a long time ago.
California is still top ranked in higher education. K-12 education has some issues, but over the decade it has improved significantly. Went from like 45 to like 35.
I can tell this is a community of Economists because after an 18-minute video packed full of content, the thing most people want to talk about is a typo in the graphic. Don't ever change, Godspeed EE fans.
It's mostly Leftists that's why they focus on things that aren't important
Anyone else notice this videos thumbnail is vey similar to casual scholars? Had deja vu at first.
What was wrong with the typo?
Insane, radical-leftist, democrat idiots, mostly women, have destroyed the state by 'governing'.
That's just standard internet nitpicking.
California shows perfectly how not allowing the construction of enough hosuing has negative economic consequences. If LA, San Francisco and other big cities weren't restricted to being 95% single family home suburbia, there would be sufficient housing to keep housing costs reasonable and also help solve problems like homelessness and drug abuse through people being able to have a home
Poor planning. Suburbia and the lack of good mass transit. You have to drive everywhere here in California. If you walk or bike on the streets, you have a high chance of getting killed and being run over by a car.
Unfortunantely it was the population currently holding the land wanting to maintain and increase their own properties value that created those policies. It seemed sustainable at the time with the population growth and then things went south for the population and wealth minority of the younger generation. It is a downfall of democracy in general, but it the situation will be corrected because now the younger generation is getting a greater representation in policy making... assuming they are not force to flee to survive.
The business friendliness of this state has suffered more every year. Costs, regulations and laws become more and more restrictive strangling businesses growth and opportunity. There is a reason people are fleeing a place that was not long ago the envy of the nation and world. It’s heartbreaking to watch this play out.
I live in southern California.
I've run into several amazing people who were part of world changing events.
California seems to be a trend setter for the United States. Many technologies and policies are established in California and adopted elsewhere.
Very true! And now most of those ideas are bad ones! Please keep your Utopian aspirations in California!
The University of California system churn out an educated workforce and this helps sustain the economy.
“…founding universities like Berkeley and the University of California.”
Who wants to tell him?
What would the east coast economy be if you placed a map the size of California on it and calculated the gdp
There'd be a lot more people because 3/5 of the entire US population lives in the NE quadrant.
But you'd be missing the space for the California Central Valley that is a bread basket for fruits and vegetables for the nation when there isn't drought.
You'd be governed by the contentious Progressives vs Conservatives and probably have a less diverse population which are drivers for California's immense investments in infrastructure and the qualities that can produce a Silicon Valley and a Hollywood.
It depends on how you define the "East Coast." If you define it narrowly, and exclude the Southern states (say, anything south of Virginia), the total GDP would be about $6.5T. So, about 70% larger than California's economy of $3.7T
@tonysu8860 why does a diverse population drive Investment, Silicone Valley, or Hollywood?
@@alex29443 White males tend to think in terms of and cater to other White males. Most of the population (read: potential customers) isn't White males.
@@alex29443Because it attracts a broad talent pool. You're more likely to attract excellent engineers from abroad if your culture accepts foreigniers and those migrants have access to amenities their used to from their home culture, like religious institutions and ingredients to cook food they're familiar with. If you've ever lived in a homogeneous foreign country you'd understand pretty quickly why it helps.
Living in 3rd tier Chinese cities was incredibility taxing. The infrastructure and quality of life was good, but being so isolated from anything familiar made it much harder.
Wow great job
The major problem in California is the political stranglehold these corporations make for the citizens of Californian families, especially those that are not the transplants. It is necessary to have a great career that is in high demand for your skills, mostly requiring advanced college degrees. Then you need to diversify your skills based on the economy that is in extreme flux: example aerospace came & went, Hollywood is now only one of many places with technology changing, high tech spreading away, & the ability to work away from home. When you have a family, not all your children will be brilliant enough to attain a higher level of education that is necessary for survival in this very competitive environment. Like you said, most people are transplants based on following the ability to make high dollar that happened to be in California at particular times. These people are not that committed to the communities in the long term, & they vote to maintain on a single focus, themselves. We see how that in itself has destroyed what California was. It is now also known throughout the country as the land of the woke crazies, making policies that the rest of the states don’t want. Other states don’t want us to move there because of California’s reputation. But, these traveling transplants just pick up their bags & move without the stigma of being a Californian. Meanwhile, us natives, pay higher & higher taxes, etc. supplement, if not fund our not as successful children & pray that us & our spouse don’t get sick or laid off.
The rumors of California’s demise are greatly exaggerated.
You forgot biotech which was also founded in California :).
I’m living in CA. I pay high income taxes but I also got paid to get a masters degree from UC Davis so I’m not that bitter about paying income taxes. I quit my job at a startup and joined another one and the same field because there are no non-competes. The weather is great. I take public transportation to work so I don’t have to drive. My whole family lives here.
I work in biotech. The tech crash is helping because office spaces are getting converted to lab space.
The main thing to do is to fix housing and improve public transportation.
Yah biotech is pretty huge here. My dad was director of Quality Control before he retired.
All the good folks left Cali already
@@Jay_in_JapanI've met the people you call "Good Folks." Good riddance to them.
@@tfkia356 you'll be left with only homeless welfare bums and a class of noblemen in CA. Not having a working class can cause some serious issues regardless how low you think of them.
Replace *weird* with “so predictable it’s incredible anyone is surprised”
Unless the writers couldn’t see the extremely obviously outcome like literally everyone else
Best part? They bring the voting habits with them to the spots they are fleeing to. Southern Nevada is just Southern California at this point now. Makes living here suck even more lol
Nurse here. Due to the union friendly environment, Im paid better than nurses anywhere else in the country, and uo until Covid, the region in which I live and have called home since 2017 was one of the cheapest. Unions help balance out some of the low wage issues, side effects and negative outcomes for business aside.
Other states have nursing unions too?
Unions are not always some kind of miracle wunderkind. They can also be a part of the problem and become bloated and corrupt. In particular public sector unions.
I wish I had stayed in California. I’d be better off than if I had moved out state. Now as a nurse that moved to California, I cannot get in to any of the hospitals in California, because hospitals do not want to hire even with a shortage of nurses.
Hehehe, hi how are you doing?
Don't be angry that I came across your comment I want to communicate with you to be friends.,
06:24 There were actually alternative "ship" routes, it was quite common to take a ship to Nicaragua or Panama, go on land, cross the land, and get on another ship on the westside and continue. You even had a poster in the video earlier on advertising a steam ship route via Nicaragua.
I think he was talking historically. About when California was founded
@@charlottebrook8579 That's what the previous comment is about as well.
There were train routs in Central America specifically for this purpose even.
Just sell and enjoy your family while you have life. You have a good problem on your hands.
Texas does not have an "unfair advantage." Texas has organized itself so as to allow maximum private market output without undue regulation and taxes.
Hehehe, hi how are you doing?
Don't be angry that I came across your comment I want to communicate with you to be friends.
4:04 The gold was in the foothills to the Sierra Nevada mountains and in the gravel of river beds flowing from that region. The areas you mentioned boomed because people had to get supplies there before heading inland to look for gold. Not because there was gold there!
Also in 1848 there were failed revolutions across Europe and the US got a huge surge of immigrants as a result. Many of those decided to go to California.
Frankly Mexico never knew what hit it. California went from a barely populated Mexican province to a booming rapidly growing US state in a few years.
Agriculture in California is heavily dependent on irrigation, which requires moving water around on a massive scale.The water is in the mountains and a few big rivers. It required tremendous investment in infrastructure to turn California into an agricultural powerhouse. It was only possible once California became part of an economically powerful and organized country.
Drink whenever he says "Nobody can predict the future, least of all economists."
This guy can’t predict the present either 😂😂😂
One advantage California has is long roads. One can drive long distances on roads with small businesses on both sides of the roads, and after a few miles, one can't help but think, I could start a business like everyone else!"
This is not an advantage. This is a massive economic liability. Because of the low density of those businesses combined with the massive amount of asphalt--such neighborhoods cannot pay for their own infrastructure liabilities.
There's a reason in the USA that citizens pay $1000+ USD if they need an ambulance ride...whereas other civilized societies, such EMS is paid for by taxpayers. Because the finances just don't work out given the tax-base both in terms of people and in terms of businesses and in terms of property. SUch urban planning causes massive municipal finance problems that lead to much anger at cost-of-living.
Many of us who were born and raised here have a saying “Welcome to CA, now go home” No, we don’t all these people here.
Yeah? Here's the other side of the coin. Many of us outside of California don't want you coming to where we are at either. Your driving skills are attrocious. Also you drive up the cost of living and it's already bad enough as it is. Then there is the issue of Californins turning every place they go into California.
It’s always a trip seeing your home state and hometown in a video on the internet. 916 represent! 7:09
Cost of living, crime, social issues, public education, taxes, and state governence together make for a strong disincentive for me to ever want to live in California. I can't imagine ever wanting to move there. There are simply too many other places in the US that don't have these issues.
It all sort of reduces down to cost of living. Almost all other issues stem from that, high taxes and high housing costs. If you have money it's paradise though. The government gets a bad rep because it's an easy Republican scapegoat, but in my experience things in California actually worked better than average and the government seems to side with protecting regular people more than business interests, which is kinda nice for America. They're also very progressive in many ways, so most changes come to California first and you kinda live in the future by a few years. Most states are in far worse shape, except maybe Texas, Florida and some north-eastern states.
A top down strong military leadership, is needed to fix Cali.
TX and FL are more favorable to individual adults perhaps, but their education system lags substantially and seems to only get worse as conservative leadership tries to indoctrinate its children against the overall trends of humanity... a mindset that becomes a competitive disadvantage once they have to deal with the rest of the world after graduating some years from now.
@@doujinflip are you saying there's *less* political indoctrination happening in Cali?
Tennessee is doing doing just fine thanks, our stores aren't boarding up and leaving in mass. On the metric of crime most states are far better off the cali. Also, we aren't interested in what people in California say the "trends of humanity" are. Trends change but here our morales dont.
Now if only that high speed rail line can finally finish…
Great video, good presented.
FUN DRINKING GAME: 🍸
TAKE A SHOT EVERYTIME HE SAYS 'CALIFORNIA'
One thing that should be emphasised, it was the people, the efforts of the Californian people that made the state a success.
As distinct from all the failed economies where frankly the people fail to organise themselves properly or at all, and fail to put in the work required to get out of poverty.
Tbh tho, it also had a lot to do with europe being in shambles when all those technological developments were being made and industries grew to what we know today
Imagine how much BETTER it would have been without commies running it???
I like people like you.
@@finng.3694yea and European countries not being able to get on the same page culturally,economically, or militarily. The US protecting global shipping lanes so Europe can ship their goods abroad and make money. Oh and the marshal plan that rebuilt Europe after ww2.
California also has a wonderful climate. It also has an informal friendly tolerant culture making it an easy place to live in.
"friendly"
@@brandonreyes2417Socially yes, people don't care or judge as much as many others parts of the US. Go to Nebraska, Idaho, Iowa, Missouri, etc.. and go to a gas station not in a big city and speak a language that isn't English, and see how people react. Don't even start with you looking non white, or non straight, or non cis gender. It can get very uncomfortable at best, and downright humiliating at worst if they start berating you. California isn't the only place like this, or the friendliest, but overall it is very friendly and understanding of belief systems, people don't go out and harass you, people don't care they mind their business, we all work too much to care about stuff like that. Few people work anywhere near as much Californians work, and few places lead as much in human innovation and GDP.
easy for homeless and illegals but not for tax/rent payers
@@no-barknoonan1335 I visit my dad in missouri every few years and speak my foreign language out loud and very few people get impressed by it. One time in colorado a lady from texas with her small grandchildren told me she thought I was speaking german and she appeared to have germanic ancestry.
@@saagisharon8595 I know. They wrecked a wonderful thing. If all of the illegals were deported there would be enough empty housing for every homeless American citizen. In that land of fantasy and imagination even the stupidest people get to govern. What do you expect from a state whose largest cash crop is a psychotropic drug that distorts their sense of reality? When I lived in California, it seemed to me that half the adult population was high on drugs and the other half was drunk on alcohol. At any supermarket a fifth of 80 proof generic vodka or gin cost $2. If you wanted to find someone after working hours, all you had to know was what bar their department in their company drank at.
Video summary: California is in serious trouble with homelessness, housing crisis, mass exodus, massive unsustained debt…
I’m giving it an 8.8/10!
Amazing video
One thing I like about economics explained is it can discuss any country's economic status😊
Could you do a similar analysis to São Paulo? The richest state in Brazil, Finance Capital of Latin America.
Awesome video
Minor quibble at 7:20, but as a Uni professor and Berkeley grad, Berkeley (founded 1868) is the original campus of the University of California system (it is not a separate thing, i.e., not "Berkeley and the University of California"). Technically UC San Francisco was founded a couple of years earlier, but it only has health and life science so is not a full-service university. The one you show as 'the University of California" is UCLA which was not founded until 1919. When I was a kid in California, if you said you were going to 'UC' (with no location modifier), you meant Berkeley and if you were going to the one in LA, you said UCLA.
Can confirm. I died alot trying to play the Oregon trail. Getting to the west coast was not easy
Can you do Chile next pleaseee, as it is a remarkable outlier in Latin America with many comparations to California per say, it even has the same climate in its capital Santiago. But ofc we have many problems still, but we have done many good things.
I'd love it so much to understand better how the status of Chilean economy is and specially how its perspectives are forward into the future.
Little typo at 4:12. Great vid!
An essay on the US East Coast Megalopolis (DC-Boston) would be interesting
It is interesting to see dutch disease as the diagnosis. I guess ultra high paying tech is a type of oil 😂
As a Californian tech worker - FYI to all those saying work from home DOOMS California - majority of tech companies are hybrid now, kind of hard to commute from another state twice a week
There's only one Hollywood in the world, and only one silicon valley. So you have big tech companies, some of the worlds biggest companies Google, Facebook, Apple, Disney, the movie studios, oh and they have oil. In decline now but for decades spun off lots of cash. 40 million educated people, cheap labor from down south, agriculture, universities, hospitals, manufacturing, hospitality, construction, research, military, just a lot of everything.