FULL EPISODE: The Politics of Pragmatism and the Future of California (Ep. 464)

Maydan advocates for a focused approach on bringing people indoors by rapidly scaling up shelter capacity through modular units and motel conversions. He emphasizes creating dignified, low-barrier alternatives and enforcing laws against public camping when such alternatives are available.

Maydan argues that a wealth tax is impractical due to difficulties in valuing illiquid assets, its potential to trigger capital flight (over a trillion dollars already estimated), and the risk of reducing overall state revenue. He believes it may ultimately burden the middle class if wealthy individuals leave the state.

California has one of the highest tax rates in the country and arguably the most progressive tax structure. The top 1% of earners generate 40-50% of the state's revenue, and the top 3% generate over 70%, indicating a significant reliance on high-income earners.

The crisis is driven by a severe shortage of housing supply leading to unaffordability, a lack of treatment capacity for addiction and mental illness (exacerbated by potent drugs like fentanyl), and the fact that California's mild weather allows people to survive unsheltered, unlike in colder climates that were forced to build more shelter.

Maydan supports mandatory psychiatric holds and addiction treatment when necessary, arguing that the current system's high bar for intervention fails to protect those in severe distress. He believes allowing people to cycle on the streets and die is not compassionate and that intervention, even if it involves temporary restrictions, can be loving.

Building affordable housing is hindered by decades of layered regulations (environmental, labor, historical preservation), complex building codes, traffic impact fees, and importantly, expansive construction defect liability laws that incentivize litigation and make financing difficult, particularly for condos.

While rent control may offer short-term benefits by preventing displacement for those covered, it leads to long-term problems. Landlords may stop maintaining properties, fewer units are built due to lower expected returns, and the market underproduces housing, ultimately making the situation worse and creating less social mobility.

The 'YIMBY' (Yes In My Backyard) movement, driven by young people frustrated with high housing costs, advocates for zoning reform, faster approvals, and reduced construction costs to increase housing supply and affordability.

California's ongoing problems with homelessness, high costs, and dysfunction provide ammunition for critics like Donald Trump, harming the state's reputation and potentially undermining its progressive values in practice. Demonstrating that these values can lead to positive outcomes is crucial for the state and the country.

Maydan acknowledges Newsom's support for interim housing and treatment initiatives but criticizes a lack of execution and policy disagreements, such as opposition to Prop 36. He suggests Newsom may be hesitant to take necessary hard actions due to political pressures and a fear of returning to mass incarceration.

Maydan points to Mississippi's success in achieving high reading proficiency rates with less funding as a benchmark, contrasting it with California's 49% rate. He advocates for implementing evidence-based curricula, like phonics, and holding educators accountable for outcomes, despite potential resistance from teacher unions.