CHAPTER 17 LEARNING OBJEC TIVES LO1 List some of the key events in California’s road to statehood. LO2 Describe the impact railroads had on California’s state government. LO3 Identify the underpinnings of the Workingmen’s Party. LO4 Point out the key changes introduced by the Progressives. LO5 Summarize how the Great Depression and World War II changed California’s population and ethnic landscape. LO6 Explain the factors that influenced postwar political party shifts. LO7 Discuss how economic, demographic, and technological changes have impacted California politics. 384 California’s People, Economy, and Politics CALIFORNIA AT ODDS Should California Become Two States? Or Three? ON PODCAST W ith a population likely to reach 40 million by 2015, California is home to more than six times as many people as the average American state. California extends 770 miles north to south. Surely, if the Mayflower had landed on the California coast, California would be a number of much smaller states today. That is not how history worked itself out. Still, Jose Antonio Carrillo, a delegate to the California Constitutional Convention in 1849, argued that California should be split at San Luis Obispo. Carrillo, three times mayor of Los Angeles and a distinguished fighter for Mexico in the Mexican-American War, proposed that the southern part of California should become a territory, while the north could form a state. Carrillo may have hoped to protect the interests of his fellow Californios, that is, Spanish-speaking former Mexican citizens. His proposal went nowhere, however. In the following years, at least 27 different proposals were advanced to divide California into two or more states. Most of these notions evaporated quickly. One of the most durable was the State of Jefferson, which was to include counties from Northern California and Southern Oregon. In 1941, residents on both sides of the border enthusiastically endorsed the project as a way of publicizing the failure of the two states to provide the region with roads and other vital services. America’s entry into World War II put an abrupt end to the campaign. Still the idea of the State of Jefferson lives on, thanks in part to Jefferson Public Radio, a regional public radio network serving Southern Oregon and Northern California. The most recent scheme was advanced following the 2008 elections by Citizens for Saving California Farming Industries. This group advocated detaching 13 coastal counties, extending from Marin to Los Angeles counties, into a new heavily urbanized state that presumably would leave the rest of California alone. The farm group was particularly incensed by the passage of Proposition 2, a measure aimed at guaranteeing humane treatment for farm animals. Of course, the chances of this plan succeeding were no greater than for any earlier plan. Still, if dividing California in two were actually possible, would it be a good idea? California Is Just Too Darn Big C alifornia is too big, too diverse, too divided by competing interest groups to be managed by ordinary mortals, never mind superheros from the movies. State senate districts are larger than the districts used to elect U.S. representatives. How can a state senator possibly keep in touch with his or her constituents, to the degree expected by residents of any other state? What do the citizens of Bakersfield really have in common with the citizens of Marin County? Voters in these regions are not going to want the same kind of state government, nor should they forced to have it. Let’s start by dividing California north-south, with the South getting Santa Barbara, Kern County south of the Tehachapi Mountains, and Inyo County (Owens and Death valleys). San Diego and Imperial counties could reasonably separate from the rest of the South. If ten counties in the San Francisco Bay area and the Wine Country became a fourth new state, the inland farmers could finally be at peace. California would then have eight seats in the U.S. Senate, a much more reasonable representation than today’s meager two senators. Leave Our State Alone D ividing California is a fun topic for talk show hosts, but the idea offends the strong state patriotism felt by millions of Californians. Some say that California is ungovernable. Is the Unites States itself ungovernable, with a population eight times that of California? If California is ungovernable, it is not because of its size but because of its laws. In no other state have the voters, through initiatives and referenda, put so much of the state’s revenue off-limits to the state government. Only two other states require a two-thirds vote of the legislature to pass a simple budget, even one that doesn’t increase taxes. California’s voters created these rules and continue to support them. This may make governing California difficult, but the state would continue to face these challenges even if its population were a fraction of what it is today. WHERE DO YOU STAND? EXPLORE THIS ISSUE ONLINE 1. Do you believe that state government would work better if California were split into two or more states that were more politically and culturally homogeneous? Why or why not? 2. Would it be a good idea if the legislature could pass a budget by a majority vote? Explain your reasoning. • You can find the Web site of a group that wants to divide California at www.downsizeca.com. • For more information on the mythical State of Jefferson, visit Jefferson Public Radio at www.ijpr.org and click on “state of jefferson.” 385 Introduction than 1 percent of California’s population is Native American, and many of them feel alienated from a society that has overwhelmed their peoples, cultures, and traditions. Apart from building missions, the Spaniards did little to develop their faraway possession. Not much changed when Mexico, which included California within its boundaries, declared its independence from Spain in 1822. A few thousand Mexicans quietly raised cattle on vast ranches and continued to build the province’s small towns around their central plazas. C alifornia politics mystifies many of us, not only in California, but around the world. Change seems continual and often unpredictable. Political leaders rise and fall precipitately. The governor and the legislature can’t agree on a budget on schedule. As our state government stalls in gridlock, many issues are referred to the voters, who are often confused by complex, sometimes obscure, ballot measures. Some say this is democracy gone mad; others have concluded that California is ungovernable. But however volatile or dysfunctional California politics may seem, it is serious business that affects us all, and it can be understood by examining the history and present characteristics of our state—especially its changing population and economy. Wave after wave of immigrants has made California a diverse, multicultural society, while new technologies repeatedly transform the state’s economy. The resulting disparate demographic and economic interests compete for the benefits and protections conferred by government and thus shape the state’s politics. But to understand California today—and tomorrow—we need to know a little about its past and about the development of these competing interests. Claiming Independence Meanwhile, expansionist interests in the United States coveted California’s rich lands and access to the Pacific Ocean. When Mexico and the United States went to war over Texas in 1846, Yankee immigrants to California seized the moment and declared independence from Mexico. After the U.S. victory, Mexico surrendered its claim to lands extending from Texas to California. By this time, foreigners already outnumbered Californians of Spanish ancestry 9,000 to 7,500. THE GOLD RUSH In 1848 gold was discovered, and the ’49ers who started arriving the next year brought the non-native population to 264,000 by 1852. Many immigrants came directly from Europe. The first Chinese people also arrived to work in the mines, which yielded more than a billion dollars’ worth of gold in five years. LO1 Colonization, Rebellion, and Statehood T 386 P a r t 6: C a l i f o r n i a P o l i t i c s a n d G o v e r n m e n t The Gold Rush of 1849 lured thousands of people of all colors and creeds. http://www.water.ca.gov/swp/history.cfm he first Californians probably were immigrants like the rest of us who followed. Archaeologists believe that the ancestors of American Indians crossed an ice or land bridge or traveled by sea from Asia to Alaska thousands of years ago and then headed south. Europeans began exploring the California coast in the early 1500s, but colonization didn’t start until 1769, when the Spanish established a string of missions and military outposts. About 300,000 Native Americans were living mostly near the coast at that time. These native Californians were brought to the missions as Catholic converts and workers, but European diseases and the destruction of the native culture reduced their numbers to about 100,000 by 1849. Disease and massacres wiped out entire tribes, and the Indian population continued to diminish throughout the nineteenth century. Today, less How Wild Was the Wild West? When people think of frontier times in the old West, the images that come to mind are largely ones of violence. As the Marshall Tucker Band sang about the California Gold Rush days: “Dance hall girls were the evenin’ treat—empty cartridges and blood lined the gutters of the street. Men were shot down for the sake of fun, or just to hear the noise of their forty-four guns.” But just how wild was the Wild West in reality? The Perception T he California mining communities that were swiftly erected in 1848 and 1849 were filled with young men looking for a chance to get rich quick. As saloons, brothels, and gambling dens opened up, trouble inevitably followed. With no regular courts or officers of the law, disputes were often settled by violence. Before long, informal miners’ courts were organized, but too often these courts favored the powerful and popular at the expense of the week and unpopular. Travel to the mining camps was remarkably peaceful as well. It was dangerous, of course. Thousands of travelers died due to accidents and disease. People starved, fell off horses, drowned, were run over by wagons, or died of dysentery and cholera. Hardly any were killed by fellow travelers or by native Americans. In the West as a whole, many people did carry guns to hunt for food and protect themselves from wild animals. Firearms were banned, however, in many western towns. Larry Schweikart, a conservative historian, once calculated that there were fewer than a dozen bank robberies in the entire frontier West from 1859 to 1900. That’s fewer such robberies than Schweikart’s home of Dayton, Ohio experienced annually. The myth of the lawless West was created while the frontier was still open. Writers in the East made up stories about western criminals for dime novels and other publications. Hollywood later fed the myth, creating legends that would draw customers into the theaters. In reality, most settlers, whether they were miners, cowboys, or farmers, were honest and hardworking. The Reality I n time, federal and state governments caught up with the rapid expansion in population and sent in marshals, sheriffs, and judges to provide a more equitable legal system. Even before the arrival of official law and order, however, the camps quickly evolved rules for establishing mining claims and water rights. A considerable degree of cooperation existed, despite the anarchic conditions. The structure of statehood The surge in population and commerce moved the new Californians to political action. A constitutional convention consisting of forty-eight delegates (only seven of whom were native Californians) threw together the Constitution of 1849 by cutting and pasting from those of existing states, and requested statehood, which the U.S. Congress quickly granted. The constitutional structure of the new state was remarkably similar to what we have today, with a two-house legislature, a supreme court, and an executive branch consisting of a governor, lieutenant governor, controller, attorney general, and superintendent of public instruction. The constitution also included a bill of rights, but only white males were allowed to vote. California’s Chinese, African American, and Native American residents Blog On Buzzle.com hosts a variety of fascinating articles on American history, including a discussion of the Wild West at www.buzzle.com/articles/the-wild-westof-myth-and-reality.html. Historian Peter Hill weighs in at www.perc.org/articles/article572.php. For lyrics to “Fire on the Mountain,” see www.cowboylyrics.com/lyrics/ marshall-tucker-band.html. were soon prohibited by law from owning land, testifying in court, or attending public schools. The voters approved the constitution, and San Jose became the first state capitol. With housing in short supply, many newly elected legislators had to lodge in tents, and the primitive living conditions were exacerbated by heavy rain and flooding. They neverConstitution of 1879 theless became known California’s second constitution as “the legislature of a retained the basic structures of the Constitution of 1849 but thousand drinks.” The added institutions to regulate state capitol soon moved railroads and public utilities and on to Vallejo and Benicia, to ensure fair tax assessments. finally settling in 1854 in Chinese were denied the right to Sacramento—closer to vote, own land, or work for the government. the gold fields. C h a P t e r 1 7 : C a l i f o r n i a ’s P e o P l e , e C o n o m y , a n d P o l i t i C s 387 “Money LAND OWNERSHIP As the gold A Political Machine rush ended, a land rush began. While When the transcontinental track small homesteads were common in is the great tool was completed in 1869, the other states because of federal ownthrough whose means Southern Pacific expanded its ership of land, much of California system throughout the state by labor and skill become had been divided into huge tracts by building new lines and buying Spanish and Mexican land grants. universally co-operative.” up existing ones. The railroad As early as 1870, a few hundred crushed competitors by cutting ~ L e L a n d S ta n f o r d ~ men owned most of the farmland. its shipping charges, and by the eighth governor of California, Their ranches were the forerunners 1862–1863, 1880s it had become the state’s f o u n d e r o f s ta n f o r d u n i v e r s i t y of contemporary agribusiness cordominant transportation company porations, and as the mainstay of the as well as its largest private landstate’s economy, they exercised even more owner, owning 11 percent of the entire clout than their modern successors. state. With its business agents doubling as In less than fifty years, California belonged to political representatives in almost every California three different nations. During the same period, its econcity and county, the Southern Pacific soon developed omy and population changed dramatically as hundreds a formidable political machine. “The Octopus,” as of thousands of immigrants from all over the world came novelist Frank Norris called the railroad, placed to claim their share of the “Golden State.” The pattern of allies in state and local offices through its control a rapidly evolving, multicultural polity was set. of both the Republican and Democratic parties. Once there, these officials protected the interests of the Southern Pacific if they wanted to continue in LO2 office. County tax assessors who were supported by the political machine set favorable tax rates for the railroad, while the machine-controlled legislature ensured a hands-off policy by state government. echnology wrought the next transformation in the form of railroads. In 1861 Sacramento merchants Charles Crocker, Mark Hopkins, Collis Huntington, and Leland Stanford founded the railroad that The Southern Pacific Railroad was completed on May 10, 1869, due in large part to would become the Southern Pacific. the dedication and hard work of thousands of Chinese laborers. They persuaded Congress to provide millions of dollars in land grants and loan subsidies for a railroad linking California with the eastern United States, thus greatly expanding the market for California products. Leland Stanford, then governor, used his influence to provide state assistance. Cities and counties also contributed, under the threat of being bypassed by the railroad. To obtain workers at cheap rates, the railroad builders imported 15,000 Chinese laborers. Railroads, Machines, and Reform T Railroad company founded in 1861; developed a political machine that dominated California state politics through the turn of the century. 388 © 2009 CPRR.org Southern Pacific Railroad P a r t 6: C a l i f o r n i a P o l i t i c s a n d G o v e r n m e n t LO3 The Workingmen’s Party “Workingmen must form a P party of their own, take charge of the government, dispose gilded fraud, and put honest toil in power.” eople in small towns and rural areas who were unwilling to support the machine lost jobs, business, and other benefits. Some moved to cities, especially San Francisco, where manufacturing jobs were available. Chinese workers who were brought to California to build the railroad also sought work in the cities when it was completed. But when a depression in the 1870s made jobs scarce, these newcomers faced hostile treatment from earlier immigrants. Led by Denis Kearney, Irish immigrants became the core of the Workingmen’s Party, a political organization that blamed economic difficulties on the railroad and the Chinese. Small farmers who opposed the railroad united through the Grange movement. In 1879 the Grangers and the Workingmen’s Party called California’s second constitutional convention in hopes of breaking the railroad’s hold on the state. The Constitution of 1879 mandated regulation of railroads, utilities, banks, and other corporations. An elected State Board of Equalization was set up to ensure the fairness of local tax assessments on railroads and their friends, as well as their enemies. The new constitution also prohibited the Chinese from owning land, voting, or working for state or local government. The railroad soon reclaimed power, however, gaining control of the very agencies that were created to regulate it. Nonetheless, the efforts made during this period to regulate big business and control racial relations became recurring themes in California life and ~ Dennis Kearney ~ P o p u l i s t, 1847 – 1907 politics, and much of the Constitution of 1879 remains intact today. LO4 The Progressives T he growth fostered by the railroad eventually produced a new middle class, encompassing merchants, doctors, lawyers, teachers, and skilled workers, who were not dependent on the railroad. They objected to the corrupt practices and favoritism of the railroad’s political machine, which they perceived as being responsible for restraining economic development of their communities. Instead, the new middle class demanded honesty and competence, which they called “good government.” In 1907 a number of these crusaders established the Lincoln-Roosevelt League, a reform group within the Republican Party, and became part of Workingmen’s Party the national Progressive Denis Kearney’s anti-railroad, anti-Chinese organization; instrumovement. Their leader, mental in rewriting California’s Hiram Johnson, was constitution in 1879. elected governor in 1910; they also captured control Constitution of 1879 California’s second constitution of the state legislature. “The Chinese Must Go!” was the slogan of the Workingmen’s Party of California, shown here on this 1879 “ticket.” Why did the Workingmen’s Party blame the Chinese for economic difficulties? California Historical Society The Reform Movement To break the power of the machine, the Progressives introduced a new wave of reforms that shape California politics to this day. Predictably, they created a new regulatory agency, the Public Utilities retained the basic structures of the Constitution of 1849 but added institutions to regulate railroads and public utilities and to ensure fair tax assessments. Chinese were denied the right to vote, own land, or work for the government. Progressives Members of an anti-machine reform movement that reshaped the state’s political institutions between 1907 and the 1920s. C h a p t e r 1 7 : C a l i f o r n i a ’s P e o p l e , E c o n o m y , a n d P o l i t i c s 389 Were the Progressives Really Progressive? I n assessing the Progressives, it helps to understand their backgrounds. Unlike the Populists of the 1890s, who were typically farmers or miners, the Progressives of the early twentieth century were mostly townspeople. Many were lawyers, small businessmen or publishers. Resolutely middle class, the Progressives were alarmed at the enormous power accumulated by great corporations such as the Southern Pacific Railroad. But they also were afraid of radicalism among members of the working class. Labor unions, socialism, and after the Russian Revolution, communism—these too were dangers, alongside the urban political machines and the railroads. As reformers, the Progressives looked not only to the future, but to an idealized American past of yeoman individuals, who did not seek employment by large corporations and who had no need to rebel against them, either. Given this philosophy, was it even possible for the Progressives to be “progressive” in the sense we give the term today? Did they seek to champion the underdog? To improve the condition of the poor and the working class? Progressive Reforms Were of Great Benefit to Working People Those who defend the Progressives’ record admit that many Progressives shared a deep distrust of the working class. Still, many were highly sympathetic to the problems of working people. Governor Hiram Johnson (1911–1917) had served as an attorney for the Teamsters Union, and he hailed from San Francisco, one of the most organized cities in the nation. Organized labor made some of its greatest legal gains under Johnson. Chief among these victories was a Worker’s Compensation Act to benefit employees injured on the job. The first measure, passed in 1911, was weak. It made compensation by employers voluntary. A 1913 law, however, required mandatory compensation. A minimum wage and an eight-hour day law were established for working women. While modern feminists typically oppose employment legislation that applies only to women, in the belief that such laws can be used to bar women from particular forms of employment, these early California protections were created in response to the demands of Progressive women. Male or female, Progressives were strong advocates of votes for women. Working people, along with almost 390 P a r t 6: C a l i f o r n i a P o l i t i C s a n d G o v e r n m e n t everyone else, benefited from years of good government and the curbing of the power of the Southern Pacific. On a national level, Progressive leaders such as Theodore Roosevelt even advocated universal health insurance, something the country wouldn’t see during the rest of the twentieth century. But You’d Better Be a White Protestant Worker Critics of the Progressives point out that many of them were quite hostile to labor. In Los Angeles, Progressives allied with Harrison Otis, the reactionary publisher of the Los Angeles Times, to enact anti-picketing and open shop ordinances that crippled the union movement in that city. More generally, almost all of the Progressives were hostile to immigrants, in particular to Catholics such as the Irish and the Italians. Prohibition of the manufacture, sale, and consumption of alcoholic beverages was a major Progressive goal. It finally achieved nationwide success in 1919 through the Eighteenth Amendment to the U.S. Constitution. (Of course, state-level prohibition never triumphed in California, which then as now produced most of the nation’s wine.) Prohibition was seen by all concerned as a direct attempt to exercise social control over Catholic working-class communities. When it came to African Americans or especially Asian Americans, Progressives ventured far beyond simple racism into complete hostility. The 1911 Alien Land Law, which barred Japanese Americans from owning or leasing land, was in effect an attempt to run that community out of the state. Even poor whites might find themselves in danger. Leading Progressives, including both presidential candidates Theodore Roosevelt and Woodrow Wilson, endorsed the eugenics movement, which called for eliminating “unfit” individuals from the gene pool. Poverty was generally taken as a sign of unfitness. Among other things, the eugenics movement called for the sterilization of persons who were mentally handicapped or ill. California passed a compulsory sterilization law in 1909, and in subsequent years it led the nation in the number of sterilizations. These were not policies we would be willing to label “progressive” today. For Critical Analysis The Progressives were hardly the only racists in the early twentieth century. Racist views were almost universal among whites. A majority of whites were also firm believers in Christianity. How might white Americans have accommodated Christian doctrine to racist beliefs? increasingly diverse economy. The emerging oil, automobile, and trucking industries gave the state alternative means of transportation and shipping. These and other growing industries also restructured economic and political power in California. POWER TO THE PEOPLE The reform movement waned in the 1920s, but the Progressive legacy of weak political parties and direct democracy opened up California’s politics to its citizens, as well as to powerful interest groups and individual candidates with strong personalities. A long and detailed constitution is also part of the legacy. The Progressives instituted their reforms by amending (and thus lengthening) the Constitution of 1879 rather than calling for a new constitutional convention. Direct democracy subsequently enabled voters and interest groups to amend the constitution, which has become an extraordinarily lengthy document over time. LO5 The Great Depression and World War II C alifornia’s population grew by more than 2 million in the 1920s (see Table 17–1). Most of the newcomers headed for Los Angeles, where employment opportunities in shipping, filmmaking, and manufacturing (of clothing, automobiles, and aircraft) abounded. Then came the Great Depression of the 1930s, which saw the unemployment rate soar from 3 percent in 1925 to 33 percent by 1933. Even so, more than a million people still came Aiko (Grace) Obata Amemiya speaks to the University of California Board of Regents about being interned while studying at UC Berkeley in 1942. In 2009, the University of California granted honorary degrees to hundreds of Japanese Americans whose studies were interrupted when they were sent to internment camps during World War II. AP Photo/Jeff Chiu Commission (PUC), for the railroads and utilities. Most of their reforms, however, aimed at weakening the political parties as tools of bosses and machines. Instead of party bosses handpicking candidates at party conventions, the voters now were given the power to select their party’s nominees for office in primary elections. Crossfiling further diluted party power by allowing candidates to file for and win the nominations of more than one political party. The Progressives made city and county elections nonpartisan by removing party labels from the ballot altogether. They also created a civil service system to select state employees on the basis of their qualifications rather than their political connections. Finally, the Progressives introduced direct democracy, which allowed the voters to amend the constitution and create laws through initiatives and referenda and to recall, or remove, elected officials before their term expired. Supporters of an initiative, referendum, or recall must circulate petitions and collect a specified number of signatures of registered voters before it becomes a ballot measure or proposition. Like the Workingmen’s Party before them, the Progressives were concerned about immigration. Antagonism toward recent Japanese immigrants (72,000 by 1910) resulted in Progressive support for a ban on land ownership by aliens and the National Immigration Act of 1924, which effectively halted Japanese immigration. Other changes under the Progressives included the right of women to vote, child labor and workers’ compensation laws, and conservation programs to protect natural resources. The railroad’s political machine eventually died, thanks to the Progressive reforms as well as an C h a p t e r 1 7 : C a l i f o r n i a ’s P e o p l e , E c o n o m y , a n d P o l i t i c s 391 Table 17–1 California’s Population Growth, Selected Decades, 1850–2009 Year Population Percentage of U.S. Population 1850 93,000 0.4 1900 1,485,000 2.0 1950 10,643,000 7.0 1960 15,863,000 8.8 1970 20,039,000 9.8 1980 23,780,000 10.5 1990 29,733,000 11.7 2000 33,871,648 12.0 2009 38,293,000 12.5 Source: U.S. Census and California Department of Finance. © Bettmann/Corbis to California, including thousands of poor white immigrants from the “dust bowl” of the drought-impacted Midwest. Many wandered through California’s great Central Valley in search of work, displacing Mexicans, who earlier had supplanted the Chinese and Japanese, as the state’s farm workers. Racial antagonism ran high, and many Mexicans were arbitrarily sent back to Mexico. Labor unrest reached a crescendo in the early 1930s, as workers on farms, in canneries, and on the docks of San Francisco and Los Angeles fought for higher wages and an eight-hour workday. The immigrants and union activists of the 1920s and 1930s also changed California politics. Many registered as Democrats, thus challenging the dominant Republicans. The Depression and President Franklin Roosevelt’s popular New Deal helped the Democrats become California’s majority party in registration, although winning elections proved more difficult. Their biggest boost came from Upton Sinclair, a novelist, a socialist, and the Democratic candidate for governor in 1934. His End Poverty in California (EPIC) movement almost led to an election victory, but the state’s conservative establishment spent an unprecedented $10 million to defeat him. The Democrats finally gained the governorship 392 P a r t 6: C a l i f o r n i a P o l i t i c s a n d G o v e r n m e n t “The private control of credit is the modern form of slavery.” ~ Up t o n S i n cl a i r , J r . ~ American novelist 1878 – 1968 in 1938, but their candidate, Culbert Olson, was the only Democratic winner between 1894 and 1958. An Economic Boom World War II revived the economic boom. The federal government spent $35 billion in California between 1940 and 1946, creating 500,000 jobs in defense industries. California’s radio, electronics, and aircraft industries grew at phenomenal rates. The jobs brought new immigrants, including many African Americans. Although their proportion of the state’s population quadrupled during the 1940s, African Americans were on the periphery of the state’s racial conflicts—unlike Japanese and Mexican Americans. During the war, more than 100,000 Japanese Americans, suspected of loyalty to their ancestral homeland, were sent to prison camps (officially called “internment” centers), and antagonism toward Mexican Americans resulted in the “Zoot Suit Riots” in Los Angeles in 1943, when Anglo sailors and police attacked Mexican Americans wearing distinctive “Zoot suit”style clothing. Upton Sinclair as he broadcast a speech over radio station KHJ on his own “EPIC” program. The word “EPIC” was formed from the words, “End Poverty in California” and was the Sinclair slogan during his fight for the Democratic nomination for governor in 1934. LO6 Postwar Politics © Acme Photo/Corbis I The Central Valley Water Project, part of President Roosevelt’s National Recovery Program for California begun in the 1930s, brought thousands of jobs and irrigation to the desert. While the cities boomed, with defense industries becoming permanent fixtures and aerospace and electronics adding to the momentum, the Central Valley bloomed, thanks to water projects initiated by the state and federal governments during the 1930s. Dams and canals brought water to the desert and reaffirmed agriculture as a mainstay of California’s economy. A NEW BREED OF MODERATE Although the voters chose a Democratic governor during the Depression, they returned to the Republican fold as the economy revived. Earl Warren, a new breed of moderate, urbane Republican, was elected governor in 1942, 1946, and 1950, becoming the only individual to win the office three times. Warren used cross-filing to win the nominations of both parties and staked out a relationship with the voters that he claimed was above party politics. The classic example of California’s personality-oriented politics, Warren left the state in 1953 to become chief justice of the U.S. Supreme Court. n 1958 the Republican Party was in disarray because of infighting. Californians elected a Democratic governor, Edmund G. “Pat” Brown, and a Democratic majority in the state legislature. To prevent Republicans from taking advantage of cross-filing again, the state’s new leaders immediately outlawed that electoral device. In control of both the governor’s office and the legislature for the first time in the twentieth century, Democrats moved aggressively to develop the state’s infrastructure. Completion of the massive California Water Project, construction of the state highway network, and creation of an unparalleled higher education system were among the advances to accommodate a growing population. But all these programs cost money, and after opening their purse strings during the eightyear tenure of Pat Brown, Californians became more cautious about the state’s direction. Race riots precipitated by police brutality in Los Angeles, and student unrest over the Vietnam War, also turned the voters against liberal Democrats such as Brown. A Republican Revival In 1966 Republican Ronald Reagan was elected governor. Reagan revived the California Republican Party and moved the state in a more conservative direction before going on to serve as president. His successor as governor, Democrat Edmund G. “Jerry” Brown, Jr., was the son of the earlier Governor Brown and a liberal on social issues. Like Reagan, however, the younger Brown led California away from spending on growth-inducing infrastructure, such as highways and schools. In 1978 the voters solidified this change with the watershed tax-cutting initiative, Proposition 13 (see Chapter 24). Brown was followed by Republicans George Deukmejian in 1982 and Pete Wilson in 1990, each of whom served two terms in office. Wilson was initially seen as a moderate, but he moved to the right on welfare, immigration, crime, and affirmative action to win reelection in 1994 and, in the process, alienated many minority voters from the Republican Party. In 1998 California elected Gray Davis, its first Democratic governor in 16 years. He was reelected in 2002 despite voter concerns about an energy crisis, a recession, and a growing budget deficit. As a consequence of these crises and what some perceived as an arrogant attitude, Davis faced an unprecedented recall election in October 2003. The voters removed him from office and C h a p t e r 1 7 : C a l i f o r n i a ’s P e o p l e , E c o n o m y , a n d P o l i t i c s 393 Bill Ray/Time Life Pictures/Getty Images Continued Growth Ronald and Nancy Reagan celebrate his victory in the California Governor’s race in 1966 at the Biltmore Hotel in Los Angeles, California. replaced him with Republican Arnold Schwarzenegger, who was reelected in 2006. Shutterstock.com DEMOCRATIC SUPPORT FROM VOTERS California voters opted for Republicans in all but one presidential contest between 1948 and 1988 but have supported Democrats in every election since. Democrats have had more consistent success in the state legislature and the congressional delegation, where they have been the dominant party since 1960. The challenges of governing California have been exacerbated by recurring conflicts between a Democratic legislature and Republican governors, as well as the state’s unusually high requirements for enacting the state budget. Meanwhile, the voters have become increasingly involved in policymaking by initiative and referendum (see Chapter 18). Amendments to California’s constitution, which require voter approval, appear on almost every state ballot. As a consequence, California’s Constitution of 1879 has been amended nearly 500 times; the U.S. Constitution includes just 27 amendments. 394 P a r t 6: C a l i f o r n i a P o l i t i c s a n d G o v e r n m e n t Throughout these changes, the state has continued to grow, outpacing most other states so much that the California delegation to the U.S. House of Representatives now numbers fifty-three—more than twenty-one other states combined. Much of this growth was the result of a new wave of immigration facilitated by more flexible national immigration laws during the 1960s and 1970s. Immigration from Asia increased greatly, especially from Southeast Asia after the Vietnam War. A national amnesty for illegal residents also enabled many Mexicans to gain citizenship and bring their families from Mexico. In all, 85 percent of the 6 million newcomers and births in California in the 1980s were Asian, Latino, or black. Growth slowed in the 1990s, as 2 million more people left the state than came to it from other states, but California’s population continued to increase as a result of births and immigration from abroad. In 1990 whites made up 57 percent of the state’s population; by 2000 they were 47 percent. RACIAL CONFLICT Constantly increasing diversity enlivened California’s culture and provided a steady flow of new workers, but it also increased tensions. Some affluent Californians retreated to gated Demonstrators at a Los Angeles immigrant rights rally in 2006 are being watched by a gang officer. Are immigrants to blame for racial conflict? communities; others fled the state. Racial conflict broke out between gangs and in schools and prisons. As in difficult economic times throughout California’s history, a recession and recurring state budget deficits during the early 1990s led many Californians, including Governor Wilson, to blame immigrants, especially those who were in California illegally. A series of ballot measures raised divisive, race-related issues such as illegal immigration, bilingualism, and affirmative action. The issue of illegal immigration and public services for such immigrants enflames California politics to this day, although the increasing electoral clout of minorities and big public . . . it is always about demonstrations in support ~ c e s a r c h av e z ~ Civil rights activist of immigrants have provided and labor organizer some balance. 1927–1993 Half of California—mostly desert and mountains— is owned by the state and federal governments. In the rural areas, a few big farm corporations control much of the state’s rich farmlands. These enormous corporate farms, known as agribusinesses, make California the nation’s leading farm state, producing more than 350 crops and providing 45 percent of the fruits and vegetables and 25 percent of the table food consumed nationally. Fresno County alone produces more farm products than twenty-four states combined. “The fight is never about grapes or lettuce LO7 California Today I f California were an independent nation, its economy would rank seventh or eighth in the world, with an annual gross national product exceeding $1.8 trillion. Much of the state’s strength stems from its economic diversity (see Table 17–2). The elements of this diversity constitute powerful political interests in state politics. Table 17–2 California’s Economy Industrial Sector Employees Amount (in millions) Services (business, health, leisure) 5,869,300 $ 478,513 Government (includes schools) 2,447,300 205,163 Wholesale and retail trade 2,378,300 229,840 Manufacturing 1,504,500 179,022 Finance, insurance, and real estate 940,700 421,755 Construction 939,400 69,743 Transportation and utilities 495,500 73,743 Information, telecommunications, entertainment 472,800 112,554 Agriculture 377,200 32,000 25,100 42,581 15,450,800 $1,744,968 Natural resources, mining Total, all sectors Source: California Employment Development Department, May 2006, www.edd.ca.gov; and U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current Business, June 2008. people. “ California’s Agriculture Industry State politics affects this huge economic force in many ways, but most notably in labor relations, environmental regulation, and water supply. Farmers and their employees have battled for decades over issues ranging from wages to safety. Under the leadership of César Chávez and the United Farm Workers union, laborers organized and, supported by public boycotts of certain farm products, achieved some victories for workers, but the struggle continues today. California’s agricultural industry is also caught up in environmental issues, including the use of pesticides and the pollution of water supplies. In addition, booming growth in the Central Valley is resulting in the urbanization of farmland, which brings “city” problems such as traffic and crowded schools to once-rural areas. The biggest issue, however, is always water. Most of California’s cities and farmlands must import water from other parts of the state. Thanks to government subsidies, farmers claim 80 percent of the state’s water supply at prices so low that they have little reason to improve inefficient irrigation systems. Meanwhile, the growth of urban areas is limited by their water supplies. Today, agriculture is in the thick of California politics as the state strives to balance an essential and powerful industry with the interests of its other citizens. Economic Diversity Agriculture is big business, but many more Californians work in manufacturing, especially in the aerospace, defense, and high-tech industries. Even more people are employed in postindustrial occupations such as retail sales, finance, tourism, and services. Government C h a p t e r 1 7 : C a l i f o r n i a ’s P e o p l e , E c o n o m y , a n d P o l i t i c s 395 tech boom, California hosted one-fourth of the nation’s high-tech firms, which provided nearly a million jobs. Half of the nation’s computer engineers worked in Silicon Valley, named after the silicon chip that revolutionized the computer industry. Running between San Jose and San Francisco, Silicon Valley became a center for innovation in technology, from technical instruments, computer chips, networking equipment, workstations, and software to Internet-based “dot-com” businesses. Biomedical and pharmaceutical companies also exploded, further contributing to California’s transformation. AP Photo/Adele Starr Cesar Chavez (1927–1993), co-founder of the United Farm Workers of America. ENTERTAINMENT AND TOURISM Computer technology also spurred rapid expansion of the entertainment industry, long a key component of California’s economy. This particularly benefited the Los Angeles area, which had been hit hard by cuts in defense spending. Together, entertainment and tourism provide more than 500,000 jobs for Californians. Half of these are in film and television, but tourism remains a bastion of the economy, with California regularly ranking first among the states in visitors. Along with agriculture, high-tech, telecommunications, and other industries, these businesses have made California a leader in both international and domestic trade. California’s exports totaled policies on growth, the environment, and taxation affect all of these employment sectors, and all suffer when any one sector goes into a slump. The defense industry did just that in the early 1990s, when the federal government reduced spending on expensive military programs and bases after the collapse of communism in the Soviet Union and the end of the Cold War. Retrenchment cost California 175,000 defense-related jobs between These employees work in the Facebook headquarters in Palo Alto, where 1988 and 1995, amounting to 55 percent the atmosphere is casual and laid-back. Founded in 2004, Facebook now of the entire industry sector.1 Adjusted for employs 700 people. What impact could the success of Facebook have on inflation, military spending in California California’s current economic crisis? today is half what it was in 1988. This negative “peace dividend” coincided with a national recession that encouraged other manufacturers to flee California for states with lower taxes and wages. Altogether, more than 800,000 jobs were lost during the recession of the 1990s.2 industries declined, others thrived, especially telecommunications, entertainment, medical equipment, international trade, and, above all, high-tech business and manufacturing. Spawned by the defense and aerospace companies that withered in the early 1990s, at the peak of the highSilicon Valley Top area for hightech industries; located between San Jose and San Francisco. 396 Giles Mingasson/Getty Images HIGH-TECH BOOM Although some P a r t 6: C a l i f o r n i a P o l i t i c s a n d G o v e r n m e n t $117 billion in 2005—36 percent of this trade was in computers and electronic products.3 Much of that trade goes through the massive port complex of Los Angeles/ Long Beach, where over 40 percent of all U.S. imports by ship arrive.4 Economic Decline But the California economy has been on a roller coaster for the past few years, in and out of recession. Factors beyond California started the slide; the terrible events of September 11, 2001, exacerbated it. Then the California-centered Internet boom went bust as thousands of dot-com companies failed to generate projected profits. The entire high-tech industry went into decline, and tens of thousands of workers lost their jobs, some of which were “off-shored” (moved to other countries). At about the same time, an energy crisis hit California. The state had deregulated energy suppliers in 1996 at the urging of industry, but by 2000, prices for gas and electricity had risen and parts of the state experienced shortages of electrical power. Belatedly, Governor Davis took action to resolve the crisis, but his initial caution and the exorbitant prices the state paid to assure supplies caused his popularity to slump. Like the Workingmen’s Party and the Progressives who followed, some political leaders called for greater regulation or even public ownership of power supplies. Adapting to Change through Diversity Throughout its history, California has experienced economic ups and downs like these, recovered, reinvented itself, and moved on, thanks to the diversity of its economy and its people and their ability to adapt to change. Most other states lack these advantages; some are dependent on a single industry or product, and none can match the energy and optimism brought by Religious leaders join activists angered by Governor Schwarzenegger’s veto of a bill that would have allowed undocumented immigrants to drive legally. AP Photo/Damian Dovarganes THE BUBBLE BURSTS Cali­ fornia was soon mired in recession, with unemployment reaching 7 percent statewide and 9 percent in Silicon Valley (the national rate was 5.9 percent) in 2003. Silicon Valley alone lost 200,000 jobs—about 20 percent of its total job base.5 The impact of the recession was exacerbated when California industries moved jobs to other states or countries where they could operate more profitably. In 2002, Texas passed California as the nation’s biggest exporter. When tax revenues rose during the heady days of the dot-coms, Governor Davis and the legislature had expanded programs and cut some fees and taxes. But when the boom ended, tax revenues declined precipitously, producing a state budget deficit that ultimately exceeded $30 billion. The deficit and other issues plunged California into a crisis that continued beyond the recall of Governor Davis in 2003. After a brief resurgence in 2006–2007, California’s economy slipped back toward recession in 2008, as unemployment reached 7.7 percent (the U.S. rate was 6.1 percent) and then 11.6 percent in 2009 (again higher than the U.S. average). California has lost hundreds of thousands of manufacturing jobs since the 1990s, as employers migrated to other states, but by 2009, employment in all sectors was in decline. The national home finance and foreclosure crisis also hit the California housing market and construction industry hard in 2008. Governor Schwarzenegger found himself faced with the even worse fiscal problems than his predecessor—and nearly the same low public approval ratings. C h a p t e r 1 7 : C a l i f o r n i a ’s P e o p l e , E c o n o m y , a n d P o l i t i c s 397 Why State Governments Can’t Stimuate the Economy During a recession, individuals and businesses in the private sector reduce the amount that they borrow and spend. In a serious recession, private sector borrowing and spending can collapse. Conventional economic policy is that in a recession, the federal government should run a budget deficit. The borrowing required to fund the deficit—and the spending based on that borrowing—help make up for the reduction in borrowing and spending by the private sector. As a result, the economic downturn is softened, and the economy can right itself sooner. We described this policy recommendation in Chapter 14 and also in the Our Government’s Response to the Economic Crisis feature in Chapter 3. The federal government is only part of our American system of government, however. We must also consider the states. When we ask how much “the government” borrows and spends, the real answer must include the borrowing and spending of state and local governments. In a recession, the actions taken by these governments can run directly counter to what the federal government is trying to do. The federal government tries to run an “anti-cyclical” fiscal policy that counteracts the economy’s booms and busts. State and local policy, however, is typically “pro-cyclical.” In California and elsewhere, state borrowing and spending policies tend to make recessions worse than they already are. Why the States Must Cut Spending W hy is state and local spending pro-cyclical? The answer is that the states, unlike the federal government, do not have an essentially unlimited ability to borrow money. All states except Vermont have a balanced budget requirement written into the state constitution. In California and other states, a recession means that the state’s income falls. Indeed, such falling revenues have been a particular problem for California, because the state has relied heavily on a progressive income tax that collects large sums from the state’s richest residents. In a recession, the income of the rich actually falls much faster than the income of ordinary people. Much of their income in good years, after all, comes from higher prices of stocks on Wall Street and high business profits. In bad years, these sources of income can experience spectacular declines. Of course, the very rich have plenty of resources to keep the wolf from the door, even in years when they are not doing well. States such as California that live by taxing the variable income of the wealthy, however, can find themselves in big trouble. Anyone who has followed California politics knows full well that state governments can and do borrow. Students of California government also know that excessive borrowing can get a state into serious financial trouble. Further, in many states, California included, political and legal barriers make borrowing difficult. The inevitable result: in times of crisis, the state must cut its spending to help balance the budget. Even as the federal government is increasing its spending, the states must cut back. It follows that the total government effort to combat a recession is much less effective than you might think if you only look at the actions of the federal government. Uncle Sam to the Rescue? O ne way to counteract pro-cyclical state and local spending is for the federal government to pass funds directly to the states as part of a stimulus plan. In February 2009, the Obama stimulus package indeed allocated $144 billion in fiscal relief to state governments, much of it in the form of support for Medicaid and education programs. Infrastructure spending promised additional sums. The bill initially passed by the U.S. House promised tens of billions more, but a group of key senators, notably including Republicans Susan Collins and Olympia Snowe of Maine, demanded that state fiscal relief be trimmed as part of the price of their support. California moved more quickly than any other state to collect its share. By August, the state had banked about 60 percent of its $19 billion allocation. Nationally, experts calculated that the federal support was less than half of what the states needed to prevent major spending cuts. For Critical Analysis In your opinion, how tightly should state government borrowing be restrained? Explain your reasoning. California’s constant flow of immigrants eager to take jobs in the state’s new and old industries. California consistently attracts more immigrants than any other state; as of 2008, 27 percent of the state’s population (9.9 million people) was foreign born. 398 P a r t 6: C a l i f o r n i a P o l i t i C s a n d G o v e r n m e n t Ninety percent of California’s immigrants are from Latin America (mostly Mexico) or Asia (especially the Philippines, China, Vietnam, India, and Korea). An estimated 3 million immigrants are in California illegally.6 Nearly 40 percent of all Californians over the age of five “california speak a language other than English at and $62,000 for Asians, the median home, resulting in a major challenge was $50,000 for blacks and $37,500 for California schools. As in past for Latinos. Census data also show is a garden of eden, centuries, immigration and lana growing gap between rich and a paradise to live in or see; guage have been hot-button politpoor. but believe it or not, ical issues in California in recent DECLINE OF THE MIDDLE years. The extent of California’s you won’t find it so hot CLASS As the poor grow in ethnic diversity is indicated in if you aint got the do re mi.” number, some observers fear that Figure 17–1. Although nonCalifornia’s middle class is vanLatino whites remain the single ~ Woody Guthrie ~ ishing. Once a majority, many of largest group, they are no longer a American singer-songwriter 1912–1967 the middle class have slipped down majority. Asian and Latino numbers the economic ladder and others have have grown rapidly since the 1970s, simply fled the state. Instead of a class while the black and white proportions of structure with a great bulge in the center, California’s population have decreased. This California now exhibits an “hourglass economy” shift is slowly producing a shift in political power with many people doing very well at the top, many as well. barely getting by at the bottom, and fewer and fewer in the middle. From 1999 to 2006, over two-thirds of new Economic Disparity jobs were in the top or bottom fifths of the pay scale.8 The realization of the California dream is not shared The costs of housing and health care are at the equally among these groups. As of 2007, the income heart of this problem. With a median price of $594,530 of 13.3 percent of Californians fell below the federal in 2007, only 26% of California families could afford poverty level (the national rate was also 13.3 percent). to purchase a home. The median price in 2009 fell to Over half the kids in California schools qualify for free $274,740, however, as the nationwide housing crisis hit or reduced-price meals.7 The gap between rich and poor California.9 Affordability in California is among the largest in the United States increased for some famiand is still growing. Poverty is worst among Latinos, lies, but many more suf“hourglass economy” Tendency of California economy blacks, and Southeast Asians, who tend to occupy the fered substantial losses to include many people doing bottom of the class structure and have low-paying serin equity in their homes very well at the top, many barely vice jobs; other Asians, along with Anglos, predominate and some lost their getting by at the bottom, and in the more comfortable professional classes. The ecohomes to foreclosure. As fewer and fewer in the middle; nomic disparities are profound: whereas the median a result, home ownership symptomatic of California’s vanhousehold income in 2004 was $66,000 for whites in California lags well ishing middle class. Figure 17–1 California’s Growing Racial and Ethnic Diversity 7.1% 0.6% 9.2% 0.5% 6.5% 1.9% 11.4% 2.1% Non-Latino white 12.4% 57.1% 26% 0.6% 5.8% Latino 42% 47.3% Black 37.1% 32.4% Asian/Pacific Islander Native American Multiracial 1990 2000 2010 Source: U.S. Census; California Department of Finance, Population Projections by Race/Ethnicity for California and Its Counties, 2000–2050, www.dof.ca.gov (July 11, 2008). C h a p t e r 1 7 : C a l i f o r n i a ’s P e o p l e , E c o n o m y , a n d P o l i t i c s 399 behind the national average, especially for Latinos and blacks. Health care is also a problem for poor and working Californians. Nineteen percent (7 million) have no health insurance, although coverage for children was expanded under the state’s Healthy Families program, established in 2001. The Great divide Geographic divisions complicate California’s economic and ethnic diversity. In the past, the most pronounced of these was between the northern and southern portions of the state. The San Francisco Bay Area tended to be diverse, liberal, and, in elections, Democratic, while Southern California was staunchly Republican and much less diverse. However, with growth and greater diversity, Los Angeles also began voting Democratic. Today, the greatest division is between the coastal and inland regions of the state (See Figure 18.3). Democrats now outnumber Republicans in San Diego, for example, CALIFORNIA AT ODDS and even notoriously conservative Orange County has elected a Latina Democrat to Congress. THE INLAND EMPIRE But even as the differences between northern and southern California fade, the contrast between coastal and inland California has increased.10 The state’s vast Central Valley has led the way in population and job growth, with cities from Sacramento to Fresno to Bakersfield gobbling up farmland. The Inland Empire, from Riverside to San Bernardino, has grown even more rapidly since the late 1990s. Although still sparsely populated, California’s northern coast, Sierra Nevada, and southern desert regions are also growing, while retaining their own distinct identities. Water, agriculture, and the environment are major issues in all these areas. Except for Sacramento, inland California is more conservative than the coastal region of the state. While coastal California is still dominant, the impact of inland areas on California politics increases with every election. California’s People, Economy, and Politics F rom a history full of conflicting interests and turbulent change, California has forged unique political institutions, including the ability of the electorate to make policy and recall officeholders via direct democracy. The elements of today’s economic, demographic, and geographic diversity vie with one another for political influence within the framework they have inherited, sometimes trying to change it. Just as the economic and demographic changes of the past have shaped contemporary California, so today’s changes are shaping the future. ISSUES FOR DEBATE & DISCUSSION TAKE ACTION 1. As explained in this chapter, perhaps a million people moved into California during the Great Depression of the 1930s, even though California’s unemployment rate peaked at about 33 percent, distinctly higher than the national rate. Why do you think these people came? What might they have heard about California that would lead them to believe they could find a better life here? I 2. The makeup of California’s population has changed, and it will continue to change in years to come. The relative size of the non-Latino white population, no longer the majority, will continue to decline. The percentage of Latino and Asian American citizens will grow. The African American and Native American populations, however, are likely to make up about the same share of the population as they do today. What political consequences are these changes likely to produce? What kinds of services might a new electorate demand from California state government? 400 P a r t 6: C a l i f o r n i a P o l i t i C s a n d G o v e r n m e n t t’s not hard to learn more about California’s rich history. All across the state, citizens have organized historical societies to sponsor forums, publications, and museums that tell the California tale. You can visit some of these museums—there are probably several in your area. For example, Kern County is the home of Bakersfield, a large city but not one of the state’s very largest. Yet Kern County has at least fifteen historical societies and twenty-four museums. Among the most important is the Kern County Museum, an outdoor facility with fifty-six exhibits located on sixteen acres. Consider also Del Norte County. With fewer than 30,000 inhabitants, it is among California’s least populous counties. Nevertheless, its historical society helps support two museums. These include the Battery Point Lighthouse, one of California’s more scenic locations. You can visit the lighthouse only at low tide by walking across a sandy beach and some rocks. • An online version of the California Constitution can be found on the official Web site for California legislative information. Go to www.leginfo.ca.gov/ const-toc.html. • The California Historical Society has created an online historical guide to over three hundred years of California history. You can learn more about key events, personalities, and anecdotes from California’s past at www.californiahistoricalsociety.org/timeline. • To learn more about the rich history of San Francisco, visit the virtual museum of the City of San Francisco at www.sfmuseum.org. This extensive multimedia Web site can be searched by subject, year, biographies, or you can view their major online exhibits to find text, graphics and sounds. • The Demographic Research Unit of the California Department of Finance is designated as the single official source of demographic data for state planning and budgeting. Go to www.dof.ca.gov/research/ demographic. • Visit the QuickFacts page of the U.S. Census Bureau’s Web site for California to see demographic and business comparisons between California and the United States at quickfacts.census.gov/qfd/states/06000. html. • Calisphere, the University of California’s free public gateway to a world of primary sources, contains more than 150,000 digitized items—including photographs, documents, newspaper pages, political cartoons, works of art, diaries, transcribed oral histories, advertising, and other unique cultural artifacts—that reveal the diverse history and culture of California and its role in national and world history. Go to www.calisphere. universityofcalifornia.edu. Online resources for this chapter ©Stephen Coburn, 2009. Used under license from Shutterstock.com This text’s Companion Web site, at www.4ltrpress.cengage.com/govt, offers links to numerous resources that you can use to learn more about the topics covered in this chapter.