More Bad News for Governor Newsom
In more difficult news for the State of California, its residents are leaving in massive numbers. Following a litany of anti-business regulations and tax increases, it should be of no surprise. In fact, the middle class of the state is leaving by the tens of thousands. California, which once housed the largest middle class in the world, is now a very different state. In many ways, California is becoming a combination of rich coastal elites and poor from Latin America.
The rate of residents leaving is so bad that the state’s population may soon shrink, according to a Quartz article. Even counting in natural births and legal and illegal immigration, the state is likely to fall behind many of the other states in the union.
Net migration to the state has fallen so far, that it is now negative. Even as Calfornia’s economy struggled earlier in the decade, it still attracted thousands of residents, often illegal immigrants. Recent data showed that in 2016 and 2017, the number of residents coming to the state was an actual negative. This also caused the overall popualtion growth to decline from nearly 400,000 in 2013 to about 150,000 in 2017. If this trend continues, the state’s population will actually start shrinking before not too long.
Perhaps not surprisingly, the percentage of people wishing to leave the state has increased dramatically. In one survey from earlier in 2019 cited by CNBC, a full majority of the state’s residents would consider leaving the state. The actual figure is now 53%– up from 49%. Even with the national economy improving, the headwinds at the state level make it far more difficult to make a living in the state. Poor planning and NIMBY regulations increased costs to an unacceptable level. According to the article,
“There’s no doubt that California’s economy, for all of its strengths when it comes to innovation and creating these industries that people want to be part of, is struggling with high costs,” said Aaron Terrazas, a senior economist with online real estate site Zillow.