Video Briefing

Nomad Capitalist R&D: California is Crumbling

Jul 23, 2023Video Briefing4:20Watch on YouTube

California’s infrastructure is showing clear signs of strain, prompting some residents and business leaders to consider alternatives outside the state.

A mounting pothole problem

  • In Los Angeles, nearly 20,000 requests for pothole repairs or other road issues were logged during the first three months of 2023.
  • Former Governor Arnold Schwarzenegger publicly complained about a pothole outside his home and ultimately filled it himself, highlighting the perceived inaction of state agencies.

These figures illustrate a broader pattern of deteriorating roads, bridges, and public works that many residents view as a systemic issue.

Comparisons with other regions

Recent travel to several countries revealed markedly different standards of urban development and maintenance:

Location Notable Infrastructure Features
Warsaw, Poland Ongoing construction of modern skyscrapers, expansion of four‑ to five‑lane freeways, and new metro lines improving public transit.
Kuala Lumpur, Malaysia Well‑maintained wide roads, clean streets, and a skyline of contemporary high‑rise buildings.
Georgia & Armenia Recent large‑scale building projects with modern, well‑kept facilities that meet Western expectations.

These observations suggest that many cities outside the United States are investing heavily in both new construction and the upkeep of existing assets.

Implications for businesses and residents

  • Operational risk – Poor road conditions can increase transportation costs, delay deliveries, and raise vehicle maintenance expenses.
  • Quality of life – Persistent trash accumulation and visible infrastructure decay can affect daily living standards and public perception.
  • Competitive advantage – Regions with reliable infrastructure often attract investment, talent, and tourism, creating a more favorable environment for growth-oriented entrepreneurs.

Factors to evaluate when considering relocation

  • Infrastructure quality – Assess road networks, public transit, and maintenance records.
  • Tax environment – Compare corporate, income, and property tax rates.
  • Regulatory climate – Look for transparent permitting processes and supportive business policies.
  • Cost of living – Examine housing, utilities, and everyday expenses relative to income potential.
  • Cultural and lifestyle amenities – Consider access to cultural events, education, and recreational opportunities.

Practical steps

  1. Research local government performance – Review public works budgets, project timelines, and citizen satisfaction surveys.
  2. Visit potential locations – Observe daily traffic, cleanliness, and the state of public facilities.
  3. Consult local experts – Engage with accountants, lawyers, and real‑estate professionals familiar with the target jurisdiction.
  4. Run a cost‑benefit analysis – Quantify the financial impact of infrastructure quality on both personal and business expenses.

While California remains attractive for its climate and cultural scene, the growing infrastructure challenges are prompting some to explore alternatives where public services and urban development are more robust. Evaluating these factors can help individuals and businesses decide whether a move aligns with their long‑term goals.