The Shifting Economics of California
HTML-код
- Опубликовано: 8 июн 2024
- Try out Trends today! Get your first 2 weeks for just $1! 👉 trends.co/ee
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
This is California, the Golden State and one of the largest economies in the world in its own right.
If California was counted as a sovereign nation it would be the fifth-largest in the world by GDP, with a 3.2 trillion dollar gross state product putting it just behind Germany and just ahead of India.
The state has a lot going for it, from the largest movie and technology centers in the world all the way to a surprisingly strong agricultural sector.
All of this has meant that the residents of California are on average doing very well for themselves, and one look around the wealthy enclaves of las Angeles and san Francisco would back this up.
Despite all of this however, the state is going through a period of economic turbulence.
The economic fallout of the coronavirus has hit the state’s economy particularly hard.
Major industries like tourism and media creation have ground to a complete halt having widespread knock-on implications throughout the economy hitting smaller vendors who were once reliant on these industries.
This bump in the road however was by no means the total undoing of the state.
California’s metrics before 2020 looked very strong, with low unemployment, solid growth, and booming industries, but there were still cracks forming.
The state is home to the largest population in the US but the industries that were truly driving wealth creation are famously bad at actually employing people.
This had led to a sharp increase in social issues like homelessness and crime.
All of these problems that were bubbling away under the surface have now been massively accelerated, so much so that many economists have predicted that the sun might be setting on the setting on the sunshine state.
It may sound like absurdist alarmism but it is a reality that shouldn’t be dismissed.
Remember in previous decades there was another economic region in the US riding high on the new growth industry of the age. but these days Detroit is not exactly seen as the bastion of prosperity it once was.
So could the same grim reality be in store for California? Well to answer this we need to look at a few key areas.
What made the state so prosperous before the 2020 downturn?
What were the underlying issues impacting the economy?
How will these issues be impacted by this decline?
#California #SiliconValley #Economics
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
This video was made possible by our Patreon community! ❤️
See new videos early, participate in exclusive Q&As, and more!
➡️ / economicsexplained
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
Enjoyed the video? Comment below! 💬
⭑ Subscribe to Economics Explained 👉 bit.ly/sub2ee
⭑ Enjoyed? Hit the like button! 👍
Q&A Streams on EEII (2nd channel) → / @economicsisepic
✉️ Business Enquiries → hello@economicsexplained.com
Follow EE on social media:
Twitter 🐦 → / economicsex
Facebook → / economicsex
Instagram → / economicsexplainedoffical
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
EE Fan Exclusive Offer:
Sign-up for Acorns! 👉 www.acorns.com/ee (after registration, Acorns will deposit $5 in your account to help you get started with investing!)
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
ECONOMICS EXPLAINED IS MADE POSSIBLE BY OUR PATREON COMMUNITY 👊🙏
Support EE by becoming a Patron today! 👉 / economicsexplained
The video you’re watching right now would not exist without the monthly support provided by our generous Patrons:
Morgon Goranson, Andy Potanin, Wicked Pilates, Tadeáš Ursíny, Logan, Angus Clydesdale, Michael G Harding, Hamad AL-Thani, Conrad Reuter, Tom Szuszai, Ryan Katz, Jack Doe, Igor Bazarny, Ronnie Henriksen, Irsal Mashhor, LT Marshall, Zara Armani, Bharath Chandra Sudheer, Dalton Flanagan, Andrew Harrison, Hispanidad, Michael Tan, Michael A. Dunn, Alex Gogan, Mariana Velasque, Bejomi, Sugga Daddy, Matthew Collinge, Kamar, Kekomod, Edward Flores, Brent Bohlken, Bobby Trusardi, Bryan Alvarez, EmptyMachine, Snuggle Boo Boo ThD, Christmas
California is not the sunshine state. That’s Florida. California is “The golden state”
You mean kill the Golden Goose State
For me Florida is first and foremost the "FLORIDAMAN" state.
(And it has Alligators!)
Don't forget-- South Dakota is also the Sunshine State! (Seriously).
California is now officially the Burnt State. Wish they would drive out the Democratic leaders who ran down the state to the ground with their insane policies.
@Herr Denker No its a US state. Unlike you and other cultist many people are still US loyalist.
"There is no such thing as an unsinkable ship, and when all the smart people start heading for the life rafts, it might be time to look out for icebergs ahead,"
-Economics Explained 2020
Give the person who wrote that line a raise. (or an award)
Hadn't realized that here was immediate danger of Ice on California's coast. This 'Climate Change' threat must have morphed into a fully comprehensive, globally potent, any phenomena that might be considered objectionable omnibus. That band-wagon seems to find room for clear-eyed rigorous serious scientists, relentlessly hardworking solution-seeking engineers and apocalyptic pyromanic Savonarolan cultists.
Big short term earners more likely to leave California recently. Love it.
Big ups Sean Ranklin.
more like water in the hold amirite
Before Detroit was big, Buffalo NY was a big deal. First city with street lights, home to big companies and a center for the likes of Edison. Now Buffalo is just scary.
Scary and covered with snow ❄️ 10 months a year 😆😜😂🤣😎
And so is Detroit, St. Louis, Chicago, Philadelphia, Baltimore, shall I keep going?
@@dodoboodrough6044 Detroit isn't nearly as bad as it was in the 90s.
Scranton PA "The Electric City" fell to ruin as well.
I love California, but the way it's run is disappointing to say the least
@eblman those were the golden years in California, that's my home, I live in Hawaii now, it's not the same anymore😥
@eblman 40s and 50s
The recall is in September. This is the start to turn-aroiund the state.
Hopefully
@Chounouryokusha I don't pray to potential fascists.
Man, Graham Stephan just peaked... being called a good egg by EE is without a doubt the highest honor one can receive!
Smashed the like button for Graham
@@ericnipas49 Smash it for the RUclips algorithm
@@economicsmatters7507 Destroyed the like button for Graham and the RUclips algorithm
And I JUST HAPPENED to bump into his channel a week ago! Oh RUclips
The Ripple effect is real ha-ha just watched that Graham vid :p
At 10 minutes it's like you were calling me out... More than doubled my pay moving to the bay area, lived frugally, now moving back to our home town to live like a king. My favorite analogy for the bay area is that it's like a bathroom... You go in, do your business, and get out.
pretty much the future I'm headed for. Graduating soon.
PEACE LOVE UNITY PROSPERITY CALM WISDOM HAPPINESS HONESTY
I hear it's also a literal bathroom
@@dwindeyer
Said, "I hear [the SF bay area] is a bathroom."
One flush should do it.
@Acme Fixer: No way you could get rid of all that sh*t with just one flush. More like a ten flusher aided by "liberal" (pardon my french) use of the plunger and maybe even a pipe snake.
I’m a native Californian, and the policies of the state combined with the ignorance for the average middle class have made my family move away after living in the state our whole lives. When you look at the quality of life compared to what you’re paying for it in the state, it’s so much easier to take your money elsewhere in the country and live substantially more comfortably. The sad thing is that California has become increasingly reliant on tech and high skill jobs, that it’s choked out the unskilled labor and lower paying jobs. The route California is going is unsustainable and is bound to collapse in on itself eventually.
@flip
You don't know what you're talking about.
People have been saying that it's going to be collapsing for decades and California has led the country in the right direction all along, and continues to lead, without collapsing. So we're glad you left. Good riddance to bad rubbish.
@@acmefixer1 Okay, enjoy the homelessness, drug addicts, insanely high real estate prices, and all that California has to offer.
@@acmefixer1 You want to re-read your statement and try again?
EE said it first, it would be the 5th largest economy in the world, meaning there are many moving parts that make this a reality. Something huge would have to happen to topple California’s economy.
@@jermangarcsomething big like a global pandemic?
Inflation is producing a slew of problems throughout the world, including food shortages, diesel and heating fuel shortages, and housing prices and financial market crash. It's all coming together, and by the end of the year, it may be a complete disaster.
This global collapse might end up being a part of us for a very long time and due to that fact any money you keep in cash or in a low-interest account declines in value each year. unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire. Personally I hired ‘’Nicole Ann Sabin’’ a financial advisor who I copy her trades and with a good 10%-15% in ROI monthly.
The crazy part is that advisors are probably outperforming the market and raising good returns. I will give this a look up, lucky i stumbled on this thread.
Printing money irresponsibly can cause inflation, but there are other major factors. Think about it, the USA has been printing money irresponsibly since the 1980s, which was 42 years ago, so how come it's only in 2022 when inflation
EE: California..."Sunshine State."
Florida: Am I a joke to you?
Entire Country: Yes.
Source: I'm a Floridian.
Hello Florida man🙋♂️
:(
He did say sunrise state
FLORIDA MAN!
Alligator man feeling cute now, may delete later
"DC is the richest city in the country. Think about it, what do they produce? Bad ideas?" - Andrew Yang
Which sadly hugged CNN
It's not even close to the the richest city, that would be New York city. DC is just the richest per capita of all the states/territories.
@@hellfun1337 well your close...see my identity photo?...the DC suburbs is where most of the wealthy carpetbaggers live...ie; N Virginia and Montgomery county, Maryland
My man quotes Andrew Yang! Alright! ✊
This is accurate. Politicians and Lobbyists make more money than Silicon Valley
Oracle just announced that they're moving to Texas.
Makes sense everyone in tech hates their guts over their api lawsuit. If it had gone their way the entire american tech industry would've left the country.
Texas is gonna become a swing state now.
Not so sure Texas be a smart move...lots of problems there as well.
I have to contact Oracle support regularly. It doesn't change anything, I still have to consider the India time zone.
@@raybin6873 Property taxes and cost of services are going to go through the roof there. Particularly since that is how they balance not having a state income tax.
The comparison of Detroit and Cali you made was spot on
Detroit failed because of the mass change in demographics over ww2, leading to a mass exodus of white people leading to the limbo it is in today.
@@ANSELAbitsxb i suppose that makes sense
True, Detroit with automotive industries and California with technologies industries are comparable. Fair warning.
The real difference is that California has a distinct geopolitical advantage over Detroit. California has access to the Pacific Ocean and... no one's ever taken a vacation to Detroit.
@@spencer8860 ya vacationing in California isn't all that with the pricing of things while you have to walk over homeless drug addicts and human feces.
California will face a mass exodus too if they don't do something about the absurd spending that increases taxes year after year
I'm surprised you didn't mention how impossible it is to build housing in San Francisco. In most of the city it's literally illegal to build anything above 3 stories precisely in order to drive up property prices, since that's what the homeowners vote for.
I'm also suprised you didn't mention the horrible infastructure investment in the state. Intentional blackouts aren't good for an economy, and California is the only state that does it.
Aren’t the intentional blackouts because of the record breaking heat in Death Valley?
The blackout are beacause we are losing important power infrastructures like the diablo canyon plant combined with record heat caused by climate change. But battery technology combined with green energy might save us when it gets efficient enough which is a matter of a few years if not very soon.
@@Ozzymandias493 Answer: don't shut down nuclear power plants.
@Joanne Woodward I'm stuck in Oakland (which is right outside SF) due to the pandemic, and I'm telling you in the vast majority of SF it is illegal to build anything above 3 stories. I'm sure you also know that in the 70s they passed rent controls, which saw a 90% reduction in new housing units built. They've mostly recovered from that, but it took a while, and they're still stuck with a housing deficit because of it.
On top of that due to state law, property taxes are extremely low in California. This creates very little incentive to use the land efficiently. Which further drives up prices.
@@Ozzymandias493 California's plan to go 100% renewable can't work without vast technological Improvement in the area of energy storage. Firstly in order to actually store all of their energy needs they need about 3 trillion dollars worth of batteries. And since lithium ion batteries only last about 10 years, that's a 3 trillion up front cost plus 300 billion per annum for maintenance. However this doesn't include the cost of actually heating the batteries during the winter (which you have to do because cold ruins lithium ion batteries).
Even if solar panels were literally free, we're still talking about at least a doubling of electricity costs for the citizens of California due to batteries alone. However this doesn't even consider the fact that they'd basically have to rebuild the power grid from scratch in order to accommodate this decentralized system. And since decentralized systems cost more than centralized ones in general, we are again talking about an increase in maintenance costs, although this one would be considerably smaller.
By the way, that's an optimistic estimate. I didn't account for solar panel costs, (which would need to be far greater than you would think on paper since you need to have enough to overproduce so that you have extra for when it's cloudy or winter).
Plus, just so we're clear. There physically isn't enough discovered lithium on earth to support America's power needs. So for California we have to take into account a distortion of the lithium market due to demand outstripping supply, which would drive up prices considerably.
Also, we don't recycle the lithium in batteries since it's vastly more expensive than mining. So since the projected demand for lithium is scheduled to vastly outstrip supply if we try to go all renewable, we can assume that the ultimate cost equilibrium would be similar to that of recycled lithium, which I would like to stress isn't cheap.
I suppose that we could bet on extraordinary technological development happenening in about 5 different fields to drop prices to competitive rates. But somehow that strikes me as a bad ideas which is likely to fail. Especially considering that California can't even manage it's current, and vastly cheaper and simpler grid.
I live in CA, it's both broken and beautiful.
Someone once compared it to a shitty, overpriced restaurant with a breathtaking view of incredible scenery
Far from beautiful, far far far from what it used to be & when it WAS beautiful.
Welcome to Rio de Janeiro.
Ye
It's like a hot girl with daddy issues.
11:35 "The slightest breeze could throw it off course," especially if you're in PG&E country and they shut off your power cuz it gets windy.
"Surprisingly strong agricultural sector"
Yes Stanford did play a huge role in forming the tech industry, but it’s influence actually started well before computer science was a thing. In the late 1800s and early 1900s it had one of the top electrical engineering programs in the nation. Stanford also promoted students forming companies while at Stanford, then walking away with them, rather than forcing those companies to give the university a large stake in the company as many other universities did at the time. This led to a very well established electronics industry existing in the Bay Area which naturally evolved into the mammoth tech industry we see there now
That is the key. Most other universities require sharing 50% of any intellectual property (patents) or business startups, created by graduate students or professors or staff. That's the deal killer. If they dropped it to 8%, they'll have far more ownership and will probably be wealthier.
Also the US military invested heavily in tech in the Bay Area. By the time the semiconductor was invented, the tech momentum was unstoppable with spin off companies spinning off yet more companies. HP and Atari unwittingly spun off a little computer company called Apple. Apple copied Xerox's GUI. Bill Gates copied Apple's GUI and made Windows, etc. etc.
100%, but on the flip side he undersold the geography's importance for Silicon Valley itself (a phrase he only said showing video of the peninsula...): Fairchild chose to launch Fairchild Semiconductor in Silicon Valley because of how much he enjoyed the weather while stationed there.
Look up Fred Terman and his role in leveraging Stanford's excellence in the creation of silicon valley. From the Wikipedia page: "He is widely credited (together with William Shockley) as being the father of Silicon Valley." en.wikipedia.org/wiki/Frederick_Terman
The SF Bay Area is fed by a string of Universities. They feed a diverse economy not just tech.
This whole video feels like a disgruntled Englishman whose country lost its place in the worlds largest economies.
Last time I was this early I was still crossing the country to dig up gold in San Francisco
last time i was this early this was still Mexico...
Last time I was this early, this meme didn’t exist
@33 SixtyNine ahh yes, The golden era of México
May it return some day
@33 SixtyNine last time I was this early, Spain wasn’t unified
They don’t even make movies out here anymore. It’s too expensive.
The state gives movie making companies huge tax discounts to keep them here.
Yes lots of movies done in Canada now.they don't have to pay the actors riesidules. And every one tryst to cut cost with non union help.its like anything else making big money one day then you find yourself with a 30 percent cut the next
For three decades Vancouver was consistently the cheaper option, but in recent years Atlanta is giving both Hollywood and Vancouver "a run for the money" re film making and television production.
The new California dream: to move to Texas
We don’t want to move to flat insect infected super hot Texas
@@jjgreek1 clearly you havent been. Nobodys forcing you. Stop feeling like anybody gives 2 shits where you are
They coming to Utah too. The Mormon stigma protected us from the Californians for so long but now they’re discovering that our cities are all 20 minutes away from world class skiing and we have a growing food and brewery scene.
Why? Other than cheaper housing, there’s no reason why I’d want to leave California for Texas.
@@fallibleangel9101 sorry i didnt see anybody here ask your opinion.
If you dont care about freedom you should stay put
9:41
"You can't run a city on computer code... Yet"
Don't give them any ideas EE
AWS Terraweave. Deploy *actual* infrastructure as code. Coming soon Spring 2049.
just give it some time, it will be...
*Cyberocracy, AI, Cloud, etc*
Singapore already has this covered 🤷♂️
It's going to happen, it's just a matter of when
A large amount of people have been leaving California well before 2020. The homelessness problem is insane. The state is probably one of the most beautiful places on earth, but the state and local governments are out of touch with common people.
As someone who's spent almost their entire life in CA, the Californian common people are out of touch with reality.
They don't see the connection between what they advocate and the costs associated with them, socially and economically.
The biggest problem is the common people that is the urban and youth population have continuously kept it a one party state and vote in the same inept political leadership every time they have also shown a complete refusal to realize that this party would rather not embrace any ideas beyond their progressive ideas wether it. Damages the quality of life of its residents or not
Or is it that the government is perfectly in touch with the common people and it is just that the common people now suck?
@@allenbird3652 this right here people just suck now
haha yea I remember that politician in fresno complained about people asking to lower the taxes on gasoline, she said "why don't you just buy an electric car" like everyone can just go out and buy a brand new car.... politicians have been so rich for so long that they don't know what its like out there for normal people.
haha i’m a whole foods worker in redwood city (in between sf and san jose right next to stanford, palo alto, and about 30 minutes from cupertino) and everything in this video is scarily true
I worked at the whole foods in Mountain View and I'm surprised he didn't even cover housing. In most cities like Palo Alto, Los Altos, Atherton, Redwood city, etc local governments have prevented literally any new housing construction because homeowners don't want property prices to go down and are against gentrification and urbanization. The same is true in SF and across the Bay Area and LA. California may have a high GDP per capita but when adjusted for the cost of living we literally rank as the poorest state.
Carona virus wasn’t the problem, it just finished the job.
Communism is the virus. Corona virus is just one way of it spreading and causing damage.
It probably is the mask to to cover up the truth
@@12vscience Oh yes so in your mind California (and America) is run by communists who intentionally destroy everything by reacting to the pandemic like fools. Blame game won't make things better.
@@anvilgattuso3952 Yeah, try defending a criminal in a court of law by telling the judge that playing the "blame game" won't make things better now. Blame can hold people accountable. And try taking on my statement. You presented a pretty weak rebuttal.
@@12vscience Blame game means getting the wrong people to blame, which of course will not make anything better.
The main cause of housing price increase is not the so called "gentrification" from Techies, its zoning laws and building restrictions. Most of the counties around the San Francisco Bay heavily restrict new developments. San Francisco itself virtually impossible to develop in. Between locals lobbying to prevent any old buildings from being demolished for high rises to the absurdly expensive permits keeps the supply low, if not actually decreasing.
Not true
They do that so the rental prices can go up (lower supply)
They being the capitalists and landlords who control government
@@seadkolasinac7220 More like NIMBY. Everyone thinks housing cost too much, but if you ask them whether they want their own house's value to go down, they'll say no. They'll also say no to a skyscraper next door, and complain whenever there's a new development, because it makes the traffic even worse.
Seriously though, living in Huntington Beach there has been SOOOO many attempts to prevent development of high density housing. It's ridiculous. Like they want to limit housing to inflate they're property values.
Californian here with a couple points of order.
It's understandable that you would gloss over California's "surprising" agriculture sector, being that it's a very small part of state GDP(GSP) but in doing so, you made some assumptions that were incorrect. You commented that California had "decent farm land" when in fact California has possibly the richest and most productive farm land in the entire world. California is the largest producer of food in the entire country, but has just 4% of the farm land. We have some crops that supply 100% of the countries supply, such as almonds, artichokes, dates, figs, kiwifruit etc. We are the largest almond producer in the world and the largest dairy producer in the country. This list goes on for a while, but the importance of California's agricultural sector to the entire world should not be understated.
Which leads me to a second point. You made the claim that Californian's on average are quite wealthy, even outside of the wealthy enclaves of San Francisco and Los Angeles, but this also is not true. The central valley, where all the farms are, are also home to what I might describe as micro-Detroits. Places like Fresno, Stockton, Merced, just about anywhere in the Central Valley has chronically high unemployment, extreme poverty and high crime. The landscape is poc-marked with abandoned canneries and thus, lost jobs. It's been this way for decades. In fact, in 2016 there was a ballot measure that attempted to split the state into 6 separate states, and the would-be-state that included the Central Valley would have become the poorest state in the entire country.
And finally, we are the Golden State, not the Sunshine State. The Sunshine State is Florida.
This. I live in Manteca between Stockton and Modesto. Lived in Stockton before. Really a bad area mostly everywhere you go. The central valley has really low GDP per capita when compared to other places. I remember reading that if the state was split up into 5 or 6 states, the central valley would be one of the poorest states with the highest poverty in the US.
Recently though things are looking like they are shifting, because the central valley is becoming a logistics hub. There are many warehouses being built in almost every city. Amazon has like 6 or 7 warehouses within a 30 mile radius from me. Mostly everyone in the central valley is now being employed by warehouses that offer a decent pay of $15+ per hour, higher than the minimum wage of $12
good luck keeping those farms that rely on water from the Colorado River; if this drought continues as forecast, outflows from Lake Mead will be forcibly cut by the feds in 2021.
@@bjkarana that's down south though in southern California. Northern California has the mountains on the east side of the state that give us plenty of water. Southern California really be leeching off our water supply, but since we're a whole state we have to help them. Honestly I hate Los Angeles considering they've fucked every surrounding city and area for water.
Living in Salinas CA, it's been nice. Not too bad.
@@KillerNoob2001 Nice spot to live!
Been living here for 4 years, here's my observation.
The cost of living is high and in most situations like this people should be leaving to avoid poverty and homelessness. Some do but unfortunately many don't, that's why so many people are broke or homeless. This reality forces the government to raise taxes to address their problems. Now with even higher cost of living those same people still refuse to leave. It creates a perpetual cycle of misery.
That has nothing to do with homelesness. 98 % is either addicts or mental desease suferers,most both.2% don't want to "be in a system".
Or.....they could cut spending and spend wisely
I would call that a vicious cycle, without end. You can not tax yoursekf yourself into prosperity
@@Yarrb53 under the current system of income tax, no you cannot. If we switched everything over to a consumption tax then we could slowly pull ourselves out of this hole. Unfortunately they would require short term deficit in state government which is illegal.
@T M Tran is a Vietnamese last name, you ignoramus.
EE: "California, the Sunshine State"
EE: "Stanford University"
5:54 is Flagler College... Florida.
Aside from computing, California is also home to what is possibly the largest part of the aerospace industry. Aerospace has been focused here for a long time, and has accumulated a huge amount of related infrastructure that would be expensive to move elsewhere.
Although some of the employees are able to work from home, a huge number of them are not, as someone is required on-site to actually build the aircraft, spacecraft, missiles, guidance systems, etc.
Agriculture too, huge money and impossible to move.
Not just aerospace, but arms manufacturing and oil as well. Cali is the fourth largest oil producer in america and a good chunk of the military industrial complex is located along the west coast.
Don't forget the logistics advantage of having one of the country's busiest shipping port once "the illness" calms down.
agreed, i felt this video focused too much on tech, which was sort of a bubble to begin with and everyone knew it. cali will be fine, and cheaper to live in.
And the aerospace industry in California has diminished in importance following the end of the Cold War.
There should be a negative rating for homeless rate.
Until you realize that most of those homeless are making $60k/yr and the rest of the country goes bug-eyed. At least with California weather, its plausible to sleep in your car without freezing to death. And your "home" can outrun the wildfires.
This guy Californias
@@altrag Most people who are making 60k can afford to rent a studio or one bedroom in most of the state except for maybe parts of L.A and the Bay Area and in those areas they can often afford to live with roommates or a partner. The issue is when you get children or student loans into the mix.
@@altrag If you want to live a good life and to own a nice home one day you need to find a way to make at least 400k in a dual income household... at least in the Bay Area
@@carlosalba9690 I lived out of my car for a while in san francisco, and i was making 60k. You're right, i COULD have afforded a studio or room, but i wasn't willing to spend all my money, just to have a place to rest my head with people i don't like(i'm originally from WV). So i had a nice spacious car, and spent my time as a nomad, it was both a beautiful and heartbreaking experience, C'est la vie en au California.
I moved out of California this year. My cost of living fell by 80% and my quality of life went up exponentially. At least if I get locked down where I'm at it is in a huge home surround by a big chunk of land. I could have been trapped in my artist loft in California like many of my friends - frankly, it has made many of them crazy. Funny, they are locked in but the homeless are free to roam around and do whatever they wish. Same with the looters.
When you only elect the same corrupt politicians for decades that's what happens
Such a strange virus... The only virus for which the only viable treatment is large doses of tyranny. Stop wearing the Mask people.
@@homertalk Why on earth is wearing masks an act of tyranny to your ppl? Is taking medicine an act of tyranny too?
@@anvilgattuso3952 He’s a Trump supporter, ofc he has that kind of logic lol
Just really hope you are not trying to Californicate the state where you moved to. Remember California got the way it did due to the politicians y’all voted in.
California had the highest poverty rate in the nation from 2017-2019, when adjusted for cost of living. So...they're not doing great and haven't been doing great for a while.
Silicon valley doesn't make the entire state over priced that has something to due with bad state and local government policies.
Very true
Democratic policies. And now there will be even more country wide, with Biden
It's also just simple economics, supply and demand. There are many more people chasing a limited commodity, housing. Not enough housing being built to meet demand and most residents support laws that limit even affordable or median price housing and apartments in their communities. $90K is barely making it in Calif for a family of four. Land use is generally low density, auto-driven development that covers the land in suburban, parking lot type development. Californians feel their state is crowded with people. It's crowded by cars more than anything. California like the rest of America needs better, humanistic land use and city, transportation and housing planning like is done more successful cities the world over. Get out of the 1950's and plan for a better, more sustainable urban environment. Politicians are just reacting badly to problems that need more thought and long term vision and creativity. These other states like Texas and Arizona will eventually be grappling with the same problems down the road as their population increases.
Probably even worse than California as there is not a lot of natural areas of note to protect. Very few federal lands ie; National and state parks, forests, natural preserves or unbuildable land like large mountain ranges. Texas could suburbanize itself from one end of the state to another if it were possible and there was enough water for everyone and enough money to build more highways. There are already some Texans who think the state is too crowded and are moving to places like Montana and Wyoming. There will quickly come a time when Texas will be "invading" other states and somewhere else will be the new future.
Has EE considered doing a video on the 1978 CA Proposition 13? While a little niche, surely a lot of places are trying to figure out how to address (if at all) gentrification and housing. I see a lot of comments for this video pointing to cost of housing, taxes, and government regulations, and would be interested to know how big an influence EE thinks that Prop 13 has on the housing market and the finances of CA as a whole?
California land taxes increases the closer you are to economic hubs
I'm a software engineer in the Bay Area moving to Texas on Sunday because of the high taxes and high cost of living here, so you're spot on with that
same thing happening to Texas now. overpriced and overcrowded. but without good views and nice weather.
@@mr.anderson1454 only Austin is like that. San Antonio and Houston are still affordable
@@kevinclass2010 where is affordable in San Antonio the Southside? Houston?
www.texastribune.org/2020/01/16/san-antonio-rent-rising-wages-arent/
www.texasmonthly.com/news/houston-affordability-transportation-costs/
You have to go back.
@@jezrielbaquir3237 No :)
You can thrive here. You just have to think outside the box. California has definitely changed over the years. I live in the suburbs outside of Los Angeles. Good thing I work from home.
The way this guy says “Californyaaa” 😂
I should point out that the inflated living costs you describe are the result of the government artificially constraining housing development, in order to maintain absurdly high property values for homeowners.
I thought it was just because California has better weather and in near the Coast which people keep saying.
@@runrafarunthebestintheworld None of that would matter if new development wasn't prevented, thus forcing property values and rent to keep rising unable to address increasing demand.
Its also because there are alot of rich chinese people buying homes across the ocean in china and their bidding wars are driving up costs to insane levels. But yes, strangling the market with regulations is also bad for cali
@@vakusdrake3224 don’t forget the people in California keep voting to not have apartment building in their neighborhood which means more houses which aren’t really affordable. They would be fine if they built more apartments
Not true - The city of Fremont has a spreadsheet showing ALL the vacant, buildable property on their web site - it is less than 5 pages long. Basically there is very little buildable land in the SF and LA areas and due to earthquakes, buildings can't go very high. BTW - tesla factory #1 is in Fremont. Basically too many people are chasing too little land.
6:30 that typing though....
stock footage
Yeah, noticed that 80-th level typing too.
*flops hand on keyboard*
Zybak! Come play Shadowlands!
@@kxmode bb
"California levies some of the highest income taxes in the nation"
Me laughing in Canadian: "Hahahaha eh."
American tax is different. It's complicated but Canada has much lower property tax than the US, albeit higher consumption taxes, higher basic exemptions, lower corporate tax and a concept of integration- that an individual should be in the same tax position whether they leave money in a corporation, or take as interest, dividends or wages.
America spends about half its budget on its military while Canada very much does not so it does benefit from a better allocation of resources.
@@Avenus112 I paid about 66% in tax last year and I made less than $100,000 CAD or about $80,000 US. Not all Canadian taxes are higher but the sum total is pretty ridiculous, especially compared to places like Texas.
@@tkirchmann aye, depending on how you stack up the numbers I paid around 35,000-40,000 on ~80k now plus 3000 deferred by RRSPs payable later plus tax on whatever income I realized from saving diligently while grasshoppers played their money away. But Canada is basically Elysium, however hard the socialist cultists work to tear it down so it's worth it depending on your goals.
I just resent paying other peoples' share of heaven in addition to my own.
@@Avenus112 I quit a 15 year career as a Senior Professional Electrical Engineer in Canada because financially it made no sense. That's 20 years of work including university. Going to be a government worker instead. Including pension I will make far more.
@@tkirchmann yeah its disgusting that you're better off voting yourself other peoples' value in place of creating it yourself but it's still rational.
What a crazy video. I saw my house and you basically just listed my life. Family moved there stayed 8 years got rich and loads of experience and just left to Texas because of taxes cost of living.
and then you vote blue and make texas a californian shithole.
Nice
The Eagles will be Sad to Know the Hotel California is closing, Such Lovely place (such lovely place)
you can check out any time of night but you can never leave
I especially enjoyed the mirrors on the ceiling and pink champagne on ice
PEACE LOVE UNITY PROSPERITY CALM WISDOM HAPPINESS HONESTY
Pretty sure that song is about being homeless
Did EE just start giving economies a "doug score"?
More like "Can't Afford Ya"
People pay good money just for the weather when AC was invented for a reason.
Lol
It’s overrated.
@@SarbjitSingh-oe6eb Also, personal experience only, consistently the worst people I've ever met.
I live at the center of Silicon Valley in Palo Alto and I'm surprised you didn't even cover housing. In most cities like Palo Alto, Los Altos, Atherton, Redwood city, etc local governments have prevented literally any new housing construction because homeowners don't want property prices to go down and are against gentrification and urbanization. The same is true in SF and across the Bay Area and LA, artificially raising the cost of housing to ridiculous heights and completely eliminating the gains in income Californians make for all but the highest earners. California may have a high GDP per capita but when adjusted for the cost of living we are literally rank as the poorest state in the US
It would be cool if you did this for every state and just have a separate ranking system.
@@economicsmatters7507 You should just make good content, don't try to leech off of the success of bigger youtubers in the genre.
Every state/province in every country?
There just isn't much to say for, for example, Arkansas.
Andrew H Illinois is the fifth biggest state economically
@@mirzaahmed6589 You must have never been to Arkansas and done business with Walmart. Arkansas is booming. talkbusiness.net/2020/05/bentonville-ranked-5th-fastest-growing-u-s-city-northwest-arkansas-cities-lead-growth-in-state/
So many problems in the U.S. revolve around real estate.
Real estate ownership is incentivized by tax codes, provided a bastion for generational wealth to stand entrenched behind.
Liberal lending practices drive up prices to be even less affordable.
Residential real estate transactions are usually facilitated by a seller's agent and a "buyer's" agent. However, both agents are typically paid commission as a percentage of sales price, so the "buyer's" agent's incentives are virtually indistinguishable from the seller's agent's incentives. Result: Unmitigated upward pressure on sale prices.
Laws require disclosure of known lead contamination and other problems before sale, so sellers remain willfully ignorant (or at least pretend to be) of the condition of their property, perpetuating a cycle of knowledge deficiency regarding our built environment.
NIMBYism preventing anything useful from ever getting built.
Building codes (rightfully) becoming more stringent regarding the construction of new buildings, but old buildings are "grandfathered in", creating a financial incentive to continue operating bad buildings instead of replacing them.
Homes are built to maximize the metrics used by realtors to approximate home value, with almost no thought given to actual quality.
The fact that outer-ring suburbs are so crappy in their layout, economics, environmental/financial sustainability, and demographics that they make the original "white flight" inner ring suburbs look like diverse urban utopias.
You forgot to mention how governments depend on property taxes to fund many services, like public schools, so they have a very good incentive to make sure home prices do no fall because if prices fall so does their revenue.
@@---un5mt I don't know. The schools thing is a problem, of course, but the assessed value of a property that taxes are paid based on is usually way lower than the market "value," at least where I live, so I honestly don't know if tax revenue correlates with the market price inflation I'm complaining about.
Long story short, ran out of other people's money by chasing them away
EE just describing my life here in the CA Central Valley without even being a resident here lol
One can't talk about the homeless in California without also mentioning that a lot of other states sends their homeless to California.
Why????
Most homeless come here because of the weather, but it starts getting cold like it was 50 years ago that might change.
Mike Fisher How do they trek across America?
@@Bobelponge123 either governments send them on buses or the same as my relatives did by wagon. Either way there getting here and at the same time California creates more too.
@@Bobelponge123 The other states pay for them, because the cost to ship them to CA is much less than providing the social services. The red states get rid of a social problem and can have lower taxes and fewer complaints. Plus the red states hate Californians.
Oh yeah, this is why the California high speed rail project exists, so people can live in cheap central California and work in expensive Silicon Valley or LA
(Glad to know this sparked a debate, Maybe Economics Explained could make a video about the economics of a mega project like this one)
The high speed rail system is extremely hard and costly project to implement.
Or we can create an Algorithm to disperse well paying businesses across the state to prevent agglomeration from happening.
High speed rail isn't meant to be a commuting option.
@@mirzaahmed6589 I was under the impression that the entire point of high speed rail was to be a commuting option.
@@mirzaahmed6589 That is the point of it bozo
“Californyarrrr”
Hey! North Dakota has the largest Microsoft campus outside of Washington and a booming drone and ag tech industry. And the cold keeps the riff raff out :)
I remember reading about a law firm based outside California that purchased a private jet, which it uses to fly its people in on a weekly/bi-weekly basis to consult with clients. It turns out the law firm is saving money this way on saved expenses such as lower salaries(their employees need less and are consequently paid less), rent and taxes.
I think you have reached a ludicrous point in terms of cost of living when such models become viable for businesses.
if the major cities of California had their own 21st century underground or metro the I don't think half as many people would be leaving. Traffic is always said to be one of the worst things about the state.
City Beautiful talks something about it (its like EE but for urbanism)
Los Angeles and San Francisco both have metro systems.
@@mattpytlak From Los Angeles I'd say it's pitiful considering such a sprawling city. Also, the city is super rich, so considering similar rich cities, the metro system is poopy (and smelly). Yeah it's super costly to expand it there, but they are shooting themselves in the foot by making things harder for infra-structure development besides local challenges.
I think the earthquakes and fault lines prevent a massive underground system to be built but Japan’s able to do it despite having the same problem 🤷♂️
WFH
Investing make up the top notch of hemisphere of the wealth. That's the more reason one should save and invest to secure profit and ensure success
You're right investing now should be at the top of every wise individuals list because in few years you'll be ecstatic with the decision you made now
True💯
For me Investments like stock and forex has become very profitable and very good options in securing a better financial life that's where I belong and survive from
Hey someone talked about researching and trading without professional guide.. huh I laugh you, because you will remain where you are or even make huge losses that will stop you from trading, this has been one of the biggest problem to new traders
Most people remain poor only because friends and relatives discouraged and advised them against investing in the Forex market while the wise ones kept investing and growing higher financialy
I left California years ago! Never looked back.....I won’t even vacation there anymore.
The price of a U-Haul from LA to Phoenix is ten times the price of a U-Haul from Phoenix to LA.
@@economicsmatters7507 please stop
*Edit:* it worked
JUST BUY A TRAILER AND SELL IT IN AZ
Yep, because cali is a ticking time bomb lol can't wait for the day it collapses.
I will probably get robbed just for leaving!
As a Californian, I have to say that this information is mostly accurate to Los Angeles/San Francisco/San Jose and cities within a 30 mile radius of them. Otherwise it’s not that bad.
25+ million people live in LA/SF/SJ and 30 miles around them.
@@tesla_autopilot Yeah but around 15 million people dont
@@tesla_autopilot Don't leave San Diego out
Not 30 miles out. 30 miles out and we have arrived at the rich suburban bubbles
Striker 50 Shh... don’t let them know about SD
"decent agriculture"? CA has the most productive ag land on the planet! What percentage of CA tech workers actually "move back to their home towns"? Most stay and Zoom enables them to move to less expensive areas, most in "the Golden State".
It may have the land but it doesn't have the water. That is a fact.
Farmers capture many times what they need. The occasional shortages are municipalities.
@@fullclipaudio and 75% of the water crisis is man-made
Without water all that "prime agricultural land" would be desert and it will return to being desert soon.
@@agricola the central valley it's pretty humid. You're thinking about Southern California
1:55 idk why, but this gave me chills, man
its popular because you can get rich, but it's also very expensive to live there, which drives people away.
in recent times the balance just shifted where more people are leaving, than coming in
Home prices in California is high, at first due to high wages. But in recent years, it's been kept high by greedy property owners fighting very hard to slow down or stop new developements.
It sucks that there are now townhomes in La Habra which used to be a low income, Latino city. Now even the bad places there are unaffordable.
@@joylindadichamounix there’s nowhere left to build in SoCal. Literally because of the geography and topography. So cities are building up, not out. You can either live in an expensive single family house, expensive apartment or townhouse, or go out to the desert..
@@LividCreature I know. It sucks.
@Gus McCrae There is a very big difference in life between doing well & being greedy. Would you like it if you were living somewhere & the rent was raised by 600%? It happens a lot. You might make good money but I don't think you love it so much that when others want more money it that much of it comes from you.
@Gus McCrae Have a good time paying that!
I just came from a recent RUclips describing California’s economic problems. The description and comments section made me come to this one for orientation.
Great video
Correction: Florida is called "Sunshine State" not Cali.
Florida rains way too much compared to California hence the reason they are called the sunshine state!
I don’t think he called it the sunshine state, he called it the golden state
They both are
@@KM-np6pz He did: ruclips.net/video/p2IVj_T6y84/видео.html
@@economicsmatters7507 eww get out of here. Nasty doo doo
Florida is the Sunshine State. I refuse to have us slandered by this misconception.
*Arizona would like a word with you*
I call California the overcast state.
There's hurricanes in Florida. It's barely sunny in that state. 😅
incredible!!! and hardwork, Anmol Singh does alot more to make sure such level of profit is generated... its just pure natural intuition
I don’t know why such a heavy focused is being placed on tech and the movie industry when it’s not event the biggest contributors to California’s GDP. Agriculture is the biggest industry but the other industries are definitely not doing as well right now.
Yea. He said "media production is halted". Thats a joke. The video game industry is making more money than ever and it was already larger than movies and music combined.
IT and Entertainment make up a combined 440 billion dollars, which is 25% of California's GDP. It's a big percentage. And i'm not sure where you're getting your stats from but agriculture only contributes 52 billion to the annual GDP so, no, it's not the biggest industry.
"...attracted Gold Diggers" 🤣Don't know why that made me laugh a bit.
"bitcoin miners"
I never really thought about California until I started seeing all those negative headlines of people feeling and tent cities and whatnot... Thank you for shedding some light on it!
They hate us cuz they can't be us 😌🌴
If you visit LA you will get to experience a 12 lane freeway completely packed with cars all weaving and driving aggressively. It’s terrifying and it’s an everyday all day occurrence there. The place has so manny people and so manny cars, it blows my mind. That alone is reason enough not to live there for me.
@@mylesgray3470 No wonder they fight so aggressively for cleaner emissions. Could you imagine how much worse the smog would be with that many vehicles?
@@mylesgray3470
Then use the METRO if you don't want to be stuck in traffic.
Plus! You can use the homeless transients to protect yourself against gangbangers, especially in MacArthur Park and Watts.
@@whathell6t Sadly public transit in the US is fairly unreliable and also dangerous. I lived in Germany a year without a car and transit was punctual and efficient. Safe enough to for kids to ride unattended. Only a few dangerous characters. Very different in the US. You need a car unless your in New York. Especially in a sprawled city like LA or Phoenix.
My family on my mom’s side has been here since 1867, and listening to my mom’s stories from the changes that happened when she was a kid during WWII and then what my own history has shown what Big Tech did to our hometown is appalling.
The "Sunshine State" is Florida, many people get that confused. California is the Golden State. Awesome video nonetheless! I live here and all of this is entirely true.
Even if industry leaves there will always be a demand to live in California because of the favorable climate. Until global warming puts California 6 feet deep under water I don't see a Detroit-like crash in the golden state.
Global warming, droughts, earthquakes, and wildfires could dramatically change all of that faster than you would think.
"Favorable" if the weather was nice all of the time i would eat a bullet from mundane depression
Right, unlike Detroit, CA has multiple large industries to pull from. Defense, agriculture, and tourism aren’t exactly jobs that can be done remotely.
@Ivan Chernyshev
Plus! A major Magnitude 8+ earthquake can't completely sink California. Look what happen at the 1906 San Francisco Earthquake, the economy rebounded.
The problem with Detroit is that it was completely reliant on one industry: the automobile industry. But California has many thriving industries: the movie industry, the tech industry, the biotech industry, the healthcare industry, the agriculture industry, etc. And it has some amazing colleges (Stanford, Berkeley, CalTech, UCSF, etc) to get highly educated people to keep driving innovation. Even if you look at just the Bay Area and the tech bubble, you'll see that it is not dominated by one or two big companies/employers like in other tech cities and is instead filled with many startups generating innovation. Detroit didn't have this. They had all their eggs in one basket, and it backfired. In addition, the progressive culture in Cal lends itself to a lot of innovation. And climate will still be better in California since climate change will cause maybe a month of fires in California, while climate change in a cold region like Detroit will cause extreme winters with excess frigidness and darkness for multiple months perhaps.
The bottom line is that California can be beautiful again, but IF AND ONLY IF the housing crisis is solved and traffic is improved. Even taxes aren't really an issue if you realize that we are actually paying a far lower proportion of taxes than most European countries. Thus, the one real problem is adequate housing and traffic systems for the population!
people have been moving away from California even before the pandemic in 2020.
Yeah exactly California had loads of problems before 2020
Since 1990
People were still moving into California during those times so people moving out wasn't as a big deal since it balances things out.
More people have been coming to California than have been moving away but okay.
@@NotGamersHD yeah I know I don’t get why California gets so much hate as it’s had one of the strongest economies among the states and also many of its problems are not unique to California same thing happens all across the Nation and Also each decade something new is always used to downplay California
Your spitting facts about remote work and its advantages for Tech workers. Many of my coworkers went back home to take advantage of COVID or are living abroad and saving some cash. But the general consensus is we'll have to go back to our offices when they open up again and a lot of people you talk to might also tell you 100% remote work is not for them. I personally wouldn't mind coming to the office 3 days out of 5
We also like being geographically close to other tech workers and tech companies for the advantages of finding new work quickly (when you work at Startups your employment status can change very fast) and getting referrals, ideas and learning about the latest industry knowledge from friends or people you might find in local cafes.
Even employees of FAANG enjoy close proximity cause they tend to hop from company to company every couple of years. Sometimes they are just waiting for there shares to vest other times they are given deals they cannot refuse.
They are moving 2 hours away and driving up prices in Sacramento.
"You can check out any time you like, but you can never leave"
@@economicsmatters7507 stop, get some help
*Virginia* is the state you can never leave for tax purposes. I keep hearing horror stories of former VA residents trying to change their state claims. CA by contrast is much more straightforward.
Two things that I want to share as a Californian: (1) even though we deserve the title more because we don't get hurricanes "The Sunshine State" is the official nickname for Florida, California is "The Golden State". (2) the major source of budgetary instability for the State of California is Prop 13 which crippled the State's ability to collect property taxes which fund education, infrastructure and social services www.sccassessor.org/index.php/faq/understanding-proposition-13 Before prop 13 California was in the top 5 for per student investment, 40 years later we're in the bottom 5. The inability of California to cultivate enough native tech workers is why we end up with so many tech grifter workers. Also the cost of housing is so high because NIMBYs block the development of new housing units.
Great post. Yes, you need to go a third of a million dollars into debt to become an engineer or a pharmacist etc and most tech jobs don't hire anyone over 40. Meanwhile, even in 2nd tier countries education is cheap or free and there's more social mobility in 2nd tier countries than in a supposedly 1st tier but really 3rd tier like the US has become.
And yet silicon valley has maintained an average of 32% commercial property vacancies over the past thirty years. They keep putting up new buildings and nobody wants to knock them down after they've gone up, even if they've gone vacant. That's one of major annoyances of housing in the bay area. Meanwhile, Apple knocks out a couple blocks of residential homes for their silly round building. Upside; at least the public can treat the campus as a park. Pffft. Gee. Thanks.
Yup prop 13 fucked everything up. It’s astounding how the state has even been able to manage after it.
The proper title now should be :
*"The wooden nickel state"*
The defense industry starting during WW2 and leading to the aerospace industry was a big contributor. We also have two major sea ports. BTW, most of our tech friends leave after a few years gathering experience.
California's problem is it's massive taxes and regulations. It costs an arm and a leg to live there because there are so many limits on construction. There are continual demands for higher wages but that just increases the cost for everyone outside if those industries or job classes. State income and sales taxes are some of the highest in the nation. The poor get some welfare benefits and the very rich can afford the extra cost but the middle class leave for places with a lower cost of living. The middle class is fleeing but the rest of the people there keep voting for the same policies (ever more taxes and regulations - even rent control that every economist will tell you drives supply down) that have created the high cost of living.
@Untergrundmaschine , wouldn't you be more concerned about what percentage of your income gets taxed?
@Untergrundmaschine , here's evidence. And I'm not a Republican, lol!
www.thecentersquare.com/california/report-california-most-regulated-state-in-the-u-s/article_d70b9f9e-41f2-11ea-aabb-434333bd0e6d.html
wallethub.com/edu/states-with-highest-lowest-tax-burden/20494
@Untergrundmaschine , this doesn't negate the fact that California has more regulations than all other states and is 13th highest in tax burdens. Plus, your own link shows that California is pretty high in the ranks of spending to GDP. Thanks for further pointing out how large the government of California is.
@Untergrundmaschine , the link i sent you includes all forms of taxation, not just income tax. And Wyoming is #47 for taxation so the states income must be coming from something other than income, sales, and property taxes. Maybe resources like oil and timber? This would also explain why Alaska is #1 for spending to GDP and #50 for tax burden.
@Untergrundmaschine, the link I posted is "total tax burden" which includes income, sales and property taxes. Don't know what you think could be missing. This link you are now sending is debt to GDP, not tax to GDP. I think we've exhausted this discussion. I'll not bother to further reply as I think the point has been made for any rational people reading this thread.
The great porn rush is still going strong.
And the last time anyone paid money to see porn was...?
A lot is being shot in LV due to the prophylactic law that was/still is in place
@@MensaCramps about a second ago on onlyfans
Years of Democrat running and HUGE taxes compared to other States play a large role too.
The reason why California and states like New York have those high taxes is cuz if they don't poorer would go bankrupt and it will lose a lot of its industry. for example I live in New York and one of the biggest industries before the pandemic was giving loans to poor states like Mississippi and Louisiana. It is one of the main reasons why the state cant lower its taxes. But still it's not really that it's democratic rule it's just that there economies are to reliant on one or two industries in the state cater too much to that industry . But it could be an advantage for example the 10 best states to live in the country 8 are democratic with nebraska and utah being the only republican States.
@@shaddythewiz3836 that last point. The "10 best states to live in" is a highly subjective topic. Every state has it's advantages and disadvantages. I mean, some of the most "prosperous" states have record rates of homelessness, poverty and crime. Not everyone likes to look out of their expensive penthouse onto the bums on the street. The rest of it makes sense though.
@@shaddythewiz3836 The reason states like NYC and CA charge so much taxes is because they can... Kentucky can't charge a high tax rate because people would leave to anywhere else. Those states have value as a state to leverage against creating taxes, sure a movie company could setup somewhere else with less taxes but they would have a hard time doing a lot of business that would make it not worth the tax avoidance. Because that gap exists they can charge more taxes...
Texas has high property taxes to compensate for the lack of income taxes. It's 2% of your property value. Effectively you end up renting your house from the state.
Well said !!!!
16:55 LOL! "unless you have Trends!" I saw that one coming. :-p
One thing to add: Over the last 150 years in US history "move West" has been a common theme and one of the reasons California thrived. It's a place that allows for new ways of thinking and breaking away from the mold. If it continues to be this way it will still stay ahead of the curve by promoting forward-thinking which will allow for large world-changing companies to prosper. Fingers crossed.
So spot on. I grew up in the bay and the thing I always loved about this place was the entrepreneurial spirit and openness to new thinking. It is unique to anywhere else on the planet in that regard. It makes me sad that the housing crisis and natural disasters are making this place so hard to live in.
lol are you saying left and right politics can be actually drawn to map with west=left and right=east coast? that would be funny.
@@paulpierantozzi it has been at least 150 years.... very very long time.
@@effexon Did you read what he said? His comment didn't mention politics
@@effexon 150 years since what?
I left 10 months ago
Even before corona virus...
pro
Freeeedooom!
“The Sunshine State” is Florida, not California.
More like gator state 😅
I lived in Florida....didn't like it. Moved out in 2019.
@@raybin6873 yeah, I did too. Hated it! Too many weirdos.
@@RobertMadden
You got that right! My sister retired as a college professor there....she says decent social life is nonexistent...lots of poorly educated people there...plenty of alcoholics.
@@raybin6873 well, it hasn’t changed then🤣
"it's one of those events you don't see happening until it is too late"
I'm pretty sure everyone outside of California saw this coming.
Can you please put the videos with captions as I am from India and I am not able to apprehend your accent very clearly but I love your content 😊👍🙏
+
use the closed captions. the auto-generate does a good enough job.
Use the menu and turn on cc
*New video by Economics Explained
me: yess my fixxx
@@economicsmatters7507 I just subbed ill give em a shot :)
This is good content. Can you do a similar video on every U.S. state?
You forgot to mention that the housing shortage in California has much more to do with cumbersome regulations and local opposition from home owners to any new development than transient populations of tech workers. Then everyone complains that all that gets built are luxury condos. I wonder why? If you block most potentially affordable developments and then tie up developers in red tape and high regulatory costs, then that is all that will be built. Meanwhile, sensible people and businesses are moving to places where basic housing doesn't cost $700,000.
I've lived in LA my whole 21 years of life and don't think I'll ever move 🤙
Stay strong.
@Dan Ryan honestly 😂
For people that can afford an LA lifestyle, LA is great.
Have you ever been anywhere else and stayed long enough to become comfortable? If you haven’t done so then try it. I like you grew up in LA and thought it was great but was lucky enough to be drafted, from that experience I learned that there are many better places to live, both in the USA and internationally. I haven’t lived in LA in 40 years and don’t want to return.
@@skyboomer2127 I was thinking maybe some day in the future to move to Las Vegas since it's not too far but I can't stand the heat 😂
This is super interesting.
I work as a software engineer for a California software company, but I live in Canada. The company started with most workers in California up to almost 100 employees, but now, probably a third of the company lives here near my office in Canada, there's another office in the country too, Canada now makes up probably half the companies employees.
I learned a lot from this video. I've asked my family members to watch it even though they live in the UK (I moved to California in 2005). Maybe they'll help me make decisions about my life here.
The rich stay rich by spending like the poor and investing without stopping then the poor stay poor by spending like the rich yet not investing like the rich
You're right sir, Thanks for introducing me to Mr Roland Ross
People are scared of investing because of the high rate of scam in the business
Yes I'm a living testimony of Mr Roland Ross
Mr Roland Ross is obviously the best, I invested $3,000 and he made profit of $28,000 for me just in 15days
He has made success easier than I thought, Sometimes I wonder if he uses magical powers to trade
5:55 is not Stanford. That's Flagler college in St. Augustine Florida. I'm not a stickler, it's just my hometown!
As a resident, I often reflect on California's economic history in the metaphorical sense. What were the drivers of this economy? Some themes:
Highly driven and ambitious people - the opportunities create a self-selection of people willing to move here from the cream of the crop across the world.
A vast rich & fertile land - it is the most fascinating how the Spaniards and then the Mexicans failed to capitalize off of the rich potential in natural and agricultural resources of California. The Gold Rush started a year after Mexico ceded California to the USA
Creative & Innovative - The types of industries that have thrived all share a creative or innovative trait. Whether it is art, storytelling, or engineering. Other parts of the USA are better operationalizing, cultivating, "managing", or scaling industries (but not to say innovation doesn't happen elsewhere)
Unconventional, Reinvention, & "Disrupting" - part of it's cultural legacy of being part of the "Wild West" - a fierce independence from convention.
Culturally Diverse - The mix of Asian and Latin influences give great access to new ideas and inspirations. However, California wasn't exactly "tolerant" in its history.
Here is a more complete list of specific economic drivers, from which I derive these themes:
Gold rush, industrial-scale farming of the Central Valley, natural resources (timber & mining), international trade with Asia (transportation, logistics), unlocking the potential of water (hydroelectricity & irrigation), oil boom, media & entertainment industry, world-class "new" universities, aerospace, biotech & pharmaceuticals, tech industry.
I wonder what will be "disrupted" next? Currency and finance? Does California have the ingredients to be at the center of the new wave?
Its a Shame that the cream of the crop flock to such a crappy place. Most have no idea the foundation of sand beneath their feet.
Background piano is California Dreaming. Brilliant!
Looking forward to your video on the economics of Hollywood :3