``...I told him to look around at the people in his world and see how it really is.``
As one who recently moved an entire company from So Cal to TN, I can attest to the fact that NOTHING in So Cal is like the rest of the world -- not the insane business taxes, not the 3x worker`s comp, not the stupid housing costs, not the traffic, and not the education system (54% illiterate in LA County).
You friend needs to get in his car and go see the real USA -- its well East of Los Angeles -- and he would find the economy doing quite well, people owning homes that are much nicer than in LA at a fraction of the cost, and generally happy folks.
John