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At times, the California Legislature is reminiscent of a high-school student council, except that instead of working with few-hundred-dollar activities budget lawmakers are spending more than $300 billion in revenues. I’m not the first commentatorto notice that politicians often promise things they can’t possibly provideand are no more realistic than a student body president offering free pizza on Fridays.

What can you do? Democracy is, as Winston Churchillsaid, “the worst form of government except for all those other forms that have been tried from time to time.” Fast forward to the latest capitol silliness. A group of Democratic lawmakers is starting the End Poverty In California caucus, which is unlikely to be as EPIC as its name suggests. Ending poverty is a large promiseand the Legislature is much better at passing laws that exacerbate poverty (minimum wage, anti-competitive union work rules, onerous licensing requirements) rather than reduce it.

For starters, legislative caucuses are notoriously ineffective. They’re the equivalent of those high-school clubs where like-minded people get together to engage in virtue signaling and whatnot. The state legislature has 16 caucuses centering on identity (gender, ethnicity), issues (aviation, environment), or locale (rural communities, the Bay Area).

The latest newsworthy caucus formation is theProblem Solvers Caucus, which promises to put good policy over partisanship, but which has accomplished nothing remarkable. We can only hope the “ending poverty” effort is equally ineffective given the people whose ideas it is based upon. Politicoreportsthe name is a “nod to Upton Sinclair’s 1934 gubernatorial campaign” and is the “brainchild” of former Stockton Mayor Michael Tubbs.

Sinclair was a socialist and Tubbs is best known for promoting “universal basic income.” Sinclair’s EPIC campaign plan promised to “develop a state-managed cooperative economy that would initially provide livelihoods for the unemployed while pointing the way to the eventual replacement of the private economy based on profit,” the University of Washington explains.

The new EPIC chairman is Assembly Majority LeaderIsaac Bryan (DLos Angeles) so this comes from one of the Legislature’s most powerful members. Tubbs has created a nonprofit groupof the same name. He served as the mayor of one of the state’s mostimpoverished citiesa San Joaquin Valley industrial city best known for its municipal bankruptcy (caused in part by excessive benefits for city employees) and atrocious crime rates.

Tubbs apparently was so busy basking in hisnational attention as a young progressive rising star that he didn’t tend to matters at home. He lost re-election to a Republican political neophyte in a city with a two-to-one Democratic voter registration advantage. After his loss, he became an economic adviser to Gov. Gavin Newsom. Tubbs’ major initiative was that privately funded project to provide $500 monthly in free money to select residents.

If you’re still not understanding where this caucus is headed, then I’ll quote from Tubbs’ testimony at an Assembly subcommittee on poverty and inclusion, as captured in avideothat his nonprofit released. Tubbs said the state has a “unique opportunity” to pass “common-sense, well-researched policies from baby bonds to guaranteed income to housing as a right to more affordable housing to truly make the state a golden one for all.”

Baby bondswould have the government provide a set amount of money to every newborn child. Guaranteed income means the government would provide a stipend to everyone. Turning housing into a “right” means that landlords would lose the ability to evict tenants and also includes rent controlseven though “well-researched” studies have found such policies deplete the housing stock. More “affordable housing” means more subsidized housing.

Tubb’s group is correct that poverty rates in California are atrocious. “California has the highest rate of poverty at 13.2% of any state in the U.S.,” itnotes. “28.7 percent of all California residents were poor or near poor in fall 2021.” EPIC doesn’t address that California’s poverty rate is the worst in the nationespecially when cost-of-living factors are includeddespitethis being the nation’s most progressive state. It offers the most generous welfare programs.

One would think that politicians who are serious about ending poverty would at least address that paradox. The video features union organizers who point to the need for an even more powerful union presence in our state, yet unions were on the vanguard of some of the state’s most poverty-inducing policiessuch as Assembly Bill 5, which tried to ban most forms of independent contracting and destroyed moderate-income jobs throughout the freelance economy.

With their progressive policies, lawmakers are destroying the incentive for developers to build more housing. They’re always addingregulations and taxesthat shutter businesses and discourage people from investing in new ones. Instead of recognizing that California’s poverty problem largely is the result of government meddling, EPIC will propose more-aggressive interventions. At some point, lawmakers need to stop making unattainable high-school-level promises and begin wrestling with complex realities.

This column was first published in The Orange County Register.

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Business

Billions for ‘unproven’ carbon capture technology will have ‘very significant’ impact on energy bills, MPs warn

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Billions for 'unproven' carbon capture technology will have 'very significant' impact on energy bills, MPs warn

The government is spending £22bn on “unproven” technologies which will have a “very significant effect” on energy bills, according to an influential committee of MPs.

There has been no assessment of whether the programme to capture and store carbon from the atmosphere is affordable for billpayers, said a report from the Public Accounts Committee (PAC) of MPs.

The financial impact on households of funding the project has not been examined by government at all, the PAC said.

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Even if the state’s investment pays off, the technology is successful and makes money, there is no way for profits to be shared to bring down bills, it added.

Private sector investors, however, would recoup investment, according to committee chair Sir Geoffrey Clifton-Brown.

“All early progress will be underwritten by taxpayers, who currently do not stand to benefit if these projects are successful,” he said. “Any private sector funding for such a project would expect to see significant returns when it becomes a success.”

That’s despite the vast majority (two-thirds) of the £21.7bn investment coming from levies on consumers “who are already facing some of the highest energy bills in the world”, it said.

But there is no evidence to say the programme will be successful despite the government “gambling” its legally mandated net zero targets on the tech, committee chair Sir Geoffrey added.

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PM to invest £22bn in carbon capture

There are no examples of carbon capture, usage and storage (CCUS) operating at scale in the UK, according to the PAC report.

As part of its work, the PAC heard the technology may not capture as much carbon as expected.

International examples show the government’s expectations for its performance are “far from guaranteed”, it heard as part of its inquiry.

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A threat to net zero

This lack of proof of the technology working is a threat to the UK reaching its net zero 2050 emissions targets.

Last year the government downgraded the amount of carbon it expects to store each year as the goals were seen as “no longer achievable”, but no new targets have been announced, creating a shortfall in the path to net zero.

It is now “unclear” how the government will reach its goal, the PAC report said.

“Our committee was left unconvinced that CCUS is the silver bullet government is apparently betting on”, Sir Geoffrey said.

The £22bn investment was due to be made over 25 years and into five CCUS projects.

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World

Two dead after plane crashes into vehicles on busy road in Sao Paulo

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Two dead after plane crashes into vehicles on busy road in Sao Paulo

Two people have died after a plane crashed into vehicles on a busy road in the Brazilian city of Sao Paulo.

A fire department spokesperson confirmed the deaths to local media.

The plane crashed on Marques de Sao Vicente Avenue in Barra Funda at around 7.20am local time.

Images and video footage showing a bus on fire in the aftermath.

Two people – a motorcyclist and a woman who was on the bus – were injured after they were struck by debris from the explosion, CNN Brasil reported.

The aircraft – a small twin-engine King Air – had left Campo de Marte Airport, the Brazilian television news channel reported. The control tower lost contact with the plane minutes later.

The cause of the crash is being investigated.

This breaking news story is being updated and more details will be published shortly.

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Politics

Kentucky joins growing list of US states to introduce Bitcoin reserve bill

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Kentucky joins growing list of US states to introduce Bitcoin reserve bill

Kentucky’s bill is a “massive vote of confidence in Bitcoin” that brings the US closer to a federal Bitcoin reserve.

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