Monday, June 10, 2019

Voters know the truth

The political leaders of Los Angeles, led by Mayor Eric Garcetti, were convinced that they could persuade local voters to approve a very hefty tax increase for the city’s schools, especially since the burden would fall largely on large property owners.
After all, they reasoned, a strike by Los Angeles Unified School District teachers had generated lots of sympathetic attention to the district’s serious financial woes, and California voters generally approve taxes perceived—or marketed—as falling on the affluent.
Also, the district’s two unions would spend heavily to persuade voters that the new taxes were needed to improve the system’s educational outcomes.
Oops.
Measure EE, a 16-cents-per-square-foot “parcel tax” on buildings that would have raised $500 million a year, not only didn’t get the two-thirds voter approval it needed last week but also fell well short of even a simple majority.

Exactly at the moment they were trying to seal this,  Gavin decided to invite the world's poor to LA for medical treatment.  Voters  are not stupid Guatemalans, yet.

The taxes never stop until the collapse, normal folks want to delay the collapse a bit, at least until they can get out of town. The fraud:
L.A. Unified’s election was a test case of sorts for whether school officials could persuade voters to raise taxes to cover their ever-increasing shortfalls, without explicitly telling voters about pensions and health care.
Although an early version of the measure, approved by the school board, had mentioned pension costs, district officials quietly changed it, removing the direct reference in an obvious effort to trick voters into thinking the money would be spent on more popular expenses.
Economists have a name for this, Stiglitz asymmetric information.  Stiglitz says that economists use asymmetric information to promote some impossible utopian social compacts. If you see any economists doing this fraud, let me know; I expose economic frauds.

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