In the minds of most progressives, as well as some horrified conservatives, California is the harbinger of America’s future. Governor Gavin Newsom sees his state as a model, claiming California is “the envy of the world” and the great bastion of social justice. “Unlike the Washington plutocracy,” he boasts, “California isn’t satisfied serving a powerful few on one side of the velvet rope.” Read more
By: Brian C. Anderson
On: City Journal’s 10 Blocks podcast
Joel Kotkin joins Brian Anderson to discuss California’s “increasingly feudal” political and economic order, the impact of the Covid-19 lockdown on the state’s lower- and middle-class residents, what Joe Biden’s selection of Senator Kamala Harris means for the Democratic ticket and U.S. politics, and Kotkin’s new book—The Coming of Neo-Feudalism: A Warning to the Global Middle Class. Read more
No state wears its multicultural veneer more ostentatiously than California. The Golden State’s leaders believe that they lead a progressive paradise, ushering in what theorists Laura Tyson and Lenny Mendonca call “a new progressive era.” Others see California as deserving of nationhood; it reflects, as a New York Times columnist put it, “the shared values of our increasingly tolerant and pluralistic society.”
In response to the brutal killing of George Floyd in Minneapolis, Los Angeles mayor Eric Garcetti announced plans to defund the police—a move applauded by Senator Kamala Harris, a prospective Democratic vice presidential candidate, despite the city’s steep rise in homicides. San Francisco mayor London Breed wants to do the same in her increasingly crime-ridden, disordered city. This follows state attorney general Xavier Becerra’s numerous immigration-related lawsuits against the Trump administration, even as his state has become a sanctuary for illegal immigrants—complete with driver’s licenses for some 1 million and free health care.
Despite these progressive intentions, Hispanics and African-Americans—some 45 percent of California’s total population—fare worse in the state than almost anywhere nationwide. Based on cost-of-living estimates from the U.S. Census Bureau, 28 percent of California’s African-Americans live in poverty, compared with 22 percent nationally. Fully one-third of Latinos, now the state’s largest ethnic group, live in poverty, compared with 21 percent outside the state. “For Latinos,” notes longtime political consultant Mike Madrid, “the California Dream is becoming an unattainable fantasy.”
Since 1990, Los Angeles’s black share of the population has dropped in half. In San Francisco, blacks constitute barely 5 percent of the population, down from 13 percent four decades ago. As a recent University of California at Berkeley poll indicates, 58 percent of African-Americans express interest in leaving the state—more than any ethnic group—while 45 percent of Asians and Latinos are also considering moving out. These residents may appreciate California’s celebration of diversity, but they find the state increasingly inhospitable to their needs and those of their families.
More than 30 years ago, the Population Reference Bureau predicted that California was creating a two-tier economy, with a more affluent white and Asian population and a largely poor Latino and African-American class. Rather than find ways to increase opportunity for blue-collar workers, the state imposed strict business regulations that drove an exodus of the industries—notably, manufacturing and middle-management service jobs—that historically provided gateways to the middle class for minorities. As a recent Chapman University study reveals, California is the worst state in the U.S. when it comes to creating middle-class jobs; it tops the nation in creating below-average and low-paying jobs.
Following Floyd’s death, even environmental groups like the Sierra Club issued bold proclamations against racism, but they still push policies that, in the name of fighting climate change, only lead to higher energy and housing costs, which hurt the aspirational poor. Many businesses, including small firms, must convert from cheap natural gas to expensive, green-generated electricity, a policy adamantly opposed by the state’s African-American, Latino, and Asian-Pacific chambers of commerce.
Meantime, California’s strict Covid-19 lockdown policies, imposed by a well-compensated (and still-employed) public sector, have imperiled small firms. “There’s a sense that there was major discrimination against local small businesses,” said Armen Ross, who runs the 200-member Crenshaw Chamber of Commerce in South Los Angeles. “They allowed Target and Costco to stay open while they were closed. Many mom-and-pops may never come back.” Many restaurants—roughly 60 percent are minority-owned—may never recover, notes the California Restaurant Association.
Read the rest of this piece at City Journal.
Joel Kotkin is the author of the just-released book The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Presidential Fellow in Urban Futures at Chapman University and Executive Director for Urban Reform Institute — formerly the Center for Opportunity Urbanism. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin
On July 14, Joel & Marshall held a Virtual Town Hall, discussing California’s inequality crisis and how changes in state policy could restore the middle class.
In this new report, Beyond Feudalism: A Strategy to Restore California’s Middle Class, Joel Kotkin and Marshall Toplansky examine how California has drifted toward feudalism, and how it can restore upward mobility for middle and working-class citizens. An excerpt from the report follows below:
“We are the modern equivalent of the ancient city-states of Athens and Sparta. California has the ideas of Athens and the power of Sparta. Not only can we lead California into the future, we can show the nation and the world how to get there.”
Arnold Schwarzenegger, January 2007
California Preening: A State Of Delusion
California has always been a state where excess flourished, conscious of its trend-setting role as a world-leading innovator in technology, economics and the arts. For much of the past century, it also helped create a new model for middle and working-class upward mobility while addressing racial, gender and environmental issues well in advance of the rest of the country. Read more
For all the persistent rhetoric from California’s leaders about this state being on the cutting edge of social and racial justice, the reality on the ground is far grimmer.
Our new report on the state of California’s middle class shows a lurch toward a society in which power and money are increasingly concentrated and where upward mobility is constrained, amid shocking levels of poverty. Most of this data doesn’t even account for the recent effect of the coronavirus outbreak, which has pushed the state’s unemployment rate to 15.5%, higher than the nationwide rate of 14.7%. Read more
Join us for a presentation on Kotkin and Toplanksky’s research brief titled California Feudalism: A Strategy to Restore California’s Middle Class, discussing inequality in California and how a change in state policy could restore our state’s dream. Kotkin and Toplansky will be joined by distinguished panelists for commentary and Q & A. The event will be moderated by Lisa Sparks Dean of the School of Communication at Chapman University. Read more
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