Fixing California: Freer Markets and Fewer Contraptions

The state currently operates like a Rube Goldberg Machine.


Sacramento—Watching state legislators construct fixes to the state's problems reminds me of those bizarre contraptions that the late cartoonist Rube Goldberg would devise, as he "invented" complicated, funny methods to achieve simple tasks.

In his haircut machine, a hyena laughs, thus insulting a blind mouse, who thinks the hyena is laughing at him. The mouse angrily runs off onto a disc, which triggers a series of levers that eventually push a starving Lilliputian goat to a man's head. The goat nibbles on the man's hair, then falls over into a cradle after it is full.

Goldberg's contraptions were delightfully ridiculous, yet strangely reminiscent of a state Legislature that can't come up with a straightforward approach to the simplest problems. One recent example: It took two years for it to pass a bill designed to make it easier for administrators to remove sex predators from the classroom. The final measure was filled with maddening complexities that would have made it harder to fire bad teachers. The governor rightly vetoed it. And that's what happens when legislators actually try to fix something.

Most problems—such as the state's unfunded pension liabilities, the nation's highest poverty rate, education failures and others detailed in the U-T's Fixing California series — are off the table given the power of status-quo-defending interest groups to derail actual solutions. So the reform blueprints get more complicated and far-fetched.

California officials have gotten the general-fund budget in order after voters approved large tax increases last year. But the fundamental crises still are festering, as was detailed in the Fixing California introduction:

"California now has the highest rate of poverty in the nation. … The state government is awash in debt, hundreds of billions of dollars, much of it stemming from the Cadillac salaries, pensions and retiree health-care benefits paid to state employees. … The state that historically was among the last to fall into recession and among the first to pull out it, has flipped …

"The educational performance of California students now ranks near the very bottom … . The state lost 33 percent of its industrial base from 2001-2012, declining 11 percent more than in the United States as a whole … . State and local government regulatory agencies are strangling the efforts of small and large businesses to expand. … Many local governments are also in financial peril."

Solutions, though, won't be found in complex new rule-making or more spending.

What to do about the poverty rate? Unleash job creation by lowering tax rates and reducing the control of regulators. What to do about debt issues? Reduce the decade-long policy of pension and benefit enrichment, by holding the line in contract negotiations and by outsourcing services. One great idea: a proposed state pension-reform initiative that would let cities roll back pension benefits for current employees going forward.

What about the state's public schools? Instead of tinkering with an immovable bureaucracy beset by outdated work rules that quash innovation, the state should unleash competitive pressures through vouchers, expanded charter schools and a more aggressive "parent trigger" system.

Sometimes the leadership gets it, epitomized by Gov. Jerry Brown's support of hydraulic fracturing regulations that, although more cumbersome than necessary, allow this job-creating industry to grow. But such good news remains hard to come by.

As Professor Joel Kotkin, a Democrat, explained in a Fixing California installment published Oct. 27, California remains committed to a green politics that makes it tough for poorer people to get ahead. "Particularly damaging are steps to impose mandates for renewable energy that have made electricity prices in California among the highest in the nation and others that make building the single-family housing preferred by most Californians either impossible or, anywhere remotely close to the coast, absurdly expensive," he wrote.

And California's tax code seems designed to minimize growth, argued economist Art Laffer in a commentary on Nov. 10. "California does have the sunshine, that's true, but to believe all your taxes are giving you a better quality of life and better public services is not true," he wrote in the series about his 2006 move from California to Tennessee. He found that Californians enjoy poorer services because we overpay for them.

What California needs is amazingly simple — lower taxes to spur creative activity, a more reasonable regulatory climate, educational choice, less government intervention and more competition. These policies are not complex, but they are effective.

Instead, each Capitol session is reminiscent of a less-funny version of Goldberg. Officials assemble legislative contraptions that complicate state bureaucracies and add new hurdles for businesses. Then everyone wonders why the goat didn't do a good job cutting the man's hair. One day, though, our leaders might realize that the best solution involves a pair of scissors.

This article originally appeared in the San Diego Union-Tribune.

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  1. If you understand that California is a public employee union with a state attached to it, everything makes sense.

    1. Whereas some states posses a public sector union, California is a public sector union that posseses a state.

      1. not as efficient as the 18th century Prussian army though.

  2. California is a perfect example of a 1960s Hippie outcome now ruled by a Hippie at Heart with a suit. It is (for the time being) appropriately referred to as “The Left Coast”.

  3. Speaking of broken states, I heard on the news this morning that Albany legislators have finally hit on the solution to all of New York’s problems: public campaign finance. This was reported with a straight face.

    1. Seceding Manhattan and Long Island back to the British or Indians is the only way to save New York.

      1. Well, if my home wasn’t technically on Long Island I would go along with that. Instead, my choices are (1) move somewhere I don’t want to live, (2) fight the power or (3) suck it up and open my wallet ever wider.

        1. Art Laffer moved to Nashville, TN.

          “I moved from San Diego to Nashville, Tenn., purely because of taxes,” Laffer said, adding that he paid for his home in Belle Meade, an exclusive Nashville neighborhood, “with my first year’s tax savings.”

          Whenever you talk to a recent immigrant from the North East the very first thing that comes up is the weather but, the second is the differences in taxes.

          Just saying. 😉

          1. I left the NE once – I was miserable 🙂

    2. Rhywun|12.3.13 @ 10:45AM|#
      “Speaking of broken states, I heard on the news this morning that Albany legislators have finally hit on the solution to all of New York’s problems: public campaign finance.”

      Already got it in CA. The politicians pay the money to the unions, the unions campaign for the politicians.
      On a local level, the politicians fund ‘non-profit’ orgs where the campaign workers hang out between campaigns.

      1. The politicians pay raid the wallets of the taxpayers and give the money to the unions, the unions campaign for the politicians.


  4. Just as I root for failure of the new French experiment, I would root for continuing failure of California – except that it means more of them will move to Texas and end up trying the same stupid shit here. Then I’ll move to Tennessee or North Carolina I guess.

  5. until I looked at the draft that said $8761, I have faith …that…my best friend had been actualie erning money part time at their laptop.. there mums best friend has been doing this 4 only about 8 months and resently repaid the morgage on there villa and purchased a brand new Aston Martin DB5. see here now

  6. The problem with the solutions outlined above is that it makes it extremely difficult for politicians to take credit for things when they go right, other than to say they stayed out of the way. Politicians tend to come in two flavors: the control freaks and the seekers of praise. Relinquishing power will do nothing for the ego of either group.

  7. Bingo, Senor Chung.

  8. I like “Freer Markets”.

  9. Excellent article, I couldn’t agree more!

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  11. Google is paying 75$/hour! Just work for few hours & spend more time with friends and family. On Sunday I bought themselves a Alfa Romeo from having made $5637 this month. its the best-job Ive ever had.It sounds unbelievable but you wont forgive yourself if you don’t check it out

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