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December 2003
Volume 17,
Number 12

Stephen Cox and Ralph Reiland weigh in on the recall!

  Schwarzenegger Watch  

The Republican Bill Clinton

by R.W. Bradford

It sounds too good to be true — Californa voters have just elected as governor a social liberal and political conservative. What could be wrong with that?


Pardon me, but I shall not join my libertarian friends who are celebrating the election of Arnold Schwarzenegger.

R.W. Bradford is editor and publisher of Liberty.

Sure, he can't do much worse as governor than Gray Davis, the reductio ad absurdum of conventional left-liberal Democratic politics. Davis' entire career was spent in politics, first as a professional staffer to elected officials, then as an elected official himself. His modus operandi has always been the same: give special interests whatever they want in return for dollars or votes. Get elected using the votes and dollars the special interests provide.

In times when business is good and tax receipts are high, this works fairly well. And when tax receipts skyrocket thanks to huge profits from an irrationally spectacularly bull market, it works spectacularly well: there is more than enough money to deliver favors to every interest group.

But when reality hits the stock market and the zillionaire owners of stock options become mere millionaires and the flow of cash into the coffers of the state falls sharply, the process doesn't work so well. Since Americans have long believed that prosperity is the product of government, declining prosperity brings declining popularity.

Faced with this situation, the only way Davis could figure to increase his popularity was to increase the rewards he gave to the interests that supported him. This meant even more spending and a bigger deficit — and a financial crisis, if your constitution prohibits budget deficits, as do 49 of the 50 states. (Happily for President Bush, who is in more or less the same situation, the federal Constitution contains no such prohibition).

Making Davis even more unpopular and adding to the state's financial woes was the absolutely moronic approach that Davis took toward government control of the distribution and production of electric power. He oversaw partial deregulation of the system, enough to put residents of the state in the perilous situation of having no long-term supplies in a very volatile market. When the crisis inevitably happened, he reacted exactly the way a person with absolutely no familiarity with how markets work — that is, a person like himself — always reacts: with panic and sheer stupidity. He made long-term contracts to buy power at the spiking prices. The brownouts ended, but the state's treasury hemorrhaged and business activity, as well as ordinary life, was hurt by higher power prices.

There were 135 candidates on the ballot to replace Gray Davis. Any one of them would be better than he was, if only because by chance, they'd be bound to do something that made more sense.

Schwarzenegger was elected to replace Davis because he was a star and because he failed to annoy very many voters. Part of the way he did this was by refusing to take on the socially conservative views that are a requisite for surviving a Republican primary. But it is easy to overestimate the impact of his moderate (i.e., more-or-less libertarian) views on abortion, drugs, and homosexuals: all he did was refuse to embrace these social conservative views or repudiate various comments he'd made in the past that seemed coherent with a more libertarian approach.

Arnold made the same decision that Gray Davis would have made: just promise to solve the problem and worry about details later, after the election.

Probably the four campaign promises he made were much more important factors:

  1. He would not raise taxes.
  2. He would not reduce spending on education, the most popular government subsidy program.
  3. He would eliminate a particularly unpopular increase in car taxes that Davis had enacted in an attempt to reduce the budget shortfall.
  4. He would eliminate the state's budget deficit.

He refused to say how he would solve the problem, and for very good reason. There are only two ways to reduce the deficits: cut spending or raise taxes. Schwarzenegger not only promised not to raise a single tax: he also promised to eliminate an existing tax that annually produces $12 billion in revenue. So he obviously has to cut spending. The size of the deficit, and his promise to leave education spending intact, means that the spending cuts from non-educational programs will have to be huge. Cuts in any program inevitably alienate the people who benefit from the program, and huge cuts in many programs inevitably alienate huge numbers of people.

So Arnold made the same decision that Gray Davis would have made: just promise to solve the problem and worry about details later, after the election. Add to this his massive celebrity, ample financial resources, skill at public relations, and the support and advice of his Kennedy relatives — and his victory was almost inevitable. But voters have no idea how he will deal with the crisis he faces.

In an ideal world, I suppose, he would argue that his huge plurality is a mandate from the electorate for radical action and convince California's overwhelmingly left-liberal Democratic legislature to cut back all sorts of spending. Of course, in that ideal world, Bush would apologize for undermining our civil liberties and instigating a jihad against Iraq, end the War of Drugs, and veto just about all spending authorized by Congress.

We don't live on Big Rock Candy Mountain. It's hard to predict with any kind of accuracy what will happen in the Golden State, but the chances that Arnold will have the will to pursue the needed spending cuts are infinitesimal. In the two weeks following his election, all he did to address the problem was to meet with President Bush to ask for federal aid.

Of course, Schwarzenegger's evasion of his responsibility to give voters even a glimmer of how he'll deal with the crisis caused little concern among California voters. Americans have long believed that whenever they face a political crisis, a leader will emerge who is able to deal with it effectively. That's why we remember Abe Lincoln, Teddy Roosevelt, and Franklin Roosevelt as great men. Arnold is simply another politician promising miracles. Who better than a man who has portrayed dozens of heroes?

Why did Arnold run for the nation's second highest office? As nearly as I can figure, his motivation was pure lust for power. Like Bill Clinton, he is a specimen of politician in its purest form, a man with no convictions except the belief that the world would be a better place if he were running things.

Such men are actually the least influential politicians of all: they are merely pawns of the incentives they face, the interests they represent, and circumstances completely beyond their control.

I don't know what Arnold will do as governor. But I know enough to rejoice that I am not a resident of California.

© Copyright 2008, Liberty Foundation


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