Commentary Back on Oct. 15 in The Epoch Times, I was one of the first to blame California’s high taxes and regulations for the shortages and clogged ports we’re all suffering, leading to higher prices. On Oct. 21 on CalMatters, Emily Hoeven wrote, “In a Tuesday letter to Newsom, the business groups asked him to declare a state of emergency at the ports. They also demanded he suspend numerous controversial state laws, including one that requires developers to mitigate their projects’ environmental impact and another that forced many companies to reclassify independent workers as employees.” She quoted the 19 business groups, who wrote: “The supply chain crisis at the ports is the inevitable culmination of … a series of state, regional and local mandates forced upon every aspect of the goods movement economy.” There’s actually a theory for this, called the Wedge Model. It was developed by economist Arthur Laffer, who helped design …
The Wedge Model Explains California Shortages and Clogged Ports
October 30, 2021
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