The Golden State is now home to 111 billionaires, by far the most of any state. In total, California billionaires personally hold assets worth $485 billion, more than the entire GDP of all but 24 countries in the world.
At the same time, California also suffers the highest poverty rate in the country (adjusted for housing costs)— above 23 percent— and a leviathan welfare state. With roughly 12 percent of the population, California now accounts for roughly one- third of the nation’s welfare recipients. This burgeoning underclass exacerbates the demand for public services, deprives the state of potential taxpayers, and puts enormous pressure on the private- sector middle class to come up with revenue.
from The New Class Conflict by Joel Kotkin