Monday, July 26, 2010

What's the Matter with California?

Thomas Frank notwithstanding, there's a lot more wrong with California than there is with Kansas.

You may recall Frank's book, What's the Matter with Kansas.
In truth, after decades of being ruled according to a political philosophy that Frank abhors, California is in deep trouble.

How best to understand California's problems, and to grasp the functional inefficiencies that occur when ideals are allowed to dictate the uses of labor?

To understand it, I would recommend a story that Richard Russell received from a subscriber and reprinted on his Dow Theory Letters. Link here. (It's a subscription site.)

Here it is:

California
: The Governor of California is jogging with his dog along a nature trail. A coyote jumps out, bites the Governor and attacks his dog.


1. The Governor starts to intervene, but reflects upon the movie "Bambi" and then realizes he should stop; the coyote is only doing what is natural.

2. He calls animal control. Animal Control captures coyote and bills the State $200 testing it for diseases and $500 for relocating it.

3. He calls a veterinarian. The vet collects the dead dog and bills the State $200 testing it for diseases.

4. The Governor goes to hospital and spends $3,500 getting checked for diseases from the coyote and on getting his bite wound bandaged.

5. The running trail gets shut down for 6 months while Fish & Game conducts a $100,000 survey to make sure the area is free of dangerous animals.

6. The Governor spends $50,000 in state funds implementing a "coyote awareness" program for residents of the area.

7. The State Legislature spends $2 million to study how to better treat rabies and how to permanently eradicate the disease throughout the world.

8. The Governor's security agent is fired for not stopping the attack somehow and for letting the Governor attempt to intervene.

9. Additional cost to State of California: $75,000 to hire and train a new security agent with additional special training re: the nature of coyotes.

10. PETA protests the coyote's relocation and files suit against the State.

Arizona: The Governor of Arizona is jogging with her dog along a nature trail. A Coyote jumps out and attacks her dog.

1. The Governor shoots the coyote with her State-issued pistol and keeps jogging. The Governor has spent $0.50 on a .45 ACP hollow point cartridge.

2. The Buzzards eat the dead coyote.

And that, boys and girls, is why California is broke....

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