California’s population numbers are changing quickly as many residents are heading out of the state for more tax friendly and lower regulation states in which to live and operate their businesses. It is not natural disasters such as earthquakes or wild fires which is causing the mass exodus; it is man made regulation and taxes which has been excessive and is causing the Atlas Shrug style event. California has recently lost one of the world’s greatest innovators, Elon Musk, and America’s most popular podcaster, Joe Rogan, to the State of Texas. It shows that government can tax and regulate up to a certain point, and once that point is crossed, residents make the decision that they have had enough and leave. Some realize they can have more freedom while not paying any state income taxes by moving to other states.
According to the California Department of Finance, the state is at its lowest population growth since 1900, at .05% and Los Angeles County has been running at a deficit of over 40,000 people from July 2019 to July 2020. Besides Los Angeles County, these large population counties have also seen net negative population numbers: San Diego, Orange, San Bernardino, Santa Clara, Alameda and Contra Costa. We expect those county numbers to continue their decline when new numbers come out next year and see a net negative population for the entire state.
Politically, the net effect of these population declines is that California will go from 53 to 52 seats in the U.S. House of Representatives and, in turn, an Electoral College vote. This gives California slightly less political clout in D.C., allowing other states greater influence.