California has a long history of boom and bust cycles, but over the past 25 years or so, California’s cycles appear to be becoming more volatile, with increasing frequency, higher highs, and lower lows. The fast-moving business cycle may not provide the time necessary for many people to recover from previous busts, and may be too limited in its impact. Even now, 22 of California’s 58 counties have unemployment rates of 7.5 percent or higher. Eleven California counties have unemployment rates of at least nine percent. And these, we are told, are the best of times. read more »
Californians attend innumerable conferences on housing and economic growth. Year after year, in counties across California, the same people show up to say and hear the same things. Mostly what they say and hear is naive, and nothing ever changes.
California has always been friendly ground for new ideas and bold proposals. That was a good thing when California’s economic and social policies encouraged middle-class opportunity, entrepreneurship, and social mobility, way back in the 1960s. But the contemporary California political elite tends to pioneer policies that endanger the spirit of opportunity that once made California great. read more »
In a rare burst of independence and self-interest, the California Legislature, led by largely Latino and Inland Democrats, last month defeated Gov. Jerry Brown’s attempt to cut gasoline use in the state by 50 percent by 2030. These political leaders, backed by the leftovers of the once-powerful oil industry, scored points by suggesting that this goal would lead inevitably to much higher fuel prices and even state-imposed gas rationing. read more »
Governor Jerry Brown recently released a plan to find funds to fix California’s roads. Infrastructure funding is one of the essential roles of government, so it’s refreshing to hear that our otherwise dysfunctional state government is taking action on this front. But who will be paying for it? Those who use the roads most, that is, California’s drivers, who disproportionately tend to be members of the middle and working classes. read more »
I recently made a couple of tweets/Facebook posts pointing out that market declines threaten California’s budget surplus. I referenced articles in the WSJ and Bloomberg, and I thought the observation was non-controversial—almost banal. read more »
For decades, California's housing costs have been racing ahead of incomes, as counties and local governments have imposed restrictive land-use regulations that drove up the price of land and dwellings. This has been documented by both Dartmouth economist William A Fischel and the state Legislative Analyst's Office. read more »
Across the nation, progressives increasingly look at California as a model state. This tendency has increased as climate change has emerged as the Democratic Party’s driving issue. To them, California’s recovery from a very tough recession is proof positive that you can impose ever greater regulation on everything from housing to electricity and still have a thriving economy. read more »
Racial and economic inequality may be key issues facing America today, but the steps often pushed by progressives, including minority politicians, seem more likely to exacerbate these divisions than repair them. In a broad arc of policies affecting everything from housing to employment, the agenda being adopted serves to stunt upward mobility, self-sufficiency and property ownership.
This great betrayal has many causes, but perhaps the largest one has been the abandonment of broad-based economic growth traditionally embraced by Democrats. Instead, they have opted for a policy agenda that stresses environmental puritanism and notions of racial redress, financed in large part by the windfall profits of Silicon Valley and California’s highly taxed upper-middle class. read more »
China has hacked our government, devastated or severely challenged our industries and enjoyed one of the greatest wealth transfers in history – from our households to its. China also benefits from by far the largest trade surplus with the United States and also owns 11 percent of our national debt.
Sometimes it seems to be increasingly China’s world, and we just happen to live in it. Some, such as columnist Thomas Friedman and Daniel A. Bell, author of the newly published “The China Model,” even suggest we adjust our political system to more closely resemble that of the Chinese. read more »