The richness and misery of California: the main reasons for this situation and the cities that are at the extreme

Narda Maren

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Contrast between the metropolis and povertyPhoto by Jon Tyson on Unsplash

The Golden State is known for its diversity. California is one of the most populous states in the United States, one of the largest areas, with incredible climatic, cultural, and racial variety. But it is also the state with the most significant wealth and poverty at the same time.

In a recent article by BBC News, he cites, "Although California is at the center of innovation in science, technology, and business, it also has the highest poverty rate in the United States when you consider the cost of living and housing."

California wealth

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Rodeo Drive - Beverly HillsPhoto by Exels David Vives from Pixels
"The true story of California is that it is a very diverse economy that has adapted and changed over time. Beyond technology and Silicon Valley, this state has sectors such as manufacturing, natural resources, agriculture and professional services."- University of San Francisco, Professor William Riggs.

California became the third-largest economic power in the WORLD in 2017. Coming below only the rest of the United States, China, Japan, and Germany. That is, It is competing with large world-leading countries.

According to a publication by DIRIGENTES, the easy explanation for these data may consist of the strength of Silicon Valley, the place where a large number of the world's prominent technological giants are concentrated, such as Apple, Facebook, Twitter, Alphabet, Oracle, or Yahoo among an endless list. However, even though these companies favored economic growth, the key to the economy of the Golden State is in its diversity.

Billionaires City

California has several of the cities where billionaires live. These places are:

  • Los Altos Hills.
  • Woodside.
  • Beverly Hills.
  • Atherton.
  • Palo Alto.
  • Los Angeles.

California Poverty

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California slumPhoto by Brett Sayles from Pexels.
"The Californian economy is extraordinarily successful, but it hasn't benefited many people," said Anmol Chaddha, lead investigator for the report commissioned by Newsom.

According to statistical data from Macros Data, California is in the fifth position, with 11% of the total of the states at risk of poverty. That is a very high percentage considering that the state is the fifth-largest economy globally, but why is this happening?

"The distance between the rich and the poor impacts housing costs, the cost of living, the homeless crisis, and ultimately makes some wonder if they have a future here." - Mark Baldassare, president of the California Institute of Public Policy.

According to a March report this year commissioned by the governor, Gavin Newsom, one in six Californians is poor to a committee of different organizations and government entities.

The high cost of housing, essential services, and the cost of living in general, contrasting with salaries of less than 15% dollars an hour for approximately 33% of employees, makes it increasingly difficult for those who live in poverty, can get out of it.

To the above, we add the thousands of homeless people who have taken over the parks and streets of the main cities.

The poorest cities in California

According to a publication made by "La Opinion" in May 2019, Clearlake, located in northern California, is considered the poorest in the entire state, according to a report from the financial issues portal 24/7 Wall St.

In fact, Clearlake's economy faces so much trouble that the poverty rate there is 35.9%, which would be more than double the average poverty rate of 15.1% for the entire state of California.

For comparison, Clearlake's median household income is $ 27,034, but in Los Altos Hills, it is a whopping $ 248,218, almost ten times higher.

Other impoverished California cities include:

  • Lancaster.
  • Hemet,
  • San Bernardino.
  • Compton, Montebello.
  • Palmdale.
  • El Monte.
  • Lynwood.
  • Bell Gardens.
  • Huntington Park.

All these cities have in common a high unemployment rate.- Credits to Univision.

In short, California is a prosperous state, In the United States and the world, but that does not mean that its inhabitants all live equally. The rulers have an essential job to achieve equity in wealth, not "to give money" but to produce more opportunities for work, education, and health.

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Los Angeles, CA
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