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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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The evolution of crypto payments and what lies ahead

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The evolution of crypto payments and what lies ahead

From Bitcoin to stablecoins, what’s next for digital currency? Stablecoins will continue to play a fundamental role in crypto payments, and their important role will only grow.

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Technology

Trump delays cancellation of de minimis trade exemption targeting China imports

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Trump delays cancellation of de minimis trade exemption targeting China imports

Employees package and sort express parcels at an e-commerce company on Nov. 1, 2024, around the Double 11 Shopping Festival in Lianyungang, Jiangsu Province of China.

Vcg | Visual China Group | Getty Images

President Donald Trump signed an executive order on Friday that puts a pause on his closing of the de minimis trade exemption, a provision commonly used by Chinese e-commerce companies Temu and Shein.

The order states that de minimis will be restored for small packages shipped from China, “but shall cease to be available for such articles upon notification by the Secretary of Commerce to the President that adequate systems are in place to fully and expediently process and collect tariff revenue” on those items.

Trump on Saturday suspended the exemption as part of new tariffs that include an additional 10% tax on Chinese goods. The nearly century-old exception, known as de minimis, has been used by many e-commerce companies to send goods worth less than $800 into the U.S. duty-free, creating a competitive advantage.

It was predicted that its removal could overwhelm U.S. Customs and Border Protection employees, as the mountain of low-value shipments already making their way into the U.S. would suddenly require formal processing.

De minimis has helped fuel an explosion in cheap goods being shipped from China into the U.S. CBP has said it processed more than 1.3 billion de minimis shipments in 2024. A 2023 report from the House Select Committee on the Chinese Communist Party found that Temu and Shein are “likely responsible” for more than 30% of de minimis shipments into the U.S., and “likely nearly half” of all de minimis shipments originate from China.

Critics of the de minimis provision say it’s provided an unfair advantage to Chinese e-commerce companies, and created an influx of packages that are “subject to minimal documentation and inspection,” raising concerns around counterfeit and unsafe goods.

The Biden administration proposed a new rule last September to curb the “overuse and abuse” of de minimis. The rule proposes to strengthen the CBP’s information collection requirements for de minimis shipments.

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Environment

Tesla increases Model X price, brings back incentive Elon Musk said was ‘not coming back’

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Tesla increases Model X price, brings back incentive Elon Musk said was 'not coming back'

Tesla has increased Model X prices and brought back an incentive that CEO Elon Musk said was unsustainable and “not coming back to any vehicles.”

Today, Tesla updated its Model X configurator in the US to raise the prices of the electric SUV by $5,000.

The new prices are $84,990 for the Long Range version and $99,990 for the Plaid version:

The price increase means the Model X ino longer qualifies for the $7,500 Federal EV tax credit as it now exceeds the $80,000 price cap for electric SUVs.

But with the price increase, Tesla is ramping up the incentives.

Tesla brings the price down by $1,000 with a referral code, it gives one option for free if you buy the Full Self-Driving package, and it is bringing pack “free Supercharing for life.”

The latter, Tesla stopped offering because CEO Elon Musk said it was unsustainable.

Back in 2020, the CEO said that it will “not come back to any [Tesla] vehicles”:

“Just us being fools, but free Supercharging forever is not coming back to any vehicles. It’s not a good incentive structure.”

However, it did bring it back last year as an “end-of-the-year incentive.”

But now, Tesla is bringing it back for Model S and Model X, and it applies to orders from the US, Canada, Puerto Rico, Europe and Middle East.

Tesla has made some changes to the program. Instead of being linked to the vehicle, meaning free Supercharging would remain if you sell it, it is now attached to your Tesla account.

The automaker also says that it doesn’t apply to vehicles used for commercial purposes:

“Customers who purchase or lease a new Model X are eligible for free Supercharging during your ownership of the vehicle. Offer is tied to your Tesla Account and cannot be transferred to another vehicle, person or order, even in the case of ownership transfer. Used vehicles, business orders and vehicles used for commercial purposes (like taxi, rideshare and delivery services) are excluded from this promotion.”

However, Tesla also said that the last time, but it is hard to enforce.

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