Billionaires vs. Unions: A New Political Battle in California
In a noteworthy shift, California cryptocurrency billionaires Chris Larsen and Tim Draper are investing substantial amounts into a political organization named Grow California. This group aims to challenge the influential labor unions in the state and promote moderate candidates for the legislature.
Speaking with a publication, Larsen expressed disbelief about the state’s 5% wealth tax on billionaires, emphasizing that it’s quite something to impose such a tax on unions. The state’s affluent tech community is particularly riled up about this move.
“They’ve stirred up a giant that hasn’t been seen before,” Larsen remarked. “Perhaps this could be a silver lining. Businesses shouldn’t feel guilty for simply existing.” He and Draper, a prominent venture capitalist and Bitcoin supporter, have committed around $40 million to the independent spending committee and nonprofits backing this initiative.
This campaign plans to leverage millions to back candidates who are friendly towards business while taking a stand against labor unions that often sway the Democratic supermajority in California.
Currently, Democrats control over two-thirds of the legislature, making their influence quite significant.
Larsen, who is known for his political contributions in San Francisco and national elections, mentioned he intends to contribute approximately $30 million personally to Grow California, indicating that they are in it for the long haul, even if it takes a few election cycles.
But Larsen isn’t alone in this endeavor. Other billionaires, such as Google co-founder Sergey Brin and ex-CEO Eric Schmidt, are working together under the initiative “Building a Better California.” This group has prioritized repealing the proposed billionaire tax, which might appear on the November ballot pending successful signature collection by SEIU-United Healthcare Workers West.
So far, “Building a Better California” has attracted $35 million in funding, including a significant $20 million from Brin. Meanwhile, Lorena Gonzalez, president of the California Federation of Labor-CIO, argued that those behind “Grow California” are acting solely in their own interests. “We won’t be intimidated, no matter the bully’s size,” she asserted.
