The first step to any recovery is admitting you have a problem. Some Democrats are starting to do that, but they still won’t admit that their policies are the cause. Take California Gov. Gavin Newsom, whose cure for a hangover is a Tequila sunrise. On his “Politickin’ ” podcast, he blamed Democrats’ election drubbing on the “five I’s”: inflation, immigration, interest rates, incumbency and Israel’s war in Gaza.
Voters were “p—” about these things, but Democrats didn’t realize it because they lived and campaigned in a “bubble,” Mr. Newsom observed. “And so you don’t really have a sense of what’s real and what’s not. The crowds are organized. The crowds are enthusiastic, but it’s a bunch of Democrats.” California’s coast epitomizes this bubble.
Such affluent areas voted for Kamala Harris, but Donald Trump won almost all the state’s inland counties, which are composed mostly of working-class and Hispanic voters. These folks have been especially squeezed by high energy prices caused by the state’s climate policies, which have also killed manufacturing and energy jobs.
Yet two days after Mr. Trump won election, Mr. Newsom ordered a special legislative session to “Trump-proof” California’s progressive policies, such as its electric-vehicle mandate and sanctuary-state status. The following day, his Air Resources Board approved a regulation that it projects will raise state gasoline prices by 47 cents a gallon come next year.
High-rollers in Beverly Hills who drive Teslas and work from home won’t be harmed by such increases, but what about the millions of Californians who live in the state’s interior and commute to coastal areas where most of the state’s jobs are? Progressives in Sacramento never seem to give them much thought.
A state Legislative Analyst Office report last week painted a picture of two Californias: one prospering because of booming stock prices, and the other languishing from inflation and sluggish private job growth.
“California’s economy has been in an extended slowdown for the better part of two years, characterized by a soft labor market and weak consumer spending,” the report noted. “Outside of government and health care, the state has added no jobs in a year and a half.” Blame high taxes, an increased minimum wage and climate regulation, among other progressive policies.
California’s state income-tax revenue has climbed this year thanks to rising stock prices, which have boosted capital gains and employee bonuses. Stock compensation alone at four major tech companies made up nearly 10% of state income tax withholdings during the first half of this year, the report noted. Meantime, unemployment in inland areas is at recession-era levels.
Mr. Newsom last Thursday attempted to demonstrate that he’s learned the lesson from Ms. Harris’s defeat by visiting the state’s Central Valley. “You know, some people talk about [how] this economy is booming, inflation is cooling, lowest unemployment in our lifetimes,” he said. “But people don’t feel that way. They feel like the economy is not supportive.”
Raising gas prices certainly won’t make them feel better. Mr. Newsom’s prescription to “support” California’s ailing regions is $120 million in largesse for “job-creating projects aligned to state priority sectors”—namely, green energy. In other words, he plans to double down on the Biden administration’s failed economic policies.
In all fairness, Mr. Newsom isn’t the only Democrat who can’t seem to put down the bottle. Days after the election, New York Gov. Kathy Hochul revived a $9 tax on commuters driving into lower Manhattan. The governor shelved the plan in the run-up to the election because Democrats worried that opposition in the city’s suburbs would cost them House seats in Congress.
The tax will especially hit taxi and Uber drivers who will lose riders as a result of higher fares. Alas, the only constituents Democrats seem to care about these days are public unions. Democratic lawmakers will squeeze voters with ever higher taxes to reward their government union friends who fund their campaigns.
Witness Chicago Mayor Brandon Johnson, an incorrigible spending addict, who is seeking to raise taxes on homeowners, liquor sales, cloud computing, streaming platforms and more to pay the city’s soaring pension bills. Chicago households on average pay more than $5,000 in taxes for state and local government worker pensions, which is more than most contribute to their own retirements. There’s one for you, and 19 for Chicago’s Taxman. High taxes are driving off businesses and residents. The Windy City is losing population faster than Puerto Rico. But Mr. Johnson doesn’t think the city has a problem, or at least not one that can’t be fixed with higher taxes.
Same for Democrats in California, New York and other progressive bastions. In electing Mr. Trump, tapped-out voters said enough to tax-and-spend government that fueled inflation. Democrats recognize their political problem but their solution is to pour another shot.
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