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.
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
From the beginning, California promised much. While yet barely a name on the map, it entered American awareness as a symbol of renewal. It was a final frontier: of geography and of expectation.
—Kevin Starr, Americans and the California Dream: 1850–1915
In the eyes of both those who live here and those who come to observe, California has long stood out as the beacon for a better future. Progressive writers Peter Leyden and Ruy Teixeira suggested last year that our state is in the vanguard of every positive trend, from racial diversity and environmentalism to policing gender roles. “California,” they said in a post on Medium, “is the future of American politics.”
For most people in this locked-down, riot-scarred world, the future beckons unpleasantly. There is a growing sense that, economically, the 2020s may look more like the 1930s than some halcyon post-industrial future. “Dark days ahead,” suggests The Week. “This is what the end of the end of history looks like.”
Yet, beyond the depressing statistics, the deserted malls, the looted or abandoned Main Streets, lies the potential to use the pandemic to create the impetus for better, more sustainable and family-centric communities. This is not just some return — imagined from the security of the high punditry — to a “plainer,” more noble past but actual, meaningful improvements in our daily lives, made largely possible by technology. Read more
Whatever the medical benefits achieved from the prolonged coronavirus lockdown, California’s small business community will be suffering severe symptoms, likely for decades to come. The state’s small entrepreneurs, particularly in poorer areas, face major readjustments and perhaps obliteration, a situation further complicated for some by damage stemming from the protests over the killing of George Floyd.
These small firms were already in parlous shape before COVID-19. Despite the immense wealth generated in Silicon Valley and among real estate speculators and the entertainment elite, most of the state’s growth in recent years was in low-end service businesses. As a result, 80% of all jobs created in the state over the past decade paid less than the state median income and half of those well under $40,000, according to Marshall Toplansky, a researcher at Chapman University. Read more
“Small-scale commercial production is, every moment of every day, giving birth spontaneously to capitalism and the bourgeoisie…wherever there is small business and freedom of trade, capitalism appears.”— V.I. Lenin
A great connoisseur as well as sworn enemy of the free market, Vladimir Lenin might smile a bit if he witnessed what is now happening to small businesses in the current Covid-19 pandemic. Even before, America was experiencing falling rates of business formation as well as declining homeownership, particularly among the young. The share of GDP represented by small firms had dropped from 50 to 45% since the 1990s.
Like the rest of the country, although far less than New York, California is suffering through the Covid-19 crisis. But in California, the pandemic seems likely to give the state’s political and corporate elites a new license to increase their dominion while continuing to keep the middle and working classes down.
Perhaps nothing spells the triumph of California’s progressive oligarchy more than Governor Gavin Newsom’s decision to off-load the state’s recovery strategy to a task force co-chaired by hedge-fund billionaire Tom Steyer. A recently failed presidential candidate, Steyer stands as a progressive funder. He is as zealous as he is rich. Steyer sometimes even found the policies adopted by climate-obsessed former governor Jerry Brown not extreme enough for his tastes. Read more
For nearly a century, Los Angeles’ urban form has infuriated urbanists who prefer a more concentrated model built around a single central core.
Yet, in the COVID-19 pandemic, our much-maligned dispersed urban pattern has proven a major asset. Los Angeles and its surrounding suburbs have had a considerable number of cases, but overall this highly diverse, globally engaged region has managed to keep rates of infection well below that of dense, transit-dependent New York City.
As of April 24, Los Angeles County, with nearly 2 million more residents than the five boroughs, had 850 coronavirus-related deaths compared with 16,646 in New York City. Read more
California has, at least to date, escaped the worst effects of Covid-19. Despite predictions by Governor Gavin Newsom that upward of 25 million Californians would become infected, after six weeks of lockdown the state, despite having twice as many residents as New York, has suffered only one-eighth the number of cases and considerably less than one-tenth the fatalities. The numbers could worsen, but if the rate of growth of infection slows, as is now occurring even in New York, the Golden State may well avoid the worst-case scenario. Read more
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