Calif. economy is booming, but is still No. 1 in poverty
By Chris Kirkham, Los Angeles Times
From a quick glance at the headline numbers, California’s economy looks to be in its strongest shape in years.
Over the last four years, California has added jobs at a rate faster than all but six other states, and faster than the U.S. overall.
The state unemployment rate is at 5.9 percent, the lowest since November 2007, and significantly below the 25-year average of 7.5 percent.
California has added jobs at a faster rate than the rest of the country in recent years.
But that swift economic growth hasn’t improved the fortunes of California’s poorest. The state’s official poverty rate (based on a federal threshold of $24,230 for a family of four) is at 16.4 percent, according to the most recent census data from 2014, up from 12.4 percent in 2007.
Um, Mr.Kirkham. I just went to the link to the Los Angeles Times article referenced and it says California’s Official 2013 poverty level is in the top third of all states across the country. It clearly shows Alabama and New Mexico over 20%. It also shows 23 other States with poverty rates of 15 – 20%.
Another graphs shows the Counties with the highest poverty levels are on the border with Oregon and in the Central Valley, with Tulare County being the highest at 26.2%.
The article uses a cost of housing factor to show that the cost of housing is high in California and this housing factor gives you the #1 Poverty rating. Yes, the average home in California is just over $400,000 versus the National average of just under $200,000.
Ok. So what do we do about high cost of housing in California? Most people want to live near the Coastal Cities. Most of California has 4 or 5 homes built per acre, San Francisco has 18 (highest.) Obviously, we have to build more and the housing is going to be more dense. But, of course the NIMBY factor may keep the status quo.
Government regulation again, R4T. Zoning laws, building regulations, environmental regulation, all make it prohibitively expensive and convoluted process to provide housing. High wages and requirements for workers’ comp, liability insurance, medicare/social security employer matches make it so expensive to build, that low income housing is priced out.
Government creates more problems than it solves.