Gavinomics: California’s High Cost of Living is Exploding

California’s already ridiculously high cost of living is exploding even higher. The cost of living refers to the money needed for essentials like housing, food, taxes, and healthcare.

Housing in California is the highest in the country.

Food in California is expensive, even though California’s top agricultural products include dairy products and milk, grapes, lettuce, cattle and calves, and almonds. California produces more than 400 animal and plant commodities annually, more than any other state, with top commodities including dairy products and milk, almonds, grapes, beef and more. Additionally, two-thirds of the nation’s fruits and nuts and over a third of its vegetables are produced by California farms alone.

Taxes in California also are the highest in the country.

Healthcare in California – the state has the most expensive hospital stay costs in the US, however, it ranks fourth for the most affordable healthcare, according to Forbes.

Add it all up and a “cost of living” pay increase would need to be huge.

In my household, our healthcare premiums doubled for 2025.

Our utility bills have never been higher. Our PG&E gas bill last month was the highest we have ever paid, and for a home we are at 50% of the time. PG&E’s 26% rate hike request in 2023 turned into more of a 40% rate hike. As I reported, my PG&E bill in winter is often $455 and higher. Add to that the proposed 26% rate hike – $118.30 – and the bill jumps to $573.30. This year it’s $693 – for half-time use.

Much of this increase is California’s stupidity moving away from fossil fuels to renewable energy sources, which are intermittent, unreliable and expensive. Fossil fuels and nuclear still make up more than 80% of our energy sources. Wind and solar, for all Gov. Gavin Newsom’s propagandizing, are just a tiny fraction of overall use as this pie chart shows (h/t Steve Moore, Unleash Prosperity).

The push by environmentalists and the left to rid California and the United States of oil and gas is real, and it is ramping up under the guise of “Climate Change.”Notably, only 1% of Americans say “climate change” is the most important issue in the country.

Our SMUD bill (electricity) is tiered to charge 40% higher rates from 3:00pm to 9:00pm, and we’ve never paid more for electricity for the times of day we most need it – after work, dinner time, tv time, computer time, laundry, etc…

Notably, California sits on as much oil and gas as Texas does – the difference is that California Gov. Newsom is creating shortages in the state because he won’t allow drilling and extraction, and has put severe regulations and restrictions on the few remaining refineries in the state.

California sits on top of the Monterey Shale Formation, a 1,700 square mile oil-bearing shale formation primarily in the San Joaquin Valley that contains an estimated 15 billion barrels of oil. The Monterey Shale Formation is a resource bigger than Utica Bakken formation, and Texas’ Eagle Ford formation, combined, and is one of the largest known deposits of recoverable oil and gas.

However, California’s oil and gas industry is one of the highest taxed and heavily regulated industries.

Back to how this has impacted our Cost of living… Our homeowners insurance increased – in 5 years it has doubled.

Property taxes on our commercial property have nearly doubled in 4 years. Property taxes on Prop. 13-protected residential property have gone up bigly.

California gas prices are still the highest in the country. Today’s national average is $3.16; California’s average is $4.430. And in reality, most of the state is paying $4.60 per gallon of gas.

Our food bills are dramatically up. I am spending more on groceries today as an empty nester as I did when we were feeding always-hungry teenage boys.

The forecast

“In 2024 alone, his [Joe Biden’s] new regulations have cost the economy an estimated $1.4 trillion,” economist Steve Moore reports. “His auto emission rules – which are nearly impossible for the auto industry to meet – were the most costly.”

“Trump can and should reverse these regulations and do it immediately. This would have a disinflationary effect on the economy as everything from cars to household appliances to lawnmowers to plane trips would cost less.”

Moore warns that Inflation Is Going To Blow Past 4% in Next the CPI Report… it’s going to be even worse before the Trump administration gets a handle on it.

“In just the past two weeks, commodities like gold, silver, oil, and corn have spurted by more than 5% – coincident with the ongoing Biden spending spree in the first three months of fy2025,” Moore says. “Oil hit $78 a barrel, which will mean $3 or $3.50 a gallon in a town near you. (In California, that’s $4.60 per gallon!)

“Just another mess Trump is inheriting from Biden.”

“For the short term, inflation is headed in the wrong direction,” Moore warns.

A little good news: The Globe reported that the California Air Resources Board has withdrawn the federal waiver to enact emissions limits that exceed federal standards, and would require California truck drivers to transition from diesel to electric trucks.

Expect more of California’s green energy madness to be halted in the near future. As one of our esteemed readers and contributors said, “Trump would have killed the EPA waver and the CARB board knows this. Hopefully the appropriate federal agencies will partner with manufacturers to sue California to overturn CARB’s electric car mandate and win a precedent-setting decision which will prevent any state from issuing blanket mandates that are unconstitutional.” (Thank you Michael Rushford).

Something’s got to give in California, and sooner rather than later.