In a recent podcast episode, Joe Rogan shared an intriguing analogy comparing the state of California to Saudi Arabia, sparking debate on the logic behind California’s high taxes and economic stability. Rogan’s remarks highlighted the state’s complex dynamics, drawing parallels between California’s tech industry and Saudi Arabia’s oil wealth, both of which sustain their respective economies despite underlying issues.
California’s Tax Landscape
Rogan pointed out the lack of logic in the way people discuss taxes today, especially in California, where taxes have skyrocketed. The state recently raised taxes to an astonishing 14.3%, prompting criticism from residents and observers alike. Despite these high taxes, the state continues to generate significant revenue, even as some people choose to leave.
Rogan noted that while a percentage of the population may leave, the state’s tax revenue continues to grow, demonstrating an inelastic economic model. “You get 10% more revenues and 5% of the people leave,” Rogan explained. “You still increase the amount of revenues you’re getting.”
The Saudi Arabia Analogy
Rogan’s analogy between California and Saudi Arabia delves deeper into the state’s economic structure. He suggests that both regions are sustained by vast wealth—California through its tech giants and Saudi Arabia through its oil reserves. This wealth allows both places to maintain stability despite governance challenges and societal issues.
Rogan’s comparison extended to the cultural and ideological landscapes of the two regions. He equated the influence of “wokeism” in California to the role of Wahhabism in Saudi Arabia, suggesting that both ideologies, while not universally embraced, have a significant impact on the functioning of their respective societies.
Economic Stability Amidst Dysfunction
Rogan also addressed the paradox of California’s economic stability despite what many view as dysfunctional governance. With a GDP of around $4 trillion, comparable to that of Germany or Japan, California’s economy remains robust. However, Rogan noted that this success doesn’t necessarily translate to a better quality of life for all residents, as many still struggle under the state’s high cost of living and inefficient public services.
“The rough model I have for how to think of California is that it’s kind of like Saudi Arabia,” Rogan said. “It doesn’t work from a governance point of view, it doesn’t work for a lot of the people who live there. But the big tech companies in California, like oil in Saudi Arabia, pay for everything.”
The Role of Big Tech
The conversation also touched on the role of California’s major tech companies in sustaining the state’s economy. With four of the world’s top companies by market capitalization—Google, Apple, Nvidia, and Meta—based in California, the state continues to generate immense wealth. This concentration of economic power parallels Saudi Arabia’s reliance on its oil industry.
Despite criticisms, Rogan acknowledged that California remains home to many innovative and successful individuals, making it difficult for people to simply pack up and leave. He noted that while other states like Texas, Florida, and Tennessee offer lower taxes, they lack the unique combination of opportunities and lifestyle that California provides.
Conclusion
Rogan’s comparison of California to Saudi Arabia offers a thought-provoking perspective on the state’s economic and cultural landscape. While the analogy may not be perfect, it highlights the contradictions and complexities that define California today. As Rogan concluded, “There’s something about it that, you know, it doesn’t naturally self-destruct overnight.” California, like Saudi Arabia, continues to thrive despite its flaws, sustained by its unique wealth and influence.
