Thursday, December 31, 2009

Obama: Let's Follow The California Economic Model

More typical brilliance from Victor Davis Hanson on how Obama is trying to impose the California model on the entire United States:

This California model is important because Obama is adopting it as a blueprint on a national scale. If he wins (and don’t count him out), life really would be more patterned on an equality of result. New payroll, income, state, local, and health care surcharge taxes would hit those over $200K with about a 70% take of one’s income. The public sector employees double in number, unionize, and demand ever more from “them.” Cap-and-trade charges raise monthly utility bills 20%. Things like SUVs, Winnebagos, and private jet travel are taxed out of reach — except for a guardian class that uses public moneys for a rarefied lifestyle of governance and enforcement (sort of like the jets parked on the tarmac at Copenhagen or Barack’s night out on the Big Apple)...

...In other words, we are seeing a strange era in which the once last bastion of capitalism, the free-market US, is trying to emulate the California model—and in turn the world wishes to follow what the Obama administration is trying to do in America.

Note well: California depends on “them” producing real wealth in food, fiber, manufacturing, oil, gas, timber, construction, and high-technology. In turn, the US depends on 50 states doing the same to provide for the expansive regulatory and administrative federal class, and the world relies on the US economy to provide the growth and capital to redistribute. (e.g., We can’t all be the Obamas, Valerie Jarretts, David Axelrods, Rahm Emanuels, Van Jones, Timothy Geithners, etc. who have made good livings as advocates, regulators, bureaucrats, legislators, etc. without having to worry about meeting a payroll).

The Unsung?

In truth, in some ways, the world economy depends every day on some engineer, farmer, architect, radiator shop owner, truck driver or plumber getting up at 5AM, going to work, toiling hard, and producing real wealth so that an array of bureaucrats, regulators, and redistributors can manage the proper allotment of much of the natural largess produced.

The whole system from California to Copenhagen will keep on working as long as the productive classes feel there are still incentives to jump out of bed at 5AM. When they don’t, the power is cut off to thousands of gears and cogs — and the world looks more like Ecuador or Somalia than the U.S.

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