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Accountability general freedom

The S‑Word in California

Frédéric Bastiat called it “spoliation”; California’s Democratic politicians call it social justice.

A bill went into effect last week, offering complete medical coverage to an estimated 700,000 undocumented — illegal — immigrants.  The price tag? 3.1 billion dollars.

Well, not “price tag”: call it a subsidy tag.

California taxpayers will pay for it. Or perhaps U.S. taxpayers will end up with the bill, as Dagen McDowell insisted on Fox News, prophesying that the program “will turn into a national issue” that will, inevitably, “swamp the federal budget.” 

Ms. McDowell also noted that the state’s targeted sugar daddies, the wealthy, “are going to other states, so much that they’ve lost a congressional seat,” all of which must lead to insolvency.

Indeed, the state is running far into the red — the color of the ink on budget columns, not voting columns. The state faces not merely annual deficits and a huge debt, there is also this looming trillion-​dollar debt implied by the unfunded liabilities of the state employee pensions.

There is an old pattern here, which is why I brought up an old author in the first sentence.

First we subsidize the poor. Then we extend the subsidies up the income ladder. Now we give huge subsidies to those who enter the country illegally.

It’s as if Californians have forgotten the nature of income redistribution: you have to have income to redistribute. At some point the wealth being taken from the productive vanishes, as society becomes unproductive and descends into ruin.

There are two meanings of Bastiat’s “spoliation”:

noun
1 the action of ruining or destroying something.
2 the action of taking goods or property from somewhere by illegal or unethical means.

The two are linked. 

This is Common Sense. I’m Paul Jacob.


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free trade & free markets political economy too much government

The Not-​Unintended Consequences

When bad outcomes are obvious, we can no longer call them “unintended consequences,” can we?

Take the case of California’s double-​barreled attack upon “fast food”: last year’s push through the legislature of Assembly Bill 102 and Assembly Bill 1228. These regulatory schemes would have introduced collective bargaining into fast food franchises and enforced much higher minimum wage rates.

The two laws sparked an industry backlash, in the form of ballot referendums to halt the regulatory onslaught, which Steven Greenhut writes about at Reason. “In September, Gov. Gavin Newsom announced a ‘truce,’” Greenhut explains. “The industry pulled its ballot measure and agreed to a $20 minimum wage. In return, Newsom and unions limited the power of the Fast Food Council and removed joint-​liability provisions.”

The concession on hiking the legal wage minimum was agreed to, notice, by the fast food lobbyists. Not the workers. 

As those familiar with elementary economics understand, when the costs of an input (like labor) are increased, alternatives to those inputs will be sought. So we can expect more replacements of workers with automation — as we’ve seen all around the country in fast food, especially at McDonald’s — as well as higher prices.

Which, in a state sporting huge homelessness and unemployment problems, will only hobble the one industry that helps the poorest members of society both in terms of consumer products (inexpensive food) and entry-​level jobs (at fast food joints).

Perhaps California’s Democrats know full well what they are doing. They push crazy policies not because the negative outcomes are “unintended” or unforeseeable.

You see, it’s not disastrous for them.

This is Common Sense. I’m Paul Jacob.


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too much government

Fiscal Protector

Why doesn’t California Governor Gavin Newsom care about kids?

What is it with this “conservative”? 

Last week, Newsom coldly deployed his veto pen to deny to Golden State public high school students the sex subsidies — in this case, free condoms — that a solid majority of their state legislators had determined were essential to their healthy development.

Senate Bill 541 would have mandated that all public schools make condoms available free to all students, grades nine through twelve. According to an Associated Press report, the legislation would also “have made it illegal for retailers to refuse to sell condoms to youth.” 

The bill’s author, State Sen. Caroline Menjivar, a Los Angeles Democrat, contends the legislation is needed to help “youth who decide to become sexually active to protect themselves and their partners from (sexually transmitted infections), while also removing barriers that potentially shame them and lead to unsafe sex.”

Newsom agreed that free condoms, even if not yet recognized as a fundamental human right, are “important to supporting improved adolescent sexual health.”

His problem? Condoms cost too much. 

“With our state facing continuing economic risk and revenue uncertainty,” explained the governor, “it is important to remain disciplined when considering bills with significant fiscal implications.”

Seems California is already running a $30 billion deficit. Becoming the condom supplier of first resort for 1.9 million hormone-​infused students each year would annually add a few million more to that deficit.

Ah, California … where Gavin Newsom is the voice of fiscal restraint. 

This is Common Sense. I’m Paul Jacob. 


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crime and punishment folly too much government

The California Experiment

California is determined to give us the full bleak picture of totalitarianism, American-style.

Anticipating proposed SEC regulations, Newsom’s California is set to impose nonsensical mandates for reporting greenhouse gas emissions and “climate-​related financial risk” that target companies with annual revenue of $1 billion or more (according to the terms of SB253) and $500 million or more (SB261).

Billion-​dollar businesses will have to report all direct and indirect emissions, including emissions produced throughout a business’s supply chain. Business travel. Employee commutes. Penalties for failure to report could be as high as $500,000.

The cost is in time, money, privacy, freedom, with no benefits except to bureaucrats and politicians who enjoy bossing us around and destroying our ability to function.

These requirements are tyrannical in the same way they’d be tyrannical if required of you and me as individuals. 

Do you know all about the emissions produced in delivering the water, electricity, electronics, gas, paper you use each month? 

Care to drop everything you’re doing to find out? 

And submit the data in a bureaucrat-​satisfying format?

We already know what the results of California’s experiment will be. We already know that crushing freedom and giving unfettered power to slave-​masters is not the road to wealth and happiness.

What we don’t know is exactly how far the Tarnished State’s aspiring totalitarians will go. But whatever the consequences, they’ll blame others … or just mutter “Good riddance, we didn’t want that prosperity and those evil businesses anyway.”

This is Common Sense. I’m Paul Jacob.


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crime and punishment government transparency international affairs

The Chinese Biolab in California

The abandoned biolab found last December in Reedley, California, was uncovered by local law enforcement — not the Department of Homeland Security, the CDC, the FBI, or any of the federales’ faker’s dozen of intel agencies.

But the locals quickly discovered this was not just an unregistered business, or the anodyne testing service the paperwork for the company promised. What they found in the warehouse was a suspicious array of mice, living and dead, and vials of diseases, kept, we are told, in a careless manner.

Almost as ominously, the business — Prestige Biotech, previously known as Universal Meditech Inc. — is Chinese-​owned and operated. 

And had received government subsidies. 

Ours! Who knows what came from China?

“House Speaker Kevin McCarthy (R‑Calif.) and Rep. Jim Costa (D‑Calif.), who represent congressional districts in California’s Central Valley, wrote a letter to the Pandemic Response Accountability Committee seeking a probe into how and why Universal Meditech Inc. was granted two Payment Protection Program (PPP) loans of $74,912 each in April 2020 and February 2021,” explains The Epoch Times.

The company had previously been awarded — but did not qualify for or actually receive — a $360,000 tax credit under California’s CalCompetes GO-​Biz program.

Why wasn’t this tale told for half a year? 

“The FBI,” as Mark Tapscott writes, “imposed a blackout on any public statements about the facility.” 

“[T]he FBI and the CDC and everybody else in the alphabet soup of state and federal agencies” told locals not to comment, says Reedley City Manager Nicole Zieba.

Curiously, the reporting makes no mention of Homeland Security. What is that agency for, again?

This is Common Sense. I’m Paul Jacob.


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deficits and debt election law tax policy

Slasher Needs Slashing

A perennial bill in the California Assembly, Constitutional Amendment 1, would make it harder for voters to block local tax increases in accordance with the provisions of Proposition 13, which voters passed in 1978.

ACA 1 would shrink the percentage of voters who must approve certain tax increases from two thirds to 55 percent in cases where the money would purportedly be used for infrastructure or public housing.

Passage would further erode the legacy of Prop 13, which in addition to cutting taxes, limiting tax increases, and requiring a two-​thirds legislative majority to increase state taxes, also imposed a two-​thirds threshold for voter approval for special local taxes.

In 2000, voters accepted a lower threshold for approval of school bonds — 55 percent instead of two thirds — enabling billions more in property taxes.

That’s bad enough, but things could easily get worse.

Jon Coupal of the Howard Jarvis Taxpayers Association observes that if enacted, ACA 1 would be used to raise taxes repeatedly in local elections by dint of dubbing all government spending “infrastructure.” 

The infrastructure exemption is an innovation of the 2023 version of the bill (the tricky tricksters never stop).

Moreover, if passed, the amendment would take effect immediately. “Billions of dollars in tax hikes will start that much faster.”

Coupal stresses that the new exactions would be added to property tax bills “above and beyond Prop 13’s one percent cap” on property taxes.

ACA 1 keeps getting reintroduced and, so far, keeps getting killed off, like the mad killer in a teen slasher movie. Only to be revived for the sequel.

Kill it again.

This is Common Sense. I’m Paul Jacob.


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