If Immigration Creates Wealth, Why Is California America's Poverty Capital?

BeatMan

Bronze Member
California used to be home to America's largest and most affluent middle class. Today, it is America's poverty capital. What went wrong? In a word: immigration.

According to the U.S. Census Bureau's Official Poverty Measure, California's poverty rate hovers around 15 percent. But this figure is misleading: the Census Bureau measures poverty relative to a uniform national standard, which doesn't account for differences in living costs between states – the cost of taxes, housing, and health care are higher in California than in Oklahoma, for example. Accounting for these differences reveals that California's real poverty rate is 20.6 percent – the highest in America, and nearly twice the national average of 12.7 percent.

Likewise, income inequality in California is the second-highest in America, behind only New York. In fact, if California were an independent country, it would be the 17th most unequal country on Earth, nestled comfortably between Honduras and Guatemala. Mexico is slightly more egalitarian. California is far more unequal than the "social democracies" it emulates: Canada is the 111th most unequal nation, while Norway is far down the list at number 153 (out of 176 countries). In terms of income inequality, California has more in common with banana republics than other "social democracies."



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