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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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Accountability crime and punishment

The Bums’ Rush

Californians have long been talking about cleaning up San Francisco from the waste laid to the city by its well-compensated bums along with coddled criminals, entitled inebriates, and the happy homeless. 

And then last week it happened. The city got cleaned up and scrubbed down. Darn quick.

All it took was the arrival of the President. 

Of China.

Xi Jinping touched down just days ago for the Asia-Pacific Economic Cooperation summit, at which our own Somnambulant-in-Chief also teetered around, so the clean-up crews worked overtime to make a good impression.

There’s been a lot of speculation about it all. Couldn’t those who have been creating this filthy and dangerous environment on the streets of San Fran have been dealt with (and not pampered) a long time ago?

Many have remarked: so it’s Xi whom San Francisco Democrats really look up to? Not their own citizens? Everyday San Franciscans don’t matter? Only The Eastern King of Genocidal Totalitarianism?

“Is the president embarrassed,” a reporter asked National Security Advisor Jake Sullivan on Monday, “that an American city needs to go through a total makeover to be presentable for his out-of-town guests?”

No real answer.

But what did the city do, exactly?

Moved the homeless out of the way, first. 

And then the streets were hosed off, the graffiti sanded or painted over.

Arguably, corralling the homeless from sector to sector of the city would be one way to disincentivize squatting, as would arresting and trying street-dwellers for public drug use and excretion — for some things must be kept private, not engaged in helter-skelter. 

Things like defecating. 

Sexual intercourse. 

Shooting up.

Years ago, no one had to explain this to anyone.

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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folly ideological culture too much government

Apocalypse California

The Democratic Party is a victim of its own success. Nowhere can we see that more clearly than in California.

Democrats have succeeded by pushing “victimhood,” gaining power by focusing on special groups, declaring them oppressed and offering compensation — though still never comes the day of full escape from the burden of this oppression.

Many stories of oppression are true.But no sized sliver of truth can guarantee that compensation attempts will redound to the liberation of the aggrieved.

California’s Democrats will face this soon.

Over slavery! And racism.

Never a slave state, California has been flirting, officially, with reparations. Several cities have “explored” the idea. An official “Reparations Task Force,” established by state law, has recommended a formal apology for slavery (in other states, over a hundred-and-fifty years ago). It’s also talking about giving away hundreds of billions of dollars in compensation to Black Californians, descendants of slaves or not. 

The task force is scheduled to make explicit and detailed recommendations —  on July 1.

Which puts Democrats on the spot.

Powerful Democrats such as Governor Gavin Newsom. Considered a rising presidential aspirant should the current 82-year-old decide not to run again, Newsom signed the law to officially look at reparations . . . but then seemed less than fond of the price-tag. More than twice the yearly state budget!

Now the governor is keeping his mouth shut awaiting the final report.

And, as George Skelton at the L.A. Times asks, then what? Well, that is when “the governor and lawmakers will need to emerge from cover, face the public and devise a better response.”

But up until July they can still pretend.

Then, Democrats will have to face the reparations issue squarely — and in the context of the complete failure of their state, the blame for which they cannot place upon Republicans, much less long-dead racist slave-owners.

This is Common Sense. I’m Paul Jacob.


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deficits and debt tax policy

Deadbeat California

The injustices pile up so thick and fast that one can’t really keep track. Some state governments are especially prolific in producing them. Governments like the Deadbeat State, formerly known as the Golden State.

Now businesses in California must pay the price for the state government’s profligacy during the pandemic, when it borrowed $20 billion from the federales to help pay unemployment benefits. California is refusing to repay.

In the budget proposal for 2023-2024, $750 million had originally been set aside to begin repaying this debt. But Governor Gavin Newsom killed the provision. So, in accordance with federal regulations, businesses must take up the slack. Starting in 2023, the unemployment tax rate that businesses will pay, which had been 0.6 percent, is being increased by 0.3 percent until the loan is repaid.

“California is just not really an employer-friendly state,” says Marc Joffe of the Cato Institute. “This one thing will not be a difference between a business remaining open or closing, but it’s just another burden on top of the many burdens the state puts on employers.”

A major contributor to the size of this debt is the state’s failure to act to prevent massive fraud in filings for unemployment benefits. LexisNexis estimates that fraudulent payments amount to more than $32 billion.

California taxpayers must pay for this unsalutary neglect one way or another. But what Newsom has done ends up penalizing businesses in particular. 

Yet another reason to avoid doing business in the state.

This is Common Sense. I’m Paul Jacob.


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initiative, referendum, and recall media and media people

Democracy Fail?

“California recall fails,” The Visalla Times Delta explained. As did KSBY, the NBC affiliate in San Luis Obispo. Not to mention The New York Daily News and The Chicago Sun-Times.

FiveThirtyEight analyzed “the failed California recall” at length. Even the South China Morning Post proclaimed the apparent democratic malfunction (reprinting an Agence France-Press report).

Yet the recall did not fail.  

Sure, voters decided not to jettison Governor Newsom mid-term. But that’s not a failure of this century-old democratic check on power — not unless a whole bunch of the 64 percent voting to keep Newsom filled in the wrong oval on their ballot by mistake.

I almost wish that were so; it would be easier to correct going forward.

“In a state famous for its acts of direct democracy,” a New York Times feature informs, “detractors of this year’s special election say the recall process is democracy gone off the rails, a distraction from crises that require the government’s attention, and a waste of hundreds of millions of dollars.”

Some folks never complain about government spending until it comes to the cost of holding an election. Funny, that’s precisely when our money might actually be well spent.

“No one in the state’s Democratic leadership is suggesting the elimination of recalls,” The Times notes, merely “vowing to make it more difficult for them to qualify for the ballot.”

In other words, legislators intend to raise the cost . . . so as to fight wealthy interests, they’ll argue. With a straight face.

“In a sharp piece of political irony,” that Times’ piece bemoans, “it will take a referendum to decide whether to change this particular referendum.”

Which is a feature of the system, not a bug. That is, no fail there

This is Common Sense. I’m Paul Jacob.


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