California Spends $1 Trillion Dollars To Create Worst Poverty and Homelessness in the Country
California has the highest poverty rate in the United States. The state boasts the worst homelessness crisis as well, in all 50 states. The used to be Golden State also has the worst income inequality problem. It is a crisis with no end in sight! Not Mississippi, New Mexico, or West Virginia, California!
That is after the sate has spent over $1 trillion since 1995 to lower poverty, homelessness, and income inequality!
According to the Census Bureau’s Supplemental Poverty Measure, nearly one out of four Californians is poor. The Bureau’s latest statistics, released this month, find that California’s poverty rate remains the highest in the nation, despite dipping ever so slightly.
Sacramento and local governments have spent massive amounts for the sole purpose of fixing the poverty issue for decades now. It is obviously not working. Nearly $958 billion from 1992 through 2015 on public welfare programs, including cash-assistance payments, vendor payments, and “other public welfare,”
In fact, with around $100 billion a year going toward welfare, California’s spending on the financially needy is more than the next two on the list combined.
New York, at number two, paid out $61.4 billion in 2015, while Texas, in the third spot, spent $35.4 billion, according to U.S. Census Bureau data. Here is the top 10 from 2015: 1. California $103 billion 2. New York $61 billion 3. Texas $35 billion 4. Florida $27 billion 5. Pennsylvania $27 billion 6. Illinois $21 billion 7. Ohio $20 billion 8. Massachusetts $19 billion 9. New Jersey $17 billion 10. Michigan $16 billion.
“One of the great mistakes is to judge policies and programs by their intentions rather than their results.” – Milton Friedman
The problems are tied largely to the state’s unusually high cost of living, yet Sacramento spent the recently concluded legislative session imposing taxes, fees and new regulations that will drive up the costs of everything from transportation to housing.
City Journal editor Kay S. Hymowitz explains very well how this catastrophe has happened:
“In the late 1980s and early 1990s, some states—principally Wisconsin, Michigan, and Virginia—initiated welfare reform, as did the federal government under President Bill Clinton and the Republican Congress. The common thread of the reformed welfare programs was strong work requirements placed on aid recipients.
These overhauls were widely recognized as a big success, as welfare rolls plummeted and millions of former aid recipients entered the workforce. The state and local bureaucracies that implement California’s antipoverty programs, however, have resisted pro-work reforms.
In fact, California recipients of state aid receive a disproportionately large share of it in no-strings-attached cash disbursements. It’s as if welfare reform passed California by, leaving a dependency trap in place. Immigrants are falling into it: 55 percent of immigrant families in the state get some kind of means-tested benefits, compared with just 30 percent of natives.”
“The nine most terrifying words in the English language are: I’m from the government and I’m here to help.” – President Ronald Reagan
California lawmakers recently passed a measure raising the minimum wage from $10 an hour to $15 an hour by 2022. A higher minimum wage will do nothing for the 60 percent of Californians who live in poverty and don’t have jobs, and studies suggest that it will likely cause many who do have jobs to lose them.
California also just passed a law that will basically outlaw many forms of independent contractors, putting many others out of work, and lowering the jobs markets by companies like Uber and Lyft.
The state has passed massive rent controls, which will only drive more affordable housing investors to other states.
When will Californians wake up and see that the poorest are being hurt the most from this craziness?