California's Looming Crisis: Sustainability Meets Economic Collapse
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Chapter 1: The Surreal Shift in California's Regulations
Last October, I encountered a bizarre revelation that encapsulated the growing tensions in California. An email I received presented a shocking reality: by 2024, the state would ban small engines with a horsepower of 25 or less. Initially, I thought it was a prank, but the implications were profoundly serious.
This ruling may seem trivial to those engaged in tech or creative industries. However, the broader consequences are alarming. My family has been a long-time supplier in the pressure washing sector for sixty years. While I’m not based in California, I recognize that this legislation threatens mobile washing businesses across the state.
Gas engines are essential for operating the machines that pay workers in this industry. They are also crucial for powering generators used by construction workers, among other essential services. Although there are electric alternatives in landscaping, as noted by Rob Stump in The Drive, they often come with prohibitive costs and logistical challenges.
With one stroke of a pen, uninformed officials have jeopardized entire industries, all in the name of environmentalism. This small engine ban symbolizes a more extensive issue: California's self-destructive trajectory. The local government grapples with crises in three main areas: 1. Energy and water 2. Business climate 3. Affordable living
This situation should concern every American, and I'll explain why shortly.
Many speculate about California's geological fault lines leading to a catastrophic earthquake. However, the state is more likely to implode from within long before that happens.
Californian Exodus
Consider the following companies: - Hewlett Packard - Norton - Lifelock - XO Jets - Palantir - Pabst Brewing - Oracle - Tesla - The Joe Rogan Experience - The Rubin Report - Gordon Ramsay North America
These well-known organizations are just a few examples of those that have relocated from California since 2020. A recent report from the Hoover Institution highlights a concerning trend: between 2018 and 2021, a staggering 272 corporations moved their headquarters out of the state.
According to the report, the departure of corporate headquarters is a significant loss for communities, as these entities bring valuable jobs and leadership. Factors such as high tax rates, strict regulations, rising energy and labor costs, and a “declining quality of life” are driving companies away. Elon Musk cited housing costs as a key reason for relocating Tesla to Texas.
Moreover, the state's population has decreased for the first time in modern history, as reported by Joel Kotkin and Wendell Cox in The Daily Beast. They reveal that California has lost over 1.625 million net domestic migrants in the last decade—more than Philadelphia's population. Across the past 20 years, 2.7 million more people have departed than moved in, a trend exacerbated by declining immigration.
While some political figures deny this demographic shift, the evidence is undeniable: California, once a magnet for domestic migrants, is now driving people away.
Regulations Come At A Quality Of Life Cost
The high expenses associated with materials and labor are stifling housing development in California. Strict building codes and a push for environmentally friendly designs contribute to soaring costs. The Hoover Institution's report identifies seven of the twelve most “Severely Unaffordable” metropolitan areas as being in California.
- Nolan Gray from the Pacific Research Institute highlights a recent Los Angeles council decision to ban wood frame construction, which, while aimed at fire safety, is deemed unnecessary given existing regulations. Such measures increase building costs significantly, a burden ultimately borne by renters and buyers.
Additionally, the time required to secure permits for construction in California is significantly longer than in other states. For instance, obtaining a permit for a fast-food restaurant in LA can take about 300 days, compared to just 60 days in Texas.
The cost of labor is also a major concern. California is contemplating a 32-hour workweek, which would force employers to compensate employees for 40 hours, a potential cost that would likely be passed on to consumers. Furthermore, the state aims to ban gas-powered vehicles by 2035, raising questions about affordability for residents reliant on inexpensive used cars.
The Self-Created Energy And Water Crisis
California's energy costs are among the highest in the nation, with the U.S. Energy Information Administration ranking it at 48th. The state has blocked new power plants while dismantling existing ones, leading to inevitable price hikes and a reliance on electricity imports.
Despite plans to derive 60% of its energy from renewable sources by 2030, California has faced rolling blackouts and has had to pay companies to use diesel generators to ease grid stress. As the demand for electric vehicles grows, the implications for energy supply are concerning.
The water crisis is equally dire. Environmentalist and gubernatorial candidate Michael Shellenberger argues that the state has created its own water and energy issues. With over 90% of California in severe drought, he claims that Governor Newsom is exacerbating the situation by failing to build essential water infrastructure.
Desalination plants, which have proven effective in countries like Israel, are hindered by regulations, leaving California to grapple with its water shortages. Shellenberger advocates for nuclear energy and deregulation as viable solutions.
One Final Word
The aforementioned actions deeply frustrate me, particularly the impact on small businesses due to the small engine ban. While part of me contemplates California's self-induced demise, I recognize the human cost involved. The state's downfall would have repercussions for everyone.
As noted by Shellenberger, California is a vital agricultural hub, producing a significant portion of the nation's food supply. The fate of California matters not just to its residents but to the entire country.
Hopefully, the ongoing exodus will prompt Californians to reconsider their current path. When sustainability leads to unsustainable living conditions, it’s time for serious reflection. The insights of individuals like Shellenberger offer a glimmer of hope amidst the chaos.
This video explores the alarming trend of people leaving California, delving into the reasons behind this mass exodus and its implications.
This video discusses California's controversial decision to release billions of gallons of water into the ocean, highlighting the state's ongoing water management issues.