California is in Trouble and Arnold is the Answer

By Kip Dellinger

The recall election presents several interesting questions. Depending on one’s political point of view, the answers will of course differ. What is most remarkable, though, are the “solutions” that are proposed by the typical, liberal Democrats and -- to a much smaller degree -- the socialist leaning Green party members that inhabit the Westside of Los Angeles.

Some of the positions of these two constituencies border on economic illiteracy; others border on shameless, meaningless arguments about the threat to “social progress” that anyone but a liberal Democrat in the governorship poses – even the somewhat “liberal on social issues” Republican, Arnold Schwarzenegger.

Shameless and meaningless because -- even with a Republican governor -- California will remain a state wholly dominated by liberal Democrats in all the other elected offices. Any “rollback” of progressive social legislation will not emanate from the Governor’s office in California (but may from the initiative process where the “popularity” of the issue will face the voters or from litigants where judges often act like monarchs).

The single, overriding issue in this recall is the economic peril facing California. All else is background noise, a distraction and irrelevant.

If there was any question that Gray Davis should be recalled, Governor Davis has answered that question in the past few months. If Californians are at all interested in preventing an economic meltdown within the state -- not of government so much as the thousands upon thousands of jobs that will never materialize in this state.

Beholden to the Left and to the open hostility of the Left toward business, Davis has signed and will continue to sign to legislation that encourages business to either locate elsewhere, or to move the best paying operations and positions to neighboring states, leaving only sales and distribution in California. Prior to this recall -- Davis couldn’t be bought cheap -- his contributors had to spend a lot of money to get their way. Now he’s pandering for his political life and has lowered the bar.

If one understands the “tax base” of business in California and recognizes the Federal constitutional limits on taxation of multi-state entities, you quickly realize that the idea that California is such a big economic player that companies must do business here is bogus.

Of course these business must conduct activities in California, but without even engaging in “tax shelters,” companies can and will arrange their affairs to leave only “sales” in California and will move their equipment and higher salaried employees to neighboring states, taking with them a big part of the “tax base.”

The disincentives of doing business in California are overwhelming: archaic and punitive wage laws, a suspect educational system controlled by the monolithic teachers’ union, out of control litigation costs, a refusal to constrain any of the costs of illegal immigration (and, in fact, incentives for more illegal immigration such as driver’s licenses and a free or heavily subsidized education), essentially unresolved workman’s’ compensation rewards, a soon to be unveiled employer health insurance mandate without adequate cost controls and a family leave law that might actually destroy some businesses -- all this and virtually no intent on the part of the legislature to rein in spending.

Both the Democrats and the Green Party’s solution to the problem is simple: tax the rich. Of course, they remain oblivious to the fact that the incomes of the “rich” have declined substantially of late, and they are ignorant of the components of the current income of the rich -- income which can and will be deferred or moved to other tax jurisdictions if taxes are raise significantly.

This is a truism for even the “moderate and liberal rich” residents who are unlikely to support or be the object of tax increases unless they see a commitment on the part of government to encourage private enterprise and get off the spending binge. For a while, Davis actually said “NO” to some of the spending legislation, but faced with the loss of his job, he is now leading the regulatory and spending charge.

Is Bustamonte the answer? Well, all he wants to do is raise your taxes, have you fund the education of thousands of persons here illegally (thereby literally begging for more illegal entry), blame the economic woes on the “energy crisis” (which every economist in the country laughs at) and continue to dismiss his lifelong commitment to an organization essentially dedicated to the overthrow of the U.S. government in the Western states. Nice choice. This writer knows a whole bunch of Democrats who not only balk at this choice but regurgitate.

And how about the Green Party candidate ? Well, the Green Party actually represents the last refuge of socialism in this country, poorly disguised as some populist movement led by enviros. This Party is propelled by folks who believe that the only reason socialism didn’t work is because they weren’t in charge -- the inevitable incentive for totalitarian rule once they take charge.

Their ideas have failed everywhere they have been tried in modern history. Animal Farm government may work in a small city like Santa Monica, but on a grander scale like California (larger than many countries), it will collapse in the same heap of economic ashes that it did throughout Eastern Europe in the last century.

A word, however, must be said about “independent,” populist candidate Arianna Huffington -- actually, a question must be asked? Has it gone unnoticed how hard the media tried to promote her as a viable candidate? And how dismally they failed? California voters, it seems, easily recognize the shameless, self-promotion and her enmity toward any established group that will not readily embrace her as their leading light if not their savior.

She bulldozed her way into politics using her former husband and his bankroll to garner attention and then trashes Republican leaders that didn’t swoon at her feet. Her four percent support (suspect itself) among the electorate is about right -- people like herself think they know more than they do and occupy a higher moral ground than the rest of us.

The most amusing sight this writer has seen during the election is Arianna standing next to Gray Davis encouraging voters to turn back the recall and reminding us of the morality of Linda Tripp a few years ago. She becomes absolutely venal when she can’t have her way -- and, if one thinks about it, she demonstrates contempt for the intellect of the very voters that she covets.

Anyway, for those of us interested in trying to save California from itself, the answer boils down to someone willing to play “hardball” on spending issues with the legislature and willing and able to generate popular sentiment among the voters of California to accomplish this.

Tom McClintock is not the answer. Voters would fall asleep waiting for him to display any charisma. And while he may have mastered budget detail and knows where the fiscal bodies are buried, that only qualifies him as a candidate for California’s controllership, or as a knowledgeable adviser to someone who can lead us while avoiding the trap of micromanagement.

Not necessarily by default, and more than the other candidates, a vote for Arnold Schwarzenegger presents Californians with the best opportunity to straighten out the economic problems we face. He is strong enough to say no to the Tax and Spend Crowd when necessary.

Does he have years of political experience? No, thank God. Does he possess the highest I.Q. among the candidates? Certainly not, but geniuses invariably fail at politics and governance anyway. Is he going to cater to “special interests?” Not likely at all (recognizing that what most candidates call “special interests” are simply those whose financial support goes to another candidate; Democrats, for example, never admit that teacher’s and trial attorneys are special interests).

Is business a special interest? You betcha! After all, private enterprise still employs the overwhelming majority of California workers. Retaining Gray Davis or electing Cruz Bustamante only offers the alternative of a full sprint to fiscal disaster and a jobs exodus from California that will make the early 90s pale by comparison.

Arnold Schwarzenegger is a bright man with boundless energy and enthusiasm who legitimately wants to return California to fiscal sanity. He is intelligent enough to surround himself with advisers of the quality he will need to bring some sense of adult leadership to governing the state. We need him as Governor.

Kip Dellinger is a longtime local Republican leader.