What keeps it afloat is the great weather, nice area and the rich in Silicon valley.
People, who moved in, when it was great state, and are still reluctant to leave.
But is shrinking now. First time they lost congressional seat.
There is always momentum, the time delay between the bad policies and the economic collapse.
Inevitably the “experts” “never see it coming” and wonder “what happened”.
You hit the nail on the head. I would also add that the unique geography, along with insane zoning restrictions, shield the wealthier part of the population from many of the consequences of the policies that they themselves support.