California

Germany, the once industrial giant of Europe is in rapid decline because of five reasons. First, they decided to replace fossil fuels with wind and solar promising to be net zero by 2045. Second, they opened the door to migrants and one million came in 2015 alone. Third, they chose to stop buying natural gas from Russia. Forth, they overloaded the country with regulations and fifth their population is getting older and there are not enough workers to pay for retirees. California is following a somewhat similar path. First, they decided to replace fossil fuels with wind and solar and planned to be carbon free by 2045. Second, they shut down their refineries and oil pipelines causing shortages which led to higher prices. Third, they declared themselves a sanctuary state and let in millions of migrants. Forth, they expanded regulations to the extent that it is difficult for any business to operate or to build a house. Fifth, they are facing $1.3 trillion in long term debt to pay for retirees. Last month, California’s Legislative Analyst’s Office, or LAO, which is the nonpartisan state department that advises California’s policymakers on the state’s fiscal issues, increased their estimate for the state’s 2024–25 budget deficit to $73 billion. The comparisons between Germany and California are frightening. They are not changing. In 2022 the state passed a law saying all new cars must be electric by 2035.