I have often said that there is a formula to many government actions;
- Pass a law/regulation, etc. with (we hope) the best of intentions. These new laws/regulations are designed to meet some real or imagined need, desire, request either made by some special interest group or political goal. Seldom are they passed at the request of the average citizen who is too busy trying to exist and move ahead with their lives.
- The new program is instituted and funded and of course, new government employees improve the original idea which was found to be of such great importance to society.
- Typically, the new governmental department or agency finds that the original goal is much more complex than expected and so studies must be made, which of course, demands time and money. Or it is found that the new regulations as laid out by the new department do not really address or solve the original goal, but the agency does find other areas where it can “help” the average citizen.
- With a new purpose or idea, the agency goes back to its source of funds (typically the Congress, State Assembly, City Council, etc.) and asks for additional funds to correct the problems caused by its own actions and to expand the scope of its work.
In other words, a problem is found, a solution is provided, it is found that the solution only made the problem worse and to correct the problem it has created, more money must be spent to correct its own bad actions.
This is being worked out by my local level of government, the City Council of Long Beach California. The problem is that Measure MA was approved by the voters in 2016. This allowed the legal sale of marijuana and the city put in place certain rules/regulations to monitor and capitalize on said sales. The problem was that the rules/regulations were both complex and expensive for those who were going to be granted a license to sell the drug. In fact, they were so complex and expensive that one of the goals of the original Measure was made worse; instead of eliminating the illegal sale of the drug, it has made the sale from illegal dealers larger. The illegal sale of the drug is estimated to be at least three times larger than the legal sales. This means that the city is not receiving all the money from the legal sales of a drug which magically became legal and encouraged by the same government that had previously seen the drug as something illegal. When the expected tax revenue is not realized, you can count on the government to do something about it.
An ordinary person might believe that if the rules/regulations/taxes are too high to create a good business, the simple answer would be to re-examine the rules/regulations/taxes which are creating the problem. One might even suggest letting individuals with real business experience do the work as at least they know how to live within a budget and actually create something that is viable and productive. No, that would be far too simple and logical.
In its wisdom, the City Council has decided that the solution is to offer the now legal drug dealers a tax reduction if they can abide by additional rules which will increase their cost of doing business at a rate which is theoretically lower than the amount of tax reduction. Brilliant! Everyone in business knows that increased regulations, especially those which increase fixed costs, are the sure way to increased profits. Not to worry, as if the tax revenue to the city does not increase thanks to this solution, I am sure the City Council will have mor great ideas how to fix the problem.
And, just to show that they have their best thinking caps on, the City Council is putting its best Woke foot forward by ensuring that equity in drug dealerships will be reached. You can apply if you are unemployed and are poor. Of course, where you are going to get the capital for your business is not included in the new idea, nor is the question of what landlord will want to accept a drug dealer who most likely has no independent business experience and little money. Unless of course, the new drug dealer has a secret partner who is funding the new business. Sounds like a strategy for success to me.












