As inflation keeps hitting pocketbooks, California politicians scramble to respond

California has the highest unemployment rate in the nation.  We have the highest rate of people in poverty, which equal over 12 million residents or about 30%.  The Newsom control of the economy in the State and the Harris/Biden control nationally has created a destructive inflation spiral.

“The California Center for Jobs and the Economy reports that Californians are now paying the nation’s highest rates for household, commercial and industrial electrical power and gasoline.

The California Public Utilities Commission’s consumer advocate reports that over the last decade, electricity rates have increased 110% for Pacific Gas and Electric customers and only slightly less for ratepayers in other investor-owned utilities.

California housing costs are notoriously among the nation’s highest. Its median home price of $793,600 is by the highest of any state and almost exactly twice as high as the national median according to a recent Bankrate report. Its median rent for a two-bedroom apartment, $1,903 a month, is also the nation’s highest, according to a survey by Consumer Affairs, a consumer research site.

Joy and hope does not outweigh the reality of an economy that is killing families and jobs.  Hope that people vote their pocketbook, not their emotions.

As inflation keeps hitting pocketbooks, California politicians scramble to respond

by Dan Walters, CalMatters,  8/22/24   https://calmatters.org/commentary/2024/08/inflation-california-politicians-prices-goods/

Thirty-two years ago, as then-Arkansas Gov. Bill Clinton was trying to unseat President H.W. Bush, Clinton strategist James Carville summarized the campaign in four immortal words: “It’s the economy, stupid.”

Clinton successfully portrayed Bush as someone out of touch with the angst voters felt as they stretched their incomes to cover living costs and debts.

If anything, the economic discomfort is even higher in this election year, particularly from high inflation in recent years. And politicians from the White House level downward are paying attention to a potentially decisive factor.

It explains, for instance, why Vice President Kamala Harris is promising a price-gouging ban on food costs if she wins the presidency.

“It’s an attempt to tackle a clear vulnerability of Harris’ head-on,” according to an analysis by the Associated Press. “Under the Biden-Harris administration, grocery prices have shot up 21%, part of an inflation surge that has raised overall costs by about 19% and soured many Americans on the economy, even as unemployment fell to historic lows.”

Residents of Harris’ home state are certainly not immune.

“Food prices are up 27% compared to April 2019, and gasoline is up 29%,” the Public Policy Institute of California noted in a May report. “While expenditures on these goods and services make up large portions of most household budgets, lower-income households spend almost all of their resources (83%) on food, housing, transportation (including gasoline), and health care.”

The California Center for Jobs and the Economy reports that Californians are now paying the nation’s highest rates for household, commercial and industrial electrical power and gasoline.

The California Public Utilities Commission’s consumer advocate reports that over the last decade, electricity rates have increased 110% for Pacific Gas and Electric customers and only slightly less for ratepayers in other investor-owned utilities.

California housing costs are notoriously among the nation’s highest. Its median home price of $793,600 is by the highest of any state and almost exactly twice as high as the national median according to a recent Bankrate report. Its median rent for a two-bedroom apartment, $1,903 a month, is also the nation’s highest, according to a survey by Consumer Affairs, a consumer research site.

California is fundamentally a one-party state and dominant Democrats needn’t worry about losing offices due to inflation. However, they must at least feign sympathy for their constituents who struggle to pay for necessities of life.

Gov. Gavin Newsom, who has been preoccupied with building his national political image, is apparently planning to seek approval of an electric power relief plan in the final days of the current legislative session.

The Sacramento Bee reports that Newsom wants to commit roughly a billion dollars to lowering power bills, but doesn’t want to tap the state’s deficit-ridden budget. Rather, he would divert money now being spent on some ancillary programs, and attach it to a measure aimed at speeding up non-polluting energy projects, such as offshore wind, that’s being drafted for passage before adjourning Aug. 31.

As word of Newsom’s plan circulates in the Capitol, it’s drawing fire from advocates for the programs that would be axed, such as air conditioning for schools, improving power reliability in poor communities and installing solar power panels on low-income housing projects.

A coalition of renewable energy, environmental and groups this week sent a letter to Newsom and legislative leaders opposing any diversions.

“Cutting them would provide negligible reductions on energy bills in the short-term, while sacrificing the long-term climate and affordability benefits they provide,” the coalition said.

It shapes up as a yeasty confrontation between competing causes in the session’s final days.

One thought on “As inflation keeps hitting pocketbooks, California politicians scramble to respond

  1. California has earned the distinction of the worst economic state in the nation. A badge they should not be proud to wear. Because of their practices, the non progressives, the middle class tax paying wage earners are leaving the state forcing the left behind progressives to try to figure out how to fix the economic situation without giving up their progressiveness. What the progressives have yet to learn is you can’t cure a headache if you continue to hit your head against the wall.

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