A few weeks back the Guardian’s Sunday paper, the Observer, published a long article titled Will California become America’s first failed state? It was one of their most widely read and emailed articles that week, and generated a lot of responses. One of them was mine here at Calitics.
The Guardian wanted a response to their article for their Comment is Free section of the website, and asked me to write it. The result is now available: From Golden State to failed state.
With a 700-word limit it was difficult to be more expansive than I could here at Calitics. But my article makes the basic points: the 20th century model of California, emphasizing sprawl and weighing government down with absurd, non-functional rules designed to protect that sprawl, have produced “a California that more closely resembles the world of Charles Dickens than that of the Beach Boys.”
We need to craft a new vision of the California Dream for the 21st century. Go read the article to see what that would look like.
Realistically, states could not do a lot to alleviate unemployment through government works projects (they could keep their current employees employeed). Well, under one
circumstance they could. If budgets had been relatively balanced, then in poor economic times the state government could borrow for public works and then pay it back in good times. This would require a much higher level of revenue being collected (though since it would have to come from the rich, since only they have the money).
Prop 13 was a blunt instrument but people were facing huge tax increases. A more limited form of property tax relief would have obviated the need for this. Even so, split roll should be brought back and it that is successful, market rates on the top 10% of homes (property tax rates similar to New York/New Jersey/etc). This would prevent the rich from escaping the tax burden that the middle class has to pay, since property can’t “flee” (not that there is evidence of that).
Let’s hope it filters back to the American press. The Sacramento/media “tax cuts are a crucial component” mantra has become a form of mass insanity.
Well written, and accurate.