There’s something deeply wrong with the direction California—and San Diego County—are heading, and it doesn’t get talked about nearly enough.
Government is no longer just a regulator or a provider of core services.
It’s becoming the economy.
In San Diego County, government is now the third-largest employer. Statewide, California government hiring has surged while our population has barely grown. At the same time, private-sector jobs are shrinking.
That’s not a healthy economy. That’s a warning sign.
Recent data makes this impossible to ignore. While government and publicly supported jobs have grown sharply over the last few years, California’s private sector has lost jobs, even as other states continue to expand. In fact, California ranked near last in the nation for private-sector job growth, while government payrolls kept climbing.
What’s masking the problem is government expansion.
Health care and social services—industries heavily funded by taxpayers through programs like Medi-Cal and In-Home Supportive Services—continue to grow. State and local government payrolls continue to grow. On paper, it looks like “job growth.” In reality, it’s taxpayers paying themselves, while the productive economy stalls.
And businesses are telling us exactly why this is happening.
California now ranks:
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50th out of 50 for overall business climate, according to a national survey of CEOs
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48th out of 50 for business tax competitiveness
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47th out of 50 for economic outlook
Despite having a massive economy—over $4 trillion—California has made itself one of the hardest places in America to start, run, or grow a business. High taxes. Endless regulations. Sky-high energy, housing, and labor costs.
The result? Businesses leave. Startups don’t start. Jobs disappear.
When government becomes the largest employer, it means:
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Fewer people creating value in the private economy
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Fewer businesses generating real tax revenue
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More dependence on public spending to prop up employment
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Higher taxes and fees to support a growing bureaucracy
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Less opportunity for working families and young people
This isn’t just an economic issue—it’s a societal one.
Healthy communities are built on a strong private sector: entrepreneurs taking risks, workers advancing careers, innovation driving growth. Government has an important role—but it should never replace the economy it depends on.
California’s unemployment rate remains among the highest in the nation. Families are struggling with rising costs. Small businesses are barely hanging on. And instead of fixing the policies driving employers away, Sacramento keeps expanding government payrolls and calling it success.
It isn’t.
We don’t need a bigger government jobs program.
We need an economy where the private sector can grow again.
That means lower costs, smarter regulations, accountability in spending, and leadership willing to admit a simple truth: government cannot employ its way to prosperity.
If we don’t change course, the question won’t be how big government has gotten—
it will be who’s left to pay for it.