February 28th edition of the Wall Street Journal had an article called “Meathead Economics”.

The said that 240,000 people left the state of California in 2005 because of high taxes. What BS! Just another example of reporters looking at data and drawing the wrong conclusion.

They left because of unaffordable housing. Would you pay $400k for an 800 sq ft condo with 1 parking spot when you can move to a neighboring state, get a job that pays the same and get a new house for $200k thats atleast twice the size?

Previously I posted an article about this being an issue and I believe it will only get worse. In 2006 I wouldn’t be surprized if that number doubled. Since 2001, 50% of jobs in CA have been real estate related. Once the housing market falters, a lot of people who’ve been used to making 6 figure incomes will find themselves without any source of revenue and no real skills. These people will be forced to move to other booming states, which will only add to the housing woes.