Prison Cut Ruling a Gift for Democrats

It was Christmas in August for Democratic legislators Tuesday as a trio of federal judges gave them the gift of political cover.

The order to cut California’s prison population by more than 40,000 over the next two years – and the short, 45-day window to come up with a plan – will ease of pressure on Democrats facing some ugly political choices later this month.

There wasn’t a Democrat in the Assembly or state Senate who was looking forward to coming back to Sacramento to face a raucous debate on Gov. Arnold Schwarzenegger’s plan for slashing the prison budget through a combination of early releases and sentencing changes.

Taking 27,000 inmates out of the prisons – and releasing many of them back into their communities – was guaranteed to bring out the loud chants of “soft on crime” from conservatives, local police chiefs and plenty of everyday voters.

Why Do California Conservatives Ignore Uncle Milton?

The late economist Milton Friedman was fond of saying: “The property tax is one of the least bad taxes, because it’s levied on something that cannot be produced — that part that is levied on the land.”

He said almost those exact same words to me four years ago during an interview about his relationship with Gov. Schwarzenegger – and about his history with California ballot initiatives.

When the subject turned to Prop 13, which he had strongly supported in 1978, Friedman said he thought the measure had proven to be “a mixed bag.” He did not regret his vote for Prop 13 because it had sent a tax-cutting message that was important for that time.

“You’re probably too young to realize it,” he told me (he was right — I was 5 in June 1978), “but in those days, government was the answer to every problem. Very few people think that now.”

Special Alert: New Scam Targeting California

Example of a scam letter being sentExample of a scam letter being sent

I have just become aware of a new scam directed at corporations and limited liability companies in California. This scheme, which has also been reported in Nebraska and Colorado, purports that certain documents must be filed with the Secretary of State’s office and only through the third party sending the solicitation.

I sought verification of this new pattern of criminal activity and found that, just last Friday, the Attorney General won a $1.2 million ruling against these rip-off artists – this is a massive scam that everybody should keep an eye out for.

The rip-off revolves around a deceptive letter sent by that third party, encouraging these businesses to comply with their California Corporations Code filing obligations by submitting substantial fees and documents to that third party.

Green Jobs Can’t Save The Economy

Nothing is perhaps more pathetic than the exertions of economic developers and politicians grasping at straws, particularly during hard times. Over the past decade, we have turned from one panacea to another, from the onset of the information age to the creative class to the boom in biotech, nanotech and now the "green economy."

This latest economic fad is supported by an enormous industry comprising nonprofits, investment banks, venture capitalists and their cheerleaders in the media. Their song: that "green" jobs will rescue our still weak economy while saving the planet. Ironically, what they all fail to recognize is that the thing that would spur green jobs most is economic growth.

All told, green jobs constitute barely 700,000 positions across the country – less than 0.5% of total employment. That’s about how many jobs the economy lost in January this year. Indeed a recent study by Sam Sherraden at the center-left New America Foundation finds that, for the most part, green jobs constitute a negligible factor in employment – and will continue to do so for the foreseeable future. Policymakers, he warns, should avoid "overpromising about the jobs and investment we can expect from government spending to support the green economy."