Public Investment: January 2010 Archives

Lots of people want to live in California.  This is a good thing.  Conservatives try to portray this as a bad thing.  Let me explain.

George Will repeats the conservative narrative that people and companies leave California because of taxes and regulations.  He writes,

It took years for liberalism's redistributive itch to create an income tax so steeply progressive that it prompts the flight from the state of wealth-creators: "Between 1990 and 2007," Voegeli writes, "some 3.4 million more Americans moved from California to one of the other 49 states than moved to California from another state."

Actually, any people and companies that move from California do it because the cost of living is so much higher and that is because it is a desirable place to live.  California was the envy of the rest of the country through most of the 20th century.  The best state government in the country used our taxes to build the best public structures -- the schools, colleges, roads, courts, water systems, etc. that attracted the innovative industries and the economy prospered even more.

What conservative propagandists like Will leave out is that so many people want to live here because of what the taxes and regulations created.  These public structures are what attracted so many people and businesses that the cost of living here went up.  They are trying to make people think this is a bad thing, and are trying to make people think the government and the public structures it builds are the problem rather than the source of our prosperity.  In essence they want to sell off what We, the People built and keep the proceeds for themselves.

The social contract used to be that We, the People built up the infrastructure of "public structures" like the legal system, schools, roads, water system, etc.  And this is what enabled businesses to prosper.  Then the businesses and people who did well paid back by pitching in with the proceeds to keep that system of public structures up to date.

It worked.  California built up the best schools and colleges, etc. so places like Silicon Valley and biotech grew up and thrived, and the state became a great place to live, attracting so many people and industries.  But this infrastructure was taken for granted.  Because this system was so solid and well-maintained people were able to start deferring maintenance, cutting everything, etc so that the big corporations and wealthy could have their taxes cut.  (Yes, the middle class got a bit of that through Prop 13 but even that primarily benefited commercial property.)

In essence the state has been living off of the past savings account of infrastructure that was built up in the 60s and 70s.  But now we're in 2010 with a 70's system. The schools are near the bottom in the country and the college and university system has been gutted.

We're STILL just getting by on living off of the last of what we built up in the 60s and 70s, but that is at an end now and the savings account is exhausted.  It is time to start to rebuild the infrastructure we used to be so proud of.  It is time to ask the wealthy and corporations that are here because of what the taxes and regulations built to pitch in again and start to rebuild that savings account of public structures and infrastructure.

Comments (1)

You hear it over and over again from California conservatives, "Cut taxes and cut spending," and "government spending is too high."

So what does this mean to YOU? How does this affect your life?

Simple answer, cutting spending means that your schools, roads, police and fire protection, lines at the DMV, parks, environment, food safety inspections, services to help small businesses and courts all deteriorate. It means that it costs more - much more - for you to send your kids to college. That is what "cut government spending" means.

And in spite of what you think, their promise of cutting taxes rarely means your taxes. There is a huge concentration of income and wealth at the very top, which means that tax cuts really mostly benefit the very, very wealthy. Even the well-known Prop 13, thought of as helping homeowners, shifted the tax burden from the corporate owners of commercial property to middle class citizens. From, Corporate loopholes make Prop. 13 crippling for state:

Thirty years ago, commercial property owners contributed 59 percent of property tax revenues and residential property owners contributed 41 percent. Today, we see a virtual flip: commercial property owners contributed just 43 percent of property taxes in 2008, while residential property owners contributed 57 percent.

Another thing you constantly hear are calls to cut the number of government employees and their benefits. If you think about it, layoffs and pay cuts for government workers (teachers, police, firefighters, road workers, etc.) translates into increasing pressure to cut your own wages as well, plus it means fewer customers for California's small businesses, fewer teachers in our schools, increased crime rates, etc. Cutting their benefits means that your own benefits come under pressure as well.

Conservatives promising that cutting taxes and spending are good for you have held sway for the last few decades. They are always promising that tax cuts will make things better for regular people. But they haven't gotten better. The real tax burden keeps shifting further and further away from the wealthy and powerful and onto the backs of the middle class. Meanwhile the things that our government does for us are reduced and reduced, so life gets harder.

The lesson to learn is: glowing promises of a free lunch usually mean that you are the lunch.


Comments (3)
Join Our Mailing List
Email:




About this Archive

This page is an archive of entries in the Public Investment category from January 2010.

Public Investment: December 2009 is the previous archive.

Public Investment: August 2010 is the next archive.

Find recent content on the main index or look in the archives to find all content.