Schwarzenegger

On Tuesday, the electorate of California, the most populous state in the Union, voted to reject five out of six budget proposals. Propositions 1A-1E were an attempt by Governor Schwarzenegger to reduce the budget deficit by cutting the funding to certain programs, whilst at the same time raising taxes in the short term. The only proposition that did pass, 1F, puts a cap on the level of politicians’ pay increases during down years. It seems to me that this was clearly meant as a sop to the electorate, a bid to get them to accept the rest of the package by making people feel as if the politicians are also sharing in the economic hardship and are willing to make sacrifices themselves. This is all well and good, but there are dangers inherent in underpaying politicians; either you remove an incentive for the most talented people to enter public service, or you open the door for politicians making money by less honest means. Read more