1. People tend to forget that the US has the most stable and well developed legal and financial infrastructure system in the world. One might dismiss its importance, but for anyone who has ever tried to invest, purchase, trade, etc, in a foreign market (even Canada), you'd be in for a BIG surprise.
Things we take for granted, like property title insurance, escrow, legally enforceable contracts, etc. are not dunk shots elsewhere. The reason we do have a finely developed system is because the US was built on capitalism, and capitalism needs the rule of law to thrive.
People elsewhere know this - it's why everyone who is anyone tries to get here, and bring what money (if any) with them.
2. This leads to the cost of housing in Calif. Apparently, while everyone seems to focus on illegals driving down wages (true), no one is noticing that legal Asian immigrants are rapidly expanding in Calif.
The big difference is (a) they are usually educated, (b) they work hard, and (c) they bring money with them. Half the reason prices have skyrocketed in SoCal is because of Asian money.
Add 1+2 together and what do you get? More educated, hardworking people with money wanting to move to the US means higher productivity and higher housing costs.
Combine it with illegal immigration and low unskilled wages, and we have the makings of a two-tier system. However, it ain't businessmen and laborers, it's Asians and Hispanics.
Do they now? And where did that money come from?