San Francisco and California have made themselves shining examples. Couldn’t happen to a better City and State. When you make yourselves unhealthy to live in from a financial standpoint, no amount of “Best weather in the US” (frankly, Hawai’i is better).
Laffer Curve revisited:
In economics, the Laffer curve, popularized by supply-side economist Arthur Laffer, illustrates a theoretical relationship between rates of taxation and the resulting levels of the government’s tax revenue. The Laffer curve assumes that no tax revenue is raised at the extreme tax rates of 0% and 100%, and that there is a tax rate between 0% and 100% that maximizes government tax revenue. The shape of the curve is a function of taxable income elasticity – i.e., taxable income changes in response to changes in the rate of taxation.
This is what happens when an entire State goes to an effective One Party State. The Democrats can pretty much do what ever they want whenever they want – there is no limiting factor on either what they can think of and then put into law. I would have to say that they have passed the level of ‘elected representatives’ and into neo-Aristocracy territory in that while they still have to get elected to become part of the Nobility, they act just like the Royals did at King George time – they are the Sovereigns as long as they are in office.
And if you try to leave, they believe they can still keep you chained like a dog for wealth tax purposes. There is no escape from Hotel Tax Hell California Even when confronted with this (reformatted, emphasis mine):
San Francisco tax revenue plunge points to resident exodus
Sales tax revenues declined by more than 40% this springSan Francisco experienced a 43% year-over-year decline in sales tax revenues during the pandemic, which has been credited to an exodus from the expensive city. San Francisco’s chief economist Ted Egan attributed the drop in revenue that occurred between April and June to a flight of individuals from the city, rather than a decline in activity due to the pandemic. Egan told Fox News that while areas throughout California experienced a decline in sales tax revenues, other cities saw an uptick in online sales – but San Francisco did not.
“In San Francisco, we saw a big drop in brick-and-mortar sales, and very little increase in online sales,” Egan said. “So it raises the question, where did that spending go?”
Other data supports an exodus of residents from San Francisco – as remote work guidelines allow some workers more freedom in choosing where to live. The latest report from United Van Lines shows that outbound moving requests from the city were 128% above the national average at the start of September.
Data from Zumper showed a continued yearly decline of 20.3% in median rent prices in San Francisco this month, which was among the largest yearly decline ever recorded – and marked a milestone as prices dropped below $3,000 for a one-bedroom in the pricey metro.
And proving to this Progressive / Socialist State that the most fundamental Law in Economics, Supply and Demand, will hold true no matter what stupid economic / Liberty breaking regulatory system a Government will try to put into place. Loss of Demand means, by necessity, pricing drops. If people are leaving, apartments go empty. Empty apartments means owners have to foot the bill – and they won’t. They’ll drop the rent price quickly in order for the financial haircutting to be less bad. It’s happening in NYC as well as the top end wealthy have decided they’ve had enough – the financial price is no longer worth the upsides as much of NYC has and continues to be shutdown as Commie Mayor de Blasio is oblivious that his incompetence (in action and from philosophy) has them saying “Dasvidaniya”.
These same “elected representatives” will blame just about anything else but their own actions – make life sufficiently difficult, people will vote with their feet. And they certainly are. That’s still the great thing about the US – freedom of movement allows us to go to a different regime (although, California as noted above, is trying hard to financially stop them. CT, too, is trying to do the same stupid thing). They just think “status quo” – that people will just put up with the indignities and inequalities they push onto their lives.
They’ve now hit both the Laffer Curve and a Preference Cascade (“Oh, I’m NOT the only one thinking this??”) at the same time.
Sidenote: Gov Sununu had better be paying attention here – a lot of his former supporters that really believe in the “Live Free or Die” motto are seeing it being wiped out leaving only hollow words behind – these natives and transplants believing in Personal Freedom have had enough of the Kingship that Baby Huey has been running most of the year.
They are leaving, too, as the State goes more Progressive and the Republicans deciding to not get involved in the Culture War. In fact, they see Sununu actively throwing in with the Democrats in that Culture War. He rails against some of the Democrat policies but can’t get it through his MIT thick head that he’s making their future look brighter in brighter as it seems that he’s never even heard of Andrew Breitbart’s famous predictive phrase “Politics is downstream from Culture”.
As he helps to continue to change the Culture, these people have had it in trying to hold on to traditional NH values. He’s helping the Democrats poke too many holes in that dike.
Hey, say and do stupid things, get stupid prizes. Communism, Socialism, and Communitarianism are those stupid things.
(H/T: Fox News)
