The Ruthless Rise & Fall of California

California’s economy is massive. If it was an independent nation it would be the fifth largest by GDP. In the Span of 150 years California went from a far flung Mexican territory with only 150,000 people, to arguably the most influential piece of land on the entire earth. Yet today it has the highest poverty rate when adjusted for cost of living, thousands of large companies are moving out, and for the first time in its history it lost population in 2020. How did California become so incredibly rich, just to become unaffordable for a vast majority of its population?

Contents of this video
00:00 - California’s Economy
01:21 - California Exodus
04:20 - The Gold Rush
07:24 - How California Became Rich
12:26 - California's Cost of Living
14:37 - Worsening Educational System
15:35 - Unemployment & Inequality
16:47 - Taxes & Business environment
18:03 - Business Exodus
19:29 - The Death of the California Dream

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Sources used

Not so golden after all by Larry N. Gerston

#CaliforniasEconomy #CaliforniaHistory #CaliforniaMidterms #Economics #CasualScholar

[plr]

I'm from San Diego, born and raised. The only reason I can continue to live in CA is because my parents bought 2 properties while real estate was reasonably priced. For example, my dad bought a 3 bedroom condo for 30k in '74. Now that same property is worth about 600k. To put that in perspective, 30k was a little above my dad's annual salary when he bought it. 600k is like 8-9 times my annual salary. I inherited the place and never had to pay any of that. I'm now paying $400 in HOA fees a month, and like $50 a month in property tax, and another $150 in utilities. But that's it. $600 a month for housing costs. I consider myself very lucky. So many people out there struggling to make ends meet because of living costs.

[andrew.alonzo]

Back in the day, when I purchased my first home to live-in; that was San Fransico in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[MrARock]

It's fascinating that Thomas Edison inadvertently created the Hollywood film mega-industry simply by living in New York and being litigious.

[SophiaChristian-soof]

The effects of the downturn are beginning to sink in. People are being impacted by the long-term decline in property prices and the housing market. I recently sold my house in the California area, and I want to invest my lump-sum profit in the stock market before prices start to rise again. Is now the right moment to buy or not?

[thechosenone]

Isn't it ironic how California created the very technology that enabled businesses and tech workers to move out of California?

[ap]

I'm in LA and what I'm seeing is the growth of upper middle class and lower class jobs. This is bringing in more people that make $125k+ while also attracting people making less than $50k. The average neighborhoods are becoming either more affluent or poor. The "middle class" can no longer sustain the lifestyle they have had and are moving to other states. This trend is dividing the community as you are either well off or barely getting by.

[ar-x]

The problem with being from California is that the weather makes you too comfortable to want to move anywhere else. You either have to move some place that’s too cold, too hot, too humid, too rainy or abroad.

[odyshopody]

A little side note. There's an area just south of San Francisco called Candlestick Point, that's where the Forty Niner's used to play football, at Candlestick Park. That area got it's name from what you mentioned at the beginning of your video about sailors abandoning their ship to look for gold. Their ships would be towed to that part of the bay and burned, as the ships sank with their masts on fire it looked like candlesticks, so that's what the locals began referring it to, Candlestick Point.

[tmdwu]

Back in the day of Imperial Russia's pacific merchant fleet had huge amount of Finnish sailors, they were very well known around California ports. At their peak, some 20-25% of sailors in San Fransisco were Finns.

[Laysha]

I was born and raised in California, San Diego area, and I joined the military since I am first generation and realized I had no way to pay for college besides loans. I was stationed in Kansas and it is so cheap out here even though I want to move back home the cost of living in CA completely demoralizes me in wanting to do so. Im actually trying to convince my close family to move out here as well.

[Priinsu]

I just moved back to San Diego because of my job and I had almost forgotten how poorly designed and managed the housing and cost of living situation is. A one bedroom apartment can run $2300-$2600+/per month.

[patrickbeger]

That awkward moment when you realize something as boring as zoning / construction laws are largely responsible for a vicious cycle of economic imploding.

[jimmyhuesandthehouserocker]

Back in Beach Boy days, a typical LA apartment rented for only like $250 a month in today's money. LA was once known for cheap rent, or so I've been told.

[mattr]

Lived in CA all my life, I plan on moving in a couple years. It's just ridiculous the cost of everything here, groceries and gas are through the roof. I got priced out of my rent a few months ago

I'm gonna miss the state I won't lie. There's plenty of good things about it. But the lawmakers just will never learn

[Labyrinth]

James Marshall could have been the richest man in the world had he kept quiet about his find.

[issacmba]

This may be the golden age of educational media. There’s been a rise of independent, no-budget, high quality, producers like this channel and others on YouTube. Hard to believe this is practically free. Great job bro 😎

[jaredspencer]

Lots of Californians think about moving. But one question keeps them from doing so: where to? When you're from California, or used to living there, moving anywhere else seems worse than trying to wait out the housing crisis. I've had this conversation with literally every one of my friends. They want to move, but can't think of where they'd go that they wouldn't regret. I recently left San Francisco and moved abroad. I'd love to come back in 10-20 years if they can bring housing costs back under control. California still has so much going for it.

[scott]

The development of the Panama Canal also had a massive impact on the development of California

[stratoplayer]

I'm a California-native who moved out of there almost 10 years ago. While I have fond memories growing up there, I just can't stomach living over there ever again. There would have to be a huge incentive for me to even consider moving back there even if the cost and quality of living there became manageable.

[jrileycain]

I lived in San Diego for decades. I never dreamed of living anywhere else. I loved it there. I owned a house in Serra Mesa. In 2016 we rented it out and moved to Ecuador for a few years. Whenever we'd come back to visit I saw SD with fresh eyes. It's become Los Ageles-ized. If you don't live within one mile from the ocean the weather is like Phoenix by the sea. It's a coastal desert. It's massive high-speed aggressive freeway traffic and strip malls. Great Mexican food, though. In 2018 I sold my crappy little tract house shack for way more than it was actually worth, moved to New Orleans--paid cash for 2 houses (with money left over)-rent one out for income and live here happily ever after. New Orleans is like living in a 3rd world country but there's way more freedom and the people are relaxed and friendly. If you're uber-rich living in San Diego/La Jolla is no problem. But for average middle class folk it's becoming impossible.