California
Aging boom shakes, reshapes Southern California
Extra grey and balding heads? Extra each day medicines? A collective hankering for snug sneakers?
We’re about to have all of it.
We’re going to have extra Social Safety and Medicare payouts; extra senior facilities, extra demand for hospital rooms and dementia consultants. Extra households quickly might be dwelling with three and even 4 generations below the identical roof.
There might be extra knowledge, too, and extra want.
Briefly, America and Southern California specifically are about to incorporate extra older individuals, a lot extra.
A protracted-predicted demographic shift, during which older persons are rising in numbers and in clout, is beginning to attain excessive gear. Over the following decade, the variety of Individuals aged 65 or older will soar by a few third, in line with census projections. By 2034, the 65-and-older crowd will outnumber all people youthful than 18. And, by 2060, roughly 1 in 4 Individuals might be no less than what’s (for now) retirement age.
It’s not nearly us, both. The growing older growth is taking part in out in most superior economies. And in a lot of these locations, significantly in Asia and far of western Europe, it’s occurring earlier and quicker than it’s right here.
However for lots of causes – tradition, cash, ageism – the approaching inhabitants shift is a possible game-changer for Southern California. The group that features Los Angeles, Orange, Riverside and San Bernardino counties has lengthy been related to youth tradition, but it surely’s now beginning to flip previous as rapidly as almost any area on the planet.
Nonetheless, the growing older growth is about greater than picture.
Simply as local weather change is rewiring the climate and surroundings, our new demographics may reshape just about every little thing else. Economics and labor, tax charges, well being care, immigration, politics; all may change dramatically as our retiree-age inhabitants expands and our tax-paying, working-age inhabitants shrinks. The distinction is that the growing older growth is perhaps arriving (barely) quicker.
“How large a deal is it? Large enough that no politician desires to deal with it,” mentioned Dowell Myers, a demographer and professor at USC who has written extensively about how America’s growing older inhabitants may have an effect on immigration, social spending and housing, amongst different subjects.
“Politicians wish to discuss issues they’ve options for.”
However the growing older growth additionally shouldn’t be, in each sense, an issue. It’s pushed by a development – individuals dwelling longer, more healthy lives – that’s unambiguously optimistic. What’s extra, many consultants (Myers included) foresee lots of potential advantages, significantly if individuals of various ages, with totally different wants, can determine methods to assist and hear to one another whilst they compete for public assets.
“As this retains going, individuals should deal with one another higher,” Myers mentioned. “Older individuals should give again to youthful individuals. And vice versa. That’s the answer.”
Two developments, few solutions
The approaching age growth is a close to certainty due to two demographic-related details.
First, we’re getting higher at staving off loss of life.
Although Individuals suffered an eye-popping 2.26-year drop in life expectancy (from 78.86 years to 76.6 years) between 2019 and 2021, consultants say that’s a short-term quantity that displays the truth that about one million Individuals died throughout the first two years of the COVID-19 pandemic. The long-term age development is extra upbeat, with knowledge displaying we’re dwelling longer than ever. Individuals who make it to their sixtieth birthday can count on to stay, on common, one other 23-plus years. And by 2060, the Census Bureau tasks that the typical U.S. lifespan might be 85.6 years.
The second truth is about infants: We’re having fewer of them.
The U.S. fertility charge has fallen by about 13% since 2007 and a full rebound isn’t anticipated anytime quickly. By 2030, in line with census forecasts, immigration, not home births, would be the solely factor stopping our inhabitants from declining.
These developments are combining to create a demographic unicorn. As a result of human biology and immigration (together with lethal occasions like wars and pandemics and disasters) form the scale and age of populations, and since older individuals die extra steadily than youthful individuals, just about each inhabitants in human historical past has skewed youthful. So, the age upsidedownism we’re about to expertise is exclusive, and it raises a number of tough-to-answer questions:
• Because the inhabitants math will get tight for Social Safety and Medicare (as we speak, there are about 3.5 employees for each retiree; by 2050 it’ll drop to 2.5 employees for each retiree) how will these applications fare?
• What occurs to well being care when there are 13 million Individuals with Alzheimer’s (projected for 2050) or 22 million with macular degeneration (additionally slated to hit in 2050) or 60.6 million with diabetes (projected for 2060)?
• And as America sees a growth within the oldest of the previous (between now and 2050, the variety of Individuals who’re 85 or older will almost triple, to about 18.6 million), how will costly housing markets like Southern California discover room for everyone?
These and plenty of different long-standing questions get a brand new twist in a world that’s growing older as quick as ours.
And, for lots of people, “new” sounds ominous.
“It’ll all be used up,” mentioned Kelly Schmidt, 26, an aspiring sports activities agent who lives in Redondo Seaside.
“Social cash. Well being cash. Every part. By the point my youngsters are able to go to high school, or once I get to retirement or no matter, there’s not going to be something left. … The Boomers will take all of it.”
However others take a distinct view. The rise of older individuals, they argue, might be a possibility to commerce battle for cooperation.
“Possibly if all people has to decelerate and assist one another, it is perhaps a extremely good factor,” mentioned Alicia Simmons, a 28-year-old advertising and marketing govt.
Simmons, who lives in Tustin, grew up close to Salt Lake Metropolis in a neighborhood she shared along with her grandparents. She watched her mom’s mother and father develop previous, shifting from full-time employees, to energetic retirees, to still-active-but-somewhat-slower retirees, now of their 80s, who often search help (“largely about their cell telephones,” she mentioned, laughing) from their grownup kids and grandchildren.
“It’s pure for individuals to look after one another as we age. It’s bizarre that so many (households) stay other than one another,” she mentioned.
“I can’t think about how my life can be totally different if I didn’t know my grandparents and see them on a regular basis.”
None of that is sudden. The rise of older individuals in superior economies has been projected for years. The Census Bureau, the state of California and others have small armies of demographers monitoring what is occurring, age-wise, and the way it will have an effect on all people.
However ask for specifics – how the growing older growth may hurt or assist our financial system and society – and speak typically turns right into a shrug.
“For those who confront individuals about what’s going to occur as our inhabitants ages, you don’t get a lot. There aren’t lots of solutions, there are nonetheless largely simply questions,” mentioned Myers, the USC demographer.
“The can has been kicked down the street for a very long time,” he added. “However now the problem is changing into unavoidable.”
In all places, however particularly right here
Firstly of 2020, simply earlier than the pandemic, Southern California’s youth wasn’t simply figurative; it was literal. The mixed median age of individuals dwelling within the four-county area centered by Los Angeles was about 37.1 years, or almost a yr youthful than the nationwide median, which was about 38 years, in line with state knowledge.
No extra. As of August, the native median age was about 38.5 years, a tick below the nationwide median of 38.8 years. However by 2025, that quantity is projected to hit 39.5 years, or about six months older than the anticipated nationwide median, which the census tasks will hit 39.
Given we’re speaking a few inhabitants of roughly 20 million individuals, and a often slow-moving knowledge level like median age, the speed of the area’s growing older spurt is “actually, actually quick,” mentioned Walter Schwarm, who research how adjustments within the inhabitants have an effect on the financial system for the California Dept. of Finance.
Schwarm mentioned Southern California’s flip from younger to previous is partly a mirrored image of the ages of people that died throughout the pandemic (it wasn’t all in nursing houses), a pandemic-inspired slowdown in immigration (few individuals landed right here throughout the pandemic) and the truth that individuals transferring out of state are typically youthful than the people who find themselves staying put.
Housing, in reality, might be a very powerful difficulty for Southern California because the inhabitants will get previous. Schwarm and others mentioned a rising development amongst retirees to “age in place” will flip an already tight housing market into one thing probably untenable.
“No state grew quicker than California, significantly Southern California, within the Eighties and ’90s,” Schwarm mentioned. “To a sure extent, now, numerous these individuals have settled in and aged in place within the area, they usually don’t wish to depart. And that has implications for everyone else.”
What’s extra, the variety of working-age individuals within the 4 counties – individuals ages 25 to 65 – will shrink. Youthful Southern Californians who wish to keep right here as they begin and advance of their careers typically see an impenetrable housing market and search elsewhere.
Schwarm and others consider the growing older growth will proceed to be significantly pronounced in Southern California for no less than a couple of a long time.
At the moment, in Los Angeles, Orange, Riverside and San Bernardino counties, younger individuals (20-and-under, utilizing state knowledge) nonetheless barely outnumber the 65-plus crowd. However by 2060 that might be true solely in San Bernardino County. Within the different three counties, older individuals will vastly outnumber the native swimming pools of youthful individuals.
Total, by 2060, almost 5.5 million individuals dwelling within the four-county area might be 65 or older, versus 3.6 million who might be 20 or youthful. Although a couple of different locations (Florida! Maine!) might be even older, the senior-to-kid ratio right here might be twice as skewed towards older individuals because the nationwide common.
“The picture of Southern California has all the time been about youth,” Schwarm mentioned. “However that’s ending, no less than demographically.”
Japan may present the way in which
How will that change us? For a peek at that future, demographic consultants recommend wanting all over the world.
Age is already reshaping a lot of western Europe. International locations with the best share of older individuals within the European Union (Italy, Finland, Greece, Portugal) just lately have battled aging-related financial issues, with tighter labor markets, shrinking consumption and fewer entrepreneurship and innovation.
Additionally, whereas the growing older growth is anticipated to gradual inhabitants development for america to a crawl, we aren’t anticipated to see our inhabitants truly decline. That gained’t be true in every single place. A brand new United Nations report (which forecasts Earth’s inhabitants will attain 8 billion in November and that India will cross China because the world’s most populous nation in 2023) tasks that between now and 2050 no less than 61 nations will see their populations decline by 1% or extra.
(One other international inhabitants forecast, by demographers on the College of Washington, suggests world inhabitants will peak as early as 2042 and that by 2100 there might be fewer individuals on Earth than there are as we speak.)
All of which raises the potential of a future described in a report from the Worldwide Financial Fund as “shrinkanomics” – how economies will reply when inhabitants is flat or falling.
As a take a look at case, economists take a look at Japan.
For lots of causes (tight immigration insurance policies; a small variety of child boomers; low start charge) the growing older growth hit Japan first, within the early Nineteen Nineties. At the moment, the nation is the oldest inhabitants on Earth. Its median age is 48.4 years, and about 29% of its inhabitants is 65 or older. By 2050, the median age might be 53 and 1 in 3 Japanese might be no less than 65 years previous.
In some methods, all of this growing older hasn’t been simple. Japan’s financial system, as soon as one of many world’s most vibrant, has staggered. (The time period “misplaced decade,” to explain Japan’s crummy financial system within the Nineteen Nineties, has been changed by “misplaced a long time” and, just lately, “misplaced 30 years.”) And household formation – crucial to future development – has slowed to a crawl (final yr noticed the fewest Japanese births in a century), partially, as a result of some youthful individuals really feel they don’t make sufficient cash to lift kids.
Even the nation’s client markets have been affected; grownup diapers now outsell child diapers in Japan.
However Japan is also a tradition that respects age, and the nation has met its growing older growth with resilience and, in some instances, humor.
For instance, employment shortages – a key hurdle for economies with numerous older individuals – have been offset, partially, by a flood of ladies and older individuals both becoming a member of or staying within the workforce. As of final yr, about 46% of Japanese individuals 65 and older had been nonetheless working, in contrast with about 18% of Individuals of that age who nonetheless go to work.
Japan even has a small-but-growing variety of sports activities celebrities, reality-show stars and social media influencers who’re of their 90s and early 100s. One instance: Kimiko Nichimoto, a 94-year-old photographer and great-great-grandmother, who has constructed an enormous Instagram following by billing herself as “InstaGran.”
For no less than some in Japan, age has not but change into some extent of rivalry.
“(Getting older) shouldn’t be one thing we actually take into consideration as an issue,” mentioned Momo Yasutake, 20, a Japanese change pupil who’s finding out international affairs at Cal State Channel Islands.
“Possibly it’s an issue with taxes, I assume. That’s one thing individuals discuss,” she added.
“However the concept there are lots of previous individuals in our nation isn’t one thing youthful individuals actually complain about.”
Tradition conflict? Age conflict?
That may not be the way in which it performs out right here.
The USA – and significantly Southern California – is unabashedly youth-centric. Although we’ve just lately elected older individuals to prime jobs in nationwide politics (every of our previous two presidents has been the oldest to take that workplace), that’s an exception, not the rule. In lots of different areas of life – common leisure, enterprise, sports activities – youth typically is widely known.
And consultants say our concentrate on youth typically performs out in bias towards age.
“Age stereotypes in america have grown more and more extra unfavorable over the past 200 years,” wrote Michigan State researcher William Chopik in certainly one of two 2020 stories he helped lead that checked out how older persons are handled all over the world.
Chopik’s staff administered checks on about 800,000 individuals to see how their views affected (and mirrored) financial and cultural age biases of their international locations. Their findings boil all the way down to this: It’s simpler to be previous in some international locations than it’s in others.
International locations that Chopik’s staff recognized as “collectivist” leaning, which means cultures that concentrate on group cohesion and concord (which researchers mentioned included Japan, China, Korea, India and Brazil, amongst others) generated much less bias towards older individuals. Older individuals in these international locations stayed employed longer, had been more healthy and sometimes loved a revered position in households and society.
However international locations recognized as leaning towards “individualism” (which the researchers mentioned included Germany, Eire, Australia and america, amongst others) worth private productiveness over social cohesion. In these international locations, individuals are inclined to lose standing as they age.
The stories discovered that anti-age biases can play out in several international locations in large methods (extra elder abuse, much less spending for older individuals ), and in ways in which appear trivial however matter in day-to-day life, reminiscent of stress on older individuals to look and act youthful.
“In ageist cultures … individuals do that by figuring out with youthful age teams, mendacity about their age and even saying that they really feel quantitatively youthful than they really are,” Chopik wrote.
A cultural view on age will be mirrored in a rustic’s authorized system. China and France each have legal guidelines that require grownup kids to go to their aged mother and father. In america, older employees are legally protected towards ageism, however there is no such thing as a authorized effort to pressure household time.
We’re additionally not nice on the softer expertise. Lower than 14% of Southern Californians surveyed in a 2017 examine by researchers at Cal State Northridge mentioned they consider we stay in a society that respects older individuals.
To individuals who work with older individuals, domestically, that sounds about proper.
“I do know, on this group, growing older isn’t one thing individuals all the time embrace,” mentioned Lisa Wright Jenkins, president of the Council on Getting older in Orange County.
Will that change when extra individuals, total, are older?
“It’ll be fascinating to see how this growing older development impacts issues round right here,” Wright Jenkins mentioned.
Subsequent within the sequence: As Southern California ages up, the place will we stay?
California
California may exclude Tesla from EV rebate program
California Gov. Gavin Newsom may exclude Tesla and other automakers from an electric vehicle (EV) rebate program if the incoming Trump administration scraps a federal tax credit for electric car purchases.
Newsom proposed creating a new version of the state’s Clean Vehicle Rebate Program, which was phased out in 2023 after funding more than 594,000 vehicles and saving more than 456 million gallons of fuel, the governor’s office said in a news release on Monday.
“Consumers continue to prove the skeptics wrong – zero-emission vehicles are here to stay,” Newsom said in a statement. “We’re not turning back on a clean transportation future – we’re going to make it more affordable for people to drive vehicles that don’t pollute.”
The proposed rebates would be funded with money from the state’s Greenhouse Gas Reduction Fund, which is funded by polluters under the state’s cap-and-trade program, the governor’s office said. Officials did not say how much the program would cost or save consumers.
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They would also include changes to promote innovation and competition in the zero-emission vehicles market – changes that could prevent automakers like Tesla from qualifying for the rebates.
Tesla CEO Elon Musk, who relocated Tesla’s corporate headquarters from California to Texas in 2021, responded to the possibility of having Tesla EVs left out of the program.
“Even though Tesla is the only company who manufactures their EVs in California! This is insane,” Musk wrote on X, which he also owns.
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Those buying or leasing Tesla vehicles accounted for about 42% of the state’s rebates, The Associated Press reported, citing data from the California Air Resources Board.
Newsom’s office told Fox Business Digital that the proposal is intended to foster market competition, and any potential market cap is subject to negotiation with the state Legislature.
Ticker | Security | Last | Change | Change % |
---|---|---|---|---|
TSLA | TESLA INC. | 338.59 | -13.97 | -3.96% |
“Under a potential market cap, and depending on what the cap is, there’s a possibility that Tesla and other automakers could be excluded,” the governor’s office said. “But that’s again subject to negotiations with the legislature.”
Newsom’s office noted that such market caps have been part of rebate programs since George W. Bush’s administration in 2005.
Federal tax credits for EVs are currently worth up to $7,500 for new zero-emission vehicles. President-elect Trump has previously vowed to end the credit.
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California has surpassed 2 million zero-emission vehicles sold, according to the governor’s office. The state, however, could face a $2 billion budget deficit next year, Reuters reported, citing a non-partisan legislative estimate released last week.
California
STEVE HILTON: Five things California Democrats still don't get
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Along with most other Democratic politicians in California, Gov. Gavin Newsom still doesn’t seem to understand what happened in the 2024 election.
For years, Newsom, along with California cronies like former House Speaker Nancy Pelosi and, of course, Vice President Kamala Harris, bragged about their state being a “model for the nation.”
In one sense–not the one they intended, of course–that’s true. California became a model of what not to do.
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The terrible combination of elitism and extremism that has defined Democratic policymaking in my home state for at least the last decade has delivered failure on every front.
Despite having the highest taxes in the nation, despite the state’s budget nearly doubling in the last ten years (even as our population has been falling, in the exodus from blue state misrule), California has the highest rate of poverty in America. We have the highest housing costs, the lowest homeownership, highest gas and utility bills, and the worst business climate–ten years in a row.
This record of failure is exactly why Democrats lost so badly on November 5th. Voters had a clear choice: between more of the same Democrat policies that raised the cost of living and lowered their quality of life, or a return to the peace and prosperity of the Trump years.
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In many ways, the contest between Donald Trump and Kamala Harris represented a battle between the ‘blue state model’ championed by Gavin Newsom in California, and the ‘red state model’ that has driven people and businesses out of California and into the arms of more welcoming states like Texas, Tennessee and Florida.
Of course, the red state model won and the blue state model was roundly rejected.
You would think that would make blue state leaders like Newsom pause and reflect. But the exact opposite has happened. Gavin Newsom immediately called a “special session” of the California legislature to “Trump-proof” his state.
What California really needs is “Newsom-proofing.”
Instead, California Democrats are doubling down on the exact same agenda that was defeated across the country – including in California, which saw the biggest shift from Democrats to the GOP in decades.
Here are the five things California Democrats still don’t get:
1. People want results, not lectures
Democrats and their media sycophants can do all the self-righteous, sanctimonious bloviating they like about “our democracy” and “equity”, but in the end people want the basics of the American Dream: a good job that pays enough to raise your family in a home of your own in a safe neighborhood with a good school so your kids can have a better life than you. No amount of moral superiority from the people in charge will make up for that if they fail to provide it.
2. Enough with the ‘climate’ extremism
“Climate” has become a religion for Democrats, and you see that especially clearly in California. But when you look at the main reason life is so unaffordable for working people, whether that’s gas prices, utility bills or housing costs, extreme climate policies are to blame. Working-class Americans can’t afford these ‘luxury beliefs.’
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3. Who cares about Hollywood?
This election destroyed forever the myth that fancy celebrities can sway votes. Oprah, Beyonce, George Clooney, Taylor Swift…nobody cares! The new cultural powerhouses are the podcast hosts, comedians…the raw power of UFC is where it’s at, not the decadent Hollywood elite who won’t even turn up to support “their” candidate without a multimillion dollar paycheck.
4. ‘Little tech’ beats Big Tech
Democrats may console themselves with the knowledge that California’s Big Tech monopolies are on their side. But in this election we saw the rise of what famed Silicon Valley investor Marc Andressen calls “little tech”, the upstarts and rebels who reject leftist groupthink. They got engaged in this election in a way we’ve never seen before. It’s a massive shift and will be a huge force for the future.
5. Working class beats the elite
Back in 2016, after the Brexit vote, and then Donald Trump’s victory here, shocked the world, I predicted that the Republican Party had the opportunity to become a “multiracial working class coalition.” Trump’s 2024 victory has delivered that — a revolutionary shift in our political landscape. The other part of my prediction? Democrats will be left as the party of the “rich, white and woke.”
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Unless Democrats come to terms with these realities and change course, they can expect to lose elections for years to come. The reaction in California – epicenter of today’s Democrat elite — shows that there is zero sign of this happening.
They just don’t get it.
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California
California proposes its own EV buyer credit — which could cut out Elon Musk's Tesla
- Gov. Gavin Newsom plans to revive California’s EV rebate if Trump ends the federal tax credit.
- But Tesla, the largest maker of EVs, would be excluded under the proposal.
- Elon Musk criticized Tesla’s potential exclusion from the rebate.
California Gov. Gavin Newsom is preparing to step in if President-elect Donald Trump fulfills his promise to axe the federal electric-vehicle tax credit — but one notable EV maker could be left out.
Newsom said Monday if the $7,500 federal tax credit is eliminated he would restart the state’s zero-emission vehicle rebate program, which was phased out in 2023.
“We will intervene if the Trump Administration eliminates the federal tax credit, doubling down on our commitment to clean air and green jobs in California,” Newsom said in a statement. “We’re not turning back on a clean transportation future — we’re going to make it more affordable for people to drive vehicles that don’t pollute.”
The rebates for EV buyers would come from the state’s Greenhouse Gas Reduction Fund, which is funded by polluters of greenhouse gases under a cap-and-trade program, according to the governor’s office.
But Tesla’s vehicles could be excluded under the proposal’s market-share limitations, Bloomberg News first reported.
The governor’s office confirmed to Business Insider that the rebate program could include a market-share cap which could in turn exclude Tesla or other EV makers. The office did not share details about what market-share limit could be proposed and also noted the proposal would be subject to negotiations in the state legislature.
A market-share cap would exclude companies whose sales account for a certain amount of total electric vehicle sales. For instance, Tesla accounted for nearly 55% off all new electric vehicles registered in California in the first three quarters of 2024, according to a report from the California New Car Dealers Association. By comparison, the companies with the next highest EV market share in California were Hyundai and BMW with 5.6% and 5% respectively.
Tesla sales in California, the US’s largest EV market, have recently declined even as overall EV sales in the state have grown. Though the company still accounted for a majority of EV sales in California this year as of September, its market share fell year-over-year from 64% to 55%.
The governor’s office said the market-share cap would be aimed at promoting competition and innovation in the industry.
Elon Musk, who has expressed support for ending the federal tax credit, said in an X post it was “insane” for the California proposal exclude Tesla.
The federal electric vehicle tax credit, which was passed as part of the Biden administration’s Inflation Reduction Act in 2022, provides a $7,500 tax credit to some EV buyers.
Musk, who is working closely with the incoming Trump administration, has expressed support for ending the tax credit. He’s set to co-lead an advisory commission, the Department of Government Efficiency, which is aimed at slashing federal spending.
The Tesla CEO said on an earnings call in July that ending the federal tax credit might actually benefit the company.
“I think it would be devastating for our competitors and for Tesla slightly,” Musk said. “But long-term probably actually helps Tesla, would be my guess.”
BI’s Graham Rapier previously reported that ending the tax credit could help Tesla maintain its strong standing in the EV market by slowing its competitors growth.
Prior to the EV rebate proposal, Newsom has already positioned himself as a foil to the incoming Trump administration. Following Trump’s election win the governor called on California lawmakers to convene for a special session to discuss protecting the state from Trump’s second term.
“The freedoms we hold dear in California are under attack — and we won’t sit idle,” Newsom said in a statement at the time.
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