Comments by "Jim Luebke" (@jimluebke3869) on "Let's Talk California (Has Their Lucky Streak Run Out?) || Peter Zeihan" video.
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Wow. Way to push The Narrative(TM), Peter. California is screwed for a number of reasons, many of which really are based on bad decisions they've made.
- Dehydration -- California is already at just about carrying capacity as far as water is concerned. Water is too heavy, necessary at such enormous volumes, and California too isolated, to significantly increase supply. The Southwest is in the same predicament; it has nowhere to go but down, from here. Unless Humboldt County dredges their Bay and starts being growth-friendly, California is as big as it's ever going to get.
- Got Woke, Went Broke -- California, being so isolated from the rest of the country by a huge mountain range, increasingly convinced of its own rightness because of its billionaire status, and more than a little weird in the first place, became increasingly out-of-touch with the culture of the rest of the country. This disconnect caused Hollywood to destroy itself at the box office. See: Disney, Lucasfilm, Marvel, Lord of the Rings.
- Utterly incompetent governance -- Or rather, far better at accruing power, than at wisely using it. California House Speaker Willie Brown, the most important politician no one has ever heard of, gathered so much power he basically ran the state for decades. This, in accord with corrupt and ineffective Leftist policies that ranged from unsustainable to self-destructive, funded by the tech boom. Nancy Pelosi took lessons from him, about what kind of power a Speaker could have, ossifying the Federal government as well. Kamala Harris is Vice President (indeed, has a political career at all) specifically because Willie Brown thought she was attractive, to put it delicately. Gavin Newsom is an empty suit full of platitudes and policy ideas that have turned out disastrously in every jurisdiction he's gained power in, starting with San Francisco and spreading out to the state at large.
- Tech is mined out -- Moore's Law hasn't been true for most of a decade now. This means that big new crazy ideas remain crazy, rather than becoming feasible. Another set of advances could bring another several branches of fruit into "low-hanging" territory, but there have been several "next big things" that simply haven't panned out.
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@theyux1 A terrible housing market crash happened in 1992, for starters. Increasing environmental regulations sapped the vitality of the agricultural sector. The peace dividend started the fall of the aerospace industry. Much of Southern California has never recovered from that, by the way.
A lot of this was masked by the tech boom, driven by that peace dividend's shifting California's high tech workers from aerospace to computers. Why do you think Silicon Valley happened in California, and not, say, along Massachusetts' Route 128?
While Moore's Law was in effect and fiber optic networks were built out, more and more amazing things could be accomplished with computers and networks.
However, connectivity has gotten about as good as it's going to get (to the point that it's clogged mostly by video nowadays), and Moore's Law hasn't been true for most of a decade. The miracle factory has stalled out. The low-hanging fruit has been picked.
California rose with tech, now the hollowing-out of all its other economic sectors -- which probably won't come back, barring an anti-green, pro-defense revolution in California politics -- California will fall with tech.
The only way California can keep from collapse now, is if vote-counters start seeing a lot more Republican ballots. Do you see that as likely? I don't.
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@wisenber Yeah, the "Apollo generation retirement" problem was big when I started. I don't think the passdown was handled well. Now we've got the "Cold War generation retirement" problem, and it's not going much better as far as I can tell.
If defense contracting starts to be the best game in town again, that could change. If Peter's right about venture capital drying up -- and San Francisco's fall could well be symptomatic of that, although its Covid, shoplifting, homelessness, and drug use policies are largely a self-inflicted wound -- then the wining and dining of prospective customers in the billionaire-playground of SF, just isn't going to be as important anymore.
I hope Peter's right about the re-industrializing of America, although there's still so much talk about "favorable labor cost profiles" in places like Mexico and Columbia, I'm suspicious that all his talk about on-shoring is just gaslighting.
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