Property Spring 1995 William Nelson Chapter I: The Power of Legislatures to Allocate Wealth


C. Justification for Proposition 13



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C. Justification for Proposition 13

1. Administrative Convenience? Difficult argument to make today with computers.

2. Custom? difficult too b/c this was not the customary and

traditional way in California.



3. Market Failure? Stop runaway inflation, or allow poor people to

cash out to get off of public assistance.



4. Based on Equality? Under a process vision of equality, Proposition 13 fails b/c it victimizes groups incapable of protecting

themselves by the political process.



5. As a regulation

a. it increases the cost of moving so significantly that it is an

effective deterrent. Drives down the demand for second homes

and the most expensive, so these prices remain stable.

b. If one is prepared to believe previous assumptions, this could

be deemed an attempt to do away w/ the welfare system and make

people more self-sustaining.

c. Price Control stop and inflationary run away real estate market and bring lower price properties back up more in a position of

equity.



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