Chapman Report: "Beyond Feudalism: A Strategy to Restore California's Middle CIass"

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Chapman Report: "Beyond Feudalism: A Strategy to Restore California's Middle Class"

 

"A Less Grandiose Reality: California’s ascent to its rank as the world’s fifth or sixth largest economy reflects its status as the hub of the “new” economy. Less often acknowledged, but also painfully true: the Golden State now exemplifies the nation’s lurch towards a new form of feudalism in which power and money are increasingly concentrated. Upward mobility is constrained, and sometimes shocking levels of poverty remain widespread...The state is often praised for its elaborate environmental and labor protections, but its record on economic mobility, middle-class disposable income, and even on greenhouse gas reductions, is not encouraging. The gap between middle-class Californians and the more affluent is becoming greater.

The Decline Of California’s Middle And Working-Classes: California policies, often steeped in good intentions, have had deeply deleterious consequences, especially on its middle and working-class families. The state’s rich have enjoyed an unprecedented bounty. But California also suffers the widest gap between middle and upper-middle income earners of any state.8 California’s signatures of upward mobility, homeownership and the availability of economically sustainable jobs, have fallen well below the national average."

"Since 2008 the state has created five times as many low wage jobs as high wage jobs. Yes, the state’s employment growth in the past decade has outperformed the rest of the country, but most of the new jobs pay poorly, and now seem to be permanent for many.9 California is the single worst state in the nation when it comes to creating jobs that pay above average, while it is at the top of the nation in creating below average and low-paying jobs. High wage jobs have increased marginally in the state during the past decade, but our competitors — Utah, Texas, Arizona, Nevada and Washington have seen much higher growth. At the same time, middle-skill job growth in California is well below competitive states. California lost 1.6 million above-average-paying jobs in the past decade, more than twice as many as any other state."

Needed Now: A Powerful New Strategy California’s leaders had plenty of warning of this impending class and race chasm. A report more than three decades ago from the Population Reference Bureau predicted that the state was creating a two-tier economy, with a more affluent white and Asian population and a largely poor Latino and African American class...

To renew the California dream requires a drastic change of direction. Regulatory excess has pushed up housing and energy policies ruinously, particularly for blue collar and middle-management workers. Our school systems continue to fail, particularly for minority populations. High costs and taxes drive out middle-class and aspiring working-class citizens, as well as the companies that would employ them. For decades, California has been a beacon for the talented and ambitious, not just a magnet for the wealthy or super-educated few. It can be that again. But it will require a strategy that is both economically inclusive and programmatically sustainable"

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