Everyone seems to be California dreaming these days. Much of America, particularly its red parts, see California as a hopeless dystopia best understood as everything the nation should avoid. Meanwhile, for the progressive Left and many around Joe Biden, California is the Mecca, a great role model being attacked by jealous reactionaries.
As in so many cases, both sides have a piece of the truth.
To be sure, despite the many well-documented problems, California still has an impressive economy that will shape the country’s and the world’s economic future—through the entertainment, space, critical software and social media industries and international trade. A spirit of experimentation and innovation persists across the state and fuels this industriousness.
Sadly, along with new technical and cultural innovations, the everyday reality outside the glamor zone presents a prospect as cautionary as it is aspirational, a harbinger of innovation marred by massive social inequality.
For the parade of startups and youthful billionaires coexists with the country’s highest cost-of-living adjusted poverty rate, the largest gap between the middle class and the rich, the most crowded housing and second lowest homeownership rate.
California once projected the essence of our common national dream. Today, its leaders increasingly see it as a kind of post-America, with its own racial, gender and environmental standards. It’s an approach welcome in Malibu or Palo Alto, but most Californians are left coping with the nation’s worst homeless crisis and rising crime. A ride on Highway 33 through the impoverished expanses of the Central Valley reveals a vast and bleak landscape of abandoned cars, dilapidated houses and threadbare shops.
The pandemic has accelerated California’s class divide, vastly enriching the tech elite and financial oligarchs but leaving California with the nation’s highest unemployment rate and making it the second hardest place to find a job.
Silicon Valley was once among the most egalitarian regions in the nation; today, as it has become more aggressively woke and taken to massively funding progressive Democrats, it has become one of the most segregated places in the country, what CityLab has described as “a region of segregated innovation.”
Times may be flush for venture capitalists and serial tech entrepreneurs, but they’re not so great for those who clean their own buildings and work in the food service industry. Nearly 30 percent of Silicon Valley’s residents rely on public or private financial assistance. African Americans and Latinos have seen declines in real incomes. The one percent pay roughly half of the state’s income tax and windfalls from IPOs fund the state’s ultra-generous pensions and an ever expanding welfare state—and yet, none of this creates good jobs.