Posts tagged with: san francisco

In his New Geographer column on Forbes, Joel Kotkin looks at the “profound gap between the cities where people are moving to and the cities that hold all the political power” in California. Those living in the growing “Third California” — the state’s interior region — are increasingly shut out by political elites in San Francisco and other coastal cities.

Kotkin observes that the “progressives” of the coast are “fundamentally anti-growth, less concerned with promoting broad-based economic growth — despite 12.5% statewide unemployment — than in preserving the privileges of their sponsors among public sector unions and generally affluent environmentalists. This could breed a big conflict between the coastal idealists and the working class and increasingly Latino residents in the more hardscrabble interior, whose economic realities are largely ignored by the state’s government.”

He interviews economist John Husing who describes San Francisco as “a bastion of elitist thinking due to a large ‘trustifarian’ class who have turned the city into favorite spot for green and fashionably ‘progressive’ think tanks.”

Trustifarians, apparently, don’t like to get their hands dirty in factories and fields. More:

This thinking is increasingly influential as well in a rapidly changing Silicon Valley. In the past the Valley was a manufacturing powerhouse and had to worry about such things as energy prices, water availability and regulatory relief. But the increasingly dominant information companies such as Apple, Facebook, Twitter, Google and their wannabes are widely unconnected to industrial production in the region. To be sure, they have created a financial bubble in the area that has made some fantastically rich, but according to researcher Tamara Carleton they have contributed very little in new net job creation, particularly for blue-collar or middle-class workers.

There’s a bit of a snob factor here. Fashionable urbanistas extol San Francisco as a role model for the nation. The City, as they call it, has adopted the lead on everything from getting rid of plastic bags and Happy Meals is now considering a ban on circumcision. When it comes to everything from gay rights to bike lanes, no place is more consciously “progressive” than San Francisco. So why should that charmed city care about what happens to farmworkers or construction laborers in not-so-pretty Fresno?

Class and occupational profile also has much to do with this gap between the Californias. Husing notes that the Bay Area has far more people with college degrees (42%) than either Southern California (30%) or the Central Valley (where the percentage is even lower). Green policies that impact blue-collar workers — restraining the growth of the LA port complex, restricting new single-family home construction or cutting off water supplies to farmers — mean little distress for the heavily white, aging and affluent Bay Area ruling circles.

But such moves could have a devastating impact on the increasingly Latino, younger and less well-educated populace of the interior. Outside of the oft-promised green jobs — which Husing calls “more propaganda than economics” — it is these less privileged residents’ employment that is most likely to be exported to other states and countries, places where broad-based economic growth is still considered a worthy thing. “By our ferocious concentration on the environment, we have created a huge issue of social justice,” Husing points out. “We are telling blue collar workers we don’t want you to have a job.”

Read “California’s Demographic Dilemma: A Class And Culture Clash” on the Forbes website. (HT: RealClearMarkets)

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.