California
Experts shred Gavin Newsom’s blame game for California’s high gas prices
Economists and oil market specialists sharply criticized Gov. Gavin Newsom, D-Calif., for his latest rhetoric blaming “grasping oil firms” for prime gasoline costs in California.
“Fuel costs are up whereas oil firms rake in RECORD income,” Newsom tweeted Monday. “It. Does. Not. Add. Up. We can not proceed to permit grasping oil firms to tear us off on the pump.”
Newsom has repeated the argument for weeks, including that he would assist a brand new windfall tax on oil firms to punish “oil firm extortion” in a video message posted by his workplace late final month. Such a tax code revision would not be launched by the state legislature for months.
In California, the common worth of gasoline stays above $6 a gallon, far greater than every other state, in accordance with AAA information. The state with the subsequent highest common pump worth is Alaska the place gasoline prices $5.40 per gallon.
GAVIN NEWSOM’S 2024 CHANCES COULD BE THREATENED BY CALIFORNIA’S ENERGY GRID STRUGGLES
Whereas Newsom and different Democratic lawmakers have repeatedly blamed oil firms for profiteering, specialists mentioned the argument is a crimson herring.
“Some folks could fall for it, however I believe persons are getting uninterested in this story,” David Kreutzer, the senior economist on the Institute for Vitality Analysis, instructed FOX Enterprise. “It looks as if they’re at all times gouging in California. You must say, ‘Nicely, what’s California doing completely different immediately?’ They’ve a bunch of idiotic insurance policies.”
“You’d have to clarify why [oil companies are] ripping folks off 50% extra in California than the remainder of the world and why they solely select to do it now,” Kreutzer mentioned. “The large downside is we have now insurance policies in place, particularly in California, that make it troublesome to increase provide. When you might have these guidelines and rules that stop markets from responding as robustly as they may, then costs are going to go up.”
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Kreutzer and different specialists mentioned vitality insurance policies handed in California have exacerbated worth will increase lately.
For instance, the state requires refiners to provide a higher-grade gasoline, which is usually costlier for shoppers, through the summer time months to guard air high quality. As well as, rules make it onerous for firms to construct new refineries, improve refinery capability or enhance oil manufacturing within the state.
Gasoline costs in California have additionally declined over the previous two weeks after surging in response to a number of sudden refinery outages.
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“The idea of worth gouging is form of foolish,” Benjamin Zycher, an economist and senior fellow on the American Enterprise Institute, instructed FOX Enterprise in an interview. “Relying on demand and provide circumstances, the great turns into extra scarce, market costs rise. It is that easy.”
“The concept that the refineries or the oil firms are profiteering off of market circumstances in California, I believe just isn’t an argument to be taken significantly,” he continued. “Why weren’t they doing that 10 years in the past, 20 years in the past, 5 years in the past?”
Zycher famous additionally that California has a excessive gasoline tax that drives costs up additional. The state gasoline tax of $0.54 per gallon is the second-highest within the nation.
“It is actually market circumstances mixed with the perverse public insurance policies which have yielded $6 per gallon for greater costs in California,” he mentioned.
John Cochrane, a Hoover Establishment senior fellow, argued that whereas it’s the fiduciary accountability of oil firms to maximise income, authorities insurance policies are responsible for the present excessive costs.
“If gasoline suppliers don’t maximize income, they need to be sued by their shareholders,” Cochrane instructed FOX Enterprise. “However the supply of excessive gasoline costs is straightforward: authorities restrictions on provide. Attempt constructing a brand new refinery in California, to make California particular gasoline.”
“If gasoline sellers held down costs, or if the state forces them to, then extra folks need gasoline than there may be [to] go round. Fuel traces come again from the Nineteen Seventies,” he mentioned. “That’s the selection, given the government-imposed provide restriction: excessive costs or lengthy traces. Permitting Nevada gasoline to be shipped in would deliver down costs pronto.”
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Within the early Nineteen Seventies, the federal authorities applied worth controls, resulting in lengthy traces at gasoline stations nationwide, in accordance with the Cato Institute.
“Politicians clearly are annoyed, and of their effort to enhance the scenario typically make [it] worse by chasing short-term profit over long-term worth enchancment,” Patrick De Haan, head of petroleum evaluation at GasBuddy, instructed FOX Enterprise when requested about Newsom’s argument. “It’s disgusting to see politicians on each side of the political spectrum giving false context to get People on their facet.”
“Politicians citing ‘grasping’ oil firms have typically themselves been the actual ones responsible for bureaucratic guidelines and crimson tape that impression markets,” he continued.
De Haan added that there’s “nothing nefarious” about regular market fluctuations.
“When product is extraordinarily tight, costs can surge — the idea of the value paid just isn’t decided by oil firms however by markets,” mentioned De Haan. “Much like how the mechanics of the housing market work. Much less houses in the marketplace and hefty demand sees costs rise.”
“Oil firms do profit in such an setting, however oil and gasoline just isn’t a permabull market. There are deep cycles that come and go.”
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Different specialists have additionally pushed again towards price-gouging allegations in California and throughout the nation.
Ed Hirs, an vitality fellow on the College of Houston, instructed information channel KXTV in California earlier this month that Newsom has been enjoying “quick and free with the rhetoric and the info,” and Mark Agerton, an assistant professor at UC Davis, mentioned the state’s strict gasoline guidelines stop it from simply importing provide when market constraints happen.
In Could, Dallas Federal Reserve economists Garrett Golding and Lutz Kilian printed a report exhibiting why gasoline costs do not at all times rise and fall as oil costs change. The report highlighted how pump costs are sometimes not even set by oil firms however by retail gasoline station house owners.
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And a federal decide dismissed a class-action lawsuit final month that accused oil firms of improper collusion to maintain gasoline costs excessive in California, the San Diego Union-Tribune reported.
“Antitrust wrongdoing consists of concerted motion pursuant to an unlawful settlement, not impartial profit-maximizing actions based mostly on market circumstances,” Choose Jinsook Ohta of the U.S. District Courtroom for the Southern District of California wrote in her resolution.
Newsom’s workplace did not reply to a request for remark.
California
Northern California 6-year-old, parents hailed as heroes for saving woman who crashed into canal
LIVE OAK — A six-year-old and her parents are being called heroes by a Northern California community for jumping into a canal to save a 75-year-old woman who drove off the road.
It happened on Larkin Road near Paseo Avenue in the Sutter County community of Live Oak on Monday.
“I just about lost her, but I didn’t,” said Terry Carpenter, husband of the woman who was rescued. “We got more chances.”
Terry said his wife of 33 years, Robin Carpenter, is the love of his life and soulmate. He is grateful he has been granted more time to spend with her after she survived her car crashing off a two-lane road and overturning into a canal.
“She’s doing really well,” Terry said. “No broken bones, praise the Lord.”
It is what some call a miracle that could have had a much different outcome without a family of good Samaritans.
“Her lips were purple,” said Ashley Martin, who helped rescue the woman. “There wasn’t a breath at all. I was scared.”
Martin and her husband, Cyle Johnson, are being hailed heroes by the Live Oak community for jumping into the canal, cutting Robin out of her seat belt and pulling her head above water until first responders arrived.
“She was literally submerged underwater,” Martin said. “She had a back brace on. Apparently, she just had back surgery. So, I grabbed her brace from down below and I flipped her upward just in a quick motion to get her out of that water.”
The couple said the real hero was their six-year-old daughter, Cayleigh Johnson.
“It was scary,” Cayleigh said. “So the car was going like this, and it just went boom, right into the ditch.”
Cayleigh was playing outside and screamed for her parents who were inside the house near the canal.
I spoke with Robin from her hospital bed over the phone who told us she is in a lot of pain but grateful.
“The thing I can remember is I started falling asleep and then I was going over the bump and I went into the ditch and that’s all I remember,” Robin said.
It was a split-second decision for a family who firefighters said helped save a stranger’s life.
“It’s pretty unique that someone would jump in and help somebody that they don’t even know,” said Battalion Chief for Sutter County Fire Richard Epperson.
Robin is hopeful that she will be released from the hospital on Wednesday in time to be home for Thanksgiving.
“She gets Thanksgiving and Christmas now with her family and grandkids,” Martin said.
Terry and Robin are looking forward to eventually meeting the family who helped save Robin’s life. The family expressed the same feelings about meeting the woman they helped when she is out of the hospital.
“I can’t wait for my baby to get home,” Terry said.
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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