California’s high cost of living is driving people in their 20’s out of the state, signaling trouble for the future. A study by ADP found that job markets in the south are thriving for young professionals, while California failed in cost of living, hiring rate, and salaries. The housing crisis, driven in part by the California Environmental Quality Act, is a major contributor to the high cost of living. High energy costs, gas prices, and taxes further burden residents.
As a result, people are leaving California due to economic factors, despite higher wages. Public schools are lacking, taxes are high, and businesses are relocating. The state’s private sector job growth is dismal, with a decline in jobs over the past 18 months. Unemployment rates are high, and job creation has been primarily in the government sector.
California policymakers need to address the housing and energy costs to make the state competitive with others in terms of tax policy. Otherwise, the population will continue to decline as people seek more affordable options elsewhere. The aging population and declining birth rate further compound the issue, limiting the production of taxpayers.
Ultimately, California’s inability to solve basic cost-of-living problems is pushing young professionals out of the state and raising concerns about the state’s economic future. Press article by Matt Fleming, opinion columnist for the Southern California News Group and CEO of Sower Strategies.
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