Crony capitalism at the “happiest place on earth”

DisneylandEvery year, millions of families flock to the city of Anaheim to make their dreams come true at Disneyland. On the surface, this seems like a slam dunk for Anaheim. The incredible number of tourists should turn the city into an economic wellspring. However, this hasn’t been the case. In the 60 years of Disneyland’s existence, the per capita income of Anaheim residents has decreased substantially, now 10 percent below the state average. That’s because the relationship between the city government and the Walt Disney Company, ultimately, embodies crony capitalism — favoring the company’s interests at the expense of Anaheim’s residents.

It’s no surprise given Disneyland’s geographical dominance of Anaheim that they are also heavily tied to the city’s political scene. Throughout the years, Disney has continually contributed millions of dollars to local politicians to fight on their behalf. In 2014, Disney poured at least $671,000 into political action committees financing city council candidates.

Last year, Councilwoman Kris Murray, a beneficiary of this political spending, led the campaign for a gate-tax ban for Disneyland. Under this plan, Disneyland is exempt from all ticket taxes so long as they expand by $1 billion dollars over the next 30 years. However, there was nothing to indicate that Disneyland wasn’t already seeking to expand. In order to compete with Universal Hollywood and other surrounding attractions, improvements and expansion were a must. This deal, championed by Murray, was a huge win for Disney.

Other entertainment venues haven’t benefited to the extent that Disneyland has. Movie theaters, concert venues and other private entertainment spaces are not given exemptions on ticket taxes. Thus, the exemption for Disneyland is a clear example of favoritism for a company that helps fund the campaigns of the lawmakers themselves.

In addition to the massive gate-tax ban, Disney has recently requested the largest tax subsidy in Anaheim history. Under the city’s hotel incentive program enacted in 2013, all new “luxury” hotels are eligible to receive a 70 percent rebate on all transient occupancy taxes. Once again, this law seems narrowly tailored to include Disney and a few other wealthy proprietors. Disney has been in the works to build a new luxury hotel and has requested that this new property be eligible for the subsidy, which is worth well over $200 million. Clearly, Disney does not need city money for their projects, as they are more than capable of funding their projects privately. However,  the request has been honored under the current subsidy program.

Finally, Disney has also interfered with a proposed streetcar design in Anaheim by artificially raising its installation cost. Even though the original design was only about 3.2 miles long, its estimated cost sat at around $319 million (or about $100 million per mile). Disney would like the opportunity to expand their resort and attractions, which is only a possibility if cars are taken off the road. Disney wants a streetcar system that doesn’t disturb the park aesthetic and caters to their infrastructure, once again pushing the costs higher.

Not only are these extraneous costs unnecessary, but there isn’t even a market for additional public transportation in Anaheim. ARTIC ridership (the local public transit), has continually fallen well below daily projections. In fact, this proposal brings no notable improvement to the lives of Anaheim residents. Still, Disney continually pushed the streetcar costs astronomically high in order to cater to their needs.

Disney and the city of Anaheim share extremely close ties. The subsequent effect of this relationship has been an increase in subsidies and special privileges for Disneyland at the expense of Anaheim. Crony capitalism abounds in the city of Anaheim, and its residents have suffered as a result.

Matt Smith is a fellow in public policy at the California Policy Center in Tustin, California. He is a graduate of Baylor University, and is currently an M.A. candidate at Princeton Seminary with a specialization in Religion and Society. In addition, he is visiting a student in the Princeton University Politics Department doctoral program.

Jerry Brown Sold Out

Jerry Brown, the one-time progressive icon who palled around with paladins of the progressive movement like Noam Chomsky, has sold out.

Corporate sell-out might be the worst possible insult to any radical activist, but especially to a former bleeding-heart liberal who famously urged his father to spare the life of a man on death row. Yet, it’s an entirely accurate way to describe Brown’s political transformation from liberal icon to big-money politician. And, although he’s going to easily cruise to re-election in just a week or so, Brown’s victory, funded by the big corporations liberals love to hate, should serve as a devastating blow to the “ethos” (meaning “character” in Greek) of the progressive movement.

Just two decades ago, when Brown was campaigning for the White House, he swore off big money, or what he described as “the money-media system of control.”

“Having been so much a part of that system, I had not fully grasped the radical dominance of politics by the top one percent and the complicit role of the media,” Brown wrote in the early-1990s. “All this became clear once I swore off donations above $100 and refused to attend the sacred rite of end-less political fund raising with the wealthy.”

This year, Brown’s eschewed public events have relied exclusively on “the sacred rite of end-less political fund raising with the wealthy.” According to state campaign finance disclosure reports, Brown hauled in more than $17 million directly into his reelection campaign account. More than 500 contributions to Brown’s campaign are for $10,000 or more. Just 120 checks are valued at $100 or less. The average contribution to Brown’s campaign, $15,404, is owed largely to the max-out checks from a “who’s who” of the 1 percent.

There’s more than $300,000 from energy companies, including $54,400 from Chevron, $27,200 from Occidental Petroleum, $25,000 from Phillips 66 and $10,000 Exxon Mobil. Add $373,000 from gambling interests and another $300,000 from financial firms and insurance companies, both of which liberals criticize for profiting from the poor. Brown has cashed $27,200 checks from both Coke and Pepsi, or as progressives describe them, the “Big Soda” industry that causes diabetes.

At one time, Brown decried the “Disneyfication of existence.” Disney’s family-friendly entertainment was, in Brown’s view, all a ruse to “create a perfect, corporate reality” where the masses could be “infantilized and soothed.” But the last year alone, Brown has taken home $53,900 in political contributions from the Mickey Mouse evil-empire.

“Money buys media,” Brown used to say, “media buys credibility.” To buy even more media, Brown has turned to millions of dollars in unrestricted campaign contributions to his ballot measure campaign committee. Among the checks to Brown’s initiative committee: $100,000 from tobacco company Philip Morris, $25,000 from oil company Phillips 66, and $100,000 from corporate titan Wal-Mart.

Don’t worry, big labor hasn’t been excluded from the party. The California Teachers Association has supplied $3.7 million to the initiative account under Brown’s control — with $100,000 from the Teamsters and $125,000 from the International Union of Operating Engineers just for good measure.

Brown has spent that money on ads supporting Propositions 1 & 2, which conveniently feature Governor Jerry Brown. Although the ads don’t use the magic words “vote for Brown,” they help construct Brown’s myth of the “California comeback.” In Brown’s words, “When you have a large society you have to… have a certain mythology, you have to prop up the privilege.”

With his mythology as savior of the state intact, Brown has propped up the privilege by handing out special tax breaks to defense contractors, “green” car companies, and Hollywood studios, all while raising taxes on the poor and working class. During Brown’s tenure, California has led the nation in poverty – with 8.9 million people living in poverty. Nearly a quarter of the state lives in the poverty under the leadership of a man who once worked alongside Mother Teresa to help aid the poor.

It all must be quite devastating for true liberals like Noam Chomsky. Brown abandoned progressivism and went corporate. If Jerry can sell out, is there any hope for the progressive movement?

This piece was originally published on The Blaze.

James V. Lacy is the author of “Taxifornia: Liberals’ Laboratory to Bankrupt America.”