Article: California Is Booming. Why Are So Many Californians Unhappy?
https://www.nytimes.com/2019/12/29/business/economy/california-economy-housing-homeless.html
SAN FRANCISCO — Christine Johnson, a public-finance consultant with an engineering degree, was running for a seat on the San Francisco Board of Supervisors. She crisscrossed her downtown district talking about her plans to stimulate housing construction, improve public transit and deal with the litter of “needles and poop” that have become a common sight on the city’s sidewalks.
Today, a year after losing the race, Ms. Johnson, who had been in the Bay Area since 2004, lives in Denver with her husband and 4-year-old son. In a recent interview, she spoke for millions of Californians past and present when she described the cloud that high rent and child-care costs had cast over her family’s savings and future.
“I fully intended San Francisco to be my home and wanted to make the neighborhoods better,” she said. “But after the election we started tallying up what life could look like elsewhere, and we didn’t see friends in other parts of the country experiencing challenges the same way.”
California is at a crossroads. The state has a thriving $3 trillion economy with record low unemployment, a surplus of well-paying jobs, and several of the world’s most valuable corporations, including Apple, Google and Facebook. Its median household income has grown about 17 percent since 2011, compared with about 10 percent nationally, adjusted for inflation.
But California also has a pernicious housing and homeless problem and an increasingly destructive fire season that is merely a preview of climate change’s potential effects. Corporations like Charles Schwab are moving their headquarters elsewhere, while Oracle announced that it would no longer stage its annual software conference in San Francisco, in part because of the city’s dirty streets. “Shining example or third-world state?” a recent headline on a local news website asked.
“You get depressed if you listen to everything going on, but you can’t find a contractor and the state continues to create jobs,” said Ed Del Beccaro, an executive vice president with TRI Commercial Real Estate Services, a brokerage and property management company in the Bay Area.
Whether it’s by taming bays and mountains with roads, bridges and power lines or grappling with a lack of water and crippling earthquakes, California is perennially testing the limits of growth. Its population has swelled to 40 million and the state’s economy has grown more than previous generations had thought possible, cramming more cars and more people into cities that were supposed to be tapped out, while seeding new companies and new industries as old ones died or moved elsewhere.
But today it has a new problem. For all its forward-thinking companies and liberal social and environmental policies, the state has mostly put higher-value jobs and industries in expensive coastal enclaves, while pushing lower-paid workers and lower-cost housing to inland areas like the Central Valley.
This has made California the most expensive state — with a median home value of $550,000, about double that of the nation — and created a growing supply of three-hour “super commuters.” And while it has some of the highest wages in the country, it also has the highest poverty rate based on its cost of living, an average of 18.1 percent from 2016 to 2018.
That helps explain why the state has lost more than a million residents to other states since 2006, and why the population growth rate for the year that ended July 1 was the lowest since 1900.
“What’s happening in California right now is a warning shot to the rest of the country,” said Jim Newton, a journalist, historian and lecturer on public policy at the University of California, Los Angeles. “It’s a warning about income inequality and suburban sprawl, and how those intersect with quality of life and climate change.”
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