First the Brits and then California?
04/25/2012 3 Comments
Britain was one of the global leaders in going green with huge investments in alternative energy subsidies driving up energy costs. As the climate turned colder many of the UK’s elder citizens on pensions had to decide, heat or eat. Now we learn, that Britain’s economy is on the cusp of a financial crisis.
From CNBC this morning:
Britain’s economy slid into its second recession since the financial crisis after official data unexpectedly showed a fall in output in the first three months of 2012, piling pressure on Prime Minister David Cameron’s embattled coalition government.
The Office for National Statistics said Britain’s gross domestic product fell 0.2 percent in the first quarter of 2012 after contracting by 0.3 percent at the end of 2011, confounding forecasts for 0.1 percent growth.
Most economists had expected Britain’s $2.4 trillion economy to eke out modest growth in the early 2012, but these forecasts were upset by the biggest fall in construction output in three years coupled with anaemic service sector growth and a fall in industrial output.
California under the thumb of CARB and AB32 continues down the same road that the Brits took, mandating alternative energy and reducing reliance on fossil fuels. The states energy prices are rising and our most productive people are leaving the state, as business leave or expand else where. We are fortunate that our climate is not as cold as the UK, and many CA citizens will not be shivering in the cold.
However, as energy prices keep climbing and unemployment increases, the state is highly vulnerable to a double dip recession. Are we next?