12/21/2024

The Hollowing-Out of the California Dream

Its political leaders and a credulous national media present California as the “woke” state, creating an economically just, post-racial reality. Yet in terms of opportunity, California is evolving into something more like apartheid South Africa or the pre-civil rights South. California simply does not measure up in delivering educational attainment, income growth, homeownership, and social mobility for traditionally disadvantaged minorities. All this bodes ill for a state already three-fifths non-white and trending further in that direction in the years ahead. In the past decade, the state has added 1.8 million Latinos, who will account by 2060 for almost half the state’s population. The black population has plateaued, while the number of white Californians is down some 700,000 over the past decade.

Minorities and immigrants have brought much entrepreneurial energy and a powerful work ethic to California. Yet, to a remarkable extent, their efforts have reaped only meager returns during California’s recent boom. California, suggests gubernatorial candidate and environmental activist Michael Shellenberger, is not “the most progressive state” but “the most racist” one. Chapman University reports that 28 percent of California’s blacks are impoverished, compared with 22 percent nationally. Fully one-third of California Latinos—now the state’s largest ethnic group—live in poverty, compared with 21 percent outside the state. Half of Latino households earn under $50,000 annually, which, in a high-cost state, means that they barely make enough to make ends meet. Over two-thirds of non-citizen Latinos, the group most loudly defended by the state’s progressive leadership, live at or below the poverty line, according to a recent United Way study.

This stagnation reflects the reality of the most recent California “miracle.” Historically, economic growth extended throughout the state, and produced many high-paying blue-collar jobs. In contrast, the post-2010 boom has been inordinately dependent on the high valuations of a handful of tech firms and coastal real estate speculation. Relatively few blacks or Latinos participate at the upper reaches of the tech economy—and a recent study suggests that their percentages in that sector are declining—and generally lack the family resources to compete in the real estate market. Instead, many are stuck with rents they can’t afford.

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