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Would really like some better quality of data on these crime claims, Pat. I’ve lived here my whole life and none of that tracks with anything I’ve heard from people who actually live here regardless of politics. The only crime I’ve suffered my entire life here was the theft of my Warhammer minis.
@@PBoyle the fact that individuals have to pay to clean up their information but banks pay nothing for data breaches is yet another clue that the rot is conplete in the US
"Double Irish with a Dutch Sandwich" - A tool used mainly by United States multinationals since the late 1980s to avoid corporate taxation on non-U.S. profits.
Yet California real estate prices continue to be in the stratosphere. It's always hard to reconcile the notion that a place is screwed or f*cked or whatever when the place you're talking about also has massively high real estate prices. It's like the Yogi Berra saying - no one goes there anymore, it's too crowded. And a ton of pepple have been talking about how it's unsustainable - for at least 30 years. So yeah, might be unsustainable, but might also stay afloat longer than most of us stay alive.
One of my friends living in San Diego pays $2700/month for a 1BR and pays for a car because he has to drive to work. My other friend in Bangalore pays $130/month for a very similar apartment, and is driven to work by her employer, because that is common practice. Even GDP PPP is a pretty inaccurate tool for measuring the purchasing power of economies, except for imported goods that most people don't actually need to get by.
You're not suppose to measure "art", the same way you do other things. That said, a photo of a dog turd is more artistic, than almost all NFTs I've ever seen.
I'm not homeless, so I can't speak from experience on the matter, but I do want to offer one possible reason why half the homeless are in the Golden state. If I were homeless, it's possible to live year-round on the streets of the metropolitan sections California. It wouldn't be pleasant, but survival is possible. The same cannot be said for, say...Maine or Wyoming. You'd die from the bitter cold. That fact alone would pay a large part of where I'd want to migrate to, if possible.
@@jacqdanieles For decades CA's response to this was tough on crime, where homeless people would end up in prison, but then budget issues happened and it turned out CA was spending over 200k a year per prisoner, so the response was to reduce sentencing for non-violent offenders.
Those CA unemployment statistics are way off. Many high-skilled gig workers who were previously employed at Hollywood studios have no work. The entertainment industry is at an all-time dismal low, and those freelance gig-workers aren’t considered in those unemployment statistics. The unemployment rate in CA is far worse than what’s on paper.
People who have stopped looking for work, or who haven't been able to find work in some time, or who are severely underemployed, are all excluded from unemployment statistics.
The so called gig and sharing economy is the most blatant employment scam I’ve seen in my lifetime and one of the most egregious in the nation’s history. It has added significantly to the state’s working poor and working homeless population.
Correct. Unemployment doesn't count you after you are unemployed for 1 year or more. You want to look up "Labor Force Participation Rate". But basically all the numbers coming out of Leftist states are lies, or arn;t being counted anymore. Like crime rates in SF. People just stopped calling the police, because it takes them 3 days to get to them.
I moved from CA to MI, losing 10% salary, but has housing cost slashed by half, gasoline cost slashed by half, general living expenses down by 20%,, and is much happier with life in general. The schools are better with longer hours more suitable to working parents too.
A couple other pressure’s on California’s water problems is their staggeringly wasteful approach to irrigation and their rotting water infrastructure. Not that many years ago, nearly 40% of the treated water in LA was lost to leakage and *nobody* was making any serious effort to fix that.
The problem is that no politician wants to take water rights away from farmers, even though they use and waste most of the water due to the stupid regulations from hundreds of years ago.
@@MarcosElMalo2 I've been handing my stuff over in Bahnschrift lately. I'm really a blue collar guy, it's less nerdy/easy to read and nobody's complained yet. Not that anyone works in 'complaints'
That budget surplus that went away two years ago included $54B in direct funding for COVID. California received more than $500B in total COVID spending. The problem is California (like many states) didn't treat the federal windfall as the one time thing it was and instead expanded their spending to consume it.
@@franciscosariles Most states didn't create permanent new programs with temporary money. California did. Meanwhile, several states have been looking at their current surpluses and trying to find ways to lower taxes. The federal COVID spending in 2021 when the economy was already recovering also poured fuel on the inflation fire. Not borrowing the money needed to fund it would have accomplished more.
This is the first video from this channel I have watched. Thank you for NOT just giving an overly simplistic ideological polemic like most videos that deal with economic or political issues on UA-cam. I want well reasoned and researched information that isn't looking at the world through an ideological lens. And I think you succeeded with this video.
I live in Vietnam, the biggest city in our country have the house price to income of 37 and people still believe number only go up. I feel so frustrated
The western buyers are responsible on this one.. This actually started in California, they they took their massive real estate asset values and bought the hell out of the US west coast which then caused a tidal wave of 1 million dollar homes. Now people who live in a crappy house that is literally in a barren desert like southern colorado or utah can buy a housing complex in your country or even places like Japan if financed. The bubble will not die until global depression and its all a finance game/bubble.
@@mamotalemankoe3775 Everyone is focused on the evil of housing affordability, but nobody dares questions the sacred cow of urbanization. Housing cost is not unaffordable, the location is unaffordable. The problem is componding the “fertility crisis”. Our most “successful “ youth must go to cities for high paying jobs and desirable mates. Once they are there, the cost of living and culture sterilize them. You think city and state budgets are a crisis? Take a look at how much of the “income” being taxed is cap gain/inflated price, and how much of the spending is deficit social services promises. The reality is that we can’t afford to live as we do and not grow.
A big issue with balanced budgets is politicians are always pressured to return the surplus to constituents. This sounds nice but puts your municipal and state governments in the same precarious situation as individual households and high risk businesses that all live paycheck to paycheck. Countercyclical spending is impossible if the organization isn't allowed to save. A strong government needs both the ability to collect high taxes, but also the ability to hoard the revenue for a rainy day.
Not even always pressured but the huge surplus we had during covid was legally required to be returned to the citizens due to some law that was previously put in place.
I am in one of those states filling up with fleeing Californians. They bi$$tch about how bad CA is, but they come here with a bag of money from selling the house and dipping into their first responder pensions. I know one retired fire fighter with a monthly retirement of over $10,000 just from his fire fighting job alone. So my point is Cali was fantastic to these folks, good retirement and bag of money from home. But they insist on pretending how much they hate it, but when it is 121 degrees here, or 9 degrees in MT, they have to be craving the coastal weather, there is nothing like it. And friends I have that are near coastal CA, are all thriving, business is good, weather is good, low crime where they are at, the homeless tent areas are highly rare near them. The ironic thing would be company bounce backs. If they (CA) tweak their taxes just a bit I feel like it will reverse the big company exodus. With cheapening commercial property rents and prices, I bet some are thinking about it. When you are stuck in Austin suburbs with 95 degrees and 99 % humidity, bugs, rain deluges or frozen rain in the winter, it must trigger a thought about beach life, 75 and sunny. I don't live there, so my personal knowledge is limited to visiting friends. That is my caveat.
Yeah, I need to move to Cali. I've been a first responder on call 24/7 (specialized SAR K9 live tracking/cadaver detection handler and trainer, as well) for over 15 years, and I don't get paid a cent. 😂
Weak argument. What they did in cali over the past of 20 years , their job, doesnt mean they can't talk shit about it now. Alot has changed in cali. People used to love cali. So , if they're bringing lots of cash, so be it
They're bringing bags of cash and pricing all the locals out of the housing market while crying about how they were priced out of the housing market in CA.
the water shortage doesn't just hurt agriculture. it directly impacts residents with obscene water bills. i left the state ten years ago, but back then my water bill was more than my electric, internet, and recycling combined. also it's hard to overemphasize how wild the housing market is.
My family went to Las Vegas from LA in the early 2000s shortly after 911. We had no future in CA, but in NV my mom was able to buy a house on her income alone after my dad passed when before the two together couldnt afford anything in CA. Social costs existed too, they had 2hr plus commutes to work each way. I was literally raised by my nanny, and knew more spanish than english and thought she was my mom because I never saw my real parents. NV was not perfect, I eventually moved on, but it gave two and then one professional a better shake than CA did, and put me through college virtually debt free (10k only) with state scholarships and other support. I hope California turns it around, there isnt a more beautiful place in the country, but things have to change.
@@dutchybag i live in south California, near LA. the worst geography in the country where we see people on the streets living in tents is the only view I'm getting while driving on the freeway and on my way home
Yo, it's Patrick Boyle, the finance rap king, Talkin' 'bout Cali, where the tax man stings, People packin' bags, headin' out of state, Cuz crime on the rise, and the rent's too late. Homeless in the streets, man, it’s outta control, Regulations got 'em stuck, losin' all their soul, From Silicon Valley to L.A.’s shore, Folks sayin', “I can’t take it no more!” Boyle’s droppin' bars, mixin’ knowledge and facts, Rappin' ‘bout taxes that hit like an axe, If Cali don’t change, the exodus won’t stop, So listen to the finance king when he drops!
Hi Patrick as a native Californian I wanted to correct you on two points . First 82% of the water in the state of California is used by agriculture. The simple application of drip irrigation, would save 40% of the state's water, problem solved. Second, when Proposition 13 was passed, at midnight, the night before it was voted on, some unnamed legislators, slipped in a clause to include commercial property. The legislation was originally proposed only for residential property. The Legislature, who would vote on it the next day, were completely unaware that this had been done. It is the lack of property tax from commercial property being properly assessed, that is the foundation of the property tax shortfall, in the state of California. Otherwise a fantastic video.
Except changing all of the irrigation to drip irrigation is not “simple” that is a TON of work. Also one bill being different would not magically fix californias issues.
Point 2 is nonsense. Prop. 13 was a Proposition - a voter-approved initiative, placed on the ballot via petition. The legislature had nothing to do with it, and the language was fixed in the petition at the time of signature. Commercial property was always part of the plan - that is what distinguished Prop. 13 from Prop. 8, on the same ballot, which did not include commercial property. The ruin of California's education system and other services is apparently what the people wanted.
This sounds like a progressive Californian that has no idea how expensive it would be to change everything to drip irrigation and doesn’t realize who voted for propositions (I’ll give you a hint it’s not a legislative lol).
As someone who lives in London, not exactly a cheap place to live, my eyes watered at my grocery bill when I visited my sister in Berkeley in 2022. Average earnings in the state might by nominally high but the cost of living is astronomical. Whilst there my sister wanted to renovate a small en-suite bathroom and was quoted $164k.
This makes no sense. I've spent plenty of time of time in both places. CA famously produces TONS of food; the home of Trader Joes. London grocery is WAY more expensive than Berkley/LA/SF ime. I just looked at data by state and CA grocery is almost the same as FL.
You must have went to Berkeley bowl, amazing produce, but expensive everything else. Yes quality food in California is very expensive. Can still find crap food for cheap.
The costs for renovation were because wealthier people had extra money during the pandemic since they weren't traveling and going out, which lead to a lot of contractor work. When demand spikes but supply is the same, prices go up, simple as. It's been bad enough even trying to get someone to want to do the work can be difficult.
I don't know if California is running out of oil as you say. I do know that drilling has been limited due to permits not being approved until the drill company runs out of money during the waiting period and leaves. California's legal actions has been shutting down refineries. The goal is to be oil free and all electric by 2035.
As a big tech couple that moved from Austin to CA, the weirdest thing is feeling less affluent despite more than tripling our income. The main reason is the mortgage payment.
Austin isn't that much cheaper, and property taxes are enormous. The real reason is your neighbors and friends are much richer as well. Where as people are much poorer in Texas.
Texas & Florida are facing their own issues. Texas has a terrible power grid & Florida has no insurance. Both are in Hurricane areas. I would also add that if we are that dependent on income taxes from a few individuals shows that we have a serious inequality problem in this country.
Family of 5 here in San Diego. SDGE $550 a month, Gas at $5 a gallon, $350 a month. Don't get me started on groceries, auto insurance, propositions added to the property tax bill etc.. $ gets spent like the wind.
Sdge 550 a month and you haven't switched to a solar PPA? You'd cut that in half. Property tax is lower in CA than most other states, especially Texas.
@@gamesguy Solar, lol wit NEM 3, it's DEAD, batteries alone are 45k, ask me how I know and the warranty is only 10 years, then you have to get new ones. I said "propositions added to the property tax bill" not the property tax bill itself. Those propositions have doubled in in the last 5 years.
@@fozzir Did you read where I said PPA? It's free, you pay nothing. You just agree to buy power from the solar company at agreed upon contract rates that are much lower than sdge rates. Why in the world would you need batteries? So you're complaining about something irrelevant, got it. All these propositions add up to like 0.25%. Meanwhile other states pay 3%.
As a California native, Patrick's point re: value for money is spot on. Compared to the rest of the US, we do pay a lot more in taxes......but when you look around you to see how well things are being run (pun intended), it's not such a great deal. Regarding California's excessive regulations, this self-induced heavy hand really slows progress. Take High Speed Rail (HSR) for example. The advocacy and proposals for this go back to the late 1970s / early 1980s. In 1996, a new government agency, the HRS Authority, was born. Nearly 30 years later, along with billions upon billions either spent or approved by bond measures, we still don't have an operational HSR train. To date, only 50-60 miles of track plus some structures have been completed.
Your point about HSR would work better if HSR hadn’t also been delayed in Texas for decades despite the state’s much lower levels of regulation/enforcement
California's enthusiasm for govt by plebiscite has slowly strangled the legislature's ability to direct funds & thus to govern. It's been said for at least 20 years that California was becoming ungovernable & had no future
Larger companies here have used regulations to crush smaller ones. Years ago large dairy firms were supporting regulations which they should usually be against. But in this case they knew small family run dairies couldnt afford to pay to upgrade. Once the regulations passed some conglomerate showed up to my grandparents dairy offering to buy it since making upgrades was so expensive. If that wasnt already bad enough the state took some of my grandparents land for that fantasy bullet train theyvw promised to build for over a decade
Errrrr welcome to reality - this is how regulations are always used. A balance needs to be struck between public concerns & stifled innovation - there are no "solutions," there are only tradeoffs.
@@j3i2i2yl7 This is the point where anyone sane would have a nice visit to their local representative and in a very courteous and kind fashion ask if perhaps this should be changed for highly obvious reasons.
@@j3i2i2yl7 California's own voters screwed over the state's own ability to put together a good tax and finance system for the state. We get what we incentivize. And Prop 13, historical districts, and relegating building decisions to rich NIMBY counties and cities incentivizes turned all buildings into investments and trying to prevent everyone else from building to maximize your own value. We need a place to live, not a place to invest.
Texas really isn’t that cheap. Infrastructure and things are so bad here that you spend a lot of money and time fixing your things or even just waiting for the electricity to come back. This ofc is on top of the problematic governance in its public and private institutions alone with ridiculous social inequality
I'm fixing the infrastructure? And personally, I didn't lose any power during the ice storm, or any single storm or winter after. And Cali, NY, and Florida all have higher social inequality than Texas. (not my opinion, that's the statistics.) But yes... Texas is GARBAGE please do not move here.
TX has become a purple State, with a lot of left wingers going full socialism. Combine that with insane levels of illegal immigration and it's not a pretty picture. Infrastructure in TX is excellent by the way at least in terms of roads, highways, etc. The electrical grid is struggling but a lot of that is due to "green" energy initiatives just like in several other States. If you really want to see bonehead energy policy take a hard look at the nation of Germany.
What's funny is that taxes actually comprise a higher percentage of your money in Texas until you get to a high enough tax bracket for the extra California taxes to kick in.
That says more about Canada than it does about the United States. Also, millionaires in the state are expected to pay federal income tax in addition to state income tax. Compare this to states like Texas, that have a 0% state income tax.
Progressivism is just a boring scapegoat. A huge part of CA's problems has been the state propositions; it turns out people don't make good decisions when asked to vote on random topics individually; topics often pumped by various moneyed influences. Pretty much all of the tax problems you mentioned are a result of propositions, as is much of the local overspending.
Typical anti Prop 13 trope. Guess what, ludicrously high property tax rates are an impediment to home ownership too. At least Prop 13 puts tha brakes on that.
Urbanism is inseparable from progressivism. Using progessivism as a scapegoat might as well be an argument against cities. There isnt a conservative city in the usa.
i went to san diego for twitch con last month at the san diego convention center and wouldn't be surprise if gas went there and I even saw people protesting for "1 job is not enough" near some hotels with signs and bullhorn🗣 📢
MORE than 1/2 the homeless in California are Vets. The USA has a shameful disrespect for our armed forces no longer serving. Lucky for the Vets they have the mild climate of California and the people of California who are spending millions to offer assistance to our Vets. This is USA problem that California is struggling to deal with. You are welcome.
Until about 1990, California was in a political balance. It would elect Ronald Reagan and Jerry Brown. The downsizing of the military (which had a large presence in CA) and manufacturing lead to large numbers of more conservative residents leaving the state and being replaced by immigrants, corporate transfers and blue state refugees who overwhelmingly vote Left. I live in Orange County which until about 2010 was reliably Red. It is now purple.
The UC system is tops. The Cal State system is not far behind, as good or better than other state schools and competitive internationally. On top of that, our community college and city college system is pretty good at preparing students to complete their 4-year degrees at 4-year universities. What is missing is a strong vocational education system, but this is also a problem nationally.
I am recently retired in California and can tell you it is an absolute nightmare to do business in this state. The amount of monthly, quarterly, semi annual and annual agency reports required full time technicians and input from virtually all levels of management. The worst part is you work in constant anxiety over the possibility of having made an error or omission in reports that can be complex. Some required the submission of two inch thick binders of tabbed information. If there is an error then you're spending your time responding to both the agencies and upper management with the possibility of significant fines. In some cases multiple regulatory bodies would require the same information but in different reporting forms and formats. There was hardly time to actually manage the business. Many times I thought how much better it would be if the state would simply take over the industry rather than control it in this fashion. At least then if a reporting error is made it is not followed by endless repercussions and fines. As I approached retirement regulations and reporting requirements grew and we were forced to hire outside firms to assist in compliance reporting.
I have a family member in HR who's worked in 13 different states, across all regions of the country, including California. The regulations in California are so different, they had to take a special class before working there; this was not necessary with any other state. The regulations there were so different from everywhere else, they said the state might as well be its own planet.
I've lived in the beach cities of LA all my life. It has gotten bad. The weather is the only thing going for it. Fires are ruining the mountain living way of life also. I sold my home for 2.25 million in 2020 and now living in my machine shop, 8K sq. ft. with prop 13 taxes on it at $10K. Living off the home investment money is super easy now.
States and cities are up and down. I remember when Pittsburgh was in the dumps, then the best big city in the country. The benefit of being older is to see cycles. By the way, it is the only benefit.
It’s worth noting that building regulations must be stricter in California due to earthquakes and larger building are “over-engineered” compared to rest of the country. $$$
Prop 13 saves me $6500 a year vs. my neighbor. Income tax on your first $100k is just barely over $2k joint with standard deductions. The Prop 13 mostly offsets the extra state tax for earning $200k. There is no state income tax on Social Security. There is no food tax at the grocery store. I drive a 10-year old EV to avoid the gas tax. My mortgage payment went up just 2.6% despite a one year 30% increase in homeowner's insurance. The weather is nicer here than in Texas or Florida. So why should I move?
Clearly you have made the example of who should not move: The person who can take/benefits from those deductions. Your neighbor and everyone else who can't is incentivized to move.
As a Californian who decided to live in a lower cost of living state and subsequently I enjoy a higher standard of living with the same profession. It has been a trade off for sure, but a worthwhile one overall.
Everyone in the country has so many opinions about California. Ive never commented or watched a video on New Jersey, Arizona, Florida or any other state LOL. Enjoy our agriculture!
And all the groundwater pumping is sinking the bottom of the state from growing food in a desert for extended growth seasons. Also a lot of nonsense is exported like lecturing everyone about the environment while growing invasive and resource heavy avocados and almonds. The bee colony collapse nonsense was from California when the bees are an invasive species to begin with who were domesticated for pollination specifically on said almond farms, which are also invasive. The problem was specifically between these, too, but then scared the uneducated into thinking the world is ending. Repeat this 100 times over.
You can't talk about high taxes without being specific, clearly prop13 has kept property taxes low (for older people who have locked in the low tax rate) and this is one of the reasons prices are so high. It's also one of the reasons their isn't a bigger exodus from California, older people are trapped in houses with low property taxes and high capital gains that can be extracted via refi.
@@rahulat85 There is a great deal of local government empowerment (city level primarily), and I find it rather hilarious that people harp against the ultimate empowerment of a local population to decide its own destiny. But actually a lot of that has been superseded by state law over the last decade anyway, and is no longer an impediment to building more density. There is a huge amount of development happening everywhere now. A lot of it is using the medium-sized (3-5 story) mixed residential / retail model which a lot of people prefer over extreme-density housing such as you might find in Manhattan. But it still takes a long time to make a dent. A building can't be built in a day and changing people's attitudes is a generational (multi-decade) affair. -Matt
The Proposition 13 limitation on increases in assessed valuation was an extremely easy problem to predict, and an extremely difficult trap to escape. Ironically Republicans in Texas have been trying to create a similar problem here by attacking the ability of county assessment authorities to match taxable value to actual prices. In 1981 the state mandated annual revaluation of property at as close to market value as possible. This happened because of inequality in revaluations that meant that new home buyers were paying property taxes at close to full value, while long-time owners of homes were paying at a fraction of the real value. Ever since then that requirement has been whittled away because of antipathy to property taxes in the Republican Party. The lieutenant governor even proposed eliminating all property taxes in favor of an expanded sales tax, but the idea died quickly when it was pointed out that it would require a sales tax rate of over 22%.
Prop 13 also allows seniors to transfer their property tax base, with some like-value considerations, as long as they stay in state. So they can buy relatively well. But non-seniors there’s certainly more of an incentive to hold.
I will just point out that most of the people who complain about California's "woke" politics also tend to complain about how all of the young innovative people with college degrees leave and go to all of these "woke" places on the coast and none of them stay in their "anti-woke" rural areas. Then they wonder why those rural areas never get investment or new industries and are so much poorer than California. Perhaps there's a correlation.....
Extremely interesting synopsis of what I went through in the 20 years between 2001 and 2021, when my family and I gave CA up (LA specifically) in desperation & disgust. A topic suggestion for a future episode: the pace of overdevelopment in LA toward luxury condos built as money storage devices rather than places to live, and its local impact on actual residents. The neighborhood around Overland Blvd in Culver City would be an excellent canary in that coalmine. It went from fairly-dangerous-but-just-affordable to still-dangerous-but-wildly-unaffordable-and-completely-unrecognizable in the space of about six years, from 2016 to 2021, and it doesn't even have a beach.
Unfortunately that is most of the US, at least in places that aren't shitholes. That was the core of the 08 crash too. Easy loans meant that developers were guaranteed to sell their properties so why build anything cheap? Paying 150,000 to build a 500,000 house doesn't make sense when you can spend 250,000 to build a 1,000,000 house.
"still-dangerous-but-wildly-unaffordable-and-completely-unrecognizable" Perfect description. I wish people could actually understand how accurate that description is.
As long as I can remember companies have been reported to move out of California as they grew, but always new companies and whole new industries rose up to replace them. It wasn't until watching this video that I was struck by the impact that systemic declines in immigration have had on new business creation. It's not just farm workers and laborers who are missing. US universities have been attracting fewer foreign students for quite some time, with the decline peaking after Trump was elected and began restricting student visas.
@@ms-jl6dl Triggered, Bro? States can’t issue visas. You probably weren’t old enough to notice then, but Trump’s visa crackdown hurt universities all across the country. This especially hurt because foreigners pay full price tuition. Unintended consequence of poorly planned policy.
If a state the size of California relies on less than 18k people to pay 30% of all income taxes, something is wrong. If you are very wealthy, you're also likely very mobile. They're going to leave.
Depending on the wealth, asset wealth does not move so easily. Houses would need to be sold. Stocks can fall under a variety of tax regulations. Most of these rich people are asset rich, not cash rich.
@@sciencefliestothemoon2305 Divide their home value by 2, and that would be how cash rich they would be if they needed to sell their house immediately.
If I were wealthy I’d be willing to pay more to live in California. My income not being high enough (even at over $100k) is just not enough to live there comfortably, but if I’m super wealthy to where money is no object I’d much rather be in California than Texas
Clearly they haven't left if the described situation is a thing right now. The ones paying now - the ones the system is currently dependent on - are the ones who stayed.
As an ex Californian of 24 years I an tell you that crime has always been a problem in SoCal and I have a victim several times myself (and this was unreported crimes)
California has policies that serve the community, while Texas does not. The companies will flee to Texas, and the unserved community of Texas will immediately ruin this move as their cost of living increases.
I moved to California in 2019 because I've always wanted to check it out and experience the fun stuff and entertainment industry. Moved out in 2023 after getting laid off from my news reporting job there. Grew up in Louisiana. It is a big, pretty state with a lot of cool stuff to do but the vibe there now is a place that's slowly dying. Living costs are insane and only affordable if you're wealthy. And a lot of wealthy types aren't going to be into the semi-progressive policies the state (tries to) push through. A lot of Cali seems to be about appearances and not following through on substance, which can be its downfall. The liberal stuff is mostly for show. There's no actual progressive solutions like rent control, programs to truly help the homeless, push for truly high wages to keep pace with living costs, etc. (The state is not as liberal as one might assume. Found it actually conservative in some ways.) Hollywood leaving for elsewhere will also hurt it. Some of the people who live there were the most two-faced, aloof, shallow, smug individuals I have ever met. This was a well-done video.
I'm always confused when Americans call a thing socialist or even marxist. I know marxists, and they are very different. In Europe, I consider conservatism, social democracy and liberalism to be the three dominant early 20th century ideologies. That the liberals would be socialist is hard to wrap my head around.
@@SusCalvin The far right in America has gotten so extreme they equate American liberals with progressivism and socialism, neither of which they are. Liberals in America would be considered moderate or even conservative in Europe, from what I’ve heard.
@@SusCalvin Americans broadly don't really know what any of those terms really mean. We are just given talking points from other people who in turn heard talking points from politicians on the news. Book publishers eliminate many of the underlying political beliefs of different groups from American history and just say the leaders either got assassinated and rarely acknowledge the governments role in some form of persecution that took place. As a result we don't really believe in things like systemic racism, but can think of something that happened historically between the government and a minority group, but we don't really engage with the idea that the underlying systems of government largely remain the same. America is dealing with the collective trauma of the cold war and the damage the government inflicted on the public education system by decrying anything that could be seen as anything resembling collective action as socialism. Those using the term socialism also use it in the same way one would use a slur when referring to people with more progressive beliefs.
@@SusCalvin conservative politicians claim that liberals are socialists and marxists because they can raise money off of it. everytime mango Mussolini does a rally and claims his opponents are communists, he raises tens of millions of dollars in campaign fund from brain dead people, which he then proceeds to spend on his own hotels and golf courses so he can pocket the money
I lived in California the 68 degree weather and very little to no rain . Make living and sleeping outside very accommodating. It's the same concept as penguin living in Alaska because it's cold. When your homeless you don't have a lot of choice. It is a problem that will never go away there because of the climate.
They are there for the same reason other people are there. The weather. Without the beach and the stable weather California would of been a failed state a long time ago. It's the only reason any socialist policies even function without destroying everything, because people want to live in the nice weather year-round... There's a reason there's only blue states exist mostly on the cost. Because without nice weather or geographic locations they fail and turn into Illinois with cities like Detroit, where everyone smart abandons it.
@@daminh26 Exactly right. Most of California's homeless problem is caused by their pleasant climate. Imagine being homeless in Arizona when there are weeks when daily high temperature is over 110F/43C, or Florida/Georgia during huricane season, or New England in winter.
Oregon has a similar but smarter property tax cap than California. In 1997, property taxes were set on a 3%/year trajectory. If the home is sold, the new owner gets the same tax rate. If certain improvements are made to the home, significant but not crushing increases are made to the tax rate. The hardest case is new homes, which are purchased without a tax assessment and are assessed at a current market rate, higher than that of existing homes. 3% is about the rate of long term inflation in housing prices, so the policy has not caused much distortion.
I guess it is much easier to glaze on California as every few years people complain about how bad California is turning into a Mad Max movie. It is easier to ignore that large chunks of the US cannot even come close to its standard of living despite lower costs. You never see the videos about how shitty a large chunk of southern and mid-west states and how they are in the bottom of quarter of standard of living, education and earnings.
Depends on what your standards are. If your standards are paying $80k for a house with a yard while not stepping over human feces and used needles when you go out of your front door, good luck finding that in California.
The standard of living in CA is propped up by yuppies. Most of CA is absolutely no better than most of the south or Midwest. Even St. Louis has more law and order than Oakland.
Expensive necessities and cheaper luxuries. This is the tale of the US in general really. The homeless have iPhones but no running water. California is just even more exaggerated in this way than other states are. Now socially, California is very different from rural (i.e. conservative) states. I live in one of the 3 poorest states of the US. My actual standard of living (as in the stuff I actually own) isn't much different than a Californian, but the difference in the number of dollars I make in comparison is very large. These numbers and statistics like standard of living (vague, do you mean how expensive the stuff I own is?), GDP per capita, etc. make for good talking points, but as often is the case, the numbers can be bent to say whatever the bureaucrats want them to say. They don't actually tell the tale of what is actually going on on the ground for the average person. Right now, if you look at GDP, the US appears to be richer than we were before Covid. Tell me, do you feel you can afford more stuff now than you did before? Because I can't, and I've had more than a 50% raise since them.
It makes sense though. I left Ireland for lower housing costs despite myself and my wife having decent career prospects. I’d rather have a secure roof over my head and an average salary than worry constantly if our terrible landlord is going to need to chuck us out to bump up the rents but at least I can buy lots of fancy cappuccinos; it kinda ruins the whole ‘settling down and having kids’ thing that was all the rage in the olden times.
One thing that was surprising to me was just how restrictive California's air quality and pollution laws are. I was having a nosey around woodworking UA-cam (as you do when you're procrastinating), and apparently there are common solvents and varnishes that you just cannot use in California because of the VOC restrictions. These are restrictions that even the most progressive environmentally conscious European nation would consider going a bit too far. Of course all these VOC's pale in comparison to the pollution spewed out by all the traffic in LA every day, but I guess it's a far easier target.
Another big problem with Prop 13 is it includes commercial real estate. So a business can own a property for 50+ years and never see their property tax percentage increase while renting at current rates. There was a ballot initiative a few years ago to exempt commercial real estate from Prop 13, but businesses scared people into thinking that it would lead to repealing all of Prop 13 - the classic slippery slope argument, and unfortunately it worked.
I read something to the effect that nearly half of all new housing developments in California get sued due to running afoul of some regulation or complaint, usually some environmental regulation. That is a whopping amount red tape and time lost that keeps the cost of housing high and the number of new housing units limited.
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soylentgreen is ppl
Great. Now do Texas. They have a higher crime rate than California.
Would really like some better quality of data on these crime claims, Pat. I’ve lived here my whole life and none of that tracks with anything I’ve heard from people who actually live here regardless of politics. The only crime I’ve suffered my entire life here was the theft of my Warhammer minis.
@@PBoyle the fact that individuals have to pay to clean up their information but banks pay nothing for data breaches is yet another clue that the rot is conplete in the US
@@Crembaw you sweet summer child.
Patrick finally picking a side on the East Coast / West Coast rap feud.
#PBoyle50 his promo code and street name
Patrick only rap for mid west true america 🦅🦅🦅🦅
@@Snp2024 Where housing prices are low and manufacturing productivity is high, yo.
Ah but he didn't choose this life, this life chose him.
Coming straight out of Palo Alto!
24:22
"Designed in California
Assembled in China
Taxed in Ireland" 😂😂😂
Applies only to large multinationals. If you’re a business headquartered in California, you’re fucked.
Registered in the Maldives
Shelled in Delaware
And now: Moved to Texas.
"Double Irish with a Dutch Sandwich" - A tool used mainly by United States multinationals since the late 1980s to avoid corporate taxation on non-U.S. profits.
Yet California real estate prices continue to be in the stratosphere. It's always hard to reconcile the notion that a place is screwed or f*cked or whatever when the place you're talking about also has massively high real estate prices. It's like the Yogi Berra saying - no one goes there anymore, it's too crowded. And a ton of pepple have been talking about how it's unsustainable - for at least 30 years. So yeah, might be unsustainable, but might also stay afloat longer than most of us stay alive.
Hearing that California singlehandedly has a larger economy than all of India is insane, and puts some things in perspective...
Who cares about India such a nasty smelly overcrowded wasteland
Entertainment and technology rule the world 😂
"Growing over half of America's vegetables, fruits and nuts."
The dry humour is off the charts!
One of my friends living in San Diego pays $2700/month for a 1BR and pays for a car because he has to drive to work. My other friend in Bangalore pays $130/month for a very similar apartment, and is driven to work by her employer, because that is common practice.
Even GDP PPP is a pretty inaccurate tool for measuring the purchasing power of economies, except for imported goods that most people don't actually need to get by.
But not much cleaner if it keeps going on its current path
"Over 419 thousand regulations" Patrick didn't want to say 420
.
Get a ban for that 😜😜😜🍺☘️
@@stevozrepto5558 April 20 regulations
Nah, he didn't want to say four-turdy.
Did you notice Texas was number 5? They don't pay income tax but how much you want to bet they will soon?
When you said “the arts” and showed and “NFT” 😂
You're not suppose to measure "art", the same way you do other things. That said, a photo of a dog turd is more artistic, than almost all NFTs I've ever seen.
@@michaelmoorrees3585I judge art wygdo
@@michaelmoorrees3585 arguably a dog turn is more unique
And "immigrants" and showed Prince Harry.
@@HarryPujols If he had said immigrants who came illegally, he could have shown a photo of Melanie.
This is my favorite rap news channel.
At 1.5x
I'm not homeless, so I can't speak from experience on the matter, but I do want to offer one possible reason why half the homeless are in the Golden state. If I were homeless, it's possible to live year-round on the streets of the metropolitan sections California. It wouldn't be pleasant, but survival is possible. The same cannot be said for, say...Maine or Wyoming. You'd die from the bitter cold. That fact alone would pay a large part of where I'd want to migrate to, if possible.
Given that such a natural incentive exists, CA would be smart to create a disincentive to counter an influx from other states.
@@jacqdanieles For decades CA's response to this was tough on crime, where homeless people would end up in prison, but then budget issues happened and it turned out CA was spending over 200k a year per prisoner, so the response was to reduce sentencing for non-violent offenders.
@@jacqdanielesman. You're saying you'd rather want them to die elsewhere... That's messed up.
@@jacqdanieleslike what? Shooting homeless or locking them in prison?
This only half explains it. Having good weather isn't new. So what changed?
Those CA unemployment statistics are way off. Many high-skilled gig workers who were previously employed at Hollywood studios have no work. The entertainment industry is at an all-time dismal low, and those freelance gig-workers aren’t considered in those unemployment statistics. The unemployment rate in CA is far worse than what’s on paper.
People who have stopped looking for work, or who haven't been able to find work in some time, or who are severely underemployed, are all excluded from unemployment statistics.
The entertainment industry mostly moved out of CA long ago. And the U6 unemployment statistics does include them
The so called gig and sharing economy is the most blatant employment scam I’ve seen in my lifetime and one of the most egregious in the nation’s history. It has added significantly to the state’s working poor and working homeless population.
Correct. Unemployment doesn't count you after you are unemployed for 1 year or more. You want to look up "Labor Force Participation Rate".
But basically all the numbers coming out of Leftist states are lies, or arn;t being counted anymore. Like crime rates in SF. People just stopped calling the police, because it takes them 3 days to get to them.
Well they keep hiring for a modern audience that doesn't exist so they can unf_ck their politics and learn how to life
I moved from CA to MI, losing 10% salary, but has housing cost slashed by half, gasoline cost slashed by half, general living expenses down by 20%,, and is much happier with life in general. The schools are better with longer hours more suitable to working parents too.
Shh, don’t invite anyone else
And winter for four months of the year. Snow pants rather than board shorts in January.
You couldn’t pay me to live in Mississippi again
@@kakashigaiden111 That's good because MI is Michigan, not Mississippi.
@@TheBackwardsLegsManhopefully it’s not detriot lol
A couple other pressure’s on California’s water problems is their staggeringly wasteful approach to irrigation and their rotting water infrastructure. Not that many years ago, nearly 40% of the treated water in LA was lost to leakage and *nobody* was making any serious effort to fix that.
The problem is that no politician wants to take water rights away from farmers, even though they use and waste most of the water due to the stupid regulations from hundreds of years ago.
Sounds like you probably have, but if you haven't read Cadillac Desert, the best book on CA water
Don't forget the homelessness making the place looks like a post apocalyptic wasteland
Delta smelt.
The moronic landscaping practices across the state definitely don’t help.
OOf that apple taxed in ireland gag is gonna win you a letter from a lawyer written in helvetica
with a side of wingdings
@martian8987 Windings is Windows dingbats, I wouldn't be surprised if that's illegal in the infinite loop
I think Helvetica has been deprecated in favor of San Francisco and San Francisco Pro. Say what you will, but at least it’s not grotesque. 😉
@@MarcosElMalo2 I've been handing my stuff over in Bahnschrift lately. I'm really a blue collar guy, it's less nerdy/easy to read and nobody's complained yet.
Not that anyone works in 'complaints'
Helvetica, that's a Swiss font no?
Your dry humor is immaculate.
he’s an ai
@@joseaguirre744 Absolute Irishman?
If you watch carefully you can see his lips becoming more chapped over the course of each video.
He takes breaks from humor to rehydrate his skin.
@davidmoores7608 💀
That budget surplus that went away two years ago included $54B in direct funding for COVID. California received more than $500B in total COVID spending.
The problem is California (like many states) didn't treat the federal windfall as the one time thing it was and instead expanded their spending to consume it.
Put the money to use, not helping anyone in the coffers. In 2022 45/50 states are running without deficit.
@@franciscosariles Most states didn't create permanent new programs with temporary money. California did.
Meanwhile, several states have been looking at their current surpluses and trying to find ways to lower taxes.
The federal COVID spending in 2021 when the economy was already recovering also poured fuel on the inflation fire. Not borrowing the money needed to fund it would have accomplished more.
This is the first video from this channel I have watched. Thank you for NOT just giving an overly simplistic ideological polemic like most videos that deal with economic or political issues on UA-cam. I want well reasoned and researched information that isn't looking at the world through an ideological lens. And I think you succeeded with this video.
i would recommend watching his forbes young entrepreneurs video. its pretty good. "forbes has a fraud problem"
You’re in for a treat as you go through the back catalog.
I live in Vietnam, the biggest city in our country have the house price to income of 37 and people still believe number only go up. I feel so frustrated
You better do all you can to move fam
The western buyers are responsible on this one.. This actually started in California, they they took their massive real estate asset values and bought the hell out of the US west coast which then caused a tidal wave of 1 million dollar homes. Now people who live in a crappy house that is literally in a barren desert like southern colorado or utah can buy a housing complex in your country or even places like Japan if financed.
The bubble will not die until global depression and its all a finance game/bubble.
Yeah the South East Asian multiples are insane. Some cities have 40× or more income multiples. Absurd stuff.
@@mamotalemankoe3775 Everyone is focused on the evil of housing affordability, but nobody dares questions the sacred cow of urbanization. Housing cost is not unaffordable, the location is unaffordable.
The problem is componding the “fertility crisis”. Our most “successful “ youth must go to cities for high paying jobs and desirable mates. Once they are there, the cost of living and culture sterilize them. You think city and state budgets are a crisis? Take a look at how much of the “income” being taxed is cap gain/inflated price, and how much of the spending is deficit social services promises. The reality is that we can’t afford to live as we do and not grow.
Viet co-worker in Canada told me he's housed is parents in a 400,000 dollar home in Vietnam. !!!
Interesting video. I'm surprised you didn't touch on California's vibrant Rap scene. Part 2 video maybe...
Would love a history of rap doc narrated by Patrick.
part 2 is in this video actually, it's just told through double entendres you missed
@@RacingVagabondomg the dry wit and delivery of words that have never left his mouth before would be amazing.
That would definitely be a banger video. Maybe he could do one on april fools.
…or the corn industry…
A big issue with balanced budgets is politicians are always pressured to return the surplus to constituents. This sounds nice but puts your municipal and state governments in the same precarious situation as individual households and high risk businesses that all live paycheck to paycheck. Countercyclical spending is impossible if the organization isn't allowed to save. A strong government needs both the ability to collect high taxes, but also the ability to hoard the revenue for a rainy day.
good point!
greeedy effin boomers!
Not even always pressured but the huge surplus we had during covid was legally required to be returned to the citizens due to some law that was previously put in place.
Dude, lay off the Keynes.
@@101realtorthat’s insane
....but politicians DON'T save surpluses, they just expand spending programs.
I am in one of those states filling up with fleeing Californians. They bi$$tch about how bad CA is, but they come here with a bag of money from selling the house and dipping into their first responder pensions. I know one retired fire fighter with a monthly retirement of over $10,000 just from his fire fighting job alone. So my point is Cali was fantastic to these folks, good retirement and bag of money from home. But they insist on pretending how much they hate it, but when it is 121 degrees here, or 9 degrees in MT, they have to be craving the coastal weather, there is nothing like it. And friends I have that are near coastal CA, are all thriving, business is good, weather is good, low crime where they are at, the homeless tent areas are highly rare near them. The ironic thing would be company bounce backs. If they (CA) tweak their taxes just a bit I feel like it will reverse the big company exodus. With cheapening commercial property rents and prices, I bet some are thinking about it. When you are stuck in Austin suburbs with 95 degrees and 99 % humidity, bugs, rain deluges or frozen rain in the winter, it must trigger a thought about beach life, 75 and sunny. I don't live there, so my personal knowledge is limited to visiting friends. That is my caveat.
Valid points
Yeah, I need to move to Cali. I've been a first responder on call 24/7 (specialized SAR K9 live tracking/cadaver detection handler and trainer, as well) for over 15 years, and I don't get paid a cent. 😂
The GOOD thing about bad weather is it tends to keep out the homeless and freeloader-types. California is a 'Landfill' of these people.
Weak argument. What they did in cali over the past of 20 years , their job, doesnt mean they can't talk shit about it now. Alot has changed in cali. People used to love cali. So , if they're bringing lots of cash, so be it
They're bringing bags of cash and pricing all the locals out of the housing market while crying about how they were priced out of the housing market in CA.
the water shortage doesn't just hurt agriculture. it directly impacts residents with obscene water bills. i left the state ten years ago, but back then my water bill was more than my electric, internet, and recycling combined.
also it's hard to overemphasize how wild the housing market is.
My family went to Las Vegas from LA in the early 2000s shortly after 911. We had no future in CA, but in NV my mom was able to buy a house on her income alone after my dad passed when before the two together couldnt afford anything in CA.
Social costs existed too, they had 2hr plus commutes to work each way. I was literally raised by my nanny, and knew more spanish than english and thought she was my mom because I never saw my real parents.
NV was not perfect, I eventually moved on, but it gave two and then one professional a better shake than CA did, and put me through college virtually debt free (10k only) with state scholarships and other support.
I hope California turns it around, there isnt a more beautiful place in the country, but things have to change.
I live in far north California, near Oregon. The best geography in the country
This in CA are changing and will continue to change, to the WORSE like they have been for 30+ years.
@@dutchybag i live in south California, near LA. the worst geography in the country where we see people on the streets living in tents is the only view I'm getting while driving on the freeway and on my way home
Yo, it's Patrick Boyle, the finance rap king,
Talkin' 'bout Cali, where the tax man stings,
People packin' bags, headin' out of state,
Cuz crime on the rise, and the rent's too late.
Homeless in the streets, man, it’s outta control,
Regulations got 'em stuck, losin' all their soul,
From Silicon Valley to L.A.’s shore,
Folks sayin', “I can’t take it no more!”
Boyle’s droppin' bars, mixin’ knowledge and facts,
Rappin' ‘bout taxes that hit like an axe,
If Cali don’t change, the exodus won’t stop,
So listen to the finance king when he drops!
Argentina had a Batchelor tax?! This deserves it's own episode!!
US have it too. It is called single filing.
@@rahulat85 it's still a lot cheaper than alimony
@@PeterT-i1w Alimony is never cheap in California. Damm many prenups also can be thrown out.
what's wild is i gotta pay for their schools even tho i don't have kids and the school fail at educating
@@adamm2716 Americans is getting dumber. 🤣
I remember california when i was a kid... Seemed like a mythical place full of synth wave music, hot babes and eddie murphy
Recently began my move from Florida to CA and have spent a lot of time in CA recently as a result. This analysis is 100% spot on.
You should go back tbh.
Hi Patrick as a native Californian I wanted to correct you on two points . First 82% of the water in the state of California is used by agriculture. The simple application of drip irrigation, would save 40% of the state's water, problem solved. Second, when Proposition 13 was passed, at midnight, the night before it was voted on, some unnamed legislators, slipped in a clause to include commercial property. The legislation was originally proposed only for residential property. The Legislature, who would vote on it the next day, were completely unaware that this had been done. It is the lack of property tax from commercial property being properly assessed, that is the foundation of the property tax shortfall, in the state of California. Otherwise a fantastic video.
Except changing all of the irrigation to drip irrigation is not “simple” that is a TON of work. Also one bill being different would not magically fix californias issues.
@@benstanfill363all things worth doing take a lot of work. That is is how progress is made.
Point 2 is nonsense. Prop. 13 was a Proposition - a voter-approved initiative, placed on the ballot via petition. The legislature had nothing to do with it, and the language was fixed in the petition at the time of signature. Commercial property was always part of the plan - that is what distinguished Prop. 13 from Prop. 8, on the same ballot, which did not include commercial property. The ruin of California's education system and other services is apparently what the people wanted.
As a more native californian than this guy, I can tell you that his explanation of Prop 13 is profoundly wrong.
This sounds like a progressive Californian that has no idea how expensive it would be to change everything to drip irrigation and doesn’t realize who voted for propositions (I’ll give you a hint it’s not a legislative lol).
As someone who lives in London, not exactly a cheap place to live, my eyes watered at my grocery bill when I visited my sister in Berkeley in 2022. Average earnings in the state might by nominally high but the cost of living is astronomical. Whilst there my sister wanted to renovate a small en-suite bathroom and was quoted $164k.
This makes no sense. I've spent plenty of time of time in both places. CA famously produces TONS of food; the home of Trader Joes. London grocery is WAY more expensive than Berkley/LA/SF ime. I just looked at data by state and CA grocery is almost the same as FL.
You don't have to shop at whole foods 😂
thats why costco and aldi are so popular. i have no grocery problems.
You must have went to Berkeley bowl, amazing produce, but expensive everything else. Yes quality food in California is very expensive. Can still find crap food for cheap.
The costs for renovation were because wealthier people had extra money during the pandemic since they weren't traveling and going out, which lead to a lot of contractor work. When demand spikes but supply is the same, prices go up, simple as. It's been bad enough even trying to get someone to want to do the work can be difficult.
I don't know if California is running out of oil as you say. I do know that drilling has been limited due to permits not being approved until the drill company runs out of money during the waiting period and leaves.
California's legal actions has been shutting down refineries. The goal is to be oil free and all electric by 2035.
As a big tech couple that moved from Austin to CA, the weirdest thing is feeling less affluent despite more than tripling our income. The main reason is the mortgage payment.
Austin isn't that much cheaper, and property taxes are enormous.
The real reason is your neighbors and friends are much richer as well. Where as people are much poorer in Texas.
Become a YIMBY
Do you think to rates are going to go up or down? Has your property value changed?
There is literally no difference between Austin and any of California's big cities.
Texas & Florida are facing their own issues. Texas has a terrible power grid & Florida has no insurance. Both are in Hurricane areas.
I would also add that if we are that dependent on income taxes from a few individuals shows that we have a serious inequality problem in this country.
Since we're talking about California, why doesn't this video have a prop 65 warning?
That Elon photo had coffee coming out of my nose.
Lucky for you and me it wasn’t a full body photo.
...that boy hasn't seen the sun in decades.
We have friends that moved out of California to get away from high taxes but we have relatives that moved to California to be near the beach.
There's plenty of beaches that are not in California.
I moved out so I can afford a house. Not a day goes by that I don't think about going back. Just need .... LOTS more money before I can make that move
@@mechanicalmonk2020we moved back from Denver. It was worth it.
Yeah if u look at it California is literally Garden of Eden , a Paradise!
@@MakerInMotionare these beaches warm year round and safe from hurricanes
Family of 5 here in San Diego. SDGE $550 a month, Gas at $5 a gallon, $350 a month. Don't get me started on groceries, auto insurance, propositions added to the property tax bill etc.. $ gets spent like the wind.
Im just back from another holiday in American. Never again. You people need to stand up and fight your government on prices and taxs .
Sdge 550 a month and you haven't switched to a solar PPA? You'd cut that in half.
Property tax is lower in CA than most other states, especially Texas.
@@gamesguy Solar, lol wit NEM 3, it's DEAD, batteries alone are 45k, ask me how I know and the warranty is only 10 years, then you have to get new ones.
I said "propositions added to the property tax bill" not the property tax bill itself. Those propositions have doubled in in the last 5 years.
@@fozzir Did you read where I said PPA? It's free, you pay nothing. You just agree to buy power from the solar company at agreed upon contract rates that are much lower than sdge rates. Why in the world would you need batteries?
So you're complaining about something irrelevant, got it. All these propositions add up to like 0.25%. Meanwhile other states pay 3%.
@@alcoyne3333333333333 The government doesn’t set prices.
As a California native, Patrick's point re: value for money is spot on. Compared to the rest of the US, we do pay a lot more in taxes......but when you look around you to see how well things are being run (pun intended), it's not such a great deal. Regarding California's excessive regulations, this self-induced heavy hand really slows progress. Take High Speed Rail (HSR) for example. The advocacy and proposals for this go back to the late 1970s / early 1980s. In 1996, a new government agency, the HRS Authority, was born. Nearly 30 years later, along with billions upon billions either spent or approved by bond measures, we still don't have an operational HSR train. To date, only 50-60 miles of track plus some structures have been completed.
Your point about HSR would work better if HSR hadn’t also been delayed in Texas for decades despite the state’s much lower levels of regulation/enforcement
California's enthusiasm for govt by plebiscite has slowly strangled the legislature's ability to direct funds & thus to govern. It's been said for at least 20 years that California was becoming ungovernable & had no future
@@thawhiteazn Fair point, I hadn't taken that one into consideration.
The HSR was also poorly planned to begin with, and now has been passed on through so many different hands it is unlikely to ever be completed.
Exactly
Thanks Patrick. More fine analysis.
Well rounded video. Thank you, Patrick!
Larger companies here have used regulations to crush smaller ones. Years ago large dairy firms were supporting regulations which they should usually be against. But in this case they knew small family run dairies couldnt afford to pay to upgrade. Once the regulations passed some conglomerate showed up to my grandparents dairy offering to buy it since making upgrades was so expensive. If that wasnt already bad enough the state took some of my grandparents land for that fantasy bullet train theyvw promised to build for over a decade
Now if only the state would take over that much more efficient diary production and return the benefits to californias via public welfare programs?
Yes, fast trains. A magical fantasy device from the impossible to imagine lands of "Japan" or "France"
Errrrr welcome to reality - this is how regulations are always used. A balance needs to be struck between public concerns & stifled innovation - there are no "solutions," there are only tradeoffs.
Lack of competition and companies growing larger has been especially pronounced since Reagan weakened antitrust
I usually look at how farmers are organized. If they are not, others get a lot more say.
California gas tax is 69.8 cents/gallon, not 60 cents.
Nice
It's about 3x that in Canada 🥲
Nice?
Nice (?)
A little less than 70 cents?
Great in depth look at the issue. I learned a lot.
So the problem is that they don't save up money from good years for bad years
The California constitution does not allow a budget surplus to be carried over to the next year.
@@j3i2i2yl7 This is the point where anyone sane would have a nice visit to their local representative and in a very courteous and kind fashion ask if perhaps this should be changed for highly obvious reasons.
@@j3i2i2yl7 California's own voters screwed over the state's own ability to put together a good tax and finance system for the state. We get what we incentivize. And Prop 13, historical districts, and relegating building decisions to rich NIMBY counties and cities incentivizes turned all buildings into investments and trying to prevent everyone else from building to maximize your own value. We need a place to live, not a place to invest.
@@aaronhpa that is one way to resolve the issue, yes.
@@j3i2i2yl7 he means an actual savings account. Like Alaska's Permanent Fund
Texas really isn’t that cheap. Infrastructure and things are so bad here that you spend a lot of money and time fixing your things or even just waiting for the electricity to come back.
This ofc is on top of the problematic governance in its public and private institutions alone with ridiculous social inequality
10:09 I was somewhat surprised that TX appears on the list
California has greater social inequality than Texas though, did you watch the video?
I'm fixing the infrastructure? And personally, I didn't lose any power during the ice storm, or any single storm or winter after. And Cali, NY, and Florida all have higher social inequality than Texas. (not my opinion, that's the statistics.) But yes... Texas is GARBAGE please do not move here.
TX has become a purple State, with a lot of left wingers going full socialism. Combine that with insane levels of illegal immigration and it's not a pretty picture. Infrastructure in TX is excellent by the way at least in terms of roads, highways, etc. The electrical grid is struggling but a lot of that is due to "green" energy initiatives just like in several other States. If you really want to see bonehead energy policy take a hard look at the nation of Germany.
What's funny is that taxes actually comprise a higher percentage of your money in Texas until you get to a high enough tax bracket for the extra California taxes to kick in.
My main OG rap and rapping homie in the house.
13.3% state income tax at $1million+ doesn't seem high from the pov of a foreigner.
It's actually lower or at par compared to every Canada province...
That says more about Canada than it does about the United States. Also, millionaires in the state are expected to pay federal income tax in addition to state income tax. Compare this to states like Texas, that have a 0% state income tax.
Progressivism is just a boring scapegoat. A huge part of CA's problems has been the state propositions; it turns out people don't make good decisions when asked to vote on random topics individually; topics often pumped by various moneyed influences. Pretty much all of the tax problems you mentioned are a result of propositions, as is much of the local overspending.
Typical anti Prop 13 trope. Guess what, ludicrously high property tax rates are an impediment to home ownership too. At least Prop 13 puts tha brakes on that.
And how had been making thise state propositions? Delusional liberals
Its a lot harder when you ask people which specific service they enjoy that they would like to give up.
And a lot of the really troublesome legal hoops California has to deal with were set up back in its Republican stronghold decades.
Urbanism is inseparable from progressivism. Using progessivism as a scapegoat might as well be an argument against cities. There isnt a conservative city in the usa.
I'm from San Diego California is indeed expensive but the weather and produce are great. Gas almost going to be $6 by November- December
i went to san diego for twitch con last month at the san diego convention center and wouldn't be surprise if gas went there and I even saw people protesting for "1 job is not enough" near some hotels with signs and bullhorn🗣 📢
MORE than 1/2 the homeless in California are Vets. The USA has a shameful disrespect for our armed forces no longer serving. Lucky for the Vets they have the mild climate of California and the people of California who are spending millions to offer assistance to our Vets. This is USA problem that California is struggling to deal with. You are welcome.
This is not true at all. Suprised you got upvotes
@@joeblowe3180 says Joe Blow! lol!
Until about 1990, California was in a political balance. It would elect Ronald Reagan and Jerry Brown. The downsizing of the military (which had a large presence in CA) and manufacturing lead to large numbers of more conservative residents leaving the state and being replaced by immigrants, corporate transfers and blue state refugees who overwhelmingly vote Left. I live in Orange County which until about 2010 was reliably Red. It is now purple.
I didn't know about the UC System. That explains a lot. I wonder why everyone isn't doing this.
The UC system is tops. The Cal State system is not far behind, as good or better than other state schools and competitive internationally. On top of that, our community college and city college system is pretty good at preparing students to complete their 4-year degrees at 4-year universities.
What is missing is a strong vocational education system, but this is also a problem nationally.
Love your sense of humor!
Did my man just throw in a well placed and contextually appropriate ZZ TOP reference? Mon dieu!
Patrick, have you ever done a video about the 2010 flash crash?
Yes, he has
I am recently retired in California and can tell you it is an absolute nightmare to do business in this state. The amount of monthly, quarterly, semi annual and annual agency reports required full time technicians and input from virtually all levels of management. The worst part is you work in constant anxiety over the possibility of having made an error or omission in reports that can be complex. Some required the submission of two inch thick binders of tabbed information. If there is an error then you're spending your time responding to both the agencies and upper management with the possibility of significant fines. In some cases multiple regulatory bodies would require the same information but in different reporting forms and formats. There was hardly time to actually manage the business. Many times I thought how much better it would be if the state would simply take over the industry rather than control it in this fashion. At least then if a reporting error is made it is not followed by endless repercussions and fines. As I approached retirement regulations and reporting requirements grew and we were forced to hire outside firms to assist in compliance reporting.
I have a family member in HR who's worked in 13 different states, across all regions of the country, including California. The regulations in California are so different, they had to take a special class before working there; this was not necessary with any other state. The regulations there were so different from everywhere else, they said the state might as well be its own planet.
Big business designed these requirements because only big business can afford to do them.
Low iq population rules ca. Everything is going down hill.
I hear ya buddy. Oh the stories we could tell…
Sounds like a lot of overlap and government waste.... In California at that. I am shocked lol.
Patrick, the answer is simple; we live as residents in south Florida for 8 months and Point Loma during the summers.
I've lived in the beach cities of LA all my life. It has gotten bad. The weather is the only thing going for it. Fires are ruining the mountain living way of life also. I sold my home for 2.25 million in 2020 and now living in my machine shop, 8K sq. ft. with prop 13 taxes on it at $10K. Living off the home investment money is super easy now.
States and cities are up and down. I remember when Pittsburgh was in the dumps, then the best big city in the country. The benefit of being older is to see cycles. By the way, it is the only benefit.
It’s worth noting that building regulations must be stricter in California due to earthquakes and larger building are “over-engineered” compared to rest of the country. $$$
I also think California is the only state with its own electrical code book, lol...
Patrick grew up on the mean streets of Boyle Heights.
and graduated from East Los Angeles junior college with an Associates Degree............in Chicano Studies.
Prop 13 saves me $6500 a year vs. my neighbor. Income tax on your first $100k is just barely over $2k joint with standard deductions. The Prop 13 mostly offsets the extra state tax for earning $200k. There is no state income tax on Social Security. There is no food tax at the grocery store. I drive a 10-year old EV to avoid the gas tax. My mortgage payment went up just 2.6% despite a one year 30% increase in homeowner's insurance. The weather is nicer here than in Texas or Florida. So why should I move?
lol yes please don't leave
It does seem that your neighbor might be less enthusiastic about the $6500/year difference...
Clearly you have made the example of who should not move: The person who can take/benefits from those deductions. Your neighbor and everyone else who can't is incentivized to move.
Let's see.. my million dollar property has taxes less than yours, fuel is 60 percent cheaper, no income tax, little regulation..
As a Californian who decided to live in a lower cost of living state and subsequently I enjoy a higher standard of living with the same profession. It has been a trade off for sure, but a worthwhile one overall.
Everyone in the country has so many opinions about California. Ive never commented or watched a video on New Jersey, Arizona, Florida or any other state LOL.
Enjoy our agriculture!
That's because you'd have to combine the population of all 4 of those states in order to reach California's population.
It simply matters more.
And all the groundwater pumping is sinking the bottom of the state from growing food in a desert for extended growth seasons. Also a lot of nonsense is exported like lecturing everyone about the environment while growing invasive and resource heavy avocados and almonds. The bee colony collapse nonsense was from California when the bees are an invasive species to begin with who were domesticated for pollination specifically on said almond farms, which are also invasive. The problem was specifically between these, too, but then scared the uneducated into thinking the world is ending. Repeat this 100 times over.
@@Officialjeffc um what? Lol Florida? I've watched hours of video on Florida, and this man who lives there and who gets up to some wacky stuff.
In that sense, California is like the US of the US
You just did
You can't talk about high taxes without being specific, clearly prop13 has kept property taxes low (for older people who have locked in the low tax rate) and this is one of the reasons prices are so high. It's also one of the reasons their isn't a bigger exodus from California, older people are trapped in houses with low property taxes and high capital gains that can be extracted via refi.
There are other reasons in addition to prop 13. Boomers made sure that no houses gets built by zoning and other regulations.
@@rahulat85 There is a great deal of local government empowerment (city level primarily), and I find it rather hilarious that people harp against the ultimate empowerment of a local population to decide its own destiny.
But actually a lot of that has been superseded by state law over the last decade anyway, and is no longer an impediment to building more density. There is a huge amount of development happening everywhere now. A lot of it is using the medium-sized (3-5 story) mixed residential / retail model which a lot of people prefer over extreme-density housing such as you might find in Manhattan.
But it still takes a long time to make a dent. A building can't be built in a day and changing people's attitudes is a generational (multi-decade) affair.
-Matt
@@rahulat85 true
The Proposition 13 limitation on increases in assessed valuation was an extremely easy problem to predict, and an extremely difficult trap to escape. Ironically Republicans in Texas have been trying to create a similar problem here by attacking the ability of county assessment authorities to match taxable value to actual prices. In 1981 the state mandated annual revaluation of property at as close to market value as possible. This happened because of inequality in revaluations that meant that new home buyers were paying property taxes at close to full value, while long-time owners of homes were paying at a fraction of the real value. Ever since then that requirement has been whittled away because of antipathy to property taxes in the Republican Party. The lieutenant governor even proposed eliminating all property taxes in favor of an expanded sales tax, but the idea died quickly when it was pointed out that it would require a sales tax rate of over 22%.
Your insight is always fascinating!!
Super interesting and informative as always. Thanks Patrick.
Prop 13 also allows seniors to transfer their property tax base, with some like-value considerations, as long as they stay in state. So they can buy relatively well. But non-seniors there’s certainly more of an incentive to hold.
Excellent video Patridk!
I will just point out that most of the people who complain about California's "woke" politics also tend to complain about how all of the young innovative people with college degrees leave and go to all of these "woke" places on the coast and none of them stay in their "anti-woke" rural areas. Then they wonder why those rural areas never get investment or new industries and are so much poorer than California. Perhaps there's a correlation.....
I agree with you on the very conservative sates, except for Texas seems to be doing pretty well
they go to California because there are jobs there not because its woke
Well done Patrick
Very thoughtful, no drama analysis. Well done Patrick
Patrick's suits are 👍 Great video.
Seen from Belgium, they still have it easy...
Extremely interesting synopsis of what I went through in the 20 years between 2001 and 2021, when my family and I gave CA up (LA specifically) in desperation & disgust. A topic suggestion for a future episode: the pace of overdevelopment in LA toward luxury condos built as money storage devices rather than places to live, and its local impact on actual residents. The neighborhood around Overland Blvd in Culver City would be an excellent canary in that coalmine. It went from fairly-dangerous-but-just-affordable to still-dangerous-but-wildly-unaffordable-and-completely-unrecognizable in the space of about six years, from 2016 to 2021, and it doesn't even have a beach.
Unfortunately that is most of the US, at least in places that aren't shitholes. That was the core of the 08 crash too. Easy loans meant that developers were guaranteed to sell their properties so why build anything cheap? Paying 150,000 to build a 500,000 house doesn't make sense when you can spend 250,000 to build a 1,000,000 house.
This is what is happening in Portland.
Californication
"still-dangerous-but-wildly-unaffordable-and-completely-unrecognizable"
Perfect description. I wish people could actually understand how accurate that description is.
California is following the CCP and their economic policies. We see where this goes.
@@moozillamoo2109 needs to be pinned. it's everywhere. I'm in the mountains and I just saw my FIRST dumpster diver, female, and winter is closing in.
Unemployment rate and job openings are useless indicators these days. How many have stopped looking for jobs? What types of jobs are on offer?
Ghost jobs everywhere.
As long as I can remember companies have been reported to move out of California as they grew, but always new companies and whole new industries rose up to replace them. It wasn't until watching this video that I was struck by the impact that systemic declines in immigration have had on new business creation. It's not just farm workers and laborers who are missing. US universities have been attracting fewer foreign students for quite some time, with the decline peaking after Trump was elected and began restricting student visas.
Yeah it must be Trump's fault,not a single Californian politician can ever be at fault for anything.
@@ms-jl6dl Triggered, Bro? States can’t issue visas. You probably weren’t old enough to notice then, but Trump’s visa crackdown hurt universities all across the country. This especially hurt because foreigners pay full price tuition. Unintended consequence of poorly planned policy.
anyone who thinks california is the most regulated state hasnt been to florida
Patrick you da man!
California is the top dog when it comes to GDP per capita without being a tax heaven
*Laughs in Norwegian*
@@laurensb1bnordic countries are the opposite pf tax havens
Well the amount of cash Cali gives away, subsidies, is MASSIVE, pretty much a tax haven for them.
It has been like that for decades....the only difference now is you have the highest income disparity in the nation. Enjoy your blue zoo.
@@laurensb1b California is still ahead of Norway. He literally showed that at the beginning of the video.
If a state the size of California relies on less than 18k people to pay 30% of all income taxes, something is wrong. If you are very wealthy, you're also likely very mobile. They're going to leave.
Depending on the wealth, asset wealth does not move so easily. Houses would need to be sold.
Stocks can fall under a variety of tax regulations.
Most of these rich people are asset rich, not cash rich.
Good. Let them go and never let them back. Ever. Not even their money.
@@sciencefliestothemoon2305 Divide their home value by 2, and that would be how cash rich they would be if they needed to sell their house immediately.
If I were wealthy I’d be willing to pay more to live in California. My income not being high enough (even at over $100k) is just not enough to live there comfortably, but if I’m super wealthy to where money is no object I’d much rather be in California than Texas
Clearly they haven't left if the described situation is a thing right now. The ones paying now - the ones the system is currently dependent on - are the ones who stayed.
As an ex Californian of 24 years I an tell you that crime has always been a problem in SoCal and I have a victim several times myself (and this was unreported crimes)
California has policies that serve the community, while Texas does not. The companies will flee to Texas, and the unserved community of Texas will immediately ruin this move as their cost of living increases.
Do a video on Texas and Florida when you can, you did an exceptional job with this video.👍
I moved to California in 2019 because I've always wanted to check it out and experience the fun stuff and entertainment industry. Moved out in 2023 after getting laid off from my news reporting job there. Grew up in Louisiana.
It is a big, pretty state with a lot of cool stuff to do but the vibe there now is a place that's slowly dying. Living costs are insane and only affordable if you're wealthy. And a lot of wealthy types aren't going to be into the semi-progressive policies the state (tries to) push through.
A lot of Cali seems to be about appearances and not following through on substance, which can be its downfall. The liberal stuff is mostly for show. There's no actual progressive solutions like rent control, programs to truly help the homeless, push for truly high wages to keep pace with living costs, etc. (The state is not as liberal as one might assume. Found it actually conservative in some ways.)
Hollywood leaving for elsewhere will also hurt it. Some of the people who live there were the most two-faced, aloof, shallow, smug individuals I have ever met.
This was a well-done video.
I'm always confused when Americans call a thing socialist or even marxist. I know marxists, and they are very different.
In Europe, I consider conservatism, social democracy and liberalism to be the three dominant early 20th century ideologies. That the liberals would be socialist is hard to wrap my head around.
@@SusCalvin The far right in America has gotten so extreme they equate American liberals with progressivism and socialism, neither of which they are.
Liberals in America would be considered moderate or even conservative in Europe, from what I’ve heard.
@@SusCalvin Americans broadly don't really know what any of those terms really mean. We are just given talking points from other people who in turn heard talking points from politicians on the news.
Book publishers eliminate many of the underlying political beliefs of different groups from American history and just say the leaders either got assassinated and rarely acknowledge the governments role in some form of persecution that took place. As a result we don't really believe in things like systemic racism, but can think of something that happened historically between the government and a minority group, but we don't really engage with the idea that the underlying systems of government largely remain the same.
America is dealing with the collective trauma of the cold war and the damage the government inflicted on the public education system by decrying anything that could be seen as anything resembling collective action as socialism. Those using the term socialism also use it in the same way one would use a slur when referring to people with more progressive beliefs.
@@SusCalvin conservative politicians claim that liberals are socialists and marxists because they can raise money off of it. everytime mango Mussolini does a rally and claims his opponents are communists, he raises tens of millions of dollars in campaign fund from brain dead people, which he then proceeds to spend on his own hotels and golf courses so he can pocket the money
Half of our nation's homeiess people live in California (?) Wow.. I did not know that!
I lived in California the 68 degree weather and very little to no rain . Make living and sleeping outside very accommodating. It's the same concept as penguin living in Alaska because it's cold. When your homeless you don't have a lot of choice. It is a problem that will never go away there because of the climate.
They are there for the same reason other people are there. The weather. Without the beach and the stable weather California would of been a failed state a long time ago. It's the only reason any socialist policies even function without destroying everything, because people want to live in the nice weather year-round...
There's a reason there's only blue states exist mostly on the cost. Because without nice weather or geographic locations they fail and turn into Illinois with cities like Detroit, where everyone smart abandons it.
@@daminh26 Exactly right. Most of California's homeless problem is caused by their pleasant climate. Imagine being homeless in Arizona when there are weeks when daily high temperature is over 110F/43C, or Florida/Georgia during huricane season, or New England in winter.
@@daminh26 Also California has good benefits for the homeless
They subsidize homeless, SF for example gives homeless people a weekly cash payout.
Excellent report.
Oregon has a similar but smarter property tax cap than California. In 1997, property taxes were set on a 3%/year trajectory. If the home is sold, the new owner gets the same tax rate. If certain improvements are made to the home, significant but not crushing increases are made to the tax rate. The hardest case is new homes, which are purchased without a tax assessment and are assessed at a current market rate, higher than that of existing homes.
3% is about the rate of long term inflation in housing prices, so the policy has not caused much distortion.
Let's go a video about my state I love it Cali is fire still living here forever
I guess it is much easier to glaze on California as every few years people complain about how bad California is turning into a Mad Max movie.
It is easier to ignore that large chunks of the US cannot even come close to its standard of living despite lower costs. You never see the videos about how shitty a large chunk of southern and mid-west states and how they are in the bottom of quarter of standard of living, education and earnings.
Oh, don't worry. I see those videos just as much as I see the California videos.
Depends on what your standards are.
If your standards are paying $80k for a house with a yard while not stepping over human feces and used needles when you go out of your front door, good luck finding that in California.
The standard of living in CA is propped up by yuppies. Most of CA is absolutely no better than most of the south or Midwest. Even St. Louis has more law and order than Oakland.
Expensive necessities and cheaper luxuries. This is the tale of the US in general really. The homeless have iPhones but no running water. California is just even more exaggerated in this way than other states are. Now socially, California is very different from rural (i.e. conservative) states.
I live in one of the 3 poorest states of the US. My actual standard of living (as in the stuff I actually own) isn't much different than a Californian, but the difference in the number of dollars I make in comparison is very large. These numbers and statistics like standard of living (vague, do you mean how expensive the stuff I own is?), GDP per capita, etc. make for good talking points, but as often is the case, the numbers can be bent to say whatever the bureaucrats want them to say. They don't actually tell the tale of what is actually going on on the ground for the average person. Right now, if you look at GDP, the US appears to be richer than we were before Covid. Tell me, do you feel you can afford more stuff now than you did before? Because I can't, and I've had more than a 50% raise since them.
1:54 Ireland mention 🇮🇪
It makes sense though. I left Ireland for lower housing costs despite myself and my wife having decent career prospects. I’d rather have a secure roof over my head and an average salary than worry constantly if our terrible landlord is going to need to chuck us out to bump up the rents but at least I can buy lots of fancy cappuccinos; it kinda ruins the whole ‘settling down and having kids’ thing that was all the rage in the olden times.
One thing that was surprising to me was just how restrictive California's air quality and pollution laws are. I was having a nosey around woodworking UA-cam (as you do when you're procrastinating), and apparently there are common solvents and varnishes that you just cannot use in California because of the VOC restrictions. These are restrictions that even the most progressive environmentally conscious European nation would consider going a bit too far. Of course all these VOC's pale in comparison to the pollution spewed out by all the traffic in LA every day, but I guess it's a far easier target.
One of my favourite channels 👌 Let's go 🚀
Another big problem with Prop 13 is it includes commercial real estate. So a business can own a property for 50+ years and never see their property tax percentage increase while renting at current rates. There was a ballot initiative a few years ago to exempt commercial real estate from Prop 13, but businesses scared people into thinking that it would lead to repealing all of Prop 13 - the classic slippery slope argument, and unfortunately it worked.
We don’t want Elon or anybody like him. ❌
8:03 patrick knows what true art is 😊
I've said for a while that I am a national Democrat, but a Californian Republican. Single party dominance has caused a serious decline in our state.
That's a very seductive photo of Elon looking at his finest!
About made me spit my coffee and donuts.
It's exaggerated for comedy. You have taken it way too serious. It's a good joke but taken as seriously, it's a cheap gag!
Might want to think twice about Florida.
When i made 39,000 a year with no dependents, i fell into the 28% tax bracket in 2012
Those illegal immigrant services have to be paid. Please work hard.
No you didn't. You either made a lot more than that, or fell into the 6% bracket. Why lie about something that can be checked in 2 seconds on Google?
@@TysonJensen I'm assuming she is including federal taxes as well, and Medicare and SS taxes.
@@TysonJensen You are a complete dunce
@@TysonJensen total amount with held from my check was 28%… this could have included insurance/employee parking, but it felt like a lot at the time
I read something to the effect that nearly half of all new housing developments in California get sued due to running afoul of some regulation or complaint, usually some environmental regulation. That is a whopping amount red tape and time lost that keeps the cost of housing high and the number of new housing units limited.
I hadn't heard that stat specifically but I'm not surprised. The city of Tokyo adds more new homes every year than the entire state of California.