Once upon a time, California symbolized prosperity. It was the shining city on a hill of American success—beaches, booming business, endless opportunity. Families could thrive, workers could buy homes, and the future felt limitless under the California sun.

Then the Democrats took hold. Sky-high taxes, open-border policies, bloated entitlement programs, and a government utterly allergic to fiscal restraint transformed the “Golden State” into something unrecognizable. And if you think that’s an exaggeration, consider this: One major California region now says you’re “low income” even if you’re earning a six-figure salary.

Sound nuts? It is. Welcome to the Bay Area—where policy dreams meet real-world nightmare.

From boom to bust: the cost of liberal dreams

California’s liberal machine has managed the seemingly impossible: making upper-middle-class earners qualify for poverty programs. The 2025 income thresholds released by the California Department of Housing and Community Development are jaw-dropping and perfectly emblematic of a collapsing system.

From The Post Millennial:

“Santa Clara County now has the highest low-income threshold for a single-person household at $111,700. The amount is a $33,150 increase since 2020.”

In other words, you could be making well over $100K on your own, and still be officially considered “low income.” And that’s not a fluke—it’s a trend. San Mateo, Marin, and San Francisco counties have near-identical thresholds, all sitting above $109,000 for individuals.

But this isn’t just about singles. Bay Area families are caught in the same downward spiral. A household of four in Santa Clara County earning up to $159,000 also qualifies as low income. In San Francisco and San Mateo, make that $156,650. These figures aren’t typos. They’re policy.

How to be poor on $159K a year

In 2025, the median price of a home in the Bay Area sits at $1.4 million—and it’s climbing. That number spiked 12% just last month, according to the California Association of Realtors. And forget trying to build your own: environmental hurdles, government bottlenecks, and restrictive zoning laws choke the supply at every turn.

The housing crisis isn’t about scarcity—it’s about political choices. The people who govern this state have constructed a labyrinth of contradictions: they promote affordability while blocking housing; they tax heavily and spend freely, yet basic services crumble; and now, they’ve redefined “poverty” to include six-figure incomes.

California ranks poorly—an F, in fact—for housing affordability. But instead of clearing the path for development or lowering tax burdens, policymakers respond by expanding subsidies, adding guidelines, and doubling down on the red tape that created the problem to begin with.

When elites set the rules, working Americans pay the price

Here’s the brutal irony: the very people who built California—middle-class Americans—are the ones being driven out. Teachers, firefighters, truck drivers, and retired veterans can’t make ends meet, while tech executives and bureaucrats call the shots from their rent-protected luxury lofts.

The state’s progressive elite—those with Ivy League degrees, remote jobs, and political connections—have insulated themselves from the mess they created. They define equity initiatives, fund new agencies, and celebrate with ribbon-cuttings for housing projects that yield a handful of units after five years and millions spent.

And what does the working public get? More taxes. More forms. More “help” that never really helps.

This system isn’t broken by accident. It was designed this way—by leaders who genuinely believe bureaucracy and spending can solve the problems they cause. And without a major course correction, the Bay Area’s economic gravity is unsustainable. When $159,000 isn’t enough to escape poverty, the bottom is bound to fall out.

Let’s be clear: a society that redefines wealth as poverty isn’t evolving. It’s imploding.

Key Takeaways:

• California now classifies six-figure earners as “low income” in multiple counties, including Santa Clara.
• Bloated government programs and housing restrictions are driving California’s affordability crisis.
• Liberal elites are insulated from the very policies forcing middle-class Americans to flee the state.
• Without reform, the Golden State’s economy is at risk of collapse under progressive mismanagement.

Sources: The Post Millennial, KTVU FOX 2