Larry Kudlow on the California wildfires

Left wing political failures are ruining California and that is the subject of the riff. First of all, the Nightmare in California It is a natural disaster. No one can control the Santa Ana winds. My brother and his wife, who live in Hollywood, moved out.

Thankfully, the Hollywood fire is under control and they are back home. There are no heroes when such a terrible fire comes. It’s always better to be safe than sorry. Unfortunately, there is ample evidence that blue-state California politicians have exacerbated the danger of left-wing politics.

The authorities could not fill the reservoir properly, and as a result, there was no water in the fire pits in many neighborhoods. Earlier, the mayor’s office cut the budget of the fire department. Governor Newsom cut off water that never made it to Southern California to protect the elusive fish called smelt. Listen to President Trump about the elderly.

California Wilders investigate efforts to reform federal and state laws

Trump: “Well, it’s sad because I’m trying to get Gavin Newsom water to come in. If you send it to the Pacific Ocean, you’re going to have very good water because you’re trying to protect the little fish, which means. In other areas, by the way, it’s called a meltdown, and in order to melt it, They don’t have water.

Again, this is a tragic nightmare of a natural disaster in California. Lives have been lost, homes have been destroyed, and I’m no expert on all of this, but if the reservoirs are empty or if water is flowing into the Pacific Ocean instead of going into the fire hydrant – that’s it. The government First command error. Many people believe that California’s infrastructure, especially its plumbing and power systems, has been neglected for too long — in part because all the money is being funneled into so-called climate projects by green politicians.

Perhaps if Governor Newsom, Mayor Buss and others spent more money on water and power infrastructure and reservoir management, some of the tragedies in Southern California could be alleviated.

At this point I’m sure people in the Los Angeles area are more concerned about their safety than the blame game, but at some point it would be helpful to do an autopsy and see what happened and what happened. What can be done to prevent these natural disasters?

There is also a financial angle to this story. An early estimate by one of the biggest banks suggested losses of $50 billion – $20 billion of which would be insurance losses. The state of California has a big problem here as well. Some very large home insurers, such as State Farm and Allstate, are pulling back.

State Farm discontinued home insurance last spring. I’m no expert here either, but you have to wonder if they’re looking at the same infrastructure problems and assessing the risks that others face – and these insurers decide they don’t want to risk blowing their balance sheets or their balance sheets. The whole company.

They have shareholders to answer to, and California state insurance regulators don’t allow insurance companies to charge premiums high enough to cover natural disaster risks, and yes, those premiums are going to go up, but that’s the only way insurance companies can do it. Living unless you spend it completely.

In addition, California’s state insurance regulator, known as the FAIR Plan, is planning to impose a large amount of wildfire damage and assess private insurance companies for large amounts. Companies In many cases I simply cannot afford to pay.

California was already in the throes of a home insurance crisis before the recent disaster — and it may have been the costliest fire in American history. It’s not entirely different from the hurricane disaster in Florida. Some property values ​​in these tough areas have fallen even as insurance premiums have skyrocketed. I understand that the citizens of Southern California now care more about their survival than they care about dollars and cents.

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A fact is that the highest taxed country in the country could do a lot better in managing the necessary plumbing and power systems and reservoirs and forests and the insurance system.

I’m saying what most people think: Left politics, still failed. If you want to help people and businesses in California, how much less money to left-wing climate extremists and much more money to improve basic services and fatten the wallets of ordinary workers. That’s the riff.

This article is adapted from an editorial by Larry Kudlow in the January 9, 2025, issue of “Kudlow”.