Democrat DISASTER: California Named the Poverty Capital of America
As Jerry Brown leaves the governor’s mansion, he leaves California in utter chaos, specifically an out of control homeless and poverty catastrophe.
Liberals have destroyed California. They claim to be making life fair for everyone, and as always, it backfired.
This week, State Assembly Republican Leader Chad Mayes called poverty California’s No. 1 priority during a forum of legislative leaders in Sacramento.
Mayes, who represents parts of San Bernardino and Riverside counties, claimed the state’s poverty rate is higher than any state in the nation when considering factors such as cost-of-living.
“If you look at the official poverty measure in California, we’re about average with the rest of the country,” Mayes said. “But if you use the supplemental poverty measure, we are in the lead. We have the highest poverty rate in the nation — higher than New Mexico, higher than any of the southern states, Louisiana, Alabama, higher than Idaho.”
In California, nearly one out of five residents is poor. That’s according to the Census Bureau’s Supplemental Poverty Measure, which factors in the cost of housing, food, utilities and clothing, and which includes noncash government assistance as a form of income.
Looking to help poor and low-income residents, California lawmakers also recently passed a measure raising the minimum wage from $10 an hour to $15 an hour by 2022. But a higher minimum wage will do nothing for the 60% of Californians who live in poverty and don’t have jobs. And research indicates that it could cause many who do have jobs to lose them.
As homeless camps explode in L.A. suburbs, residents fear they will become permanent.
Southern California’s homeless population has exploded in recent years. Orange County alone has seen a huge surge, with an estimated 6,145 people calling the camps home. That is according to the 2017 homeless count. It is a 4% increase from 2016.
It’s not as though California policymakers have neglected to ‘wage war’ on poverty. Sacramento and local governments have spent massive amounts on the cause.
But several state and municipal benefit programs overlap with one another. That results in some cases with individuals with incomes 200% above the poverty line receiving benefits. The generous spending has not only failed to decrease poverty; it actually seems to have made it worse.
Since Gov. Brown was sworn in, 243,099 people have fled California on net for other states.
They took $7.794 billion with them to states that don’t have such high taxes and onerous regulations that make housing unaffordable for middle class households.
The personal and corporate income tax hikes championed by Gov. Brown in 2012 have likely helped exacerbate the exodus of Californians. In a move that will further drive up the cost of living in one of the hardest states in which to get by, Gov. Brown approved an extension of the state cap & trade program earlier this year.
This will hurt low and middle income households the hardest, who will face what is effectively a regressive tax hike in the form of higher gas prices and utility bills.
Extensive environmental regulations aimed at reducing carbon dioxide emissions make energy more expensive, also hurting the poor. By some estimates, California energy costs are as much as 50% higher than the national average.
Further contributing to the poverty problem is California’s housing crisis. More than 4 in 10 households spent more than 30% of their income on housing in 2015. A shortage of available units has driven prices ever higher, far above income increases. And that shortage is a direct outgrowth of misguided policies.
California, in a socialist effort to destroy income inequality, has created the biggest gap between rich and poor ever seen in the state.
It has become so expensive to live in California that the cost of living actually becomes a disincentive to work. Poor people are better off accepting the generous benefits offered by state and local governments rather than going to work.
In effect, the reason California is the poverty capital of America is that the state subsidizes poverty. When you subsidize something, you get more of it.
This simple formula eludes the dolts who run the state. They believe they can continue to tax and tax, and spend and spend, with no consequences to the economy or citizens of the state.
Lawmakers in Sacramento should take a close look at Illinois. This is their future – a nearly failed state, deeply in debt, with taxes so high that tens of thousands of residents are leaving the state every year.