Anti-Tax Dumbness

Howard Jarvis gave California Proposition 13, the cap on property tax assessments that has created chaos out of state budgeting for 30 years. It is the source of the 2/3rds majority requirement for tax increases, in addition to capping property assessments at the time of sale plus a little more than 1% annual increases maximum. The results were predictable at the time - gross inequalities in assessments of identical neighboring houses, with the new buyer paying much more, a transfer of wealth from young to old, from newcomer to old-hand, and endless controversy around the support of basic public services. The current Assembly speaker wants to have a blue-ribbon commission to study the problem, but the one thing she'll keep off the table is the straitjacket known as Prop 13.

The Howard Jarvis Taxpayers Assn writes me regularly, and their materials shows how the middle-class can be encouraged to fall on its sword. Their only figures are a "Homeowner's Property Tax Savings Chart" - if you bought a median house in 1993 ($188k), as I did, you have now "saved" $88k by having an assessment of 1% instead of 2.6%. What's missing of course is all the money we've paid out in other ways - for houses grotesquely overpriced in part due to suppressed assessments, for private services, e.g. private schools to get around crappy public ones and for big cars to avoid bad public transit. What's also missing are the costs for renters, for the state, for new businesses - for California society which is increasingly divided and still controlled by an entrenched landed class.

As a model for a "new economy" this is really really dumb.

Sprawl Ain't Just Ugly

Sprawl isn't just ugly. It's dumb - economically. Michael Klare explains how all that commuting increases U.S. oil dependence which worsens the balance of payments which makes the dollar drop which drives up US prices which makes people broke, which stops them from buying which tanks the economy.

See! Economics is easy. It's people that are hard to understand.

For a compelling alien-abduction theory of inexplicable Republicanism, see Jeff Cohen's funny and yet obviously true Stepford Husbands theory of right-wing voting.

And see Naomi Klein's interesting link between the home-ownership society and the growing number of Americans (now almost half) who think they live in a society divided by class (haves vs. have-nots).

Dumbness and the Fight Against It

Today's New York Times has a nice illustration of the battle for what's left of the middle-class mind. There's Paul Krugman fighting dumbness by showing how the media has turned politics into a beauty contest that prevents people from voting on the basis of issues. "listening to what candidates say about substantive issues offers a much better way to judge potential presidents than superficial character judgments. Mr. Bush's tax lies [in the 2000 campaign], not his surface amiability, were the true guide to how he would govern."

In the other corner, representing dumbness, is David "Schoolboy" Brooks, with another of his grandiloquent philosophical frameworks leading to Reaganite cliches. Painting himself as a "Hamilitonian" in an epic battle with "mainstream liberals" and populists, he concludes, "Government is really bad at rigging or softening competition. It can do some good when it helps people compete." This distinction rests on a Schoolboy contrast between job retraining, job protections, and jobs programs (where gov is bad), and portable pensions and health insurance and skill-based immigration and encouragement of marriage (where gov is good). In fact all Schoolboy does is slam programs for workers and praise programs for the middle-classes. Blue-collar is bad, white-collar is good. Programs that make blue-collar people like white-collar people are good. Schoolboy wants a world in which gated commuters are subsidized and nobody else is - a paradise of bobos, paid for by everybody else.

If we don't start catching on to this classic middle-class dumbness, were not going anywhere except down.

Which reminds me: in March I blogged about Pakistani lawyers in revolt; this past week the U.S. press has realized that the protests have spread widely enough to be threatening to the Musharraf regime.