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**AI legalese decoder: Addressing California’s Population Exodus**

The narrative of Californian residents and businesses fleeing the Golden State in large numbers has resurfaced, suggesting a significant outflow of residents to neighboring states. However, new research, particularly the study conducted by the Stanford Institute for Economic Policy Research (SIEPR) in October, sheds light on the severity of this population drain. The study reveals that California is losing population to states like Arizona and Texas at unprecedented rates, encompassing a notable proportion of college graduates and residents from diverse income levels.

Despite California remaining the most populous state in the nation, with over 39 million residents, the average rate of population growth has been consistently below average since 2000, showing negative growth in 2021 and 2022. Although birth rates and foreign immigration have experienced a growth spurt since the easing of the COVID pandemic, the outmigration problem has intensified. The study unveils that between July 2021 and July 2022, a staggering net of 407,000 residents departed for other states.

The exodus is commonly attributed to California’s soaring cost of living, which precipitates concerns regarding the state’s job market and financial projection. Additionally, environmental policies and mandates in California, compared to more lenient policies in other states, may fuel the ongoing departure. The SIEPR policy brief cautions that while the state must not forsake its commitment to aggressive green energy goals, it must exercise prudence during the energy transition to avoid backlash and detrimental economic losses. It asserts that California can continue leading climate policies only by retaining support from a voting majority and ensuring sufficient economic vitality.

Interestingly, the study indicates that political motivations played a minimal role for two-thirds of individuals who relocated from California. However, the population drain does have political ramifications, exemplified by the state losing a congressional seat in the aftermath of the 2020 Census, while Texas gained two seats.

While crime has been cited as a contributing factor for some California residents’ decision to leave, the authors of the study emphasize that the perception of higher crime does not align with factual evidence. They underscore the importance for California’s political and business leaders to address this misconception more proactively.

Eric McGhee, a senior at the nonpartisan think tank Public Policy Institute of California, highlights that California has been losing population to other states for the past three decades, suggesting that the state may be facing a prolonged period of stagnation in the foreseeable future.

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