What do you think about the 44.47% increase in monthly water bills by 2027?
Remember, consumer prices have already risen 21.5% over the past four years, according to government-manipulated data. So, will it warm your heart if your water bill increases by 44.47% by 2027?
This is a rate increase proposed by California’s Golden State Water Company for residents of the Santa Maria Service District. If approved, as specified in the public participation hearing. Announcement The average residential user’s monthly bill will jump from $67.94 in 2024 to $101.81 in 2027, excluding surcharges.
Other service areas served by Golden State Water Company are facing: similar increase. These rate increases are being requested to fulfill the company’s General Rate Case (GRC) filed with the California Public Utilities Commission last year. GRC proposes regional infrastructure investments and water rates for 2025, 2026 and 2027.
Californians, like residents of many states, are experiencing constant utility bill increases. one Recent Offers California’s electric rates include a communist plan that charges customers based on their income rather than their power usage. Under this proposal, people with higher incomes would pay more for electricity than those with lower incomes, regardless of how much electricity they use.
This income-based rate structure proposal ultimately replaced We use a new two-part billing structure. The first part includes customer utilization rates. The second part includes a flat fee of $24.15 on top of the usage fee for most customers. Specific break times have been included for low-income users.
Do you prefer a recession?
both are up to date PCE Price Index and CPI report Things may be less bad than they were a few years ago. Nonetheless, prices are still rising at a rate well above the Fed’s arbitrarily set 2% target. Add rising utility bills to the mix and American households are under great pressure.
One solution to inflation is a recession. A recession that causes people to lose their jobs and tighten their belts will reduce demand for goods and services. This could slow down consumer price inflation. It may even lead to deflation.
This unpleasant solution to inflation was recently advocated by Hank Paulson’s former TARP bailout manager. wooden chopper Neel Kashkari, an outstanding person and current president of the Minneapolis Fed. In fact, speaking on The Economics Show, a Financial Times podcast, Kashkari said: said Americans prefer:
“Americans’ ‘instinctive’ hatred of inflation meant some preferred a recession to a surge in prices.
“The economy in the United States is quite strong, the labor market is strong, inflation is falling, and many people are very dissatisfied with the state of the economy. “I think it’s because of the high inflation they’ve experienced.”
Kashkari shared these insights as a rationale for keeping the federal funds rate at its current 23-year high of 5.25-5.5%. According to Kashkari, more data is needed to convince the Fed’s rate fixers that inflation is decreasing. And that it is better to keep interest rates high longer and risk low growth than to let consumer price inflation spiral out of control.
Are you prepared for stagflation?
Perhaps Kashkari is seeking to take over from Federal Reserve Chairman Jerome Powell when his term ends in 2026. His crazy eyes and even crazier ideas about credit market intervention make him particularly suitable for the position. Who knows?
But clearly Kashkari is overestimating what the Fed can and cannot control. The higher the interest rate, the more expensive it is to borrow. This would probably slow economic growth because businesses and individuals would have less incentive to borrow and spend money.
In Kashkari’s view, this could push the economy into a recession and curb consumer price inflation. But it may not be an either/or question. Things are rarely as cut and dry as central planners believe.
For example, what happens if the economy slows but consumer prices still rise? What if stagflation rears its ugly head for the first time since the late 1970s?
Just maintaining relatively high interest rates can do a lot. The reason we say relatively high is because while interest rates are dramatically higher than they were a few years ago, they are actually slightly lower than long-term interest rates. average. Therefore, the Fed may need to consider raising rates further rather than cutting them.
Another important factor driving consumer price inflation is deficit spending. Despite Washington’s April Income Tax Benefit $482 billion, the Treasury is targeting a deficit close to $2 trillion in fiscal 2024. These deficits are extremely inflationary. They also put the U.S. government’s long-term finances and dollars at risk.
Cutting interest rates at this point is likely to push consumer prices higher. But maintaining interest rates at current levels despite a $2 trillion deficit will not necessarily slow inflation.
This recession won’t stop
In fact, monetary policy is putting the brakes on and fiscal policy is accelerating. And this is why an inflationary recession, or stagflation, could occur in the U.S. economy in the near future. That may already be happening.
Recent feedback from Chicago-based purchasing managers indicates that the economy is shrinking significantly. that much Chicago PMI May recorded a dreadful 35.4. A value below 50 indicates that manufacturing activity is contracting.
This marked the sixth consecutive reading in the constriction zone. Moreover, it is the lowest level since May 2020, when the coronavirus panic lockdown was in full swing. To find another low, you have to go back to the financial crisis of late 2008.
If you look closely at the report, almost all of the various components are falling. New orders, hiring, inventory, supply deliveries, production, order backlog. They all fall off and signal contraction.
However, there is one component that is rising. That is, the price paid.
So manufacturing is shrinking and prices paid are rising. This looks and feels like stagflation to us. Moreover, it provides initial evidence that all deficit spending occurs and, contrary to Kashkari’s beliefs, a recession cannot lead to a slowdown in consumer price inflation.
Until Washington gets serious about balancing its budget, consumer price inflation will not abate. There is no recession or recession. Considering all the deficit spending, it doesn’t really matter.
And the soonest Washington can get serious about deficit reduction is after the election. By then the misfortune of stagflation will be upon us.
Losing your job is bad enough. But at the same time, seeing your water bill skyrocket by 44.47% is an exceptional insult.
Good luck! You will definitely need it.
[Editor’s note: Does paying your electricity bill got you down? Don’t sweat it. I’ve got you covered. In fact, I recently prepared a unique publication titled: “Energy Independence: Backyard Energy Savings and Abundant Power In A World Without Reliable Electricity.” >> Click Here, to access a complimentary copy.]
thank you,
minnesota gordon
for economic prism
The return from this recession will not stop the economic prism
