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Silicon Valley’s Vast Wealth Disparity Deepens as Poverty Increased

A new study of Silicon Valley wealth, income and other economic measures shows vast disparities in one of the country’s wealthiest regions, with the top 10% of households holding 66% of the investable assets in the region last year. In Santa Clara and San Mateo counties, just eight households held more wealth than the bottom 50% (nearly half a million households), according to the Silicon Valley Index, an annual report by the Silicon Valley Institute for Regional Studies, the research arm of Joint Venture Silicon Valley.

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Wealth inequality in Silicon Valley is more pronounced than in the U.S. overall, or globally, with the top 1% of households holding 48 times more of the total wealth than the bottom 50%, according to the report. That compares to 23 times nationally and globally, the report said.
Wealth inequality in Silicon Valley is more pronounced than in the U.S. overall, or globally, with the top 1% of households holding 48 times more of the total wealth than the bottom 50%, according to the report. That compares to 23 times nationally and globally, the report said.

By Alejandro Lazo
CalMatters

A new study of Silicon Valley wealth, income and other economic measures shows vast disparities in one of the country’s wealthiest regions, with the top 10% of households holding 66% of the investable assets in the region last year.

In Santa Clara and San Mateo counties, just eight households held more wealth than the bottom 50% (nearly half a million households), according to the Silicon Valley Index, an annual report by the Silicon Valley Institute for Regional Studies, the research arm of Joint Venture Silicon Valley.

“We live in a capitalist system that is based on markets,” said Russell Hancock, chief executive of the San Jose-based think tank. “There’s rules to the game; the rules are fair. In Silicon Valley, we have some of the world’s biggest winners.”

Hancock added that the report highlights the need for more investments in education and “equipping people for success.”

The institute defines Silicon Valley as Santa Clara and San Mateo counties, as well as parts of Santa Cruz and southern Alameda counties. The think tank also includes San Francisco in some of its metrics. The report focused solely on data from Santa Clara and San Mateo counties for its wealth analyses.

Wealth inequality in Silicon Valley is more pronounced than in the U.S. overall, or globally, with the top 1% of households holding 48 times more of the total wealth than the bottom 50%, according to the report. That compares to 23 times nationally and globally, the report said.

Ultra-rich

The report estimates Silicon Valley’s aggregate household wealth is nearly $1.1 trillion, when it counts ultra-high net worth individuals.

The report marks the first time the think tank published wealth estimates that include data on these ultra-high net worth individuals, who the institute defined as those with net investable assets of $30 million or more.

Such assets are those that are held in cash, or can easily and quickly be converted into cash, including checking accounts, certificates of deposits and retirement accounts. The group did not count houses, cars or other non-liquid financial holdings as investable assets.

Santa Clara and San Mateo counties had 163,000 millionaire households in 2022, which the report defined as households that had more than $1 million in investable assets. That translates to less than 1% of the region’s population holding about 36% of its wealth.

And an estimated 8,300 households held more than $10 million in investable assets, according to the report.

Conversely there were about 220,000 Silicon Valley households with fewer than $5,000 in total assets.

About 23% of Silicon Valley residents lived below the poverty threshold in 2021, a 3 percentage point increase from 2019. Two percent of Silicon Valley households, or about 22,000 households, did not hold bank accounts.

The report also noted that while income inequality was lessening statewide, down 1%, as well as nationally, down 3%, income inequality rose in Silicon Valley by 5% in 2021. Generally, the pace of income inequality growth since the 2009 recession has been twice that of the nation, the report said.

The disparities in Silicon Valley began in earnest in the 1990s, when the internet economy first took off, and grew more pronounced after 2010, following the Great Recession. The first two years of the pandemic exacerbated the inequality, the report said.

 

 

Copyright © 2023 Bay City News, Inc.  All rights reserved.  Republication, rebroadcast or redistribution without the express written consent of Bay City News, Inc. is prohibited. Bay City News is a 24/7 news service covering the greater Bay Area.

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AlejandroLazo/CalMatters0053a02/18/23

 

https://calmatters.org/california-divide/2023/02/silicon-valley-inequality/

 

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Activism

2024 In Review: 7 Questions for the California Association of Black School Educators 

CABSE members represent governmental agencies, charter schools and charter school organizations, public school districts, traditional public schools, and community colleges. The organization’s primary goal is to expand PK-14 educational opportunities for all students in California, with an emphasis on under-represented and under-served Black students. 

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CABSE members represent governmental agencies, charter schools and charter school organizations, public school districts, traditional public schools, and community colleges. The organization’s primary goal is to expand PK-14 educational opportunities for all students in California, with an emphasis on under-represented and under-served Black students. 
CABSE President Satra Zurita and Conference Chair Micah Ali.

By Edward Henderson, California Black Media  

The California Association of Black School Educators (CABSE) is an organization consisting of elected and appointed school officials, administrators and instructors from across California who are committed to advancing equity for Black students.

CABSE members represent governmental agencies, charter schools and charter school organizations, public school districts, traditional public schools, and community colleges.

The organization’s primary goal is to expand PK-14 educational opportunities for all students in California, with an emphasis on under-represented and under-served Black students.

California Black Media (CBM) spoke with CABSE President Satra Zurita and Conference Chair Micah Ali about this year’s successes, disappointments, and plans for the organization coming into the new year.

Looking back at 2024, what stands out to you as your most important achievement and why?

Ali: I would have to say that two highlights have been the ongoing support of the Bill and Melinda Gates Foundation, Engie, and other sponsors that have enabled us to bring together like-minded education leaders twice a year to collectively advance innovative and meaningful strategies to achieve change on behalf of Black students across our state.

How did your leadership and investments contribute to improving the lives of Black Californians? 

Zurita: CABSE’s leadership and investment in improving the education system for Black students in our great state has resulted in a long-standing focus on transforming public education and its response to Black students. By pulling from the very wisdom of those educators and leaders who care deeply about Black students and who are showing great promise through their efforts.

What frustrated you the most over the last year? 

Zurita: Continuing to see the deep impact of COVID-19 Pandemic school site closures on students academically and emotionally — especially Black students. This makes our work and our advocacy more vital than ever.

CBM: What inspired you the most over the last year?

Zurita: Seeing our CABSE convenings grow in depth and breadth — our strategies, powerful content and reach.

What is one lesson you learned in 2024 that will inform your decision-making next year?

Ali: Our Blueprint for Education Equity is a crowd-sourced framework of strategies that have shown great promise for improving the education experiences and opportunities for Black students. In 2024, we developed an equity self-assessment tool for districts to use in evaluating their own efforts on behalf of Black students. Strategies are helping Black students.

In one word, what is the biggest challenge Black Californians face?

Zurita: Many Black students across our state are dealing with a host of challenges: homelessness, food insecurity, exposure to violence, not to mention bias remains a pervasive problem. To add to the challenge, educators are worn out, tired, and frustrated. We now need to think about how we can simultaneously inspire and empower students and educators alike. The system needs an overhaul.

What is the goal you want to achieve most in 2025?

Zurita: In 2025, we hope to stand CABSE up as a fully functioning non-profit organization engaged in research and policy design.

Ali: We also aim to deepen the content of our convenings, including adding a Math Track and what we are calling Social Determinants of Education Track to our annual conference and institute, which will address those social contexts that prevent Black students from realizing their potential as students.

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Activism

Let’s Talk Health: Empowering Our Community with Health Literacy

At Covered California, we recognize that understanding health insurance is more than just choosing a plan –it’s about having the knowledge to make informed decisions that lead to healthier lives. That’s why this year’s open enrollment campaign, “Let’s Talk Health,” focuses on breaking down barriers and simplifying the complex language of health care.

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Dr. Monica Soni. Courtesy of Covered California
Dr. Monica Soni. Courtesy of Covered California.

By Dr. Monica Soni

Navigating health insurance can often feel overwhelming, especially for individuals and families who are new to the system or unsure about their options.

At Covered California, we recognize that understanding health insurance is more than just choosing a plan –it’s about having the knowledge to make informed decisions that lead to healthier lives. That’s why this year’s open enrollment campaign, “Let’s Talk Health,” focuses on breaking down barriers and simplifying the complex language of health care.

Health literacy is critical for achieving better outcomes, reducing disparities, and ensuring every African American and Black Californian — regardless of their income, ethnicity, or background — has access to quality care. By making health insurance simpler to understand, we empower individuals to access preventive services, manage chronic conditions, and avoid costly medical bills.

Breaking Barriers in African American and Black Communities
This year, “Let’s Talk Health” places a special focus on supporting African American and Black communities, where systemic inequities in health outcomes persist. These communities often face higher rates of chronic conditions and challenges in navigating the health care system. To address these disparities, Covered California partnered with trusted organizations to provide information, tips and resources.

In San Francisco, Andre Atkins, Director of Programs at Rafiki Coalition, led a dialogue with Dr. Kim Rhoads, Community Engagement Director at UCSF Helen Diller Family Comprehensive Cancer Center; Destiny Williams, Health and Wellness Program Manager at Rafiki Coalition; and myself.

These conversations play a vital role in the pursuit of health equity by sharing power and creating spaces where our community can learn, share experiences, ask questions and connect with advocates who work daily to understand their unique needs. Through these efforts, we reaffirm our dedication to fostering equity and inclusion in health care, ensuring that every voice is heard and supported.

Why Health Literacy Matters
Health literacy goes beyond understanding health care terms. It’s about empowerment. It equips individuals to make informed decisions, from choosing the right health plan to finding a provider to deliver preventive care and seeking mental health services. At Covered California, we provide tools and resources, such as side-by-side plan comparisons and financial assistance details, to ensure everyone can navigate their options confidently and access the care they need.

Taking the First Step
Whether you’re a student, part-time worker, family of four, open enrollment is your opportunity to prioritize your health and your future. This year’s open enrollment period runs from Nov. 1, 2024, to Jan. 31, 2025, and we’re here to assist you every step of the way.

Consumers must select a health plan by the Dec. 31 to receive coverage for the entire year, starting Jan. 1, 2025.

To find the plan that’s right for you, and take the first step toward a healthier tomorrow, visit CoveredCA.com and fill out the application yourself or put in your ZIP code and connect with a certified agent in your neighborhood who can guide you through your options. Together, we can break down barriers and ensure that all Californians have the tools to thrive.

Dr. Monica Soni, MD, is the Chief Medical Officer for Covered California, where she leads efforts in health equity, quality transformation, and clinical innovation. As a practicing board-certified internal medicine physician and health care leader with over a decade of experience, Dr. Soni is committed to improving affordability, access, and outcomes for all Californians.

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Activism

OPINION: Solutions to the Housing Crisis Exist, but Governments Waste Tax Dollars Instead

People who are homeless want real housing, not temporary shelters that are dangerous and crowded. The City of Oakland has been telling the public that the sweeps of encampments are an effective solution, but it just pushes people from block to block, wasting tax money on paying police officers overtime in a budget crisis. This is true at the state level too, where California spends $42,000 per person that is unhoused per year. The city and state could just help pay residents’ rent, rather than pay for police to harass people on the streets, many of whom have disabilities or are elders.  

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iStock
iStock.

By Kimberly King and Victoria King

In a powerful demonstration of grassroots organizing, activists joined forces in direct action that started on Dec. 17 to call for the establishment of sanctuary communities across the West Coast

The goal of the effort is to raise awareness about misleading narratives around homelessness and to present concrete solutions to a crisis that leaves over 35,000 people unsheltered each night in the Bay Area.

The action, led by members of Oakland’s Wood Street Commons and Homefullness/Poor Magazine, represents a direct response to the U.S. Supreme Court and Gov. Gavin Newsom’s approach to homelessness. At the core of the movement is a fundamental truth: housing is a human right, not a commodity to be bought and sold for profit.

People who are homeless want real housing, not temporary shelters that are dangerous and crowded. The City of Oakland has been telling the public that the sweeps of encampments are an effective solution, but it just pushes people from block to block, wasting tax money on paying police officers overtime in a budget crisis. This is true at the state level too, where California spends $42,000 per person that is unhoused per year. The city and state could just help pay residents’ rent, rather than pay for police to harass people on the streets, many of whom have disabilities or are elders.

The coalition of organizations, led by people with lived experience of homelessness, coordinated their efforts to show the unity behind this movement, including setting up sweeps-free sanctuary communities and resource centers and presenting solutions to city council. The message is clear: unhoused residents refuse to remain invisible in the face of policies that have resulted in 347 deaths for people experiencing homelessness in Alameda County just this year alone.

The coalition presented four key demands, each addressing different aspects of the housing crisis. First, they called for the establishment of sanctuary communities instead of sweeps, urging the redirection of encampment management funds toward positive solutions like encampment upgrades and permanent low to no-income housing.

The second demand focuses on utilizing public land for public good, specifically identifying vacant properties like the Hilton Hotel on Port of Oakland land. The coalition emphasized the immediate availability of these spaces to house hundreds of currently unhoused residents.

Prevention forms the third pillar of the coalition’s demands, with calls for strengthened renter’s rights, rent subsidies, and a permanent moratorium on rental evictions and foreclosures for non-payment.

Finally, the coalition demands the defunding of coercive “Care Courts,” advocating instead for non-carceral approaches to mental health care and harm reduction.

The Poor People’s Campaign’s motto, “When we lift from the bottom, no one gets left behind,” encapsulates the spirit of the action. Daily activities, including opening prayers for those who have died while homeless, served as powerful reminders of the human cost of failed housing policies that treat housing as a commodity rather than a fundamental right.

As this crisis continues to unfold, these activist groups have made it clear that the solution to homelessness must come from those most directly affected by it.

About the Authors

Kimberly King and Victoria King are Oakland Residents who advocate for the unhoused and propose solutions to end homelessness and housing insecurity.

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