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  • CA Declares War on Suburbia

    heres one mr steve can romp on....

    • Updated April 6, 2012, 10:04 p.m. ET

    California Declares War on Suburbia

    Planners want to herd millions into densely packed urban corridors. It won't save the planet but will make traffic even worse.

    (and just think what the profits to FIRE will be, when they can force the rest of us into 'urban warehouses' - visions of The Matrix start to dance thru the mind...)

    Originally posted by wsj/wcox

    http://online.wsj.com/article/SB1000...434618474.html

    By WENDELL COX

    It's no secret that California's regulatory and tax climate is driving business investment to other states. California's high cost of living also is driving people away. Since 2000 more than 1.6 million people have fled, and my own research as well as that of others points to high housing prices as the principal factor.
    The exodus is likely to accelerate. California has declared war on the most popular housing choice, the single family, detached home—all in the name of saving the planet.
    Metropolitan area governments are adopting plans that would require most new housing to be built at 20 or more to the acre, which is at least five times the traditional quarter acre per house. State and regional planners also seek to radically restructure urban areas, forcing much of the new hyperdensity development into narrowly confined corridors.
    In San Francisco and San Jose, for example, the Association of Bay Area Governments has proposed that only 3% of new housing built by 2035 would be allowed on or beyond the "urban fringe"—where current housing ends and the countryside begins. Over two-thirds of the housing for the projected two million new residents in these metro areas would be multifamily—that is, apartments and condo complexes—and concentrated along major thoroughfares such as Telegraph Avenue in the East Bay and El Camino Real on the Peninsula.
    For its part, the Southern California Association of Governments wants to require more than one-half of the new housing in Los Angeles County and five other Southern California counties to be concentrated in dense, so-called transit villages, with much of it at an even higher 30 or more units per acre.


    To understand how dramatic a change this would be, consider that if the planners have their way, 68% of new housing in Southern California by 2035 would be condos and apartment complexes. This contrasts with Census Bureau data showing that single-family, detached homes represented more than 80% of the increase in the region's housing stock between 2000 and 2010.
    The campaign against suburbia is the result of laws passed in 2006 (the Global Warming Solutions Act) to reduce greenhouse gas emissions and in 2008 (the Sustainable Communities and Climate Protection Act) on urban planning. The latter law, as the Los Angeles Times aptly characterized it, was intended to "control suburban sprawl, build homes closer to downtown and reduce commuter driving, thus decreasing climate-changing greenhouse gas emissions." In short, to discourage automobile use.
    If the planners have their way, the state's famously unaffordable housing could become even more unaffordable.
    Over the past 40 years, median house prices have doubled relative to household incomes in the Golden State. Why? In 1998, Dartmouth economist William Fischel found that California's housing had been nearly as affordable as the rest of the nation until the more restrictive regulations, such as development moratoria, urban growth boundaries, and overly expensive impact fees came into effect starting in the 1970s. Other economic studies, such as by Stephen Malpezzi at the University of Wisconsin, also have documented the strong relationship between more intense land-use regulations and exorbitant house prices.
    The love affair urban planners have for a future ruled by mass transit will be obscenely expensive and would not reduce traffic congestion. In San Diego, for example, an expanded bus and rail transit system is planned to receive more than half of the $48.4 billion in total highway and transit spending through 2050. Yet transit would increase its share of travel to a measly 4% from its current tiny 2%, according to data in the San Diego Association of Governments regional transportation plan. This slight increase in mass transit ridership would be swamped by higher traffic volumes.
    Higher population densities in the future means greater traffic congestion, because additional households in the future will continue to use their cars for most trips. In the San Diego metropolitan area, where the average one-way work trip travel time is 28 minutes, only 14% of work and higher education locations could be reached within 30 minutes by transit in 2050. But 70% or more of such locations will continue to be accessible in 30 minutes by car.
    Rather than protest the extravagance, California Attorney General Kamala D. Harris instead has sued San Diego because she thinks transit was not favored enough in the plan and thereby violates the legislative planning requirements enacted in 2006 and 2008. Her predecessor (Jerry Brown, who is now the governor) similarly sued San Bernardino County in 2007.
    California's war on suburbia is unnecessary, even considering the state's lofty climate-change goals. For example, a 2007 report by McKinsey, co-sponsored by the Environmental Defense Fund and the Natural Resources Defense Council, concluded that substantial greenhouse gas emissions reductions could be achieved while "traveling the same mileage" and without denser urban housing. The report recommended cost-effective strategies such as improved vehicle economy, improving the carbon efficiency of residential and commercial buildings, upgrading coal-fired electricity plants, and converting more electricity production to natural gas.
    Ali Modarres of the Edmund G. "Pat" Brown Institute of Public Affairs at California State University, Los Angeles has shown that a disproportionate share of migrating households are young. This is at least in part because it is better to raise children with backyards than on condominium balconies. A less affordable California, with less attractive housing, could disadvantage the state as much as its already destructive policies toward business.
    Mr. Cox, a transportation consultant, served three terms on the Los Angeles County Transportation Commission under the late Mayor Tom Bradley.
    A version of this article appeared April 7, 2012, on page A13 in some U.S. editions of The Wall Street Journal, with the headline: California Declares War on Suburbia.

  • #2
    Re: CA Declares War on Suburbia

    The only thing city planners have done in Canada and America is to create high-density urban slums. Such high-density projects bid-up land prices, and such projects do NOT make housing more affordable. High-density developments enrich land speculators who buy land for agricultural value, hold it off of the market for a period of time, and then sub-divide the land into tiny lots and usually with pay-offs (grease) to the local government to gain development approval. These land speculators then sell the land to home builders at fantastic profits....

    Naturally, new home prices become outrageous in order to keep this system of land speculation, land re-valuation, grease to the government, and high-density development operating. Normally in a free market unfettered by zoning and development approval, land developers would be able to develop wherever land is cheapest, yet closest to the city. But with planners blocking this natural process of the free market which would keep land and lots affordable, the land is bid-up, and the game of city development becomes greasing government, increasing density of development, and extracting the highest possible price from an artificially limited supply of approved, serviced and buildable lots.

    Comment


    • #3
      Re: CA Declares War on Suburbia

      CA is such a beautiful state with abundant resources and the do gooder politicians have ruined it.In trying to save the planet they have made life miserable for it's citizens. Raise taxes on the wealthy and corporations to pay for liberal programs run amok and the wealth just leaves. Having just returned from a trip to the beautiful wine country and having a few very good beers in local taverns, I can tell you the people in the north are fed up and there is a movement growing to cut ties with the south and start there own state. Regrettably, what is happening in CA is happening to our country on a national level. The attitude of the EPA since the new leadership took over can best be described as "hostile" to industry. Have yyou ever read an actual OSHA manual on work place rules? It is utterly mind boggling. Not to mention the environmental impact studies, clean air and water act compliance etc etc. Is it any wonder manufacturing is disappearing from the US? Cheap labor is not the only reason.

      Comment


      • #4
        Re: CA Declares War on Suburbia

        Originally posted by Roughneck View Post
        CA is such a beautiful state with abundant resources and the do gooder politicians have ruined it.In trying to save the planet they have made life miserable for it's citizens. Raise taxes on the wealthy and corporations to pay for liberal programs run amok and the wealth just leaves. Having just returned from a trip to the beautiful wine country and having a few very good beers in local taverns, I can tell you the people in the north are fed up and there is a movement growing to cut ties with the south and start there own state. Regrettably, what is happening in CA is happening to our country on a national level. The attitude of the EPA since the new leadership took over can best be described as "hostile" to industry. Have yyou ever read an actual OSHA manual on work place rules? It is utterly mind boggling. Not to mention the environmental impact studies, clean air and water act compliance etc etc. Is it any wonder manufacturing is disappearing from the US? Cheap labor is not the only reason.
        I will tell you about my experience with Cal-OSHA. Years ago I worked on a cable project in an apartment complex in San Francisco. About six guys worked in tunnels under the apartments pulling cable. The walls and hot water pipes in the tunnels where covered with asbestos. It was coming off in big tufts. You could see clouds of it when you walked through the tunnels and it came off on your clothes if you brushed against a wall or a pipe. We called Cal-OSHA and said we wanted the place inspected. We didn't ask for an asbestos abatement or anything. We where sent home without pay for several days, then we where told to return to work. We where not provided with masks or gloves or Tyvek suits. There was no training or discussion of safety measures. As far as I was concerned Cal-OSHA was working for the apartment complex and the cable company. We working in the catacombs for 5 weeks.

        Comment


        • #5
          Re: CA Declares War on Suburbia

          Originally posted by globaleconomicollaps View Post
          I will tell you about my experience with Cal-OSHA. Years ago I worked on a cable project in an apartment complex in San Francisco. About six guys worked in tunnels under the apartments pulling cable. The walls and hot water pipes in the tunnels where covered with asbestos. It was coming off in big tufts. You could see clouds of it when you walked through the tunnels and it came off on your clothes if you brushed against a wall or a pipe. We called Cal-OSHA and said we wanted the place inspected. We didn't ask for an asbestos abatement or anything. We where sent home without pay for several days, then we where told to return to work. We where not provided with masks or gloves or Tyvek suits. There was no training or discussion of safety measures. As far as I was concerned Cal-OSHA was working for the apartment complex and the cable company. We working in the catacombs for 5 weeks.
          My late husband did machinery maintenance at a brass bed factory in LA. This was a place where the workers were exposed to quantities of heavy metal dust without protective gear and were practically ankle deep at times in metal filings. A Cal-OSHA inspector came in one day and and ordered that the lockers in the dressing room be painted OSHA Blue. My husband dutifully painted them. A few weeks later the Fire Marshall inspected the shop and told them to strip the paint from the lockers because it was a fire hazard. My husband dutifully stripped the paint. A week later the Cal-OSHA inspector came back and threatened to fine the shop for not having the lockers painted. My husband gave him the Fire Marshall's card and told him to work it out. He never heard from him again.

          Be kinder than necessary because everyone you meet is fighting some kind of battle.

          Comment


          • #6
            Re: CA Declares War on Suburbia

            When i set up bussiness in Liverpool i had our version turn up........demanded i do a few things.........Ok i said but not going live for 2-4 months yet, we just in the moving in stage....i ring you when we ready.......I never did & ran for 15 years without ANY more Hassle.

            Mike

            Comment


            • #7
              Re: CA Declares War on Suburbia

              Originally posted by Roughneck View Post
              Raise taxes on the wealthy and corporations to pay for liberal programs run amok and the wealth just leaves.

              Taxes don't seem that out of whack.

              Also if the rich have most of the wealth then they should be taxed FYI. The alternative is to tax the poor and middle class more which is regressive taxation.

              Originally posted by Roughneck View Post
              Having just returned from a trip to the beautiful wine country and having a few very good beers in local taverns, I can tell you the people in the north are fed up and there is a movement growing to cut ties with the south and start there own state.
              Phht that idea has been around for years, and every now and again a politician will latch on to it to see if it can get him some cheap and easy support. When I lived in CA the people who had been there all their lives had heard similar stuff since when they were kids 40 yr ago. I wouldn't get too worked up about it until you start seeing massive protests aimed at splitting the state, which would probably be for the best IMO. The north and southern halves are very different politically and none are happy with what the state government has been doing for years.

              Originally posted by Roughneck View Post
              The attitude of the EPA since the new leadership took over can best be described as "hostile" to industry.
              Huh? You sure about that? Obama is more of a pro FIRE president then perhaps even Bush was, you haven't been exposing yourself to Repub propaganda have you? Its just as bad as the Dem propaganda these days.

              Comment


              • #8
                Re: CA Declares War on Suburbia

                2009 data. Higher than average state and local taxes, ranks 48th in business tax climate,highest corporate taxes in west,highest sales tax.
                http://taxfoundation.org/research/topic/15.html

                I work in an industry regulated by EPA and I can tell you that the attitude has changed drastically over the years. The dept used to be full of long time government technocrats who just wanted to be sure you were meeting regulations. Now the dept is full of environmental activists types who are on a crusade against industry. Lisa Jackson? CO2 being regulated like Benzene as a toxic pollutant? FWIW I don't do left or right wing propaganda.

                Comment


                • #9
                  Re: CA Declares War on Suburbia

                  Originally posted by Roughneck View Post
                  2009 data. Higher than average state and local taxes, ranks 48th in business tax climate,highest corporate taxes in west,highest sales tax.
                  http://taxfoundation.org/research/topic/15.html
                  Isn't this looking at nominal and not effective tax rates though? The chart I posted above is for actual cash collected which matters more IMO since there are all sorts of tax loopholes to be abused if you have the know how. Even going by that site it says the national average is 9.8% vs CA's 11.8%. You have to be careful when you look at anything that site gives you. "The Tax Foundation" is a ultra conservative "think tank" a la the Cato Inst. that produces anti tax propaganda and has been known to do some seriously shady things with their reporting.

                  Originally posted by Roughneck View Post
                  Lisa Jackson? CO2 being regulated like Benzene as a toxic pollutant?
                  I don't know anything about her other than that she is a Obama appointed regulator which is something that automatically sets off by BS alarm but probably not in the same way as it would yours. I don't know enough about CO2 to have an opinion on its regulation as a "toxin" though I do believe it should be regulated as a green house gas and emissions reduced dramatically via something like nuclear energy and mass electric transit. I will say that the CARB stuff in CA was kinda stupid, especially when it came to stuff like regulating diesels but I don't think the EPA had anything to do with those guys.

                  Comment


                  • #10
                    Re: CA Declares War on Suburbia

                    Originally posted by mesyn191 View Post


                    I don't know anything about her other than that she is a Obama appointed regulator which is something that automatically sets off by BS alarm but probably not in the same way as it would yours. I don't know enough about CO2 to have an opinion on its regulation as a "toxin" though I do believe it should be regulated as a green house gas and emissions reduced dramatically via something like nuclear energy and mass electric transit. I will say that the CARB stuff in CA was kinda stupid, especially when it came to stuff like regulating diesels but I don't think the EPA had anything to do with those guys.

                    I was going to repost my favorite rant about CARB and ramble on about the governments war on old cars, but then I decided to look up what happened to Old Mr. Pease and his '68 bug when I came across this:

                    Death
                    Flag at half-mast at National Semiconductor on June 21, 2011

                    Pease was killed in the crash of his 1969 Volkswagen Beetle, on June 18, 2011. He was leaving a gathering in memory of Jim Williams, who was another well-known analog circuit designer, a technical author, and a renowned staff engineer working at Linear Technology. Pease was 70 years old, and was survived by his wife, two sons, and three grand-children.[15] The sudden passing of Pease triggered a small flood of remembrances and tributes from fellow technical writers, practicing engineers, and electronics hardware hacking enthusiasts.

                    https://en.wikipedia.org/wiki/Bob_Pease

                    perhaps CARB is doing us all a favor by removing old cars from circulation.

                    Comment


                    • #11
                      Re: CA Declares War on Suburbia

                      Originally posted by mesyn191
                      Taxes don't seem that out of whack.

                      Also if the rich have most of the wealth then they should be taxed FYI. The alternative is to tax the poor and middle class more which is regressive taxation.
                      It would be useful to understand exactly what the graph represents.

                      I've lived in both Texas and California. Only if you include real estate taxes does the above graph make any kind of sense.

                      The graph also certainly excludes other major forms of state income, like fees. Auto registration in Texas is literally 1/3 or less that for the same automobile in California.

                      Comment


                      • #12
                        Re: CA Declares War on Suburbia

                        Originally posted by c1ue View Post
                        It would be useful to understand exactly what the graph represents. I've lived in both Texas and California. Only if you include real estate taxes does the above graph make any kind of sense.
                        AFAIK that one included RE taxes but not other state fees.

                        Here is a more recent chart from 2008 that compares the per capita tax burden vs other states, still not much of a difference, though it doesn't include fees:


                        This one is an average over 10 yr, difference still isn't that big vs Texas and is far from the highest in the country:


                        Income from stuff like the state car registration doesn't seem to be a very big piece of the pie even if its much higher than other states:


                        I've lived in several other states over the years (NY, VA, TN, CA, ID, OR) and CA taxes never were that high to me. Complaints of taxes in the state driving away business are just more of the same Repub propaganda. The bigger problem with CA is the high cost of living, in particular with housing, even several years after the boom blew up.
                        Last edited by mesyn191; April 13, 2012, 07:50 AM.

                        Comment


                        • #13
                          Re: CA Declares War on Suburbia

                          Originally posted by mesyn191
                          AFAIK that one included RE taxes but not other state fees.
                          Ah that explains it.

                          The RE taxes are misleading because Texas' is so high relatively speaking, and RE taxes overall are a big chunk of state taxation.

                          So if you own a house, the relative tax burden isn't that high. However, if you rent, the difference is dramatic.

                          I also note that the 1st graph in the above post shows CA at $5K vs. Texas at $3.8K - this is a big difference. In fact Texas vs. California is an excellent poster child for what Dr. Michael Hudson notes: the per property tax revenues for each state are roughly comparable, but CA prices are 3 times Texas'.

                          The table shows $4588/CA vs. $3480/TX - another big difference

                          As for DMVCA - it might not seem like much to you, but it is over 7% of all CA revenue.

                          Texas collects about $1.15B (vs. CA $8.4B) in motor vehicle license fees. Not insignificant.

                          http://www.txdmv.gov/about_us/fy_201...ing_budget.pdf
                          Last edited by c1ue; April 13, 2012, 10:56 AM.

                          Comment


                          • #14
                            Re: CA Declares War on Suburbia

                            Originally posted by c1ue View Post
                            The table shows $4588/CA vs. $3480/TX - another big difference

                            As for DMVCA - it might not seem like much to you, but it is over 7% of all CA revenue.

                            Texas collects about $1.15B (vs. CA $8.4B) in motor vehicle license fees. Not insignificant.
                            A ~$1100 per capita tax difference isn't going to drive the businesses out of state, that is too little money to justify the move. The CoL difference is a much better justification, look at how much housing went up for instance. Also RE taxes should be included when considering tax revenues, lots of people pay those.

                            Comment


                            • #15
                              Re: CA Declares War on Suburbia

                              Originally posted by mesyn191
                              A ~$1100 per capita tax difference isn't going to drive the businesses out of state, that is too little money to justify the move.
                              Not sure what this is in reference too. A $1100 difference in consumer's ability to spend is pretty significant, of course assuming disposable income before state taxes is identical, which it is not.

                              Originally posted by mesyn191
                              Also RE taxes should be included when considering tax revenues, lots of people pay those.
                              I cannot say I agree, because RE taxes are both not widespread (home ownership is in the low 50%-ish in California, perhaps even lower) and in a real sense voluntary.

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