April 24, 2025
BESI Political Economy of California senior researcher Samuel Trachtman explains the red-blue state cost-of-living divide.
Quality of governance in California is hugely important for the U.S. and for the world. California is home to over 39 million Americans, and 14% of national GDP. Its high tech sector is a major engine for the national economy. Despite its importance, political scientists have long overlooked California, as academic incentives push researchers to national or cross-state analysis.
This moment calls for greater attention to California politics and governance. Poor governance, particularly in housing production, has fueled unaffordability and poverty. Between 2020 and 2024, California had the second highest out-migration of any state, after New York. Across a number of policy domains — housing, childcare, food, unemployment benefits, and others — California government has struggled with policy implementation. Negative views of California, even if they are only partially rooted in facts, are weakening the Democratic Party at a time when Democratic strength is critical to facing down threats from the White House.
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