The Business and Media Institute highlights House Speaker Nancy Pelosi’s response to a question about why conservatives and advocates for the free market degrade San Francisco as a city out of step with mainstream America. Pelosi believes it’s all about economics, and she points to the fact that government regulation and government programs in San Francisco are the model for America, and advocates for free markets are afraid of other citizens recognizing that. Pelosi says:

In San Francisco, every child has health care until 25 years old. In San Francisco, we don’t have a minimum wage, we have a living wage. In San Francisco, the environment is not an issue for us, it is a value. It is an ethic – it is protecting God’s creation. And so the exploiters of nature, of workers and the rest – like to use other aspects of our lives, which we take great pride in.

Pelosi goes on to note that conservatives try to use social and traditional values as a wedge issue to stop the spread of San Francisco’s economic values across America. She seems to be expressing the view that San Francisco is the new “city upon a hill.”

But are loss of economic freedoms and increased regulations in San Francisco a beneficial economic policy for all of America’s businesses and citizens? San Francisco’s mayor has also gone after bottled water. What about the city’s recent treatment of the U.S. Marines? Thomas Sowell does a good job explaining the reason for amazingly high housing prices in San Francisco because of increased government environmental regulations.

San Francisco is a beautiful city with many great citizens, but their economic policies are certainly not a shining example for all of America to follow. The Speaker’s comments however are a reminder of the need for free market advocates to do a better job in articulating the moral value and benefits behind their own ideas. If the arguments against San Francisco are led by people who may primarily be interested in social issues, there is merit of course, but the argument against exporting San Francisco values are incomplete.


  • Tracy M Jue

    As a California who lived in the Bay Area I know for a fact that the residents pay a high fees in property taxes and sales taxs for the many resources in improving the environment such as public transportation,any land preservation, public parks, ocean clean up and state regulated clean ups. Over a few years the average home owner will pay $10,000 for the benefits of the community. The recent fires for example: cost home owners additional fees to pay for the fire services. Just recently the Sales tax has gone up 9% for the city in order to pay for some of these costs. So I definitely know that SF residents pay a big price in order to have those benefits.