In Friday’s LinkSwarm, I had a link that asked if Portland was finally sobering up.
Well, for a lot of people and businesses, it’s too late. Such as Kevin Howard, for whom the City of Portland refused to do anything about the homeless people breaking into his property and trashing the place.
And who then fined him because the place was trashed.
“This property was listed in January of 2021 for $795,000. Yesterday we sold it for $412,000,” said Howard.
A significant loss, but Howard says he had nothing left in the tank. The tiny piece of property off Southeast Powell Boulevard, a former pizza parlor, has been a nightmare for the past three years.
“The supposed homeless came in and kicked in the door, the front door, and lived in it,” said Howard. “And I waited until they came out, and I had to board it up.”
But Howard says that didn’t do much. They just broke in again and again, living inside and outside, even in his dumpster enclosure which they eventually set on fire. Howard says he got nowhere when he called the police.
“I said, ‘Well, what does a homeowner do? What does a property owner do?’ and they said, ‘Call Central City Concern,'” said Howard. “I said “What will they do?’ and they said, ‘Well, they’ll probably come out and give them a cup of coffee and some hot soup.'”
Howard looked into hiring a security guard, but that was too expensive at roughly $15,000 a month. So, he decided to get a fence, but the wait was four months.
“I said, ‘Why?’ and they said, ‘Because homeowners like mad are fencing their property to keep the, you know, the drug addicts and the homeless out,'” said Howard.
So, the trash piled up, and Howard tried to keep up, but it wasn’t enough. Last summer, the city hit him with a nuisance fine of nearly $540.
Howard paid the fine.
A month later, he got an even bigger bill, the original amount plus a penalty. The city told him they had lost his check. So, he paid the bill again, plus the extra $100.
“Two weeks later, they sent me another bill for 639 dollars and 71 cents,” said Howard. “I called them up, and they said, “Well, this might be a duplicate bill, but we’ve already put a lien on your property.”
“I just remember the phrase ‘The City That Works.’ The city that jerks, I mean, how can you be this dysfunctional?”
Easy. You let Social Justice Warriors take over your city.
Busy as hell and I have a cold, but I soldier on. LinkSwarm! Russian coup! Texas! Pedophiles! Portland! Braaaaiiiinnnnnns!
I cover the world!
“The owner of the Wagner private military contractor made his most direct challenge to the Kremlin yet on Friday, calling for an armed rebellion aimed at ousting Russia’s defense minister. The security services reacted immediately by calling for the arrest of Yevgeny Prigozhin…Prigozhin claimed early Saturday that his forces had crossed into Russia from Ukraine and had reached Rostov, saying they faced no resistance from young conscripts at checkpoints and that his forces ‘aren’t fighting against children.'” Unconfirmed reports of fighting elsewhere in Russia. Developing…
The City of Dallas is requiring employees to undergo taxpayer-funded transgender reeducation training any time one of their co-workers comes out as “transgender.”
According to internal documents obtained from the City of Dallas by The Dallas Express, “non-transitioning” employees are being forced to undergo reeducation training “to support an inclusive and productive workplace environment for all employees.”
The City of Dallas’ “gender transition toolkit” explains that a transitioning employee should find a “trusted” supervisor or manager as a “first point of contact” to help them through their workplace transition.
The document includes a list of gender terms and definitions. It then moves on to require employees to work with gender-confused co-workers, allowing the “transitioning” employee to use whichever bathroom or locker room at work they feel most comfortable with, ignoring the comfort of other employees.
Speaking of pedophiles: “A former CNN television producer who had pleaded guilty to luring a 9-year-old girl into illegal sexual acts was sentenced Tuesday to more than 19 years in prison and an additional 15 years of supervised release during a U.S. District Court hearing in Vermont. John Griffin of Stamford, Connecticut, pleaded guilty in federal court in December to using interstate commerce to entice and coerce the girl to engage in sexual activity at his Vermont ski house.” (Hat tip: Ed Driscoll at Instapundit.)
In the summer of 2020, Portland, Oregon, became the poster child for American urban disaster zones. During the day, tens of thousands of citizens protested peacefully against police brutality following the murder of George Floyd in Minneapolis. But everything changed after dark. Nonviolent demonstrators with jobs, school assignments, and kids to raise went home; hundreds of anarchists swarmed in to take their place and waged a low-grade insurgency against the city. They fought pitched battles with the cops—throwing rocks, frozen water bottles, fireworks, buckets of excrement, and even Molotov cocktails. They attacked coffeehouses, immigrant-owned restaurants, mom-and-pop retail stores, banks, museums, churches, bus stops, and the Multnomah County Democratic Party headquarters with baseball bats, crowbars, and hammers. Most were military-age white males wearing all-black clothing and hiding their faces. The violence kept up, night after night, week after week, and month after month, into the winter, long after the rest of America had calmed down. My city had become the most politically violent place in the country, and I got worried e-mails from people I knew around the world—even in the Middle East!—asking me if I was okay and why on earth this was happening.
A crime wave followed. Shootings and homicides exploded 300 percent between 2019 and 2022, robberies rose 50 percent in 2022 alone, vehicle thefts hit record highs, and work-order requests for graffiti removal shot up 500 percent between 2020 and 2022. The City of Roses suffered 413 shootings in 2019 but 1,306 in 2022 and nearly twice as many homicides as San Francisco, though Portland is only three-fourths its size. Meantime, statewide crime actually declined from 2019 to 2021.
The homelessness crisis also intensified. The slow-motion collapse of Oregon’s mental-health infrastructure, a dramatic surge of cheap and deadly fentanyl and a far more potent and addictive form of psychosis-inducing meth, and a crippling housing shortage led to the formation of more than 700 tent cities in residential neighborhoods and business districts across the city.
But while it’s too soon to declare that Portland’s troubles have passed, the worst may now be over. Despite ongoing woes, Portland looks and feels much better than it did in dystopian 2020. The riots stopped, and the crime wave seems to have peaked, with shootings down by nearly 40 percent and homicides down more than 50 percent in the early months of 2023. A sober mood shift has taken over the city. Voters passed a ballot measure to restructure city government, while the three newest elected officials on the city council are steering Portland in a different direction. The city, county, and state are taking steps to reverse the decline.
Portland is suffering a serious livability crisis. Eighty-eight percent of respondents in early 2022 told the Portland Business Alliance that the quality of life is worsening. Portland is hardly the most dangerous city in America: the homicide rate in St. Louis is more than four times higher, with 65 murders per 100,000 people, compared with Portland’s 15 in 2022. Portland’s rate peaked at more than double the national average, but of all the cities with higher crime rates than Portland, only Chicago gets as many national headlines. That’s probably because Portland’s increase in crime was the worst in the country. No other city’s homicide rate rose so spectacularly. And unlike St. Louis, Baltimore, and other notorious hot spots, Portland was recently a destination city that touted its high quality of life as a reason to move there.
Of late, though, rather than attracting new residents, Portland has actually lost population, either to the suburbs or out of state. “I’ve never seen money move out of here,” commercial real-estate salesman Stu Peterson told Willamette Week. “Nobody ever wanted to leave Oregon. It’s a beautiful place. Most evacuees are high-wage earners who are fed up with the crime, taxes, and homelessness, in that order. There’s an ugly spiral.” Real-estate agent Justin Harnish described a client who left downtown Portland for the suburb of Lake Oswego after she saw a woman stab another woman in the face with scissors.
Accompanying the crime wave is a drastic staff shortage at the Portland Police Bureau. Portland now has fewer than 800 sworn officers, a smaller number than it had decades ago, when the city was barely half the size it is now. And with the surge in violent crime, the police have little time to deal with anything that isn’t life-threatening. Prioritizing shootings and other emergencies, they’re forced to neglect break-ins, stolen cars, vandalism, and just about everything else. The traffic police unit has been defunded, reduced to a single full-time traffic cop—not for ideological reasons but because the city has no one to staff that division.
Part of the blame rests with the months of demoralizing anti-cop violence in 2020, but Portland would probably be short of police officers anyway. Every city agency, from fire and rescue to the transportation bureau and the public defender’s office, faces staff shortages now. And while a shrunken police force didn’t cause Portland’s crime wave on its own, a police department that can barely react to anything but emergency calls aggravates the problem. Criminals behave as though they can get away with essentially anything and commit far more crimes than they would if they were investigated, arrested, and prosecuted swiftly. The Woodstock neighborhood, where Joe Biden won 88 percent of the vote, is considering hiring its own private security force.
Snip.
I spent more time talking to my neighbors that year than I ever had before or have since. A lot of us suddenly became friendlier outside our houses, and we weren’t talking about sports and the weather. Residents and business owners alike worried about where things were headed and expressed dismay at the city’s inability to defend itself. I didn’t talk with a single person who thought that everything was okay, that city hall was on top of it, or that the anarchists were not a menace. And nobody could understand why the homeless camps at the elementary school down the street or at the park hadn’t been cleared. No, I didn’t conduct my own scientific public opinion survey, but it was obvious that regular people were nearing the end of their rope and that the status quo was bound to be upended.
In 2021, that’s exactly what happened. A tsunami of outrage inundated the mayor, the city council, and the police bureau. Phones rang nonstop. Furious citizens shouted at meetings. Newspaper editors published scathing letters, and journalists at mainstream outlets covered distressed neighborhoods and interviewed disgruntled citizens while largely ignoring the activist set that booed every conceivable solution and told civilians that the problems were in their heads. Lawsuits against the city proliferated. Polls showed city council members languishing on political death row, with approval ratings in the teens.
Though most residents still wanted accountability for bad cops and citizen oversight of the police bureau, the complaints were primarily about crime, about how the police hardly ever show up anymore, and about disorder dragging neighborhoods down. Even some of the fashionable middle-class neighborhoods endearingly satirized in the Portlandia comedy series were enduring weekly gunfire.
In the fall of 2022, 82 percent of Portland respondents in an Oregonian poll said that they wanted more cops. If some Portlanders felt overpoliced a few years ago, hardly anyone felt that way after the chaos, with a mere 15 percent saying that they wanted fewer officers in 2021.
Before the city council elections got going in 2022, voters fired repeated warning shots in public opinion surveys. An overwhelming 85 percent of respondents said that they found the city council ineffective, with a clear majority describing it as “very ineffective.” For a while, it looked as though Portland was gearing up to fire every single official in a landslide election.
Two city council members, Dan Ryan and Jo Ann Hardesty, ran for reelection last year. Ryan managed to defy expectations and win despite the temper in the city, though it’s easy to understand why: he set aside his ideological views and changed with the times. Though he first ran during a special election in early 2020 on a campaign promising to cut police funding, he soon reversed himself. Anarchists vandalized his home seven times because he refused to cut the police budget.
Hardesty didn’t fare as well. Pushing bills to defund the police and opposing the cleanup of homeless camps, she put herself wildly out of step with her constituents. Mingus Mapps, a moderate on the council who had easily dispatched the left-wing populist Chloe Eudaly two years earlier, endorsed Hardesty’s challenger, Rene Gonzales, and bluntly said: “It is time to put ideology aside and elect people who will fight for Portland. I need colleagues who use debate, reason, and logic to solve our many crises.” Gonzales said, “Our once beautiful city is struggling in ways that were unfathomable a short time ago. . . . City hall’s ineffective, ideologically driven policies are ruining the city we used to proudly call home.” Gonzales won, and Portland replaced the city council’s last progressive firebrand with a centrist. It was the kind of event that marks the end of an era.
Sounds a lot like Austin, except for the sobering-up part. (Also, it’s good to read Michael Totten again. He seemed to disappear from view for several years. Probably because he was writing for The Bulwark…)
Speaking of Portland, the homeless drug addict who said that living on the streets of Portland was “too easy” is now back with her family and getting treatment. They thought she was dead…
Remember the old Chapter 313 program Texas used to dole out incentives to favored companies to relocate to Texas? It’s back under a new name.
House Bill 5, which author State Rep. Todd Hunter (R–Corpus Christi) calls the “Texas Jobs, Energy, Technology, and Innovation Act,” would create a new statewide economic incentive program to replace the state’s controversial Chapter 313 program, which ended after lawmakers declined to renew it during the 2021 legislative session.
Although both the Republican Party of Texas and the Democrat Party of Texas oppose corporate handouts in their platforms, State Sen. Charles Schwertner (R–Georgetown), has said “the majority of the Legislature does see value in a job-creating, economy-growing incentive program.”
HB 5 was a priority of House Speaker Dade Phelan (R–Beaumont) and approved by a vote of 120-24 in the House and 27-4 in the Senate.
However, Jeramy Kitchen, executive director of Texans for Fiscal Responsibility told Texas Scorecard the new law is a “contradiction and nothing more.”
“On one hand, he is telling Texans that he wants to see historic property tax relief and the elimination of the property tax, or more specifically the school M&O portion of the property tax,” explained Kitchen. “Both of those are things that TFR supports and encourages the legislature to take action on.”
“His signing of House Bill 5 however, points to a contradiction, as it ultimately will do nothing more than burden those same individual property taxpayers he purports to provide historic relief to, as large qualifying corporations receive a property tax abatement under the guise of economic development,” said Kitchen.
Like Chapter 313, HB 5 allows businesses to apply for a 10-year abatement—or reduction—of school district property taxes, which the state pays instead. To receive an abatement, the business would have to show it plans to hire a certain number of employees earning above-average wages for its particular industry.
Unlike the previous incentive program, HB 5 requires not just the applicant and school district to agree to the abatement, but also the comptroller, governor, and a seven-member legislative oversight committee composed of lawmakers from the state House and Senate.
This committee would have the final say on approving proposed projects and would provide periodic recommendations to the Legislature regarding which types of projects should be considered.
The problem with the old program was that it let government use taxpayer money to pick winners from the politically connected. Abbott has wanted the restoration of his economic incentive “carrot” ever since it expired. The new law even creates another level of politicos for businesses to suck up to get tax rebate goodies, and I bet competition to get assigned to that new “oversite committee” will be fierce.
The old program probably did incentivize a few edge-case businesses to move to Texas who wouldn’t otherwise, but Texas’ low-tax, low-cost and business-friendly regulatory environment already provides plenty of incentives to move here, as evidenced by the fact that businesses kept relocating here even in their absence.
At least there’s one improvement in the new version: “After Chapter 313 received much criticism for its funding of “renewable energy” projects, which Texas Scorecard previously examined in an extensive investigation, lawmakers also blocked such industries from receiving taxpayer funding through HB 5.”
Taxpayers are better served by keeping their own money than theoretically enjoying the down-the-line economic benefits of government functionaries showering their money on corporate welfare for businesses willing to do the requisite sucking-up to political figures in order to get paid to move here.
I have an in-process post titled “League of the Boned” in embryonic form, which was going to be about how each country in the League has been screwed by deficit spending, high interest rates and endemic corruption. But there so much boning to write about, and so many members of the League, that I thought it best to split it up into individual posts.
First up is Turkey, not because it’s the most boned, but the one whose immediate boning is made more acute by recent events, namely Recep Tayyip Erdogan’s reelection.
Recep Tayyip Erdogan’s supporters are celebrating after Turkey’s long-time president won Sunday’s vote, securing another five years in power.
“The entire nation of 85 million won,” he told cheering crowds outside his enormous palace on the edge of Ankara.
But his call for unity sounded hollow as he ridiculed his opponent Kemal Kilicdaroglu – and took aim at a jailed Kurdish leader and the LGBT community.
The opposition leader denounced “the most unfair election in recent years”.
Mr Kilicdaroglu said the president’s political party had mobilised all the means of the state against him and he did not explicitly admit defeat.
International observers said on Monday that, as with the first round on 14 May, media bias and limits to freedom of expression had “created an unlevel playing field, and contributed to an unjustified advantage” for Mr Erdogan.
President Erdogan ended with just over 52% of the vote, based on near-complete unofficial results. Almost half the electorate in this deeply polarised country did not back his authoritarian vision of Turkey.
Ultimately, Mr Kilicdaroglu was no match for the well-drilled Erdogan campaign, even if he took the president to a run-off second round for the first time since the post was made directly elected in 2014.
But he barely dented his rival’s first-round lead, falling more than two million votes behind.
Snip.
The president admitted that tackling inflation was Turkey’s most urgent issue.
The question is whether he is prepared to take the necessary measures to do so. At an annual rate of almost 44%, inflation seeps into everyone’s lives.
The cost of food, rent and other everyday goods has soared, exacerbated by Mr Erdogan’s refusal to observe orthodox economic policy and raise interest rates.
The Turkish lira has hit record lows against the dollar and the central bank has struggled to meet surging demand for foreign currency.
“If they continue with low interest rates, as Erdogan has signalled, the only other option is stricter capital controls,” warns Selva Demiralp, professor of economics at Koc university in Istanbul.
Tiny problem: Strict capital controls tend not to work. By the standards of the Middle East, Turkey is fairly open and fairly modern, and getting around currency controls is one of the use cases that cryptocurrencies are ideal for.
Indeed, the currency problem is so severe that Turkey’s foreign currency reserves just turned negative.
The Turkish central bank’s net forex reserves dropped into negative territory for the first time since 2002, standing at $-151.3 million on May 19, as the bank – following Erdogan’s strict orders – scrambled to counter demand for hard currencies (USD, gold, crypto) ahead of Sunday’s runoff vote.
Forex demand in Turkey surged to record levels ahead of May 14 on companies’ and individuals’ expectations that the lira, which lost 44% in 2021 and 30% in 2022, will plunge after the vote (spoiler alert: those fears have been justified).
As we discussed last week, the central bank’s forex reserves have sagged in recent years due to costly market interventions and other efforts to cool forex demand. The bank’s net reserves dropped by $2.48 billion in the week to May 19, to their lowest level since February 2002. They have dropped $27.7 billion since the end of 2022, and were at negative $3 billion as of May 19. The net forex reserves would be even more negative if outstanding swaps, courtesy of foreign central banks and which stood at $33.50 billion on Wednesday, are deducted (as they should be since the CBRT will have to repay these at some point).
And while the endgame here is clear to all, few are willing to say it out loud for fear of retaliation by the Erdogan regime (no really, he has been known to throw people in jail for recommending a Turkish lira short); yet one bank which decided to double down on Goldman’s dire view of how it all plays out is Morgan Stanley, which in a note last week (available to pro subscribers in the usual place), wrote that the turkish lira plummeting to 28 by the end of the year, is likely in the cards (in our view, that’s a rather optimistic take since the lira is about to become the new Bolivar where soon new zeroes are added daily if not hourly).
This is, I think, a bit of an exaggeration, since Turkey is a much bigger and more important country (and economy) than Venezuela, and while they’ve done several terribly stupid things with their economy, they haven’t gone full socialist starvation scenario on it.
The biggest concern when Erdogan came to party was his Islamist roots, and how he dismantled Turkey’s own peculiar systems of checks and balances, namely that anytime the government would move too far in an Islamist direction, the military would step in, depose the current government, rule for a while, and then step down once things had calmed down again. That doesn’t look very much like classic western democracy, but it served well enough for Turkey, partially insulating it from the wild swings between different despots common in the rest of the Islamic world.
The bad news is that Erdogan demolished those checks and balances in his drive to centralize power in his own hands, purging the military of anyone he thought might possibly oppose him. The good news is that, after all that, he turned out to mostly be a typical Middle Eastern strongman rather than a fervent jihadi. The bad news is that he’s also a complete economic ignoramus, and his stupidity is making Turkey’s economic problems much worse.
Here Patrick Boyle explains just how stupid:
On Erdogan’s idea that low-interest rates can cure inflation: “The official annual inflation rate in Turkey was 43.7% as of April. This is actually down from the 80% inflation rate that Turkey saw the prior year. There is no guarantee that this slowdown will persist. There is in fact widespread suspicion that the official numbers understate an inflation rate that according to independent experts is actually closer to 100%.”
The February earthquakes didn’t help.
“Another term for President Erdoğan would likely imply a continuation of the current policies with a heightened risk of persistent very high inflation and severe currency pressures.”
“The high inflation, along with government largess and efforts to prop up the currency are threatening economic growth and could push the country into a deep recession.”
The Lira is trading near record lows against the dollar.
“Net foreign assets, a proxy for the size of Turkey’s foreign currency holdings, have declined to minus $13 billion dollars from $1.4 billion dollars a year ago, according to central bank data.”
“Those figures include billions of dollars in funds borrowed from the domestic banking system through swaps. Pressure on international reserves has been ‘significant in recent weeks’ as the government made efforts to prop up the economy ahead of Sunday’s elections.”
“Turkey’s foreign currency and gold reserves tumbled $17 billion dollars in the six weeks leading up to the first round of the election according to the FT, a decline of 15 percent.”
“Turkey had a painful experience of high and chronic inflation from 1975 through to 2004 caused by political instability, poor institutions, high public sector budget deficits and depreciation of the Turkish Lira which culminated in a severe financial crisis in 2000-2001.”
“The establishment of an independent central bank in 2001, which focused mainly on fighting inflation along with tight fiscal policies implemented at the same time brought inflation under control.”
“During his election campaign, Erdogan showed no intention of changing his policies, doubling down on his claims that low interest rates would help the economy grow by providing cheap credit to increase Turkish manufacturing and exports. ‘You will see as the interest rates go down, so will inflation’ he told supporters in Istanbul in April.”
With the cost-of-living crisis on many voters’ minds, Erdogan launched a range of expensive policies in the lead up to the election aimed at reducing the immediate impact of inflation on voters. He raised the minimum wage repeatedly, announced a free month of natural gas for consumers, reduced electricity prices increased civil servant salaries and changed government policies to allow millions of Turks to receive early government pensions. Just days before the first round of the election He gave a 45% pay rise to 700,000 Turkish public sector workers, saying he would “not let anyone be crushed by inflation”.
So he combated inflation by guaranteeing there would be more inflation, just like Joe Biden.
Boyle thinks Turkeys problems can be solved by adopting sane economic policies. “For a country in crisis, Turkey’s problems are not that difficult to solve – it is not a total basket case economy like some other emerging markets. The country mostly just needs a sensible interest rate policy and an independent central bank. Turkey has a lot of positives, it has a diversified economy, growth is good, it has good demographics and an educated workforce.”
This is true, but it was also true before Erdogan got into power and screwed things up. Peter Zeihan thinks that Turkey has the right mix of geography and demographics to be a future regional power. But there’s an awful difficult present to get through before that happens…
Californians continue to flee the no-longer golden state, and many of them end up in Texas. ABC7 News in the bay area interviewed eight who fled as to why California dreaming has become a nightmare.
Some takeaways:
“In the span of two years, California’s population has dropped by more than a half million people.”
“I was assaulted twice on the BART.”
“I’ve never had a house this large in my life.”
“It is definitely a lower cost of living in Texas.”
“The home that I once remembered and knew back in the 1980s and the 1990s, a lot of that’s gone now.”
“Home prices are lower [in Texas], and there’s plenty of job opportunities.”
The former mayor of Ventura, CA moved to Texas in 2014. “One of the things I greatly fear about Venture and elsewhere in coastal California is that it’s not a place for everybody anymore, and especially not a place for young families. It’s a place basically where older, affluent people now live. And I think something has really been lost there.”
“Home prices in Texas cost less than half of homes in California. U.S. Census Bureau numbers show that the middle and lower classes are leaving California at a higher rate than the wealthy.”
“Many who have left in recent years say they simply couldn’t afford to stay.”
A mother with six kids says it’s simply impossible to afford a house large enough in California. “I feel like the California Dream was the American Dream in my grandparents’ and parents’ era. That’s just not possible for our generation to live that American Dream in that state anymore. It’s so expensive that you’re struggling every month just to get by and pay your rent and your mortgage and put food on the table.”
Food truck owner: “The reason why I left California, honestly, is just the cost. The cost of living, the cost of running a business, regulations.”
Mention of the Move to Texas Facebook group for Californians looking to get the hell out of their failing state.
“Some people are moving to Texas because of their conservative values.”
” It seems that the environment, politically in California, has just been a one-party rule. Republicans have done absolutely nothing to change anything in any way, it seems to me. They’ve been cowardly about it.”
“It’s very sad in Contra Costa County. You can’t even be conservative. You kinda have to hide if you’re conservative almost.”
Man whose family moved to California from South Korea in the 1970s: “Unfortunately my parent’s grocery stores were burned down in the L.A. riots, two of them, near Koreatown. And so that was, you know, quite a traumatic experience for my family.”
“I definitely think [California] is mismanaged. We moved primarily because of the crime. And, for me, it was not only the crime but also, you know, the amount of homelessness, needles. I was assaulted twice on the BART. Those particular assaults I really do think it had to do with the same kind of violence that I saw in the Bay Area towards Asian Americans.”
“I miss the ocean but not enough to move back.”
What would it take to move back to California? “Number one, the whole state would have to clean up. Get some of those rotten politicians. Be tough on crime again, like you should. People’s attitudes would just have to change. But for the most part, I really am happy here.”
“My commute is seven minutes to work.”
“Yeah, we definitely have not even contemplated moving back. We are just really happy out here.”
One party Democratic rule has hollowed out the state of California, and the people Democrats used to claim to represent (the working poor and the middle class) are the ones most harmed by the graft, corruption, incompetence, and radical social justice-engendered spiraling crime rates.
Until that changes, expect people to continue to flee California.
Turns out at least one city employee involved in the contract was all but handing the money to himself.
All the evidence indicates this is was almost certainly an inside job.
It certainly appears that at least one City of Austin employee colluded or communicated with friends and business associates to secure lucrative seven figure contracts.
Despite being grossly unqualified and totally inexperienced for the job.
It also seems like ICCS Academy is lying about a bunch of stuff on their bid submission.
Snip.
Believe it or not, the ICCS Academy bidding process raises even more red flags than P Squared Services.
There are two City of Austin employees listed as “authorized contacts” for Item 23.
Sandra Wirtanen
John Wesley Smith
This screenshot shows John Wesley Smith is the “Small Minority Business Resources” contact for this proposal.
Guess where John Wesley Smith used to work as the ‘Compliance Director’ before he started working for Austin city government?
ICCS Academy!
Can you imagine a bigger conflict of interest?
Maybe that’s why ICCS Academy yanked their website yesterday (link).
However, this snippet on DuckDuckGo still appears when you search for ‘John Wesley Smith ICCS Academy’
John Wesley Smith was the Compliance Director for ICCS Academy.
His bio states he also works as a “Small Business Counselor with the City of Austin”.
Snip.
QUESTION: Shouldn’t John Wesley Smith have immediately recused himself from the bidding and contract negotiation process for Item 23, due to his massive conflict of interest as the current / former Compliance Director for ICCS Academy?
Massive Conflict of Interest
Gee, I wonder how the other eight companies who submitted bid proposals for Item 23 feel about the former Compliance director of ICCS Academy overseeing the bidding process, and awarding a $7 million contract to his former colleagues?
John Wesley Smith was definitely the Compliance Director for ICCS Academy at one point in time.
Whether that was two weeks, two months or two years ago – it doesn’t matter.
John Wesley Smith should have removed himself from this project due to the awful optics and huge conflict of interest.
John Wesley Smith’s LinkedIn profile shows his current role with Austin city government is “Business Development Coordinator II”.
John Wesley Smith says he’s in charge of “negotiating contractual agreements for the City of Austin” and is “responsible for various minority/women procurements.”
Huh.
For the record, ICCS Academy is currently a registered vendor with the city of Austin.
However, all of their ‘certified commodities’ are in education, training and consulting.
So a training vendor gets picked to do homeless site cleanup despite no experience in the field because a (former?) employee works for the city and just happens to be able to throw business their way.
How convenient.
If you’ve been reading this blog for a while, you may remember that the entire reimagining police lunacy was all about social justice warriors saying time and time again “take money from the police and give it to us.” There’s an entire industry of social justice grifters (both in homelessness and every other social justice cause) whose entire existence is dedicated to making life for average citizens worse while sucking as much money as possible from taxpayers. You can bet that this is far from the first time such self-dealing has occurred, and I bet forensic audits of both city contracts and the “nonprofit” entities that receive them would reveal numerous example of quid pro quo kickbacks.
Again, kudos to Teddy Brosevelt (whoever he may be) for peeling back the lid of Austin’s social justice warrior corruption problem.
Remember Austin’s scheme to hand millions to the homeless industrial complex to clean up the mess they created, and the shady, recently-created “P Squared Services, LLC” they picked to give $1.7 million to?
That attracted so much attention that that particular piece of graft is now off the table:
Kudos to blogger Teddy Brosevelt (I’m going to go out on a limb and guess that’s a pseudonym) and Austin City Council member Mackenzie Kelly for killing this giant bucket of graft.
The decline of California under one-party Democrat rule has been one of the long-running themes of this blog. Today Victor Davis Hanson discusses how California’s wealthy destroyed the middle class with policies whose baleful effects they knew wouldn’t fall on them.
“The irony is that, as we created more wealth and more leisure, because of the very success of the middle class citizen, the middle class citizen and his central role in western government was forgotten.”
“California in the 1960s had the largest middle class in the United States. California had the finest educational system. California invented the idea of a modern freeway and a modern airport.”
“California had a state where two-thirds of the people lived with one-third of the precipitation, and yet they built the greatest transference of water with reservoirs and aqueducts the world had ever seen.”
“California had the most successful oil, timber and mineral industries in the world. They had some of the finest universities…Again this was a product of, both democratic governors and Republican governors.”
“However, today when we look at California, it’s got the highest number of homeless people in the United States. Half of all of America’s homeless live in California.”
“One-third of all the welfare recipients in the United States live in California. One-fifth of all Californians live below the poverty line.”
“California yet has the highest taxes in the country in the aggregate, the highest property taxes because of the enormous assessed evaluations…highest sales tax at over 10 to 11%, highest income tax at up to 13.2%.”
“The result of all of that that is is the middle class finds itself unable to pay and be competitive with other businesses in other states.”
“They look at all of these higher taxes, and they say themselves ‘I’m willing to pay it if I’m economically viable,’ but the regulations that the state creates fall heavily on the small farmer, the hardware store owner, the tire [store?] owner, but not necessarily on the Silicon Valley corporation that has an array of lawyers, or legal teams, or analysts, or economists, that find ways not to pay it.
“And so the middle class leaves, they vote with their feet they go to places where it’s more conducive for middle class livelihoods. We’ve lost somewhere between 8 and 12 million people of the middle class.”
At the same time, America has allowed in 20 million illegal aliens, half of which have ended up in California.
“We have not built an aqueduct in California in about 40 years. The schools that were rated in the top 10 percent of comparative state rankings are now in the bottom 10 percent. The airports are decrepit.”
“That the more taxes I pay, the worse schools I get.”
“In this period, there was about five trillion dollars in market capitalization that grew out of Silicon Valley alone. And we created sort of a medieval caste, a wealthy caste of Barons and Lords that were not subject to the consequences of their own ideology. So they had so much wealth they felt they were exempt from worries about taxation.”
“We created a very, very wealthy elite that was not subject to the consequences of their own ideology.”
Whether out of virtue signaling and guilt, or whether out of contrived political necessity, they made a political alliance with the very poor of California. And the poor said “Give us more entitlements, tax the middle class, transfer that money to us we need it.” And the wealthy said “Yes, we will open the borders. We’ll transfer money, but you have to vote for issues that we’re in favor of. And we’re in favor of them precisely because they don’t affect us.”
And of course, the left’s disdain for the middle class shows up in their language: They’re the “bitter clingers,” the “deplorables,” the “chumps and dregs of society.”
“Muscular labor was no longer essential to the American experiment. In other words, you could make have things made overseas in China or southeast Asia or Mexico. And the great middle class territory of the middle west of the United States—Michigan, Ohio, Illinois, Indiana—started to become hollowed out.”
“We’ve taken the middle class, the backbone of citizenship, and we’ve eroded it and destroyed it.”
Rep. Gary Gates (R-Richmond) took to the back microphone this week to make the case for greater regulation of a controversial state program offering millions in tax exemptions to developers for affordable housing.
One of several lawmakers to propose reforms to the Public Facility Corporation (PFC) program, Gates had introduced a reform bill with tough standards, but allegedly former Speaker Dennis Bonnen repeatedly pressured him to drop his proposals.
Gates told The Texan he was urged by Bonnen to sign on to arguably weaker reforms authored by Rep. Jacy Jetton (R-Richmond) — House Bill (HB) 2071 — and warned that although his own legislation had been approved by the House Committee on Urban Affairs, it would be killed in the powerful Calendars Committee.
Instead, Gates successfully tacked on multiple amendments to HB 2071 during Tuesday’s floor session.
“I’m pleased with these amendments, but I still have my own PFC reform bill, HB 3568, which I hope to get to the floor in short order. It has 69 authors and co-authors, while HB 2071 had only 10.”
Under the PFC program, local government officials may offer a 100 percent tax exemption to developers who build or purchase multifamily housing, as long as some rental units are set aside for “affordable” reduced rent. But both Jetton and Gates acknowledged there have been abuses of the system; in some cases, PFCs have been authorized with only 10 percent of units designated for low-income families.
On the House floor, Gates queried Jetton about whether his reforms set new minimum standards and noted that the current system took tax revenue from public school districts without their approval. He also pointed out that in some cases developers were already charging below-market rents before transitioning to PFC status and were therefore not obligated to demonstrate a public benefit.
“This is hurting our schools, this is hurting our counties and our cities,” said Gates. “This [tax revenue] is being taken from our fire departments, our police departments, our neighborhood schools. They are getting their taxes wiped out and we can’t determine if there’s any public benefit.”
In response to Gates’ questions, Jetton acknowledged that other taxpayers or the state’s general funds would have to make up the loss in revenue to school districts.
Gates’ first proposed amendment, opposed by Jetton, mandates that 60 percent of the developer’s tax savings must be dedicated to reducing rents. It was approved in a bipartisan vote of 87 to 54, with two members registered as “present, not voting.”
Under the formula, 12 percent of units must be set aside for those earning 50 percent of the Area Median Income (AMI), 12 percent for those at 60 percent AMI, and 12 percent at 80 percent AMI.
After the House voted for a second Gates amendment requiring approval from counties and school districts for any new PFCs, Jetton gave up his opposition and accepted four more revisions as friendly amendments.
Noting that some PFCs had been granted 100 percent sales and property tax exemptions for up to 99 years, Gates also questioned Jetton about HB 2071’s language setting a minimum tax exemption period of 10 years while removing even the 99-year limit.
Among revisions accepted by Jetton, the tax-exempt status will be limited to 12 years for new construction and 10 years for the conversion of existing properties.
So one cheer for Gary Gates for getting rid of a tax kickback.
Ideally, government should get entirely out of the business of giving different types of tax breaks for different rental housing. Get out of regulating any but the most essential safety and business standards and let the free market come up with solutions. The main obstacles to building actual affordable housing are too many regulations, not too few.
But we shouldn’t disdain even baby steps of reform in the right direction.
House Speaker Kevin McCarthy has laid out the devastating results of runaway government spending on the middle class and why it’s so important to claw back lost ground for the average American, who has “received a pay cut for 24 consecutive months … as inflation has persisted.”
He also noted the average American family has lost the equivalent of more than $7,000 in annual income.
There is a direct link between spending, borrowing and printing trillions of dollars, and these disastrous results for Americans.
President Biden has spent trillions of dollars the nation didn’t have.
These unchecked costs drove the deficit to record highs and pushed the debt over $31 trillion.
A former Connecticut Planned Parenthood honcho took his own life days after police failed to arrest him on child pornography charges — botching the raid by knocking down the door of the suspect’s New Haven neighbor.
Tim Yergeau, 36, the former director of strategic communications at the Southern New England branch of Planned Parenthood, died by suicide on Tuesday amid a child pornography investigation in Connecticut last week.
The Biden administration on Thursday unveiled a proposal that would prohibit schools from instituting policies that “categorically ban transgender students from participating on sports teams consistent with their gender identity.” The policy would allow schools to implement certain limitations in the interest of fairness or safety, however.
The proposed rule, which would impact any school or college that receives federal funding, would expand Title IX protections to include gender identity. Under the proposal, a “one-size-fits-all” ban on transgender athletes playing on teams that match their stated gender identity would be a violation of Title IX. The rule, which is likely to face challenges, will face a lengthy approval process.
This is, in fact, the exact opposite of the text of Title IX, which provides special protection for biological women, not men pretending to be women.
Under the radar, a package of bills is ramming through sweeping changes that will reorient our public schools around a new paradigm — subordinating academic basics to an obsessive, politicized preoccupation with race and social justice activism.
“Critical Social Justice” ideology (CSJ) — the vehicle for manipulating our young people into adopting this worldview — is laced strategically through a variety of bills, including “ethnic studies” (HF 1502), “Teachers of Color” (HF 320) and now the House and Senate omnibus education bills (HF 2497/SF 2684).
Taken together, this legislation will inject reductive, racialized thinking into every classroom in Minnesota’s approximately 500 school districts and charter schools; change the fundamental mechanics of education in our state; and give the Minnesota Department of Education (MDE) and the Professional Educator Licensing and Standards Board (PELSB) broad new powers that amount to an end-run around our state’s hallowed tradition of local control.
Here’s a story I missed earlier: “Kazakhstan Impounds Property of Roscosmos Subsidiary.” That’s the Russian company that’s the main operator of Baikonur spaceport. Haven’t seen any resolution to this, mainly because Russia is so broke thanks to mismanagement, sanctions, and an illegal war of territorial aggression.
Jay Leno drives the 1,025 horsepower 2023 Dodge Challenger SRT Demon 170. I have an irrational desire to own something with a Hellcat engine, which I need like I need a hole in my head. Plus I like the look of the Shelby GT-500 Mustang better, and I’m not buying one of those either.
“Disney has proudly employed sex predators for years, and this act of aggression by DeSantis will force thousands of our proud pedo-American workers to leave the park to stay outside the 1,000-foot radius required by law,” said Disney CEO Bob Iger. “This is tyranny!”
