Anybody who knows me will know that I am a champion of Capitalism. My thinking is that there should be no limits or taxes on making more money. By allowing this, the economy attracts and drives productive individuals who eventually spread wealth by best allocating capital. The assumption being that productive individuals allocate capital that generates the most wealth and eventually spreads throughout the population. For example, cell phones were the domain of the rich but now its infrastructure is used by all.
Lately, I feel some flaws in this thinking as pangs of yuppie guilt hit me when seeing the amount of wastage going on here. By far, California is the richest state with Gross State Product clocking in at $1,621,843 million and exceeding second place Texas by over 60%. Incidentally, California GSP exceeds all of Canada’s GDP. So what do Californians do with this wealth?
Perhaps the most interesting sight of wastage was during my walk in Santa Monica near Christmas. Everybody wants a white Christmas, but what happens when living in a place that never snows? The answer provided by the City of Santa Monica is to truck in snow every few hours into the middle of a busy shopping district. There was a moment of disbelief to see children making snowmen and throwing snowballs in near 20c weather. In Beverly Hills, there is a $20,000 mattress for sale. The rationale behind this mattress goes as follows: “You can pay $50,000 for a car and is only used a couple hours in a day. A mattress is used 7-8 hours per day in your life and only costs half that. Hence it’s a good investment”.
Yeah.