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Updated over 5 years ago on . Most recent reply

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Francis A.
  • Los Angeles, CA
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Despite their high taxes, the wealthy keep moving to California

Francis A.
  • Los Angeles, CA
Posted

There has been a lot of talk of people moving out of California. To this effect, the Los Angeles Times has an article that goes by the subject "High taxes be damned, the rich keep moving to California". Has anyone read this yet? 

(I didn't want to run afoul of the BP rules and so I did not post the link.)

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Dan H.
#3 General Real Estate Investing Contributor
  • Investor
  • Poway, CA
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Dan H.
#3 General Real Estate Investing Contributor
  • Investor
  • Poway, CA
Replied

When a Ca politician indicates poverty he may not be referring to Fed poverty levels but income levels higher than the fed definition but not enough income to live on in Ca.  Using the fed poverty guidelines, CA is not very close to the highest poverty state (but is worse than the average state - in the 30s).

There are many people with jobs that cannot afford housing in CA.  Young school teachers may have to share their BR to be able to afford housing.  There are also people without jobs for one reason or another (most cannot keep a regular job due to various issues and it is not primarily they are lazy - various reasons from addiction to psychological issues, etc.).

The environmental climate of Southern Ca is attractive for the homeless.  Near the coast it rarely freezes or rarely breaks 90 in the summer.  Environment climate wise there likely is no state better for homeless.

The political climate of Southern Ca is attractive for the homeless.  Food banks, homeless shelters, allowing people to live in their vehicles on the public streets (San Diego city allows people to live in their vehicle on any public street).  Policy wise there are few states as accommodating of the homeless as Ca.

Why would a homeless person choose to live elsewhere?  Not an easy problem to solve but it does explain part of why there are so many homeless in Ca (many and large homeless camps - there used to be a very large homeless camp by Angel stadium, not sure if it is still there, smaller encampments are everywhere). 

Expensive housing, political and environment climate that accommodates the homeless contribute to the large homeless numbers.  The economy is solid but the homeless problem seems to continue to get worse is So Cal.

BTW my brother has not held full time work in over a decade.  He is 52 now.  He has a range of issues.  Psychological issues are persistent.  He has fought drug dependencies a couple/few times.  He is so unreliable that he cannot hold a regular job (even part-time job).  We provide him a place to live.  There are days that he does not leave the place.  Other days he is great.  Gardens, occasionally fishes, has a BBQ, goes out with friends.  We have also provided him a car when we were done with it.  I suspect it never had oil added/changed after we gave it to him.  Are we enabling?  I do not believe so because it is my view he is not capable of supporting himself.  If we did not provide him a place to live he would be living on the street and possibly dead.  My wife and I expect to need to help support my brother for life (ours or his).  Due to my brother, I am familiar with the problem and the difficulties dealing with the problem. 

  • Dan H.
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