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Politicians are incentivized to pass more bills to show they are "doing something." However, this constant addition of regulation and process often makes issues like housing and education more expensive and complex, demonstrating a paradox where less government intervention could yield better results.
The failure of government systems isn't a 'set it and forget it' problem. Rather, it's a 'set it and accrete' problem. New rules, processes, and technologies are continuously layered on top of old ones for decades without ever subtracting anything, resulting in unmanageable, brittle systems.
Adam Carolla argues that the time and expense of navigating regulations, like those from California's Coastal Commission, are so prohibitive that many people simply give up on building projects altogether, even on their own property. The bureaucratic friction outweighs the desire to build.
A paradoxical market reality is that sectors with heavy government involvement, like healthcare and education, experience skyrocketing costs. In contrast, less-regulated, technology-driven sectors see prices consistently fall, suggesting a correlation between intervention and price inflation.
Success in Sacramento is often measured by legislative activity—the number of bills passed—rather than tangible outcomes for citizens. This "performative politics" creates a system that generates a lot of activity but lacks a feedback loop for real-world impact and accountability.
Runaway costs in education, housing, and healthcare stem from government intervention. When the government promises to provide a service (e.g., student loans), it becomes a massive "buy-only" force with no price sensitivity, eliminating natural market forces and causing costs to balloon.
Politicians favor demand-side housing policies because it's easier to blame a villain (e.g., corporations) and offer a quick fix (e.g., lower rates). Addressing the root cause—a lack of supply—is a slow, multi-year process that doesn't fit into election cycles.
Decades of well-intentioned regulations—for environmental, labor, and community engagement—have accumulated into a bureaucratic 'cruft'. While each rule is justifiable in isolation, their cumulative effect has hobbled government, making it unable to efficiently deliver basic services like housing.
Every negative news story creates a legislative impulse to add more rules for safety. This "safetyism" leads to layers of process and bureaucracy that ultimately hinder progress. It's a politically safe way for legislators to appear active without being accountable for actual outcomes.
Despite a $150 billion state budget increase over six years, California has seen no corresponding improvement in critical areas like housing, education, or safety. This points to a systemic lack of accountability and misaligned incentives, not a lack of money.
Billions are lost on projects like high-speed rail not to a single thief, but to a sprawling "cottage industry" of consultants, lawyers, and endless reviews. This system creates paralysis, where immense spending on many small groups yields no tangible outcomes.