Bankrupt California
No money for crumbling roads, but billions for high-speed rail.

A gallon of regular goes for $5.69 in Calabasas, Calif.


Victor Davis Hanson

I thought of my fellow Californian Energy Secretary Steven Chu last week, when I paid $4.89 a gallon in Gilroy for regular gas — and had to wait in line to get it. The customers were in near revolt, but I wondered against what and whom. I mentioned to one exasperated motorist that there are estimated to be over 20 billion barrels of oil a few miles away, in newly found reserves off the California coast. He thought I was from Mars.

California may face the nation’s largest budget deficit at $16 billion. It may struggle with the nation’s second-highest unemployment rate at 10.6 percent. It will soon vote whether to levy the nation’s highest income and sales taxes, as if to encourage others to join the 2,000-plus high earners who are leaving the state each week. The new taxes will be our way of saying, “Good riddance.” And if California is home to one-third of the nation’s welfare recipients and the largest number of illegal aliens, it is nonetheless apparently happy and thus solidly for Obama, by a +24 percent margin in the latest Field poll. The unemployment rate in my hometown is 16 percent, the per capita income is $16,000 — and I haven’t seen a Romney sticker yet.

Shortly before taking office, Secretary Chu, remember, quipped that he would like to see American gas prices rise to European levels — presumably $9 or $10 a gallon — to discourage driving and thereby lower our carbon footprint. If $50 for half a fill-up is any indication, California is over halfway toward achieving Chu’s dream. If green bicycles are the ultimate aim of our central-planning regulators, then they are making headway. I’ve never seen so many new rural bike riders, though most of them out here in the San Joaquin Valley have a bad habit of riding on the wrong side of the road.

A refinery fire, a power outage, a uniquely Californian gasoline formula, years of regulating refineries into stasis — all that has finally caught up with the state, as prices soar at the pump. Yet what perplexes about California in extremis is the liberal ability for our state government simply to ignore its own regulations, which it has been using to paralyze businesses for years. For example, a panicked Governor Brown just asked the state air-resources board to suspend the law that requires gas stations to sell our special summer fuel formula through the month of October. The state asserted that a one-time suspension would increase supplies and yet not materially affect our air quality — which begs the question: Why, if that is true, would such a regulation have been passed in the first place?

California has the nation’s highest gas taxes and fuel prices, and the tightest supplies — and reputedly one of the worst-maintained infrastructures, with out-of-date, overcrowded, and poorly maintained freeways. When I head home each week from Palo Alto, I feel like an Odysseus fighting modern-day Lotus Eaters, Cyclopes, and Laestrygonians to reach Ithaka, wondering what obstacle will sidetrack me this trip — huge potholes, entire sections of the freeway reduced to one lane, or various poorly marked detours? If the nation’s highest gas taxes give us all that, what might the lowest bring?

Although the state is facing a $16 billion annual budgetary shortfall, Governor Brown is determined to press ahead with high-speed rail — estimated to cost eventually over $200 billion. Such is his zeal that he intends to override the environmental lawsuits that usually stymie private projects for years. The line is scheduled to pass a few miles from my farm, its first link connecting Fresno and Corcoran, home to the state prison that houses Charles Manson.

Yet a money-losing Amtrak line already connects Fresno and Corcoran. I often ride my bike near the tracks and notice the half-empty cars that zoom by. Most farmers here are perplexed about why the state would wish to borrow billions and destroy thousands of acres of prime farm land to duplicate this little-traveled link. Support for high-speed rail is strongest in the San Francisco Bay Area, but there is no support for beginning the project where the noise and dirty reality might be too close to home for green utopians.


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