I’m constantly hearing about California’s acute mismanagement problems, but I haven’t heard any good, general theories of what’s going on. Until recently.
Many of California’s issues have become nation-wide talking points: Extreme homelessness, high taxes causing migration to Texas and Florida, viral videos of mobs looting stores, soft-on-crime District Attorneys, an attempted recall of Governor Newsom, and so on.
Peter Thiel recently presented an interesting theory of California, which may account for several of these issues.
Thiel’s theory is that tech wealth has allowed government workers to capture the state.
California has been cursed by tech wealth, according to Thiel, in the same way that countries like Venezuela are cursed by the oil in their ground.