Silly Season in Governor’s Race
Do you know that Meg Whitman wore a designer coat to a NASCAR race?
Or that Pete Wilson is a hypocrite on the question of tax returns?
What about the fact that Jerry Brown has worked to stymie job growth in California for 40 years?
Welcome to the political silly season, where no charge is too dumb to throw out and hope somebody writes about it.
This isn’t about the big stuff, the stories and charges that show up in the multi-million-dollar TV and radio ad campaigns. That stuff is vetted, focus-grouped and studied to a fare-thee-well before it ever makes the airwaves. Those are the hoped-for game-changers, stuff that can turn a campaign around, so they’re not taken lightly.
Fuel Price Reality Leads to Low Carbon Fuel Standard
In his February 8, 2010 column, Joel Fox wrote, “we have to be realistic about pricing [of alternative fuels].” Is that because we’re so realistic about the pricing of incumbent fuels?
On the day Joel wrote that column, oil was trading at $71 per barrel. One year before, it was at $40. Today it hovers near $80, more than 10% higher than it was when he wrote that column less than three weeks ago.
On America’s so-called “Independence Day” in 2008, oil hit $145, double what it was just the year before and nearly five times its price five years before. In response, our country showed its utter lack of independence by moving deeper into a recession. Indeed, forgotten in the current discussion about the current recession is the role played by volatile oil prices. With that commodity providing 97% of our transportation fuels and the state dependent on transportation for economic growth, a doubling in price in twelve months and a near quintupling in five years was catastrophic.
California Ranks Poorly in State-by-State Fiscal Report Card
Economist Arthur Laffer annually compares the economic and revenue conditions in the states, noting, “With people, products and capital free to move from state to state, state governments are competitors.” Given California’s budget difficulties it is no surprise that the Golden State ranks poorly in the new Laffer analysis.
California is not the only state that is suffering in these difficult times. The Laffer account reports that state revenues declined 8.09% from Fiscal Year (FY) 2008 to FY 2009. Heading into this Fiscal Year, 48 states faced budget shortfalls. While many states implemented measures to close their funding gaps, 41 states have come up short.
Laffer and co-author Mark A. Wise argue that, “The evidence suggests that pro-growth policies result in higher after-tax returns, increased economic activity, and an eventual improvement in overall state fiscal health; anti-growth policies result in the opposite effects.” Comparing the nine states that have no broad base income tax with the nine states that have the highest marginal income tax rate (California ranks fourth at 10.55%), the report says that, generally, states that tax less on “productive activities such as working and investing, experience higher growth rates (GSP) than states which tax more.”
Voters Undecided On Solutions To California’s Economic Problems
Datamar Surveys questioned California voters on a variety of issues regarding the state of the economy and political sentiments. The findings reveal an embittered and weary electorate and one that is looking for alternative ways to reform the state’s political process and turn the economy around.
The economy is the number one issue of concern for the voters topping budget cuts by a two to one margin. Responsibility for California’s problems was evenly divided by the 794 respondents to the poll. 30.9% gave responsibility to Democrats in the Legislature; 25.7% to Special Interests; 18.4% to Governor Schwarzenegger; and 17% to Republican in the Legislature.
Trust in the state government is at 10.5%.