Housing Market Failure: Policy Causes

San Jose Mayor Matt Mahan — the moderate Democrat, former tech entrepreneur, and Harvard-educated candidate for California governor — joins the Chuck Toddcast for a policy-dense conversation about what's wrong with California governance and how to fix it. Mahan argues that California has enormous resources but isn't delivering better results, and that the best form of resistance to Trumpism isn't performative opposition but good governance that actually improves people's lives. He walks through his record in San Jose — where he prioritized basic dignified shelter over expensive permanent housing and is now leading the state in reducing unsheltered homelessness — and makes the case that expensive housing is fundamentally a public policy failure driven by environmental review processes that needlessly slow construction. On AI, Mahan notes that Silicon Valley's libertarian tech culture has historically disengaged from civic life, but warns that AI is coming fast and California has both the responsibility and the opportunity to set guardrails that could become the national standard — particularly around transparency in government data use and serious law enforcement around data violations.

The conversation gets politically candid as they navigate the tensions within the Democratic Party. Mahan argues that California Democrats can't blame anyone else for the state's governance failures, that every year revenue goes up faster than population growth yet outcomes get worse, and that highly organized interest groups end up wielding a veto over meaningful change. He opposes the proposed California billionaire wealth tax — not because he's defending billionaires, he insists, but because taxing the ultra-wealthy needs to happen at the federal level to avoid driving companies out of state — and disagrees with Newsom's handling of Proposition 36, arguing the state should force people into either treatment or jail rather than allowing open drug markets. On California's jungle primary, Mahan dismisses concerns about two Republican candidates advancing as overblown, pushes back on the idea he should run as an independent, and contends that Democrats need to update their platform and make government actually work rather than relying on "resistance warrior" posturing. 

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Timeline:

(Timestamps may vary based on advertisements)

00:00 Mayor Matt Mahan joins the Chuck ToddCast

01:30 What got you into politics and made you want to run for mayor?

03:30 What are the other Dems in the race missing that you can bring?

04:45 California has a lot of resources but isn’t delivering better results

06:00 San Jose become the place where Palo Alto workers actually live

07:30 Why has San Jose lacked a real urban center?

08:45 Tech sector is very libertarian & didn’t really engage the community

11:15 Concerns that AI is coming quickly & can do both good and harm

12:45 If California puts guardrails on AI, that could become national standard

14:00 Government has responsibility to be transparent about AI data use

15:30 California has to create framework for AI security, regulation & transparency

16:15 The unknown of AI has created fear amongst the American public

17:30 The lack of trust in AI is because social media has been such a negative

19:00 There needs to be serious law enforcement around data violations

20:15 Media literacy & critical thinking need to be taught in public schools

21:45 What are you getting right in tackling homelessness in San Jose?

22:45 Prioritized basic dignified shelter over expensive permanent housing

24:00 San Jose is leading California in solving homelessness

25:00 California hasn’t built enough shelter or treatment facilities

26:00 Expensive housing is a public policy failure

26:45 Why does environmental review have to slow down construction?

28:00 Environmental impacts go far beyond just clean air & water

28:45 Technology can drastically speed up environmental review

30:00 Infill construction permits should be approved/denied in 30 days

31:30 Are tenant protection laws sufficient to protect ADU renters?

33:00 22% of new housing built in San Jose is ADUs

33:30 Are taxes too high in California?

34:15 California has one of the most progressive tax structures in the country

34:45 Gas tax is one of California’s most regressive, EV owners need to pay

36:15 A per vehicle flat fee for both gas & EVs makes the most sense

38:00 Every year revenue goes up faster than population w/ worse outcomes

39:15 What has Newsom gotten right & wrong?

41:30 Disagreed with Newsom on Prop 36 & force either treatment or jail

42:30 Highly organized interests end up getting a veto over change

44:30 Best form of resistance to Trumpism is good governance

45:30 The math problem for Democrats in California’s jungle primary

46:15 The concern over two GOP candidates winning is overblown

49:15 Voters are skeptical of both parties, why not run as an independent?

51:00 Democrats need to update the party platform & make government work

52:30 Voters frustrated with Trump gravitate towards “resistance warriors”

54:00 California Democrats can’t blame anyone else for California’s governance

54:30 Better ways to make tax code fairer than proposed billionaire wealth tax

55:30 Taxing the ultra wealthy needs to be done at the federal level

56:15 Opposing CA wealth tax isn’t defending billionaires

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