Tag Archive for: economics

Housing Report: Blame Ourselves, Not Our Stars

No issue plagues Californians more than the high cost of housing. By almost every metric—from rents to home prices—Golden State residents suffer the highest burden for shelter of any state in the continental U.S. Its housing prices are, adjusted for income, as much as two to three times higher than those in key competitive states, such as Florida, Texas, Tennessee, and North Carolina, and neighbors like Arizona and Nevada.

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The Greatest Generational Conflict of All

Ever since the phrase “the generation gap” was minted — by a headline writer at Look during the youth rebellion of the Sixties — trouble has been brewing. Today, there are two generational conflicts in play around the world: one within the depopulating wealthy countries, and another within the more fecund, but far poorer, countries of the developing world. Read more

Why Africa is Turning Its Back on the Eco-obsessed West

The Western democracies appear united in their support for Ukraine, but they may also be losing the bigger, more consequential battle for the loyalties of the developing world. Virtually no developing country – including democracies like India, Brazil, Nigeria and South Africa – has chosen to take steps opposing Russia’s aggression (in fact, South Africa may have joined Iran in sending weapons to Moscow). This is a stark reflection of the West’s waning influence.

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The Governor’s Gambit

Many conservatives may see Gavin Newsom as the epitome of the progressive Left, with some even calling his policies “communist.” But the policy preferences of the California governor (whose presidential ambitions are evident) represent something more plausible and thus more dangerous: a blending of Peronist income redistribution coupled with the fanatically “green” authoritarian agenda embraced by the state’s dominant tech oligarchy, public-employee unions, and climate activists. Read more

The Rich Are Eating Themselves

Beware of plutocrats bearing gifts. The annual clown show at Davos epitomises how today, the global elites have embraced an unholy trinity of ‘progressive’ doctrines: climate-change apocalypticism, a belief in systemic racism and racial ‘equity’, and radical gender ideology. The super-rich hope that by genuflecting to these causes, they can buy themselves political protection and fend off the activists lurking in the ranks of their own companies. Yet, in the long run, this could end up fueling their demise.

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Energy Colonialism Will Worsen the Urban-Rural Divide

In his drive to conquer China, Mao Zedong and his most famous general, Lin Biao, stoked “a peasant revolution” that eventually overwhelmed the cities. In those days, most Chinese toiled on the land, a vast manpower reservoir for the Communist insurgency. Today, in a world where a majority lives in urban settlements, such a strategy would be doomed to failure.

The small percentage of rural and small-town residents in most advanced countries — generally under 20 percent — lack the numbers to overwhelm the rest of society. Political and economic elites feel free to ignore the countryside, but they may find they do so at their peril. Although now a mere slice of the population, rural areas remain critical suppliers of food, fiber (like cotton), and energy to the rest of the economy.

Residents in agricultural areas have good reason to feel put upon. Their industries are often targeted by regulators and disdained by the metropolitan cognoscenti. They may not be hiding in the caves of Yan’an, but farming communities from the Netherlands to North America are rebelling against extreme government regulations, such as banning or restricting critical fertilizers or the enforced culling of herds. Meat and dairy producers are assaulted in a hysterical article in the New York Times that predicts imminent “mass extinction” caused by humans and suggests that to keep the planet from “frying” we will need to reduce meat and dairy consumption in short order.

This is occurring at a time — following decades of remarkable boosts in agricultural productivity — when food insecurity and high prices are again plaguing even wealthy countries but particularly the poorer countries in Africa. This shortfall has worsened, in part due to the Russia–Ukraine conflict, which has reduced the reliability of food exports from the Ukrainian bread basket, making Western production more critical.

Regardless, the inhabitants of the periphery — the vast area from the metropolitan fringe to the deepest countryside — and the farming that flourishes there will face an extraordinarily well-funded green movement that is now depicting “industrial farming” as one of the principal villains in their ever-expanding climate melodrama. Although greens may support the notion of small farmers using artisanal methods, and the wealthy certainly can afford the much higher food prices, niche farming cannot support most farming communities or provide ordinary consumers with reasonably priced groceries.

The regulatory tsunami reflects attitudes in the media, the academy, and the bureaucracy that generally disparage the periphery, too often regarded as depopulating, depressed places without a future. Rural residents are seen as primitives, driven by “rural rage.” They tend to be more skeptical about climate-change policies and a promised “just transition,” which only makes them even more deplorable.

Read the rest of this piece at National Review.


Joel Kotkin is the author of The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Roger Hobbs Presidential Fellow in Urban Futures at Chapman University and Executive Director for Urban Reform Institute. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin.

Photo: Drenaline via Wikimedia under CC 3.0 License.

California’s Budget Deficit Spells Trouble

Just a year ago California Governor Gavin Newsom could, and did, brag about the state’s estimated $100 billion surplus. Flush with cash, the preening presidential hopeful was able to hand out thousands of dollars of goodies to households while financing an elaborate multi-billion dollar climate change agenda. Read more

Mysteries of the Labor Force

One of the enduring mysteries of contemporary society centers on the seeming disassociation of so much of the labor force from the economy. This became particularly evident during the pandemic Read more

California’s Budget Surplus Has Vanished; Its Economy Faces a Harsh Reality

The much-celebrated California boom is facing a harsh reality.

Everything was looking good, based on enormous growth in capital gains in tech stocks and property, and some in Sacramento assumed the bounty would last — until it didn’t. The latest bad news is the evaporation of the state budget surplus that is now rapidly turning into a deficit that could run as high as $22 billion to $40 billion, particularly if there’s a recession. Read more

America Has An Oedipus Complex

As in Sophocles’s tragedy Oedipus Rex, we are witnessing a generational drama in which inheritors kill their proverbial father to marry their mother, in this case Mother Earth. The psychology behind this pattern is above my pay grade, but many of the richest people on the planet, and their heirs, now seem anxious to disparage the economic system that created their fortunes. With few exceptions, the new rich, and particularly their children and ex-wives, embrace a racial, gender and environmental agenda that, while undermining merit and economic growth, still leaves them on top of the heap.

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