July 27, 2024 The Newspaper Serving LGBT Los Angeles

California’s Dichotomy: Rising Numbers of Ultra-Rich Residents Amidst Deepening Inequality

Amidst Tales of Population Decreasing, Number of Millionaires and Billionaires Rise

By Dolores Quintana

Amidst population shifts, exorbitant housing costs, and corporate dynamics, California maintains its allure as a global haven for wealth. Despite these challenges, the state has witnessed an influx of ultra-rich residents in recent years, contributing to the expansion of the world’s fifth-largest economy, as reported by Bloomberg. However, this prosperity stands in contrast to a backdrop of deepening inequality.

The prevailing dynamics take on even greater significance in a year marked by stock market rebounds and the flourishing of the artificial intelligence industry within the state, giving rise to new fortunes. Concurrently, growing disparities between workers and executives have positioned California at the heart of the resurgent labor movement in the United States. Strikes have reverberated from hotel staff near Disneyland to dockworkers, nurses, Hollywood writers, and actors, all demanding equitable compensation.

Through July of this year, California’s billionaires collectively amassed an additional $270 billion in wealth, as per the Bloomberg Billionaires Index. Remarkably, the state boasts more than 113 billionaires than any country other than China. The proliferation of millionaires has outpaced any decline in high-net-worth taxpayers during the pandemic. 

According to the most recent personal income tax data from the state’s Department of Finance, California added over 116,000 millionaire taxpayers from the end of 2019 to 2021. This figure exceeds the total for the previous decade combined, constituting a record for a two-year span. Notably, the number of residents earning over $50 million surged by 158% to reach 3,182.

However, these figures may underestimate the true extent of affluence. While tax data captures salaries and proceeds from stock and real estate transactions, the ultra-wealthy often sidestep income taxes by borrowing against their wealth rather than liquidating assets that might incur taxation. More than 288,000 Californians, equivalent to 0.7% of the population, reported incomes exceeding $1 million in 2021. By comparison, New York witnessed an increase in the number of millionaire taxpayers to around 80,000 people, representing 0.4% of its population, during the same period.

Cristobal Young, a professor at Cornell University with expertise in wealth migration, emphasized the unprecedented surge in the number of millionaires, remarking, “We’ve never seen an absolute growth in the number of millionaires like this data. Ultimately, California is a great place to make money.”

While the state’s wealthiest individuals amass newfound riches, wage stagnation prevails at the lower end of the income spectrum. California’s population has declined for three consecutive years — a first in its history — attributed primarily to lower and middle-income residents migrating to more affordable locales such as Texas and Arizona. In July, the Department of Finance drastically adjusted its population projections, indicating that the state’s resident count in 2060 will be comparable to its current figure.

The dichotomy deepens as only a fraction of residents can afford a median-priced house while homelessness reaches crisis levels. California ranks fourth among US states in the Gini coefficient, a measure of inequality, ascending two places from 2019 to 2021.

As California navigates these juxtaposed narratives of prosperity and disparity, it underscores the complex landscape of economic growth and social challenges within one of the nation’s most dynamic regions.

Related Posts

Vivian Jenna Wilson Slams Elon Musk’s Claims on Social Media Post on Threads

July 26, 2024

July 26, 2024

Wilson Reveals Details on Controversial Billionaire, Has Had Enough By Dolores Quintana Elon Musk’s daughter, Vivian Jenna Wilson, reacted on...

Governor Newsom Issues Executive Order on Homeless Encampments in California

July 26, 2024

July 26, 2024

Los Angeles Officials React to Governor’s Strongly Worded Message  Today, Governor Gavin Newsom issued an executive order that stated, “Governor...

Julia Holter to Perform at The Getty Center’s OFF THE 405 Summer Concert Series

July 26, 2024

July 26, 2024

Experience Avant-Garde Music and Stunning Views With Free Admission on July 27 The Getty Center’s annual outdoor summer concert series,...

Sloths Summer Night at La Brea Tar Pits: Free Museum Admission and Sunset Picnic

July 25, 2024

July 25, 2024

Experience Live Sloth Encounters, Curated DJ Sets, and Local Food Trucks on July 26 The La Brea Tar Pits will...

LA’s First Ninja Warrior Training Facility Opening Soon in Los Angeles

July 25, 2024

July 25, 2024

Facility to Offer Comprehensive Training Programs for All Ages By Susan Payne The first dedicated ninja warrior obstacle training facility...

(Video) The Cheese Store of Beverly Hills’ Celebration of One Year at Its New Location

July 24, 2024

July 24, 2024

Now at 9705 S Santa Monica, and filled with delectable cheeses, cured meats, fresh bread, and wines of every description,...

LA Times Announces 8th Annual Food Bowl Festival at Paramount Studios

July 24, 2024

July 24, 2024

Three-Day Event to Feature Over 40 Restaurants and Culinary Demos The Los Angeles Times has announced the details for the...

Go Go Bird and FoodBeast Editor Collaborate on New Chicken Sandwich, “The Reach”

July 24, 2024

July 24, 2024

Chef Brandon Kida and Reach Guinto Create Nostalgic and Exciting Sandwich Go Go Bird is one of the best fried...

Alfred Coffee Launches New Breakfast Burritos, Bagels, and Baked Goods

July 24, 2024

July 24, 2024

New Collaborations with WAKE AND LATE and Artissant by Artelice Alfred Coffee has announced the launch of its new breakfast...

USPS Honors Alex Trebek with Forever Stamp on His 84th Birthday at Sony Studios in Culver City

July 24, 2024

July 24, 2024

Ceremony Video Includes Tributes from Jean Trebek and Ken Jennings On Monday, Alex Trebek would have been 84 years old,...

Surprise Announcement: All Roads Pinseria + Enoteca is Now Open in Brentwood

July 24, 2024

July 24, 2024

The Grand Opening Celebration is Still Scheduled for Friday, July 26 In a surprise announcement on Monday, July 22, All...

Elon Musk’s Controversial Remarks on Trans Daughter Spark Outrage

July 23, 2024

July 23, 2024

Musk Repeatedly Deadnames His Daughter, Claiming He Was Tricked Elon Musk, in an interview with Jordan Peterson for the website...

Actor Rob Lowe Lists Luxurious Beverly Hills Estate for $6.6 Million

July 23, 2024

July 23, 2024

Mansion is Located in the Prestigious Franklin Canyon Area  Rob Lowe has put his estate in the prestigious Franklin Canyon...

Brentwood Mother Speaks Out After Assault, Raises Concerns Over Suspect’s Release

July 22, 2024

July 22, 2024

Carmina Lu, New Mother Attacked in Broad Daylight, Tells Her Story  I spoke to the victim of the recent sexual...

Kamala Harris Secures Democratic Presidential Nomination with Unprecedented Support

July 22, 2024

July 22, 2024

Over 1,976 State Delegates Pledge Support, Solidifying Harris as the Nominee By Dolores Quintana In one day, Brentwood resident and...