First the Brits and then California?

Russ Steele

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?


About Russ Steele
Freelance writer and climate change blogger. Russ spent twenty years in the Air Force as a navigator specializing in electronics warfare and digital systems. After his service he was employed for sixteen years as concept developer for TRW, an aerospace and automotive company, and then was CEO of a non-profit Internet provider for 18 months. Russ's articles have appeared in Comstock's Business, Capitol Journal, Trailer Life, Monitoring Times, and Idaho Magazine.

3 Responses to First the Brits and then California?

  1. Dixon Cruickshank says:

    Did you ever get out of the first one? you have to get out of #1 before you can do #2

    • Dena says:

      The term double dip recession is also called a recession within a recession. The first one came during the Great Depression where we were starting to recover but the government became very friendly to unions and bumping tax rates cause the second dip. The book “New Deal or Raw Deal’ is a very good study of how not to run an economy and looks extensively at the Great Depression.

  2. Arthur M. Day. says:

    As Mrs. Thatcher said: “The trouble with Socialism is that sooner or later you run out of ‘Other People’s Money’ (OPM).” What Govs. do with OPM in Socialism is; Buy Votes. That is one of those Chinese Tigers from which one, having gotten on for a ride, may not dismount. When the Gov. runs out of OPM from taxes, they have to start using OPM from loans, i.e. bonds. When people don’t want to buy bonds anymore the Central Bank has to buy them, i.e. print paper money. AFIK all the Govs. on the planet are in stages 2 or 3. In 1944 Germany reached stage 3, it never works.
    California has been having a sane drain for decades, I left in Redondo Beach in1992, the house I sold was covered by Prop. 13. In order to slow the sane drain the St. would have put any property I bought in CA under the prop. 13 umbrella. I never considered it.
    Art Day, NCHS, Class of ’50.

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