Democrats still want to trans your kids, censorship shellgames squashed, Google is declared a monopoly, socialists behave badly, more illegal alien depravity, some 2026 contenders jump in, pie-in-the-sky plans for high speed rail in Texas bite the dust, more Cybertruck drag-racing, and a Very Good Boy indeed.
It’s the Friday LinkSwarm!
Yes, Democrats are still all in on transing your kids. “Dad shares horrifying story of his daughter being groomed and transitioned behind his back at school.”
Just yesterday, a dad named Dustin Gonzales in the Jeffco Public School District of Colorado spoke at a school board meeting and shared a heartbreaking story that’s now all too familiar: his daughter was groomed by teachers and gender-transitioned behind his back.
Dad claims his daughter changed her gender identity secretly with a school therapist, who kept him in the dark about it.
The school didn’t ask me or inform me, they replaced me. By the time I found out, I was already labeled ‘the problem.’ My objections weren’t treated as concerns, they were treated as opposition. my voice was dismissed as ‘hateful,’ my presence undermined.
The father claims the school then got the therapist and an investigator involved, to separate the girl from her dad.
I’m here to make sure what happened to me, to my family, never happens to another parent in this district.
The father is now at risk of losing his daughter as a result of a new Colorado bill that would take kids away from parents who aren’t “affirming.”
Secretary of State Marco Rubio has just killed the Biden administration’s last-ditch effort to shelter the government’s Ministry of Truth, the Global Engagement Center (GEC).
In a new op-ed published by The Federalist (a target of the GEC along with yours truly), Rubio writes;
GEC was supposed to be dead already. But, as many have learned the hard way, in Washington, D.C., few things ever truly die. When Republicans in Congress sunset GEC’s funding at the end of last year, the Biden State Department simply slapped on a new name. The GEC became the Counter Foreign Information Manipulation and Interference (R-FIMI) office, with the same roster of employees. With this new name, they hoped to survive the transition to the new administration.
Today, we are putting that to an end. Whatever name it goes by, GEC is dead. It will not return.
Alphabet’s Google illegally dominates two markets for online advertising technology, a judge ruled on Thursday, dealing another blow to the tech giant and paving the way for U.S. antitrust prosecutors to seek a breakup of its ad products.
U.S. District Judge Leonie Brinkema in Alexandria, Virginia, found Google liable for “willfully acquiring and maintaining monopoly power” in markets for publisher ad servers and the market for ad exchanges which sit between buyers and sellers.
The decision clears the way for another hearing to determine what Google must do to restore competition in those markets, such as sell off parts of its business at another trial that has yet to be scheduled. It is the second court ruling that Google holds an illegal monopoly, following a similar judgment in a case over online search.
Publisher ad servers are platforms used by websites to store and manage their digital ad inventory. Along with ad exchanges, the technology lets news publishers and other online content providers make money by selling ads. Those funds are the “lifeblood” of the internet, Brinkema wrote.
“In addition to depriving rivals of the ability to compete, this exclusionary conduct substantially harmed Google’s publisher customers, the competitive process, and, ultimately, consumers of information on the open web,” Brinkema wrote.
However, antitrust enforcers failed to prove a separate claim that the company had a monopoly in advertiser ad networks, she wrote.
U.S. Attorney General Pamela Bondi called the ruling “a landmark victory in the ongoing fight to stop Google from monopolizing the digital public square.”
“A 13-year-old boy in California was allegedly sexually abused and murdered by his soccer coach and, as it turns out, the soccer coach was an illegal alien. Immigration and Customs Enforcement (ICE) has lodged a detainer with the Los Angeles County jail for Mario Edgardo Garcia-Aquino, a 43-year-old Salvadoran citizen living unlawfully in the United States, the agency confirmed Wednesday to the Daily Caller News Foundation. Garcia-Aquino is accused of killing 13-year-old Oscar ‘Omar’ Hernandez, a San Fernando Valley, California, resident found dead earlier in April.”
Evidently the cartels have expensive taste. “A federal grand jury has charged two men who allegedly tried to smuggle five high-caliber sniper rifles to Mexico last month, and prosecutors are seeking the forfeiture of the firearms, five .50-caliber Barrett long guns and four magazines for .50-caliber bullets. Wednesday’s charges of unlawful smuggling of goods from the United States stem from the March 12 arrest of Oscar Sanchez Gonzalez and Arturo Martinez Aguilar as they allegedly attempted to drive to Mexico over the Calexico West port of entry.” (Hat tip: Dwight.)
Smith says people asking him to run is an indictment of the Democratic Party.
“I have no choice, because I’ve had elected officials, and I’m not going to give their names, elected officials coming up to me. I’ve had folks who are pundits come up to me. I’ve had folks that got a lot of money, billionaires and others that have talked to me about exploratory committees and things of that nature. I’m not a politician. I’ve never had a desire to be a politician,” Smith told ABC News’ “This Week” co-anchor Jonathan Karl.
Smith reiterated that because of the number of people asking him to consider a run, he has to leave the door open.
Smith usually strikes me as a moderately annoying “hot take” artist, but he has been condemning the Democrat Party about their lurch to the right on several issues, and has discussed that with the likes of Dave Rubin. Smith has no business running for President, but would be immediately be a more sane alternative than anyone else named as a Democratic front-runner.
When police raided a factory in Georgia, they found dozens of Chinese nationals being kept in near slave-like conditions, and authorities say they were pressed into service by a forced labor trafficking ring.
Last month, agents from several agencies raided Wellmade Industries in Cartersville, Georgia, 40 miles north of Atlanta, and what they found shocked them, according to the Atlanta Journal-Constitution.
Federal officials said that around 60 Chinese nationals were being held in tiny rooms and forced to work long hours in the flooring manufacturing plant. The exploited workers at Wellmade are just a few of the many exploited workers the Trump administration has rooted out.
ICE Homeland Security Investigations Atlanta Special Agent in Charge Steven N. Schrank said the conditions these workers were living in was “horrific,” and noted that he and his fellow agents were investigating eight other locations for similar offenses.
Three Wellmade Industries officers were arrested, including company owner, Zhu Chen, his nephew, Jiayi Chen, and company associate Jian Jun Lu.
At the bond hearings for the suspects, assistant district attorney Austin Waldo claimed that officials of the company immediately confiscated the workers’ travel and ID documents as soon as they arrived at the plant to make it harder for them to leave.
Well, this would have made my Nvidia roundup had it dropped a day earlier, and not in a good way. “Nvidia CEO Jensen Huang boarded a private jet to Beijing shortly after the U.S. Commerce Department announced new export licensing requirements for the company’s H20 AI chips for the Chinese market. Once there, Huang met with the head of a Chinese state-backed trade body, where he reaffirmed Nvidia’s commitment to the Chinese market despite a deepening trade war.”
Baltimore student: “Hey, doesn’t Maryland law require a United States flag in every classroom?” Baltimore County Board of Education: “Hey, you’re suspended and we’re calling the cops on you.”
The East Plano Islamic Center’s planned development faces continued scrutiny from Texas officials.
U.S. Sen. John Cornyn is calling on the U.S. Department of Justice to investigate EPIC for potential religious discrimination.
In a letter to U.S. Attorney General Pam Bondi and Assistant U.S. Attorney General Harmeet Dhillon, Cornyn expressed concern that a “master-planned ‘community of thousands of Muslims’” could violate the Fair Housing Act of 1968 by discriminating against Christians, Jews, and other non-muslim minorities.
“Religious discrimination, whether explicit or implicit, is unconstitutional under the First and Fourteenth Amendments,” wrote Cornyn. “Religious freedom is a cornerstone of our nation’s values, and I am concerned this community potentially undermines this vital protection.”
Sanity in the UK: “U.K. Supreme Court Rules Males Don’t Qualify as Women Under Anti-Discrimination Law, in Landmark Ruling.”
The United Kingdom’s supreme court ruled Wednesday that males who identify as women do not fall qualify as women under anti-discrimination law, a monumental decision that will have major consequences for British law.
The high court defined “woman” based on sex rather than gender identity, keeping it within the bounds of scientific reality rather than giving into the demands of left-wing activists. The ruling specifically addressed the question of whether transgender-identifying males who obtain a gender recognition certificate — a legal document acknowledging them as women — enjoy the same protections extended to females under Britain’s 2010 Equality Act, an anti-discrimination law that covers nine protected characteristics and applies to various sectors of British life.
“The unanimous decision of this court is that the terms ‘woman’ and ‘sex’ in the Equality Act 2010 refer to biological women and biological sex,” said Lord Patrick Hodge, deputy president of the United Kingdom’s Supreme Court, in announcing the ruling.
Bad news: A house exploded two miles from me. I actually heard it, and thought that one of my dogs had run into a wall or something. Worse news: The house belonged to Sara Felix, who I know from the Austin science fiction community, and her husband was in the house at the time. The silver linings are that he’s now out of surgery, though badly burned, and that the family hadn’t actually moved into the house, and were still living in their old house in the same general area.
When your band name stops being ironic: “New Pornographers Drummer Joe Seiders Arrested for Possession of Child Porn.” I have a few of their albums I bought 15 years ago. I considered embedding “Breakin’ the Law” for ironic effect, but it’s a lousy song. (Hat tip: Ed Driscoll at Instapundit.)
A foster mom in Missouri is facing multiple charges of abuse and is accused of trading a teenage girl she was guardian of for a pet monkey, authorities said.
Brenda Ruth Deutsch, 70, of Lincoln County, was charged with two counts of abuse or neglect of a child and one count of endangering the welfare of a child, according to Lincoln County Prosecutor Mike Wood. She was taken into custody last weekend.
Deutsch has fostered more than 200 children for about 15 to 20 years, Wood told NBC News.
While it’s tempting to chalk this up to more “annals in human depravity,” given the age of the alleged perp, I have to wonder if some mental illness/senility/Alzheimers was involved.
Anderson Ronaldo Reyes Giron — a member of the “Most Wanted” list — was taken into custody on April 2 by the Texas Department of Public Safety (DPS) and the Texas Highway Patrol for charges related to deadly conduct from shooting a firearm in Travis County, as well as theft of property in Williamson County. He’s originally from Honduras, from which he came illegally, and was arrested by the Austin Police Department in August 2024 for the afore-listed charges before being let out on bail.
Thanks again, Austin.
“Governor Greg Abbott, the Texas Department of Public Safety (DPS), and the Texas National Guard continue to work together with the Trump Administration to secure the border; stop the smuggling of drugs, weapons, and people into Texas; and prevent, detect, and interdict transnational criminal activity between ports of entry,” a press release from Abbott’s office stated upon announcement of Giron’s arrest.
Giron has been wanted since February 2025 when Travis County issued a warrant for his arrest following the firearm violation, and then when Williamson County similarly filed a warrant after his theft incident.
Former Texas Congresswoman Mayra Flores has officially thrown her hat into the ring to challenge the indicted Congressman Henry Cuellar (R-TX-28) and his 20-year-plus tenure representing Texas’ 28th Congressional District in Washington, D.C.
“I am deeply honored to announce my candidacy for Congress—a chance to serve the people and uphold the values that make our nation great,” Flores posted on X upon announcement of her challenge to Cuellar’s seat.
The first female Mexican-born former congresswoman, Flores comes to the drawing board with experience in Texas elections — first scoring a seat in a special election to represent the Lone Star State on the federal stage after Democratic Congressman Filemon Vela resigned in 2022, allowing her to flip the historically Democratic 34th Congressional District. Flores flipped parties from Democratic to Republican in the early 2000s, primarily citing pro-life motivations.
She also ran against Rep. Vicente Gonzalez twice (D-TX-34), losing first in the 2022 general election and second in 2024, although she notched her numbers up significantly the second time around — losing the election by a 2 percent margin.
Cuellar maintained his seat during the 2024 general election against Republican candidate Jay Furman with nearly 52 percent of the vote — a race rumored as potentially dangerous for Cuellar due to his indictment by the U.S. Department of Justice (DOJ) that year after an FBI investigation in 2022 for alleged bribery and money laundering in coordination with his wife, Imelda Cuellar, and the country of Azerbaijan.
TX-28 favors Democrats with a rating of D-51% per The Texan’s Texas Partisan Index, although President Donald Trump made history in the district during the November election — winning Webb County’s presidential vote, the first Republican president to claim victory there in a century.
Until Flores’ announcement, the only other notable contender for Cuellar’s seat was Webb County Judge Tano Tijerina, who flipped parties in December 2024.
For more on Cueller’s indictment, see here and here.
“With Attorney General Ken Paxton officially running for U.S. Senate against Sen. John Cornyn, the race to replace him is heating up. After former U.S. Attorney John Bash became the first to enter the race, State Sen. Mayes Middleton has now launched his own campaign for Texas attorney general, pitching himself as a conservative fighter ready to take the reins.” I regularly get press releases from Middleton’s office, and he seems a pretty solid conservative.
The U.S. Department of Transportation officially terminated a $63.9 million federal grant intended for the planning and development of a high-speed rail line between Dallas and Houston.
Transportation Secretary Sean Duffy said the move will save taxpayers millions while allowing Amtrak to focus on improving existing operations.
Personally, I’d kill Amtrack and hand the assets to the states to subsidize if they felt like.
Originally pitched as a private venture, the Texas Central Railway project aimed to connect two of Texas’ largest cities with a 205-mph bullet train, promising a 90-minute travel time.
The project has faced strong opposition from landowners and lawmakers since it was proposed in 2009.
As cost estimates soared from $12 billion to over $40 billion, the project became increasingly reliant on federal funding.
Duffy was blunt in his assessment: “Underwriting this project is a waste of taxpayer funds and a distraction from Amtrak’s core mission of improving its existing subpar services.”
“If the private sector believes this project is feasible, they should carry the pre-construction work forward, rather than relying on Amtrak and the American taxpayer to bail them out,” Duffy added.
State Sen. Charles Schwertner (R-Georgetown) posted on X, “Thank you to President Trump and Secretary Duffy for standing up for taxpayers and terminating the $63.9 million grant to Amtrak for the proposed high-speed rail project between Houston and Dallas.”
Even the $10 billion version was a boondoggle that wouldn’t have made money and required taxpayer subsidies to stay afloat, and more likely never would have been completed anyway. High speed passenger rail works in Japan because they already had high urban density and an existing rail system and culture to support it. Texas has none of those things, and even if it was built it would never be profitable here (or just about anywhere else).
And just to drive the point home: The highest density high speed rail in Japan seats 1,634 passengers. Assume passengers pay $100 a ticket each way, the train is entirely full, and the Texas high speed rail train runs six times a day (all optimistic and unlikely assumptions), 365 days a year, and you get $357,846,000 a year in gross revenue, which means, even without the including the cost to run the train, it would take just under 112 years to make back the initial investment.
Despite his new position as a vice chair of the DNC, gun control weasel David Hogg wants to primary old Democrats. In this particular task I wish the little weasel the best of luck.
This is your mayor on social justice. “The mayor of South Fulton faces an eviction action at an Atlanta apartment complex, Fulton County court documents show, adding another development to what’s been a turbulent year so far for the city leader. Mayor Khalid Kamau, who has gone recently by Mayor Kobi, has had eviction proceedings initiated against him in Fulton County Magistrate Court by an apartment complex at 6200 Bakers Ferry Rd. Court documents show the complex filed to initiate eviction after alleging Kamau failed to pay rent in March.”
Snip.
Documents show the amount of past due rent was listed at $1,663.77. A late fee of $100, utilities of $39.77 and “other fees” amounting to $175 are also being sought.
Kamau has been at odds in recent weeks and under scrutiny from the South Fulton City Council over his spending and alleged “abuse” of the position.
He in turn has defended himself from what he has termed the City Council’s “overreach” after his access to city buildings was revoked and his budget frozen in February, and said he has faced resistance from the council throughout his tenure.
The move by the city council came after reports on the mayor’s trips — which spanned four continents in four months — as well as updates at City Hall that included a film studio and refurbished conference/pool table room. The City Council voted to redistribute several pieces of new electronic equipment to the city IT department and send back the film studio.
I know you’ll be shocked, shocked to learn that Kamau is a Democratic Socialist…
Your feel-good dog story of the week: A dog named Buford kept a two-year old boy safe after the latter wandered seven miles from his home. Another article states that Buford is an Anatolian Pyrenees.
I’m still between jobs. Feel free to hit the tip jar if you’re so inclined.
Due to issues of politics, congestion, or just plain corruption, nations get the bright idea to build brand new capital cities far away from existing urban areas. Sometimes it works out (as with Washington D.C.), and sometimes it doesn’t. China’s Xi Jinping is trying something different with Xiongan, which is being built not so much a replacement to Beijing but as sort of “mini-me” Beijing to relieve overcrowding by offloading functions to the new built-from-scratch city in Hebei* province.
About 60 miles south of the center of Beijing, a new city is being built as a showcase of high-tech ecologically friendly development. Its massive high-speed rail station and “city brain” data center have been heralded by Chinese state media as evidence of the speed and superiority of China’s growth model—not least because the city is a “signature initiative” of Chinese President Xi Jinping.
Commies (and their American fans) do love their high speed rail projects. Never mind that high speed rail in China has mostly been a trillion dollar, money losing sinkhole.
Xiongan New Area is also a test for whether China can boost domestic innovation and climb into the ranks of advanced nations in the face of slowing economic growth and efforts by the United States and others to restrict its access to advanced technology.
Xiongan offers a window into what Xi’s vision of state-led innovation looks like on the ground. Xi has called the city his “personal initiative” and a qiannian daji, or “thousand-year plan of national significance.”
You know who else had a thousand year plan?
Sorry, I just can’t resist a good Hitler meme when you pitch a slow ball right over the center of the plate…
The plan for Xiongan, which was formally unveiled in 2017 to relieve pressure on Beijing and promote the “coordinated regional development” of the Beijing-Tianjin-Hebei region, has faced financial struggles due to the huge investment costs—even more of a problem given China’s mounting real estate crisis. Overall, the new area encompasses about 650 square miles, with a planned population of around 3 million; currently, the three counties comprising the zone have around 1.4 million long-term residents. As of September 2022, 400 billion yuan (about $57 billion) in completed investment had been reported in the city overall.
While Xi has stacked the new Politburo Standing Committee with officials loyal to him, he has also elevated those with strong science and engineering backgrounds. In his speech at the 20th Party Congress last October, Xi declared that “innovation will remain at the heart of China’s modernization drive” and that China has “worked hard to promote high-quality development and pushed to foster a new pattern of development.” Nevertheless, a confluence of factors including COVID-19 lockdowns and trade tensions is contributing to overall slower growth in China.
In Xi’s vision, however, party control is not a hindrance to innovation. Rather, Xi’s vision of innovation is one in which the state and party play a leading role. Xi has led a crackdown on private technology firms such as Alibaba but has also promoted policies, such as his Made in China 2025, that aim to boost research-and-development spending and subsidies to give Chinese firms competitive advantages in industries including biotechnology, robotics, artificial intelligence, and semiconductors.
We know from experience that this approach almost never works, because the profit motive of capitalism is always a superior discovery mechanism for innovation than top-down bureaucratic mandates. We know that the state-led approach has already been a colossal failure for semiconductors even before the sanctions came down, and it’s a good bet that it’s been just as colossal a failure in all the other areas mentioned.
Xi’s policies favor “hard tech” over software-based platform app companies. The first party secretary of Xiongan was Chen Gang, who oversaw Beijing’s Zhongguancun high-tech park before being transferred to Guizhou, where under Xi ally Chen Miner he helped turn the southwestern province into a center of big data and cloud computing.
The approach to innovation in Xiongan involves embedding technology within the fabric of the city as well as innovation processes within the party-state. Xiongan Group was created as the investment vehicle for the area’s overall development, under the control of Hebei province but backed partially by loans from China Development Bank. The first central state-owned enterprises to begin construction of offices in the new area were China Satellite Communications Co., the energy giant China Huaneng Group, and Sinochem Holdings. Others now include the big three telecoms and China State Grid, as well as China Mineral Resources Group, a conglomerate set up last year to centralize China’s coal mining industry. These state-owned enterprises could use Xiongan as a test bed for new technologies. Research institutes and satellite branches of several Beijing universities are planning to open in the area around 2025. The relocation of these major units and their thousands of employees will determine how quickly Xiongan’s development proceeds.
Even as China’s economy has slowed during COVID-19 lockdowns and the global downturn, construction of the first phase of Xiongan has marched on: A huge high-speed rail station to connect the city with Beijing opened in 2020, followed by residential slabs, massive underground utility corridors, and the city brain data center, which will serve as the nerve center of the city’s digital systems. The first section, Rongdong, has been mostly completed, with housing for 170,000 people. Media reports of new schools opening show the effort to build high-quality public amenities to attract residents to the city: Branches of Beijing institutions such as Shijia Primary School and Tsinghua University High School are among the new educational institutions being built in Xiongan.
The Foreign Policy piece is OK as a sort of sanitized, high level overview, but lacks several key words (“shoddy,” “rotten,” “unsafe,” “tofu dregs,” etc.) that reflect the grittier reality of Xi Jinping’s dream:
Takeaways:
“This is arguably the world’s biggest rotten tail project.”
“The project, which was billed as a Millennium Project and a major national event, fell apart after only five years.”
“According to the official website of Xiongan New Area, in 2021 the area arranged more than 230 key projects with a planned investment of more than 200 billion RMB. In 2022, 232 key projects were arranged with an investment of another 200 billion RMB and the cumulative total investment has exceeded 700 billion RMB, i.e. nearly 100 billion US dollars.”
Add area rail and road infrastructure investments and the total rises to $150 billion.
“Located 105 kilometers from both Beijing and Tianjin, the new area is positioned to decongest Beijing’s non-capital functions and will host administrative and institutional units, corporate head offices financial institutions, universities, research institutes and other organizations evacuated from Beijing.” I bet workers who have already gone through the expensive and difficult process of buying their own condos in Beijing will just love being forced to move an hour away.
“The initial planning area is about 100 square kilometers, with plans to slowly expand to an eventual area of about 2,000 square kilometers.” 2,000 square kilometers works out to about 772 square miles, or larger than Houston, one of America’s most sprawling cities.
“Average folks have wondered why did the central government put this new area…in a sparsely populated and heavily polluted poor rural area.”
The idea seems to be to bring Beijing, Tianjin and Xiongan into a single economic circle with a population of 130 million.
Deng Xiaoping, Jiang Zemin, and Hu Jintao each decreed creation of their own special areas, and Xi is following in their footsteps.
After the new area was announced, “real estate speculators from all over the country flocked overnight. The local property price soared from 4 000 RMB per square meter to 40,000 RMB, catching up with the first tier cities such as Beijing and Shanghai.”
There was an explosion of construction, but then it stopped.
“For more than five years, the large-scale construction of the Xiongan New Area didn’t move. The streets were empty, and people from outside had left one after another.”
A high speed rail station said to be the largest in Asia the size of “66 soccer stadiums” has only one train a day.
“In August 2021, the CCP issued a regulation that downgraded Xiongan to a regional level jurisdiction.” So instead of being it’s own special area, it’s now run by Hebei province, which means “this ‘Millennium Project’ is no longer possible, and the central government has simply dumped this hot potato on the local government.”
Official use words like “expedite, start construction, registering land, basically confirmed, etc didn’t explain any more specific progress. This actually allowed the public to read its true meaning, that is there is no substantial progress.”
The same pagoda seems to have been constructed several times.
“No one wants to go there at all. Even if you force them out of Beijing, they still don’t want to go there. There are no actions from the universities either.”
Chinese people think the area has bad “Feng Shui,” and it’s in a low-lying area near a lake that used to be flooded. The local lake and river also have very poor water quality. “However, the [water] treatment project hasn’t yet been completed.”
“Xiongan New Area is like building a mansion in a garbage dump, and people don’t want to live there.”
“More than five years later, no decent state-owned enterprises have really moved to Xiongan.”
“Given China’s objection to objective reality, the only way to make people move to Xiongan is by force. This is what happened in 2017, when the Beijing government forcibly evicted the so-called low-end population and people took to the streets in protest.”
Shenzhen New Area benefited from China’s opening, foreign investment and proximity to Hong Kong. “The dysfunctional mechanism of the CCP which had suppressed economic momentum for decades was released at the moment when the country opened its doors, so that Shenzhen could rise with the momentum.”
By contrast, Xiongan suffers from global economic headwinds and local finances are “very poor.”
Banks poured money into the area, accompanied by corruption. Natives forced out of their homes got low compensation and the new homes were shoddy. Many still haven’t found new homes.
“Videos provided by local residents show that the most common problems with homes are water leaks cracked exterior walls and sinking floors in some homes water leaked all over the floor.” A video shows a stairway turning into a waterfall during heavy rain.
It’s hard to find on Google maps, but I think this spot shows the same cookie cutter buildings seen in the video.
Ghost city, tofu dregs, rotten tail; parts of Xiongan seem to check all three boxes.
*Note: Hebei Province is completely different from Hubei Province further south…
Lefty sorts are always whining that other countries have high speed rail networks and we don’t. Many point to China’s extensive network of high speed rail as what we should be doing.
Tiny problem: China’s high speed rail network is a giant, unprofitable sinkhole of $1.8 TRILLION worth of debt.
Some take-aways:
The average operating loss for the system is $24 million per day.
The official amount for China National Railway debt for high speed rail is $900 billion, but since roughly half of the debt comes from local governments, the total is probably closer to $1.8 trillion.
For comparison sake, $1.8 trillion is about South Korea’s entire yearly GDP.
“Shanghai, the richest city in China, has a total GDP of $600 billion in 2020, which means that even the whole year of Shanghai’s GDP won’t be able to cover the debt of China National Railway.”
It’s extensive: 37,900km, nearly double the length from 2015.
Return on high speed rail investment is only about 2%, and the bulk of bond payments for loans are coming due over the next few years. “Cash flow from railway transportation revenue isn’t enough to cover the operating costs, let alone the ability to pay the debt and interest.”
Local government debt levels are around 100%.
“More than 85% of the funds raised through urban investment bonds are earmarked for repaying old debts with new ones.”
Even the most profitable high speed rail stretch, Beijing to Shanghai, only earns a return on investment of 5%.
Japan’s successful high speed rail network serves three metropolitan areas (Tokyo, Nagoya and Osaka) that have 55% of that nation’s population.
“A professor at the School of Economics and Management of Beijing Jiaotong University concluded that the operating costs are only just covered when the transport density of a high-speed rail line reaches 36 million passenger kilometers per kilometer. In China the average transport density is only about 17 million passenger kilometers per kilometer.”
High speed rail can’t transport heavy freight.
“The Lanzhou Uramuchi HSR in western China can run more than 160 trains per day. In reality, this route only runs four trains per day.”
High speed rail occupancy rate is only 30%, and is still too expensive for most Chinese to use.
High speed rail construction has squeezed out much-needed construction of regular rail. “China’s rail freight capacity can’t meet market demand. China’s market share of road freight turnover has risen rapidly to 49% market share in 2016.” China rail has jacked up freight costs to make up for losses on high speed rail.
China’s freight trucks get overloaded all the time.
China’s containerized shipping accounts for 40% of global trade, but “the proportion of China’s sea rail intermodal transport volume in 2017 was only about 2.5 percent.” 84% of port containers go out by road.
So why all the money poured into high speed rail? Opportunities for corruption.
Officials see the high-speed rail project in which China is involved as a lucrative opportunity. China’s former minister of railways, known as the father of high-speed rail, was sentenced to death for corruption. Emerging industries such as high-speed rail, which offer both substantial commercial value and political achievements for local officials, have enormous room for corruption. In a systemically corrupt environment white elephant projects, that is a large project that falls significantly short of its goals, and the costs of upkeep outweigh its usefulness, are favored by many officials and businessmen looking to make a fortune. The vast majority of high-speed railways around the world can’t make ends meet on passenger revenues alone to cover their construction and operating costs. Most operate at a loss.
In light of all that, why do American leftists keep complaining about America’s lack of high speed rail? Simple: It’s the corruption, stupid. High speed rail construction offers boundless opportunities for graft and corruption, and refusing to build any keeps them from getting their snouts into another giant trough of taxpayer money…
(I didn’t expect this past week to become a string of “China’s economy is smoke and mirrors all the way down” posts, but I keep running into more examples.)
This is more than infuriating: “Kentucky Judges Pre-Signed Blank Legal Documents So That Child Services Could Take Custody of Kids on Nights and Weekends.” (Hat tip: Instapundit.)
No sooner did I put up my own piece on jihad in the Sahel than the BBC published this extensive piece about the same subject, including how jihadists came to Mali in the wake of Obama’s supergenius intervention in Libya.
The religious extremists imposed strict sharia law. In Timbuktu and beyond, they smashed shrines built for Sufi mystics, burned manuscripts and destroyed ancient artefacts.
The priceless texts would have all been lost had it not been for the old guardian families who protected what they could.
Tuaregs and Islamists disagreed over the way their new state of Azawad should be run and began to fight each other.
The government asked for foreign military help and the former colonial power France answered the call.
French troops arrived in January 2013 and were joined by African forces. Within a month, they had driven the violent extremists out into the desert and retaken the River Niger towns.
Plus the usual UN fecklessness. Read the whole thing.
Denmark’s main leftwing party realizes that uncontrolled, unassimilated immigration hurts the poor. “For me, it is becoming increasingly clear that the price of unregulated globalisation, mass immigration and the free movement of labour is paid for by the lower classes.”
So that botched Houston drug raid is looking even more botched, as forensic evidence shows the people in the house they wrongly targeted didn’t even fire their weapons at police, and all police gunshot wounds were inflicted by other officers. It seems like just about every aspect of the raid was a lie. At this point, it seems like some rogue HPD cops straight-up murdered Dennis Tuttle and Rhogena Nicholas for reasons nobody has yet been able to identify.
Speaking of infuriating abuses of power: “San Francisco Police Go After Journalist Who Revealed Public Defender’s Affair, Overdose.”
State district judge rules Houston Proposition B unconstitutional. That was the one to give firefighters pay parity with police officers, and one Houston mayor Sylvester Turner was fighting tooth and nail.
Why people die in Houston car accidents. A whole lot of “Pedestrian failed to yield to vehicle,” failure to drive in one lane” and “failure to control speed,” plus the usual smattering of alcohol. (Hat tip: Kemberlee Kaye.)
Is Democratic congresswoman Rashida Tlaib a terrorist sympathizer? Well, here’s evidence from five of her closest friends, so you can judge for yourself:
Wow! @Israel_Advocacy breaks bombshell story on the closest friends & campaign staff of @RashidaTlaib, whom she thanked & affiliates w/ publicly. Explicitly pro-terror content, calls to violence such as "kill all zionists," bragging about meetings w/ terorrists in prison, & more. pic.twitter.com/qBSgzCK29I
Atheist visits places in America his fellow liberals forgot about, and finds not only a sense of place, but an abundance of faith:
When I first went to the Bronx, I expected that the people there, those most affected by the coldness and ruthlessness of the world, would share my atheism. Instead, I found a strong belief in the supernatural, and a faith that manifested in many ways, mostly as a belief in the Bible.
Everyone I met there who was living homeless or battling an addiction held a deep faith. Street walking is stunningly dangerous work, and everyone has stories of being cut, attacked, and threatened, or stories of others who were killed. Everyone has to deal with the danger. Few work without a mix of heroin, Xanax, or crack. None without faith. “You know what kept me through all that? God. Whenever I got into the car, God got into the car with me.”
There are dirty Bibles in crack houses, Qur’ans in abandoned buildings. There is a picture of the Last Supper that moves with a couple living on the streets. Rosaries, crucifixes, and religious icons are worn for protection and good luck. Pages of the Bible are torn out, folded up, and kept in pockets, to be pulled out and fingered nervously, or read over in times of stress, or held during prayers.
Hot take: “Ha ha! Gene Simmons of KISS at the Pentagon! Stupid Trump!” Deeper take: As part of a military outreach program, to talk about how his mother, a concentration camp survivor who recently died at age 93, loved America and teared up watching the TV sign-off flag. “America is the promised land. For everybody.”
When I removed Creeping Sharia from the blogroll because it was no longer up, I didn’t realize that it had just been deplatformed by WordPress. (Hat tip: A comment from regular blog reader Howard.)
California Governor Gavin Newsom may be a typical far-left coast Democrat, but evidently even he knows what a rotting corpse smells like:
Gov. Gavin Newsom announced in his State of the State speech Tuesday that he intends to scale back California’s $77-billion high-speed rail system, saying that while the state has “the capacity to complete a high-speed rail link between Merced and Bakersfield … there simply isn’t a path to get from Sacramento to San Diego, let alone from San Francisco to L.A.”
By the time Newsom pulled the plug on the boondoggle, it had already swelled to $77 to $98 billion in projected costs for the unlikely goal of reducing automotive travel between Los Angeles and San Francisco. The original cost was estimated to be $25 billion.
The good news is that the most incredibly expensive part of this colossal waste of taxpayer money is now cancelled. No more worrying about paying for extremely expensive land or 13.5 mile tunnels or how to span active earthquake faults. This is progress!
The bad news is that the stupidest and cheapest part of the boondoggle is still alive. Bakersfield has a population of 380,000. Merced has a population of 83,000. Between them is Fresno, population 428,000. None of these cities is nearly as congested at rush hour as Los Angeles or San Francisco. A “high speed” rail line there serves no purpose except soaking up federal government subsidies, and the only reason construction started on that part of the boondoggle was because the land was (relatively) cheap and California government functionaries could point at it and go “Look! Progress!”
To quote Iowahawk:
All aboad the Pointless Express, with stops in Merced, Shelbyville, Fresno, North Haverbrook, Bakersfield and points in between pic.twitter.com/fDG3J0sCfe
I suspect that at some point the rest of the boondoggle will be quietly cancelled, as the Bakersfield to Merced makes no sense apart from connect Los Angeles to San Francisco (except, of course, for lining the pockets of well-connected consultants and construction firms).
A new ranking of Freedom in the 50 states is out. Texas ranked 28th (too low, IMHO) while California ranked 49th:
Texas:
Texas’s fiscal policy is very good. It is a fiscally decentralized state, with local taxes at about 4.5 percent of personal income, above the national average, and state taxes at about 3.6 percent of income, well below the national average. However, Texans don’t have much choice of local government, with only 0.36 jurisdictions per 100 square miles. State and local debt is above average (with the biggest problem being local debt burdens), at 23.1 percent of income, but it has come down slightly since FY 2011. Government subsidies are below average. Public employment has fallen significantly below average, at 11.8 percent of private employment.
Texas’s land-use freedom keeps housing prices down. It also has a regulatory taking compensation law, but it only applies to state government. The renewable portfolio standard has not been raised in years. Texas is our top state for labor-market freedom. Workers’ compensation coverage is optional for employers; most employees are covered, but not all. The state has a right-to-work law, no minimum wage, and a federally consistent anti-discrimination law. Cable and telecommunications have been liberalized. However, health insurance mandates were quite high as of 2010, the last available date. The extent of occupational licensing is high, but the state recently enacted a sunrise review requirement for new licensure proposals. Time will tell whether it is at all effective. Nurse practitioners enjoy no freedom of independent practice at all. Texas has few cronyist entry and price regulations, but it does have a price-gouging law, and Tesla’s direct sales model is still illegal. The civil liability system used to be terrible, but now it is merely below average. The state abolished joint and several liability in 2003, but it could do more to cap punitive damages and end parties’ role in judicial elections.
California:
Although it has long been significantly freer on personal issues than the national average, California has also long been one of the lowest-scoring states on economic freedom.
Despite Proposition 13, California is one of the highest-taxed states in the country. Excluding severance and motor fuel taxes, California’s combined state and local tax collections were 10.8 percent of personal income. Moreover, because of the infamous Serrano decision on school funding, California is a fiscally centralized state. Local taxes are about average nationally, while state taxes are well above average. Government debt is high, at 22.8 percent of personal income. The state subsidizes business at a high rate (0.16 percent of the state economy). However, government employment is lower than the national average.
Regulatory policy is even more of a problem for the state than fiscal policy. California is one of the worst states on land-use freedom. Some cities have rent control, new housing supply is tightly restricted in the coastal areas, and eminent domain reform has been nugatory. Labor law is anti-employment, with no right-to-work law, high minimum wages, strict workers’ comp mandates, mandated short-term disability insurance, and a stricter-than-federal anti-discrimination law. Occupational licensing is extensive and strict, especially in construction trades. It is tied for worst in nursing practice freedom. The state’s mandatory cancer labeling law (Proposition 65) has significant economic costs. It is one of the worst states for consumer freedom of choice in homeowner’s and automobile insurance.
“This notion of California as a land of outsiders is being turned on its head, our state’s dream repackaged – often with the approval of its ruling hegemons – as something more like a medieval city, expelling the poor and the young, while keeping the state’s blessings to the well-educated, well-heeled and generally older population”:
California has been bleeding people to other states for more than two decades. Even after the state’s “comeback,” net domestic out-migration since 2010 has exceeded 250,000. Moreover, the latest Internal Revenue Service migration data, for 2013-2014, does not support the view that those who leave are so dominated by the flight of younger and poorer people.
Of course, younger people tend to move more than older people, and people seeking better job opportunities are more likely to move than those who have made it. But, according to the IRS, nearly 60,000 more Californians left the state than moved in between 2013 and 2014. In each of the seven income categories and each of the five age categories, the IRS found that California lost net domestic migrants.
Nor, viewed over the long term, is California getting smarter than its rivals. Since 2000, California’s cache of 25- to 34-year-olds with college, postgraduate and professional degrees grew by 36 percent, below the national average of 42 percent, and Texas’ 47 percent. If we look at metropolitan regions, the growth of 25- to 34-year-olds with college degrees since 2000 has been more than 1.5 to nearly 3 times as fast in Houston and Austin as in Silicon Valley, Los Angeles, or San Francisco. Even New York, with its high costs, is doing better.
(Hat tip: Instapundit, who also notes “I remember talking to the Investor’s Business Daily folks a few years ago — they were headquartered in Marina Del Rey, a lovely place but one where they were constantly visited by inspectors, tax people, etc., all posing problems. When they opened an office in Texas, the state and local government people were all ‘tell us if we can help you.’ Very different experience.”)
“IRS Data: More Americans are relocating to Texas.” Though why an article datelined El Paso, and quoting only El Paso experts, uses a photo of Austin’s skyline to illustrate the story is a mystery…
Seen as a national leader in the classroom during the 1950s and 1960s, the country’s largest state is today a laggard, competing with the likes of Mississippi and Washington, D.C., at the bottom of national rankings. The Golden State’s education tailspin has been blamed on everything from class sizes to the property-tax restrictions enforced by Proposition 13 to an influx of Spanish-speaking students. But no portrait of the system’s downfall would be complete without a depiction of the CTA, a political behemoth that blocks meaningful education reform, protects failing and even criminal educators, and inflates teacher pay and benefits to unsustainable levels.
Also this:
According to figures from the California Fair Political Practices Commission (a public institution) in 2010, the CTA had spent more than $210 million over the previous decade on political campaigning—more than any other donor in the state. In fact, the CTA outspent the pharmaceutical industry, the oil industry, and the tobacco industry combined.
The court giveth, the court taketh away, as the Vergara lawsuit ends with a whimper, meaning teachers unions can screw poor kids in California for the immediate future.
California concluded its most recent cap-and-trade program auction last week. Out of 44,268,323 metric tons of carbon dioxide credits offered for sale by the state Air Resources Board, only 660,560 were sold, 1.5 percent of the total, raising a paltry $8.4 million out of a hoped-for $620 million. Last May’s auction was almost as bad, raising $10 million out of an anticipated $500 million.
California’s carbon dioxide cap-and-trade auction program was expected to bring in more than $2 billion in the current fiscal year that ends June 30, 2017, a quarter of which is earmarked for the high-speed rail project narrowly approved by voters in a 2008 ballot initiative. As a hedge against uncertainty, a $500 million reserve was built into the cap-and-trade budget. But, with the August auction falling 98.5 percent short, the entire reserve was consumed in the first of four auctions for the fiscal year.
It gets better:
In the meantime, the High-Speed Rail project, currently promised to cost “only” $68 billion to run from the Bay Area some 400 miles south to Los Angeles may be looking at $50 billion in overruns. To fund the costly train, which was sold to voters as not costing a dime in new taxes, the expected revenue stream from cap-and-trade has been securitized, putting the state on the hook to Wall Street for billions in construction money advanced on the promise of future cap-and-trade revenue.
The corrupt city of Maywood, California hired an engineering firm whose employees were so hard-working they put in 27 hour days.
The collapse of high-end California wine merchant Premier Cru, a $45 million wine Ponzi scheme.
Three skilled nursing facilities in Humboldt County, California to close because they can’t find enough nurses. Humboldt County is up on the Northern California coast.
And least you think Texas is complete immune from pension worries, the Employees Retirement System of Texas is set to run out of money as well…in 2063. (Hat tip: Pension Tsunami.)
California judge faces recall over being being too lenient to a sex offender. If the recall succeeds, liberals may very well regret setting this precedent…
California Governor Jerry Brown may push “green” initiatives, but he’s more than happy to take money for doing regulatory favors for Chevron and Occidental Petroleum. (Hat tip: Director Blue.)
The basket of California state taxes — sales, income, and gasoline — rates among the highest in the U.S. Yet California roads and K-12 education rank near the bottom.
California depends on a tiny elite class for about half of its income-tax revenue. Yet many of these wealthy taxpayers are fleeing the 40-million-person state, angry over paying 12 percent of their income for lousy public services.
Excessive state regulations and expanding government, massive illegal immigration from impoverished nations, and the rise of unimaginable wealth in the tech industry and coastal retirement communities created two antithetical Californias.
One is an elite, out-of-touch caste along the fashionable Pacific Ocean corridor that runs the state and has the money to escape the real-life consequences of its own unworkable agendas.
The other is a huge underclass in central, rural, and foothill California that cannot flee to the coast and suffers the bulk of the fallout from Byzantine state regulations, poor schools, and the failure to assimilate recent immigrants from some of the poorest areas in the world.
The result is Connecticut and Alabama combined in one state. A house in Menlo Park may sell for more than $1,000 a square foot. In Madera, three hours away, the cost is about one-tenth of that.
CalPERS suffers $30.8 billion annual loss. “CalPERS has notoriously minimized the annual pension contribution for its 3,007 government entities by fantasizing that its superior investments expertise will allow its investments to compound every year without loss for the next three decades at an annual rate of 7.5 percent.” (Hat tip: Pension Tsunami.)
California taxpayers are getting taken to the cleaners, but most of them are completely in the dark about how and why.
I will pose a quick question: Does it seem strange that California has recorded record revenue increases, yet we also see a record number of tax increases and bond issuances on the ballot?
In other words, the state’s tax system is collecting massive amounts of revenues, record amounts, yet politicians are still asking for a record number of new tax increases. For taxpayer advocates, it just doesn’t seem fair and seems very strange at first glance as to how this can even occur.
The truth of the matter is that California’s system of public finance is a complete train wreck and is set up such that no amount of tax revenues collected will ever be enough to satisfy “spending needs.” The so-called baseline expenditure increases are on autopilot and deficit projections are generated despite record revenue increases, a trend projected in the Governor’s May Revise.
“As we roll toward the November ballot, I’m reminded of H.L. Mencken’s quip that “Democracy is the theory that the common people know what they want, and deserve to get it good and hard.” We always get it “good and hard” in California given the ever-expanding one-party rule. The worse it gets, the more voters from the GOP high-tail it to Nevada and Texas — and the worse it gets as political competition evaporates. It’s the political equivalent of a death spiral.” (Hat tip: Pension Tsunami.)
Lots of tax hikes are on the California ballot this November, for a variety of different ostensible reasons, but actually for a single reason: Pensions. (Hat tip: Pension Tsunami.)
Beaumont, California: “Seven former officials were arrested and charged with stealing nearly $43 million during the city’s development boom. Now, residents are learning that the town’s problems go much deeper than the criminal case.” (Hat tip: Gregory Benford’s Facebook page.)
“California’s high-speed rail project increasingly looks like an expensive social science experiment to test just how long interest groups can keep money flowing to a doomed endeavor before elected officials finally decide to cancel it.” $68 billion and rising. (Hat tip: Ace of Spades HQ.)
One tiny bit of dubious good news for the Bankruptcy Court for the Central District of California: Now they’re only the second in bankruptcy filings in the nation at 45,000, having been overtaken by the Bankruptcy Court for the Northern District of Illinois at 47,535 filings.
California’s underfunded pension debts put it $175.1 billion in the red. “More than 51 percent ($89.9 billion) of the negative $175.1 billion consists of unfunded, employee-related, long-term liabilities.” (Hat tip: Pension Tsunami.)
A initiative to hike California’s minimum wage to $15 an hour has made the ballot. Also known as the “Send as much business as possible to Texas” act.
Speaking of which, Texas’ unemployment rate fell to 4.5% in January.
Big Government advocates in California are fighting to renew a “temporary tax” on all those millionaires earning $250,000 or more a year. “The extension measure is again supported by the California Teachers Association and Service Employees International Union.”
California traffic fines have turned into a huge tax on the poor. “California is filled with people who are one traffic ticket away from losing their means of independent transportation. They get a ticket for a busted taillight or a small-change moving violation. On paper, the fine is $100, but with surcharges, it adds up to a lot more.” Which is why they’re having an amnesty to pay a reduced rate on outstanding tickets. But there’s a catch: “The practice of throwing in extra sources of revenue is so ingrained in Sacramento that there is a $50 amnesty program fee.” (Hat tip: Instapundit.)
Fresno’s pension system “is the only public pension program in California – and one of only a few in the United States – that has a surplus instead of unfunded pension liabilities.” (Hat tip: Pension Tsunami.)
“When unfunded pension, medical and other liabilities are formally included on its balance sheet, the [Orange County] Fire Authority’s debts exceeded its assets by $169 million for the fiscal year that ended in June,” the Register’s OC Watchdog wrote. “That’s a plunge of more than 680 percent in its ‘net position,’ or more than $420 million, over a single year.” (Hat tip: Pension Tsunami.)
California’s already long-delayed and already over-budget high speed rail fantasy is planning to put much of the initial segment underground due to community and environmental concerns. Problem: Digging those tunnels will probably cost $1 billion a mile.
California short-hauler Total Transportation Services Inc. files for bankruptcy.
On the other hand, Sports Authority is closing slightly more stores in Texas (24) than California (19). Meh. I liked the stores more when they were Oshman’s…
California’s Quantum Fuel Systems Technologies Worldwide Inc., which manufactures and sells fuel systems and storage tanks for vehicles fitted for compressed natural gas, filed for bankruptcy. The fact the company has already gone through two reverse splits suggests long-running troubles…
Likewise, Houston’s credit rating been downgraded by both Moody’s and Standard & Poor’s due to “the city’s large unfunded pension liability.” Maybe former Houston Mayor Annise Parker should have spent more time on trimming expenses and fixing crummy surface streets than suing churches and tranny bathrooms…
There are large areas of Central California that resemble life in rural Mexico. Within a radius of five miles I can go to stores and restaurants where English is rarely spoken and there is no racial or cultural diversity—a far cry from Jeb Bush’s notion of an “act of love” landscape.
With unemployment at 10% or more in the interior of the state, with the public schools near the bottom in the nation, and with generous entitlements, it is no accident that one in six in the nation who receive public assistance now live in California, where about a fifth of the population lives below the poverty line.
One in four Californians also were not born in the United States; more than one in four who enter the hospital for any cause are found upon admittance to suffer from Type II diabetes. The unspoken responsibility of California state government is to bring state-sponsored parity to new arrivals from Oaxaca, and to do so in ideological fashion that ensures open borders and more government. It is the work of a sort of secular church, and questioning its premises is career-ending blasphemy.
“California has come a long way to dig itself out of budget deficits, but the state remains on shaky ground due to nearly $400 billion in unfunded liabilities and debt from public pensions, retiree health care and bonds.” More: “It’s California’s debt and liabilities that are concerning financial analysts, particularly the state’s rapidly growing unfunded retiree health care costs, which grew more than 80 percent over the past decade. California has promised $74 billion more in health and dental benefits to current and retired state workers than the state has put aside.” (Hat tip: CalWatchdog.)
And new accounting rules make those unfunded liabilities harder to ignore.
A retired city employee and a former city commissioner who are at the center of bribery allegations involving Mayor Ed Lee were charged with multiple felonies including bribery and money laundering, San Francisco District Attorney George Gascon announced at a news conference Friday afternoon.
Also charged Friday was political consultant and former San Francisco Unified School District Board of Education President Keith Jackson, who pleaded guilty last year to racketeering charges.
The district attorney’s office charged recently retired Human Rights Commission employee Zula Jones, ex-HRC commissioner Nazly Mohajer and former political consultant Keith Jackson.
Remember that Zula Jones and Nazly Mohajer were fingered by Leeland Yee’s attorneys as being the go-betweens for bribing Lee. This brings up the question (yet again): Why hasn’t Lee himself been indicted?
“Brown pushed for the giant pension fund CalPERS to lower its assumed investment return from 7.5% to 6.5%. Given that the world is headed towards deflation and that CalPERS earned only 2.4% for the fiscal year ended June 30, 2015, Brown’s request seemed entirely reasonable. Instead, the board approved a staff proposal to move to the 6.5% target over 10 years.” (Hat tip: Pension Tsunami.)
CalPERS board President Rob Feckner, serving his twelfth term, casts deciding vote against proposal for term limits for board members. “Feckner was president of the California School Employees Association for four years and executive vice president of the California Labor Federation for five. Such a conflict of interest wouldn’t be tolerated with the president of other boards of directors. But with CalPERS, it’s par for the course.” (Hat tip: Pension Tsunami.)
San Diego voters: We want pension reform! Union-stacked Public Employment Relations Board (PERB): Get stuffed, peasants! Result: Lawsuit. (Hat tip: Pension Tsunami.)
The middle class is fleeing California. “In 2006, 38 percent of middle-class households in California used more than 30 percent of their income to cover rent. Today, that figure is over 53 percent.”
The tech industry in the Bay Area has become a victim of its own success – and state policies. Like many other California businesses, tech firms are relocating or expanding operations in others states – particularly Texas – at an alarming rate.
Some companies spend significant amounts of time and money finding and training the right workers, only to see them poached by a flashy startup within a number of months. The need for a more stable workforce was one of the main reasons cloud-computing company LiveOps Cloud moved from Silicon Valley to a suburb of Austin, Texas, CEO Vasili Triant told the San Francisco Chronicle.
Other reasons to move or expand out-of-state are government-created: high taxes, burdensome regulations, unaffordable housing due to excessive development fees and restrictive land-use policies. California’s highly-educated workforce is not so unique anymore, and its quality of life has been tarnished by regulatory and affordability issues. Texas, by contrast, has no personal income tax and no corporate income tax (though it does have a less-onerous gross margins tax), and is universally hailed for having one of the friendliest business climates in the nation.
Google, Facebook, Apple, Dropbox, Oracle and nearly two dozen other Bay Area tech companies have all built or expanded facilities in Texas just since 2014, the Chronicle reported. There have been more than 1,500 publicly reported California “disinvestment events” across all industries over the past seven years, according to a November report from Spectrum Location Solutions, an Irvine-based business relocation consulting firm, although it estimated the actual tally at as high as 9,000. A California business “can save 20 percent to 32 percent of labor costs by relocating a facility out of state,” Spectrum president Joe Vranich told us last year.
Between 1997 and 2000, during the peak of the dot-com boom, the Bay Area was a net importer of Texans: About 1,500 more households moved into the region from Texas than vice versa, bringing an additional $191 million (2015 dollars) in taxable income into the region, according to IRS data, which tracks the movement of taxpaying residents.
The trend changed in the early 2000s, and Texas has been a net importer of Bay Area households ever since. Between 2009 and 2012, as the recession was winding down and the second tech boom was revving up, the region lost about 1,430 households to Texas, and nearly $390 million in taxable income.
Snip.
I had a guy working for me (in the Bay Area) making $200,000 a year, struggling to pay his bills,” company CEO Triant said. “In lots of places in the country you’re living high on the hog on $200,000. … As far as work life balance and employee morale, we have absolutely seen a remarkable increase since moving here; it’s night and day.”
The firm still keeps a small Bay Area office, and Triant speaks fondly of his hometown of San Diego and California in general.
But when it comes to building a company and running a business, he has found a new home in Texas. “I want my employees to be able to have a good quality of life, live in a city with low crime rates, good schools,” he said. “And that’s what we’re doing here.”
“It’s no coincidence that Texas and Florida have thrived while New York and California have not. High levels of taxes, spending, and regulations make it more difficult for entrepreneurs to be successful. When entrepreneurs cannot expand their businesses and hire new workers, everyone is hurt, not just the rich.”
UC Academic Senate rejects task force’s proposed retirement benefits plan that, keeping with Jerry Brown’s modest pension reforms, would pay them a measly $117,020 pension benefit. (Hat tip: Pension Tsunami.)
“What’s more important: High-speed rail or water? Proponents of a proposed ballot measure would force voters to choose just that. The measure would redirect $8 billion in unsold high-speed rail bonds and $2.7 billion from the 2014 water bond to fund new water storage projects.”
Speaking of water restrictions, looks like Californians will get to enjoy them for another year.
Sure, Covered California (California’s ObamaCare) may be incompetent. But it’s also corrupt. The state auditor “criticized the exchange for not sufficiently justifying its decision to award a number of large contracts without subjecting the contractors to competitive bidding.”
California adds Aloe Vera to list of cancer-causing substances. “The problem is that the 800+ chemicals listed in Proposition 65 are not devised to protect consumers, but rather serve as a cash cow for private trial lawyers to sue small business and reap the hefty settlement payout. Since 1986, nearly 20,000 lawsuits have been filed, adding up to over half a billion dollars in settlement payments by business owners.” (Hat tip: Ed Driscoll at Instapundit.)
Heh. “The movement to emblazon state legislators with the logos of their donors has collected tens of thousands of signatures for its would-be ballot initiative.The measure, formally called the ‘Name All Sponsors California Accountability Reform (or NASCAR. Get it?) Initiative,’ would require all state legislators to wear the emblems or names of their 10 top donors every time they attend an official function.” The ballot initiative has already collected 40,000 signatures…
Malibu Golf Club files for Chapter 11. “An attorney for Malibu Associates said the company closed the golf club after defaulting on a $47-million loan from U.S. Bank, which has begun foreclosure proceedings.”
