Policies That Inhibit Markets Are Wrong Whether Blue Or Red
Florida has become an economic powerhouse in the last few years. It’s GDP is number 4 in the U.S. behind California, Texas, and New York.
Much of that is due to the past pro-growth policies of the state. However, I see trouble ahead not because of the basics but rather political decisions being made to curtail economic freedoms. These policies to further political ideology can result in the same lost vitality that the Northeast has endured.
In the case of states such as New York or Connecticut, it was because of increasing taxation and economic restrictions on the markets. It was the fuzzy thinking of saddling the private sector with social policy after social policy. In the past few years, Florida has begun to follow suit in this regard with policies that reflect current Republican ideas and values.
While heavily Democratic states hamstring business with things like rent control, the very red state of Florida has recently used the pretense of “woke” social policy correction to tell business the state may not view them favorably. Look at the recent banning of lab-grown meat. That is nothing more than government trying to influence a nascent industry to fail.
DeSantis began this quest to tailor businesses to his liking during the pandemic by deciding that they didn’t get a say in what goes on and what rules apply within their offices or stores. Then because Disney complained about a policy, DeSantis decided to strip them of their governing district. The message that was sent to other businesses was that a deal with Florida is not worth much.
In the last session of the legislature, a bill was passed and signed by the governor, forbidding Chinese nationals from buying homes if they are within a certain distance of a military installation, airport, refineries, and other “sensitive” establishments. As the governor stated, “Today, Florida makes it very clear: We don’t want the C.C.P. in the Sunshine State.”
In no instance did the government of China buy any real estate that was mentioned. Most of those people targeted are either investors or long-term U.S. residents. The law just doesn’t affect Chinese nationals but also restricts those from Iran, Russia, North Korea, Cuba, Venezuela, and Syria.
Whether or not it is constitutional will be determined by the courts in the next few years. However, in the meantime, a source of funding of real estate projects has dried up for no explainable reason. National security experts know of no threats posed by any Chinese national in owning a home or financing the construction of a condo building.
When you begin singling out entire groups for exclusion, there is bound to be discrimination. The Chinese have been migrating to this country since the 1840s. How many Americans will be discriminated against because their last name is Li and are fifth generation American citizens?
It seems no one is asking what a law like this is supposed to prevent. Whether it is an apartment or a farm, the property cannot be exported. One could say the farmland could remain fallow but how much of an overall threat would that be?
What is the point that laws like this make? It isn’t economic since it shrinks the available market and does not enlarge it. Is the State of Florida holding our economy hostage to score political points? What is the difference between a deep blue state passing a bill to curtail a market in one direction and a red state doing it for another?
Florida may miss its chance to be the cradle of wealth for the U.S. People flee or never come to a place for many reasons. DeSantis and the legislature are giving certain ethnic groups a reason to never bring their money to the table.
