Please ensure Javascript is enabled for purposes of website accessibility
Walters: ‘California for All’ vs. Daunting Reality
dan_walters
By Dan Walters, CalMatters Commentary
Published 5 years ago on
February 2, 2020

Share

Gov. Gavin Newsom’s website is topped by his official slogan, “California for All.”
“The California Dream — the idea that every person can achieve a better life, regardless of where they start out — is central to who we are as Californians,” it declares. “Even in a time of economic growth and record employment, too many Californians are experiencing the squeeze of stagnant wages and the rising price of building-block necessities such as housing, health care, education, and child care. We can and must reanimate the California Dream, building a California for All.”


Dan Walters
Opinion
In polling, most Californians endorse that noble vision, but the reality is daunting. Last week, Newsom referred to California as “the richest and poorest state,” and the gap is widening.
We have, for instance, the nation’s highest rate of poverty, as defined by a Census Bureau formula that includes the cost of living, with 18.1% or more than 7 million Californians impoverished.
That doubles to 14 million, the Public Policy Institute of California says, if Californians in “near-poverty” are added — a number virtually identical to enrollment in Medi-Cal, our program of medical care for the poor.
At the extreme edge of the underclass, there are, according to the most recent official counts, 151,278 homeless Californians, a nearly 17 percent growth in one year. But the official count is probably far short of reality, which may be two or three times as high.

The Yawning Income Gap

By sheer coincidence, incidentally, our official homeless number is almost identical to the number of California households in the top 1% of income. The one-percenters, who pay nearly half of the state’s income taxes, average $1.7 million in annual income.
A new PPIC report frames the yawning income gap.
“While California’s economy outperforms the nation’s,” it says, “its level of income inequality exceeds that of all but five states. Families at the top of the income distribution in California have 12.3 times the income of families at the bottom ($262,000 versus $21,000, for the 90th and 10th percentiles, respectively, in 2018), measured before taxes and safety net programs.”
The gap, if anything, is widening.
“Since 1980, incomes for families in the 90th percentile have increased by 60%, while incomes at the 50th percentile (median) and 10th percentile have grown much less (24% and 20% higher in 2018 than 1980),” PPIC says.
The trends reflect fundamental changes in our economy — a decline in blue-collar jobs, especially in manufacturing, and strong growth in technology and other industries demanding higher educational credentials.

The Income Gap Mirrors What Educators Call the ‘Achievement Gap’

“For families where any member holds a four-year degree or higher, median income increased by 30% since 1980,” PPIC continues. “It decreased slightly for all other families. Families with four-year degree holders earn $2.20 for every $1 that families without degree holders earn.”

In the longer run, making California more attractive to job-creating investment, improving educational outcomes and lowering barriers to housing construction are the only approaches that might truly close the gaps.
There is a strong geographic component to the income gap, with the widest disparity found in the technology-heavy Bay Area, and a wide ethnic factor with Latino and black Californians overrepresented in the lowest income cohort.
The income gap, moreover, mirrors what educators call the “achievement gap” among the state’s nearly 6 million K-12 students, with poor and English-learner students — Latino and black children, particularly — perpetually falling behind more affluent white and Asian kids.
In the main, Newsom and other political leaders, Democrats all, have addressed these gaps by throwing taxpayers’ money at them but those efforts are puny stopgaps at best.
In the longer run, making California more attractive to job-creating investment, improving educational outcomes and lowering barriers to housing construction are the only approaches that might truly close the gaps.
CalMatters is a public interest journalism venture committed to explaining how California’s state Capitol works and why it matters. For more stories by Dan Walters, go to calmatters.org/commentary.
[activecampaign form=31]

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Chargers in Need of Help at Wide Receiver and Tight End in the NFL Draft

DON'T MISS

Magic Happens When Kids and Adults Learn to Swim. Tragedy Can Strike if They Don’t.

DON'T MISS

Big Fresno Fair Board Will Be Led by an American Sikh for 1st Time

DON'T MISS

AI ‘Friend’ for Public School Students Falls Flat

DON'T MISS

Is a ‘Friend-Apist’ What We Really Want From Therapy?

DON'T MISS

Yemen’s Houthi Rebels Report US Strikes in the Capital and a Coastal City

DON'T MISS

Progressive Icon and Ex-US Rep. Barbara Lee Wins Race for Mayor of Oakland

DON'T MISS

Humanoid Robots Run a Chinese Half-Marathon Alongside Human Competitors

DON'T MISS

Bakersfield Push to Restore Kern River Seeks to Revitalize City

DON'T MISS

Anti-Trump Protesters Turn Out to Rallies Across Country

UP NEXT

I Have Never Been More Afraid for My Country’s Future

UP NEXT

Why Is It So Expensive to Build Affordable Homes in CA? It Takes Too Long

UP NEXT

What Some Animals Endure Before We Eat Them

UP NEXT

Zakaria Warns of ‘Crony Capitalism’ in Trump’s Tariff Reversal

UP NEXT

How California Can Reduce High Concession Prices in Its Taxpayer-Funded Stadiums

UP NEXT

Why Palestinian Christians Feel Betrayed by American Christians

UP NEXT

Other States Do Housing Better Than California; a New Study Shows How They Do It

UP NEXT

Trump and Netanyahu Steer Toward an Ugly World, Together

UP NEXT

New Plan to Accelerate CA High-Speed Rail Construction Deserves Attention, Support

UP NEXT

Why Did So Many People Delude Themselves About Trump?

AI ‘Friend’ for Public School Students Falls Flat

14 hours ago

Is a ‘Friend-Apist’ What We Really Want From Therapy?

14 hours ago

Yemen’s Houthi Rebels Report US Strikes in the Capital and a Coastal City

1 day ago

Progressive Icon and Ex-US Rep. Barbara Lee Wins Race for Mayor of Oakland

1 day ago

Humanoid Robots Run a Chinese Half-Marathon Alongside Human Competitors

1 day ago

Bakersfield Push to Restore Kern River Seeks to Revitalize City

1 day ago

Anti-Trump Protesters Turn Out to Rallies Across Country

1 day ago

Universal Studios Fan Fest 2025 to Feature Immersive D&D Attraction and More

1 day ago

Thousands Gather in London for Trans Rights Following UK Ruling Over Definition of Woman

1 day ago

250 Years After America Went to War for Independence, a Divided Nation Battles Over Its Legacy

1 day ago

Chargers in Need of Help at Wide Receiver and Tight End in the NFL Draft

EL SEGUNDO — In their first season together, Los Angeles Chargers general manager Joe Hortiz and coach Jim Harbaugh rebuilt the team enough ...

13 hours ago

13 hours ago

Chargers in Need of Help at Wide Receiver and Tight End in the NFL Draft

13 hours ago

Magic Happens When Kids and Adults Learn to Swim. Tragedy Can Strike if They Don’t.

13 hours ago

Big Fresno Fair Board Will Be Led by an American Sikh for 1st Time

14 hours ago

AI ‘Friend’ for Public School Students Falls Flat

14 hours ago

Is a ‘Friend-Apist’ What We Really Want From Therapy?

1 day ago

Yemen’s Houthi Rebels Report US Strikes in the Capital and a Coastal City

1 day ago

Progressive Icon and Ex-US Rep. Barbara Lee Wins Race for Mayor of Oakland

1 day ago

Humanoid Robots Run a Chinese Half-Marathon Alongside Human Competitors

Help continue the work that gets you the news that matters most.

Search

Send this to a friend