Job growth is booming across the U.S. but not in California. Here's why
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Re: Job growth is booming across the U.S. but not in California. Here's why
#2> “The reason why Texas and Florida are doing well and California isn’t, it’s the cost of housing and high taxes,” said Sung Won Sohn, an economist at Loyola Marymount University in Los Angeles. “We have lost a lot of small businesses.”
This former is the crux of the problem: California entered into a suicide pact with real estate speculators in the 70s, from which it seems entirely unwilling to extricate itself. It’s an incredibly destructive drag on the state’s entire economy that prevents new business formation and labor mobility.
Re: Job growth is booming across the U.S. but not in California. Here's why
#3> “The reason why Texas and Florida are doing well and California isn’t, it’s the cost of housing and high taxes,” said Sung Won Sohn, an economist at Loyola Marymount University in Los Angeles. “We have lost a lot of small businesses.” This former is the crux of the problem: California entered into a suicide pact with real estate speculators in the 70s, from which it seems entirely unwilling to extricate itself. It’…
I've had several offers to work in startups in California that don't do remote. Instead of just saying no outright I ask the HR person where the office is or look it up. It's usually near Silicon Valley and I have to explain that they'd have to pay me CEO pay to make up for the increase in living/home expenses. I mean...$1.5M to get a home similar to what I paid $150k for not that long ago is hard to justify.
Re: Job growth is booming across the U.S. but not in California. Here's why
#4> “The reason why Texas and Florida are doing well and California isn’t, it’s the cost of housing and high taxes,” said Sung Won Sohn, an economist at Loyola Marymount University in Los Angeles. “We have lost a lot of small businesses.” This former is the crux of the problem: California entered into a suicide pact with real estate speculators in the 70s, from which it seems entirely unwilling to extricate itself. It’…
This doesn’t quite ring true for me in Florida at least. Most recently, floridas cost of housing is raising ridiculously due to home insurance, with several homes refusing to be insured by anyone for any price. On top of that, assessments on condos and other buildings are raising the costs of high rises as well due to government regulations them to get inspected and implement necessary repairs (after HOAs and condos associations have been skimping on necessary maintenance for decades…)
Re: Job growth is booming across the U.S. but not in California. Here's why
#5> “The reason why Texas and Florida are doing well and California isn’t, it’s the cost of housing and high taxes,” said Sung Won Sohn, an economist at Loyola Marymount University in Los Angeles. “We have lost a lot of small businesses.” This former is the crux of the problem: California entered into a suicide pact with real estate speculators in the 70s, from which it seems entirely unwilling to extricate itself. It’…
This doesn’t quite ring true for me in Florida at least. Most recently, floridas cost of housing is raising ridiculously due to home insurance, with several homes refusing to be insured by anyone for any price. On top of that, assessments on condos and other buildings are raising the costs of high rises as well due to government regulations them to get inspected and implement necessary repairs (after HOAs and condos…
The problem of the parasitic drag of real estate speculation is spreading to every major market in the U.S. We’re quickly on track to things getting as bad as they are in Canada. But California has been leading the pack for some time because of some especially stupid laws it passed decades ago.
Re: Job growth is booming across the U.S. but not in California. Here's why
#6> “The reason why Texas and Florida are doing well and California isn’t, it’s the cost of housing and high taxes,” said Sung Won Sohn, an economist at Loyola Marymount University in Los Angeles. “We have lost a lot of small businesses.” This former is the crux of the problem: California entered into a suicide pact with real estate speculators in the 70s, from which it seems entirely unwilling to extricate itself. It’…
I've had several offers to work in startups in California that don't do remote. Instead of just saying no outright I ask the HR person where the office is or look it up. It's usually near Silicon Valley and I have to explain that they'd have to pay me CEO pay to make up for the increase in living/home expenses. I mean...$1.5M to get a home similar to what I paid $150k for not that long ago is hard to justify.
If high payed tech workers are being priced out, imagine how it is for people in other roles.
Re: Job growth is booming across the U.S. but not in California. Here's why
#7California is full, plain and simple. The people who live there and control the land have decided so, both implicitly and explicitly.
Re: Job growth is booming across the U.S. but not in California. Here's why
#8> “The reason why Texas and Florida are doing well and California isn’t, it’s the cost of housing and high taxes,” said Sung Won Sohn, an economist at Loyola Marymount University in Los Angeles. “We have lost a lot of small businesses.” This former is the crux of the problem: California entered into a suicide pact with real estate speculators in the 70s, from which it seems entirely unwilling to extricate itself. It’…
This doesn’t quite ring true for me in Florida at least. Most recently, floridas cost of housing is raising ridiculously due to home insurance, with several homes refusing to be insured by anyone for any price. On top of that, assessments on condos and other buildings are raising the costs of high rises as well due to government regulations them to get inspected and implement necessary repairs (after HOAs and condos…
This should be all accounted for in rent. California rent seems to be 50% higher than Florida.
Re: Job growth is booming across the U.S. but not in California. Here's why
#9> “The reason why Texas and Florida are doing well and California isn’t, it’s the cost of housing and high taxes,” said Sung Won Sohn, an economist at Loyola Marymount University in Los Angeles. “We have lost a lot of small businesses.” This former is the crux of the problem: California entered into a suicide pact with real estate speculators in the 70s, from which it seems entirely unwilling to extricate itself. It’…
I've had several offers to work in startups in California that don't do remote. Instead of just saying no outright I ask the HR person where the office is or look it up. It's usually near Silicon Valley and I have to explain that they'd have to pay me CEO pay to make up for the increase in living/home expenses. I mean...$1.5M to get a home similar to what I paid $150k for not that long ago is hard to justify.
Tbf, startup ceo pay is not that great. Except for maybe very late stage engineers often get paid more in base comp. And at late stage your startup should pay you enough to live in Bay Area.
Re: Job growth is booming across the U.S. but not in California. Here's why
#10Living in SoCal still offers distinct advantages in terms of civil rights, a social safety net, and access to a vast number of small and large businesses (for both work and services). The entry-level job thing is compounded by requirements for degrees and experience that fully expect folks to down-skill to lower-wage roles.
One factor that looms large is the gig economy: Uber/Lyft/DoorDash/etc. They've become a lynchpin in providing delivery services that restaurants have come to rely on, while hitting both them and consumers with large fees. Pizza delivery is being shifted from actual drivers to gig workers, to avoid a recent law change requiring more pay; this has become an act of cost-externalization, and further increases the dependency on the gig workers. And overall the gig workers aren't necessarily seeing gains from this change, since their employers fight tooth and nail on efforts to increase their pay.
This doesn't even begin to cover what's happening in the agricultural and creative industries; the latter of which I believe has been covered writ-large in this space.