What once was the destination of dreams for many Americans’ looking for their little part of Eden has now become one of the most controversial (and expensive) places to call home in the world!
The U.S. has a long history of heading West to obtain fortune and, ultimately, a better life. From the famed California Gold Rush to the surge of young entrepreneurs and fame seekers looking to make it big in a land of opportunity, California has been the state of many people’s hopes and dreams for over 100 years.
Yet for the first time in the country’s history, many citizens (and some not) are looking East for the answer to their dreams and leaving the Golden State in their rear-view mirror.
And with the recent move to recall Governor Gavin Newsom from office, rising taxes, homelessness, drought, diminishing job opportunities and one party control of the state, California has lost its appeal to many Americans, including a growing group of the people that recently called it home.
Today, we look at the cause of this “mass exodus” and why the Golden State looks to be tarnishing in the minds of some Americans.
California, Here We Come!
To the many Americans living in the cramped and overcrowded cities of America’s East Coast at the beginning of the 20th century, California looked like a dream too good to be true. This oasis offered plentiful land at an affordable price, warm weather, ocean front scenery and rivers lined with gold!
And with the soon to be fathers of the film industry looking for space to call home as they expanded their growing empires, the opportunities that particularly Southern California offered seemed too good to be true.
The above mentioned affordable and plentiful land offered them everything they’d need to build the studios they would soon require for their projects. On top of that, the continuous weather conditions and multiple terrain options available were perfect for their filming needs. They could be at the beach in the morning, be in the desert in the afternoon and filming on top of a snow filled mountain by dinner. No matter the film’s subject matter, California offered the perfect opportunities for what would soon become Hollywood!
And with industry continuing to grow in Coastal California, so did the population, tempted by affordability, freedom and opportunity. (The very three things this state no longer has the resources to offer, but we’ll get to that in a bit…)
The Growth and Decline of the Dream State
Over the course of the next 100 years, California would see a shift from the land of opportunity and wide-open spaces to the overcrowded, overpriced state we know it as today.
And as more and more people from all over the globe were tempted by this perceived oasis by the sea, the list of mounting problems faced on America’s west coast only continued to grow longer.
With the state’s water supply dwindling, job opportunities lacking and the expenses to run such a large state rising California had started on its downward path that it currently continues down to this day and, at long last, many Californians have said “ENOUGH!”
In the political realm, what once was a strong Republican state (and the state that gave us Ronald Reagan) would soon find itself down what seems to be an irreversible march to the left as the Democrat party took a stronghold over the Californian population.
… And while Democratic politicians look to raise the Californian citizen’s taxes to pay for their own mistakes and mismanagement of the Not So Golden State, so begins what is being referred to as California’s Mass Exodus.
California Moves East
To avoid the mounting issues the state continues to collect, many within its population have begun to move eastward to better run states such as Texas and Arizona (both Republican run I might add.) Yet, many of these former Californians bring with them the same ideas and beliefs that they were indoctrinated with by the very people they are fleeing. As such, many native Texans and Arizonans are beginning to sound the warning bells in fear that, as California leaves California, they will also spread their harmful ways of governance to states that, for the most part, have managed to avoid such issues.
And this path away from California is not limited to its individual citizens. Many of the country’s biggest companies that once called California home (including Oracle, Hewlett-Packard, Tesla, and many more) have started their journey out of California and into more tax-friendly states.
Even Hollywood itself has recently taken steps away from the state that it helped build as several production teams, now more mobile than the film industry of the early 20th century, are able to shoot anywhere at any time and, as such, have seen the benefits of leaving California for the likes of Georgia, New Mexico, Florida and North Carolina to name a few.
… But never fear for it may not be too late for California yet as a glimmer of hope recently arose on America’s West Coast as the “silent majority” made their voices heard and moved to recall now California Governor Gavin Newsom for his part in leading this once great state down a path of pain and debt.
The Wrap Up…
Yes, California has been known as the dream destination for American’s for over 100 years but its days of being referred to as the land of opportunity have long since passed. Today the state sits on the brink of bankruptcy as its industries fail and its citizens continue to abandon the failing state.
Only time will tell whether or not California’s remaining population will come to their senses soon enough to save this once great state so that Americans can once again head west to pursue their hopes and dreams.
Learn More Here!
If you’re interested in pursuing your hopes and dreams further, then don’t forget to check out DTI founder and 40-year market veteran Tom Busby’s latest market update where he dives into more of today’s market updates to make sure you’re as prepared as possible for the hours ahead.
P.S. – Don’t forget to join professional trader and longtime DTI friend Jack Carter for his latest webinar where he’ll be sharing the details of one of his most profitable investment strategies with you!