Capitalist Communism In L.A.
By Walter Moore - May 11, 2006
What would you get if you crossed Capitalism and Communism? You would get L.A.'s City Hall. Somehow we've wound up with the worst of both worlds, a governmental Frankenstein, part 19th century robber baron, part Stalin, and all wrong. Here are four tenets of L.A.'s Communist-Capitalist "ideology" in action:
1. "Private Property" Is An Oxymoron
Real estate is far too important to leave in the hands of mere citizens like you. That is why, whenever you buy property in L.A., the deed is deemed to include, as co-owners, the Mayor and the City Council. They, not you, will decide how best to use the property. This is necessary to prevent you from doing something stupid with the property, like fixing it up.
For example, if you bought some old, run-down, decrepit, flea-bag hotel on Skid Row, you might get a crazy idea like, "Hey, I think I'll spend a few million dollars of my own money, renovate the property, and turn it into condos so people can afford to buy homes downtown." (Just what are you smoking?!)
On May 10, 2006, L.A.'s City Council nipped evil schemes like that in the bud, by enacting a one-year "moratorium" on the demolition or conversion of low-cost residential hotels across the city. Well, maybe it will be a one-year moratorium; they left open the possibility of extending it a second year.
You say you don't like being in limbo for a year, or two, or three? Well, that's just tough, because it's not really your property anyway. You just get to write the checks for the property taxes, insurance, utilities, insurance and maintenance. You don't really own it. You're just on the title. So accept the fact that you have to run an unprofitable flea-bag hotel until Comrade Mayor tells you otherwise.
2. Everyone Everywhere Has A Right To "Affordable Housing" In L.A.
You can't tell just from reading the state or federal constitutions, but it turns out that everybody, even an illegal alien, has a right to "affordable housing" -- unless, you know, he wants to live in Brentwood, Bel Air, Hancock Park, Rancho Palos Verdes, or next door to the Mayor's Mansion or City Council's homes.
This is great news because it means no one needs to worry too much about studying hard, working hard, saving, using birth control, or laying off the booze. Rather, everyone is entitled to have you and your fellow taxpayers pay whatever it costs to put him in a nice new home, regardless of his income and lifestyle choices.
Only a heartless monster would suggest that not everyone can afford to live everywhere, and that perhaps some people should consider living in other cities or states where prices are lower.
This right to "affordable housing," moreover, extends to anyone who wants to live in L.A., regardless where he lives now. Alas, just about everyone who doesn't live here already wants to live in L.A., so we will have to sacrifice the distinctive low-rise skyline that zoning laws have protected since early in the previous century.
Instead, we must now replace small homes with high-density four-, five- and 20-story apartment and condo complexes. Think "concrete canyons." Hey, it's not like you looked at the sky every day anyway. Besides, living in the shadows of tall buildings will protect you from skin cancer. Plus, you can make more friends as we add millions and millions more people to the City's 477 square miles.
3. Only The City Can Provide "Affordable Housing"
Another tenet of Communist Capitalism is that "affordable housing" cannot possibly result from the ordinary operation of supply and demand. (Did you learn nothing from your attempt to remodel the Skid Row hotel, Skippy?) Nor can the government simply give the poor vouchers to pay for their rent. Section 8 is so passé! Rather, as any right-thinking elected officials knows, creating "affordable housing" is a three-step process:
First, the City had to impose rent control on all buildings erected before 1978. That made it uneconomical for landlords to maintain and improve those units, which was necessary to give neighborhoods that distinctive "run-down" look.
Rent control also ensures those landlords cannot compete with the owners of new buildings for new tenants. Tying up the old units guarantees the rents for all the new units will be much higher than otherwise, thereby creating the "affordable housing crisis" that only government can solve.
See how it works? Before the City could solve the problem, the City had to create it.
Second, the City must prevent the owners of the rent-controlled buildings from turning those apartments into condos. After all, think what would happen to the price of condos if a massive new supply of units suddenly appeared! The increased supply of condos would drive the prices of all condos down, thereby permitting renters to become owners, and without any governmental intervention. The City wouldn't have an "affordable housing crisis" to solve. Luckily, City Council is conducting hearings this month on how to stop the conversions, in view of the disturbing fact that renters have been evicted from more than 9,240 rent-controlled units over the past five years.
Third, to solve the problem it created, the City must give millions of your tax dollars, along with public lands and tax breaks, to wealthy developers who contribute to political campaigns. That is the only way to provide truly affordable housing. Hence, the Mayor's budget calls for the Community Redevelopment Agency to give about $439 million of your money to developers for their projects. Plus, the Mayor wants to "invest" even more of your money in projects the private sector rejected as unprofitable: he wants you to vote for a $1 billion housing bond. Just think how much good our elected officials could do if only we would entrust another billion dollars of our hard-earned money to them!
4. All Capitalists Are Not Created Equal
The slogan for L.A.'s Communist Capitalism is, "From each according to his ability, to each according to his campaign contributions." You see, not all Capitalists are created equal. All of them must be taxed, so that a few worthy ones -- political contributors -- can receive public funds and property.
The City's business income tax -- which applies to virtually all businesses -- will generate $421 million in revenues this year. As noted above, however, the City will give about $439 million to businesses that get an "investment" from the Community Redevelopment Agency. Hence, all businesses are taxed so that a few may benefit.
If the City wanted to treat all businesses equally, the City would simply repeal the business income tax altogether. How, you ask, would the City "make up" the $421 million in revenues? Easy: Because of rising real estate values, the City's revenues from property taxes this year are up $587 million over last year's numbers. Hence, the City could give back every penny from the business tax, and the City would still be ahead by $166 million! (Here's the math: 587 - 421 = 166).
Nor are subsidies the only benefit that "platinum club" businesses receive. Just ask the owner of the Bernard Luggage Store in Hollywood. The City is using the power of eminent domain to take his property and hand it over to -- you guessed it -- a developer who wants to erect condos and a hotel on the site.
L.A.'s Communist Capitalism includes special benefits for labor unions, too. You might think, for example, that any business owner has the right to hire or fire employees at will, provided he's not discriminating illegally. But you would be wrong.
L.A.'s City Council adopted a law this month that takes the right to hire and fire away from anyone who buys a grocery store. Instead, unlike politicians or any other business owners, grocers will be stuck with their predecessor's employees for a minimum of three months.
After the 90-day period, the new owner must conduct a written performance evaluation of each employee, and consider offering a job if the evaluation is satisfactory, before hiring from outside. Plus, layoffs must be based on seniority.
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So now you understand the political and economic philosophy underlying public policy in Los Angeles: Communist Capitalism. You take the worst elements of two diametrically opposed ideologies, jam them together, and use them to redistribute the wealth from taxpayers to political contributors. It makes perfect sense.
In what has been described as possible sabotage of the race for L. A. County Sheriff, high ranking law enforcement officials were prevented from giving their views in a candidate forum to questions on the controversial issue of illegal immigration.
