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By Jon Coupal
California would be a far better state if politicians and progressive activists were required to take a course in basic economic principles. If they did, they might not blindly pursue economic policies that not only damage people’s lives generally, but also fail to accomplish their intended goals.
Examples of this are numerous. In fact, here are a few from media reports just this past week.
First on the list of policy choices exposing the lack of critical thinking by those on the left is the story out of Los Angeles regarding the ULA tax.
As noted by Susan Shelley, this month is the one-year anniversary of Measure ULA, a punishing real estate transfer tax on the sale of all properties valued over $5 million. Deceptively called a “mansion tax,” proponents didn’t limit it to just mansions. Virtually all income-producing properties, including new affordable housing projects, are swept into its reach.
When Measure ULA passed – based on the well-documented deception – the proponents were giddy with anticipation for a flood of new revenue for their favorite projects. This includes an infusion of money to sustain L.A.’s Homeless Industrial Complex. According to the city’s projections, ULA would raise $600 million to $1.1 billion annually. However, the tax take has fallen way short of the projections, bringing in just $173.6 million in its first year.
Second, California’s fast-food $20 minimum wage just kicked in and, according to most rational economists, will result in reduced employment. This is especially bad timing given that California has the highest unemployment rate in the nation. While promising to lift families out of poverty, the $20 minimum wage will fall short of that goal according to economist David Neumarkat the University of California, Irvine. And to add insult to injury, the price increases on fast food will hit low-income families the hardest.
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