Put aside for the moment, if you can, City Hall’s well-documented mismanagement, its failure to respond to its budget crisis until it was completely out of control and its sweetheart deals with unions, contractors, consultants and developers.
A good case can be made that our elected representatives are guilty of both misfeasance and malfeasance in office and should be recalled or rejected by voters for what they have done.
Over the last two years, I believe I have made a plausible case in those regards. But the more important question is how we are going to get out of this mess with the quality of our lives without suffering permanent damage, without destroying our own economic futures.
I suggested the only way out is for all city unions to take a step back financially and the public to take a step forward financially, something that can only be engineered by sharing power with business, labor and the community since our elected officials have lost all credibility.
But that clearly is not City Hall’s way judging from the plan that has been put forward to destroy the Neighborhood Council movement, slash services, eliminate nearly 7,000 jobs and give tax breaks and incentives to businesses that can leave town or set up in town while burdening those stuck here along with the four million residents with higher rates, fees, taxes and penalties.
It’s crazy when you think about it, insane since it shows they don’t know the difference between right and wrong, insane since they have lost touch with reality.
All of the measures being undertaken by City Hall depend on the economy returning to “normal” within a few years, “normal” being as it was in the boom years of 2006-07.
When, then, is the economy going to return to “normal”?
Never!
Apart from all else that City Hall has done, and is doing, wrong, that is the fatal flaw.
My friend Mark Barnhill made that point as a panelist at a conference on the private equity landscape in Beverly Hills last week.
He made the point that this is a transformative moment in history, that the “old normal” is not coming back, a “new normal” is evolving in uncertain ways.
Globalization, technology, overpopulation, environmental change are all factors but perhaps the most important for America is the loss of manufacturing capacity. We no longer own the means of production. We no longer create wealth, we consume it as evidenced by our long-term staggering trade deficits and borrowing.
Los Angeles faces serious challenges of its own: Its boom-and-bust and growth-at-any-price economic patterns, its loss of financial institutions and manufacturing, its high poverty and jobless rates, its dramatic loss of TV and film production.
Even in comparison to other cities in the county, LA is at a serious disadvantage because of its high taxation policies and high rents for housing and commercial space.
The
city report last week that was used to justify an 80 percent tax
reduction for Internet service companies demonstrated just how
disadvantaged.
Only Santa Monica is even in the ball park with LA
when operating costs and rents were tied together.
“On the
basis of operating costs alone, every city investigated
for this report offers substantial potential savings over the City of
According
to the city’s report, here are the operating fees for these types of
business — small, medium and large –
in nearby cities and in
City Small Medium Large
$294 $913 $2,563
$62
$0
$0
Long
Beach $737 $1,986 $5,316
$2,993 $8,695
Santa
Clarita $0 $0 $0
$15,000
$240,000
$600,000
$470 $1,689 $4,939
$125,000 $400,000
$1,000,000
So
where do think businesses are setting up shop, LA or Santa Monica? Or
any of
the other cities for that matter, all of which have healthier economies
and
fewer financial troubles in running their city governments.
Will LA be any more
attractive in the next few years as library and parks close and there’s
little left functioning except maybe the police and fire departments and
taxes, rates and fees for captive businesses and residents go even
higher?
This isn’t child’s play, yet our city leaders are acting like
children intent on shielding themselves from accountability and
protecting their political careers.
We cannot let this happen but it will unless the civic, business
and labor leaders recognize there is a “new normal” and step forward
with the community leadership and put an end to this nonsense before it
is too late.
Don’t you understand? Can’t you read the writing on the wall? Let me explain to you the “new normal”. First, the middle class will be taxed out of Los Angeles. The middle class will have no choice but to leave, due to excessive taxation. It is intentional. It is purposeful. It is premeditated.
The “developer class” has been itching to get back into the game and line their pockets with profits. Who do you think are part of this cabal? How do think that they’re going to do it? Why don’t you just wake up and see reality?
Then, the game plan is to build more and more multi-unit residential. Replace all those large, single residential lots with multi-residential. Replace those large lots with small multi-residential. This development plan will put huge profits in the pockets of the developers.
So you say, how is this new societal structure going to pay for it? The majority of the new, residential “citizens” of Los Angeles will be from Mexico. They won’t have the middle class aspirations of the long time, L.A. residents. They will have the spending habits of the poor, third world.
So, there you have it. Except for the uber-rich, force out the spendthrift Angelenos and replace them with poor, ignorant Mexicans. It’s already here. It’s happened. You politically correct “communists” just won’t admit it.
New normal? Not unless we accept “stupid” as “normal.”
Here’s how simple the problem and solution are:
If you tax something, you will get less of it.
If you subsidize something, you will get more of it.
We tax the hell out of employers.
We subsidize the importation of third-world poverty.
Ford, for example, is pouring money into a manufacturing plant into Mexico.
If you want more REAL jobs here, instead of just bigger government, REPEAL the City’s business income tax, and STOP over-charging for water and power. Oh, and start electing people from the private sector, so investors will know this isn’t a short-term trick.
Or accept Third World conditions as the “new normal,” and shake your head, as though the Universe has somehow mysteriously changed, beyond human comprehension, tsk, tsk.
I missed a beat or two with “Ford, for example, is pouring money into a manufacturing plant into Mexico.” I meant to say:
Investors will put people to work in countries and cities that make it easy to do business. Ford, for example, is pouring money into a manufacturing plant in Mexico. If we made it as attractive to do business here, a few miles north, they would pour money into a plant here.
Walter Moore, you are irresponsible for not just admitting the truth. The purpose and end result of Ron Kaye’s taxation ideas are to force out the home owning middle class out of Los Angeles.
You say, “If you tax something, you will get less of it.” IF OVERTAXED, YOU WILL GET LESS OF THE MIDDLE CLASS.
Walter Moore, you are an idiot. You are espousing a better business climate in Los Angeles? Our Leadership in Los Angeles DOES NOT WANT MANUFACTURING IN LOS ANGELES. HAVEN’T YOU HEARD?
WE ARE A SERVICE ECONOMY. THAT IS, WE, IN LOS ANGELES, CLEAN YOUR TOILETS.
I’m irresponsible? Huh?
As for Ron’s tax ideas, I didn’t see any in the essay. What ideas are you talking about?
My tax ideas include: abolishing the $680 million annual budget of the CRA (which is welfare for the rich); abolishing the City’s business income tax; and ending over-charging at the DWP (which is effectively an additional tax burden).
While we’re at it, we should eliminate the City’s tax on telephone usage.
And since when have I ever denied that City Hall is on a mission to eliminate homeowners, subsidize developers, and turn this city into nothing but giant beehive apartment complexes?
Take a look, for example, at my proposed solutions for L.A. Here’s Item 18:
18.Terminate all so-called “affordable housing” programs and other plans to increase population density. Look, over four million people somehow manage to “afford” to live here. There is no legitimate reason to take money from taxpayers and hand it to developers in the name of cramming even more people into the City. That is simply a pretext for looting taxpayers. Not everyone can live wherever they want; otherwise, we’d all probably have lovely apartments overlooking the Eiffel Tower. The price of housing should be left to buyers and sellers, lessors and lessees to negotiate among themselves. Career politicians will only aggravate the problem by robbing Peter to pay Paul.
http://web.mac.com/waltermoore/WalterMooreSays.com/Blog/Entries/2009/12/12_Solutions_For_The_City_Of_Los_Angeles_Part_1.html
Ron Kaye says, “I suggested the only way out is for all city unions to take a step back financially and the public to take a step forward financially, something that can only be engineered by sharing power with business, labor and the community since our elected officials have lost all credibility.” THESE ARE THE GENERIC, RON KAYE (AKA MAYOR VILLARAIGOSA )SOLUTIONS.
Walter Moore says, “As for Ron’s tax ideas, I didn’t see any in the essay. What ideas are you talking about?”
Wake up, Walter Moore!!! What do you think Ron Kaye wants? He wants the people of Los Angeles to pay more of their money to the city government!!!
Too subtle for me.
If Ron seriously thinks we should pay even higher taxes, I would think he would say so.
Then again, I have no idea what “take a step forward financially” means.
To me, it should mean get our tax burden in line with Glendale.
For at least the past 40 years, a myriad of public policies and officials have failed the American people. Let’s see, we can blame it on Prop. 13., credit card debt, etc…Every sector of the economy has been geared toward creating more capital in order to create some kind of economic security in the wake of globalization. It is the same old party…only that the party has just moved down the street…For US, the party is over…The fools are fooling themselves…not really because they are fooling around with OUR lives. Currently, our social fabric is being dismantled day by day. The powers that be are only concerned with making sure that globalization and regentrification are implemented without any glitches in Los Angeles. Read Barry Bluestone & Bennett Harrison’s 1982 book: “The Deindustrialization of America” or David Harvey’s 1985 book: “Consciousness and the Urban Experience” We have a economic crisis, we have a housing crisis, we have an educational crisis, we have a transportation crisis, we have a financial crisis, we have an energy crisis, pick your crisis…WE are definitely in trouble…not only as a city…but as a nation….God Help US to Help Ourselves….We are all in this together…but it seems that the powers that be do not know how to communicate this to their constituents…in any case our leaders need to be sincere and credible, and lead by example…until then..”turn off the lights…the party is over…”
It is indeed a new economy, and serious changes have to be made to adjust to it. The problem is that the 16 asses we elected are living in a world of luxury since it is now their turn. The Mayor, no doubt, is at the Oscars pretending to be some sort of nobility of LA who has earned the right to mix with the rich and famous, who have all earned it through hardwork.
If LA is to survive and not sink further, changes have to be made at the top.
6:18 is right, of course. But the reality of LA politics (corrupt incompetent politicians & clueless idiotic voters) is such that there will be no changes at the top. Villar will spend another three years luxurating and he’ll be followed by who? Garcetti, Nunez, etc. Same greedy crook.
Look at the former CA speaker Bass. A complete failure and she’s going to run for Congress. Any chance she won’t be elected? None, zero. She’s a shoe in.
We’re doomed & will sink deeper & deeper. Look at Detroit, this is LA very soon. Some super rich in their gated conclaves and masses of poor peasants from Mexico.
As these politicians keep hop-scotching from office to office, one thing is abundantly clear: none of them ran a business or held a “regular” job, or had to balance their personal budget based on their income, wages, taxes, etc.
These same career politicians make the budgetary decisions, but they don’t know anything about it. Worse than that, they don’t even care.
In the real world, anyone practicing a trade without the necessary credentials would be in deep doo doo.
In the past this process was called “Changing of the Guard”, here in LA, it’s Musical Chairs…I suppose it’s their way of achieving a “Classless Society”, or in their case not having any class…Oh, “Excuse Meee!” Let’s call them L.A.’s Beefeaters…
I think we all violently agree on the career politicians.
But the real question is — why do they get re-elected? Why do you keep voting for them? And don’t give me the crap about voting for lesser evil.
Villar is evil, got it? And you people happily re-elected him knowing full well that he’s going to bring LA to bankruptcy. The city is broke, there is a huge deficit & no business base even if the economy does improve. It’s irrelevant for LA: there is no manufacturing, banking, etc, just day laborers at Home Depot.
Only when people get out of their state of denial, only then *maybe* changes will happen.
My guess is the majority of the folks who comment on this blog did not vote for Villar et al.
The questions is, how do we get the others to do the same?
What follows is pure speculation. But I think we need to explore the whys and the hows in order to change the mental stumbling blocks.
It seems elections are won on money. Whoever distributes the most mailers and advertisements is the winner. Most people just look at pictures & catch phrases these days -not much time or desire for anything else but a quick visual take. They read a one line promise without looking into the one who promised. They buy the fraudulent advertisements hook, line and sinker. They look at the name of a ballot measure versus what the measure really is and what it does. How many times have they voted for ethical reform (translation-increased term limits) or solar energy (transaltion-more union power and more taxes without a final product) or highway improvement (translation-anything but highway improvement), etc. Then there’s the endorsements without much thought as to why the endorsement happened, what the endorser has to gain. It’s just a name and group they know and that’s all that matters.
Add to that, most folks have one or two issues and fail to see how all issues are connected to their one or two.
So, how do we teach these people, in simple terms, what they need to know? They are stuck in gridlock, put in their time, go home and watch Dancing with the Stars. Their minds are imprisoned, tired and dulled, perhaps due to the knowledge that they lack any power to make changes, let alone change themselves and their plight. Their beaten down and might not even know it.
Again, I’m just speculating and am unsure if what I write makes much sense. I don’t mean to insult these folks. I just wish there was a way to scream at them to please wake up lest they live the rest of their lives with an ever decreasing quality of life.
“Their beaten down and might not even know it.”
Forgive the grammatical error. I meant “they’re.”
Here’s an additional thought: If what I wrote has some semblance of accuracy, perhaps we have to fight back with the same tactics plus some.
We need to come up with one liner catch phrases and visuals for our one candidate. And, we should probably settle upon one or two candidates, as opposed to five or six who will surely dilute the vote, thus guaranteeing a victory to the career politician. We need a political group that seeks out and endorses and educates early on. We don’t have the money to bombard the masses-so our group will have to find innovative ways to distribute the one liners and visuals. The details can be covered in debates and on websites.
I do think we need campaign finance reform and more debates and forums. Perhaps that’s the starting point, with an uphill climb from there.
But then, that could be a catch 22 since I doubt anyone presently in office is willing to endorse any real campaign finance reform–as in, only publicly financed (JMO).
So, how do we start?
We’ve already started doing something about reforming the political process: We’ talking about it.
Walter Moore, whenever he has the chance reminds that all the even numbered council seats are up for grabs next year.
Ron and his buddy Bruno, frequently hound us to get active by any means from NCs to letter writing, phone calling and making contributions to ourla.org so he can hire a reporter to keep us informed in addition to those of us who write opinions.
I agree that we need one candidate from the community to run in each district where the councilman is an incumbent, and throw him all of our support whether we live in the district or not.
In districts like mine, where Zine is termed out, we need no more than than three good men and women to run.
Make no mistake, Zine has his sights set on the mayor’s chair. So a little negative campaigning will be in order like how he lied about voting no on the phony phone tax until V. twisted his arm, make threats and within hours of that little private chat changed his “no” vote to “yes.”
Then there was that very messy little matter of a former girlfriend suing him for harassment. He won, and I’m not sayin’, I’m just sayin’, where there’s smoke…
Finally, we need campaign finance reform and new election laws.
We can change the City Charter or do it by ballot measure, because no one in power will agree to either and do it voluntarily.
*One six-year term and they’re outta there.
*An office holder can not run again for any office for five years.
*No termed-out officeholder can go to work for any lobbying firm or any firm doing business with the city for five years after leaving office.
*No termed-out officeholder can be appointed to any advisory committee or commission for five years after leaving office.
*Full, immediate disclosure of all campaign contributions inclucing amount, name of donor and company or organizational affiliation.
Strictly public financing would make them accountable to the public and not to wealthy contributors.
We could make the City Council part time and reduce their salaries by two-thirds and no more perks like cars, gas and insurance.
Maybe if they were part-timers they wouldn’t lose touch with the reality of real life, and spend their precious time on matters that are vital to the city and its residents and not on foolish laws, resolutions and studies.
Running for and holding pulbic office should and must be brought back to what our Founding Fathers meant it to be: Part time, not a full time career where one becomes corrupted by the system and loses total touch with the reality of being a hard working citizen doing the best he can to be a good citizen, work and raise a family.
Making City Council part-time and the Mayor a ceremonial position with reduced pay and minus free stay at Getty House would take care of most that ails LA. The scoundrels would leave without the princely pay and privileges that attract them in the first place. Part time ie. evening meetings would get honest and hardworking citizens who genuinely care about the city.
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