The LA Catastrophe Is a Direct Consequence of Political Interventionism

Imagine a government that knows that the enemy is coming and decides to withdraw its troops. This is what California authorities have done.

The LA Catastrophe Is a Direct Consequence of Political Interventionism

They claim to know that climate change will cause more natural disasters yet decided to eliminate key investments and budget items to offset the impact.

The southern California wildfires could cause between $52 billion and $57 billion in economic damage and at least five dead. Imagine a government that knows that the enemy is coming and decides to withdraw its troops.

This is what California authorities have done. They claim to know that climate change will cause more natural disasters yet decided to eliminate key investments and budget items to offset the impact.

The southern California wildfires could cause between $52 billion and $57 billion in economic losses, according to AccuWeather estimates.

The 2024-2025 fiscal year saw a $17.6 million budget cut for the Los Angeles Fire Department. Furthermore, Karen Bass wanted a larger budget cut of $23 million, according to LA City Controller Kenneth Mejia. This reduction included $7 million from the overtime budget, severely limiting the department’s capacity for emergency response, training, and brush clearance inspections. However, these budget cuts were not part of a tax relief and austerity program, as the mayor continued to bloat political spending. The city still devoted $1.3 billion to homeless programs, according to the same source.

Karen Bass was in Ghana, despite the local state of emergency in Los Angeles on January 7th.

Gavin Newsom imposed a reduction of $100 million from California’s wildfire and forest resilience fund in the budget for the fiscal year 2024-25, including vegetation management work, wildfire resilience plans, monitoring and research, and a home hardening pilot scheme to make homes more resilient to wildfires, according to Newsweek.

In order to maintain ecological balance, California also restricts water flows in the Sacramento-San Joaquin Delta and allows water to flow into the ocean. California’s restrictions on how much water can be diverted for human use at certain times to ensure fish survival, particularly in dry years, have been widely criticised. Instead of storing or using the water for human consumption or agriculture, millions of gallons end up in the ocean.

Is this all part of widespread budget control and lower taxes? No. Budget expansion has been the norm in recent years, and California has one of the highest tax wedges in America, according to the Tax Foundation.

The total budget of Los Angeles City is $12.8 billion; the LA County budget is $43 billion for 2024-2025, and the California State total expenditures are $297.9 billion. The California budget has doubled in a decade.

Does anyone really believe that more government power, more spending, and higher taxes would have prevented the LA wildfire catastrophe? Really?

I can’t think of a worse way to manage the L.A. tragedy than to give more power to the same mayor and governor who have ignored all the warnings about woods management and water policies for years.

However, some individuals continue to hold the belief that the issue with natural disasters such as the LA wildfires, the Valencia floods, and others stems from the government’s lack of control over the economy and institutions.

Reality refutes the notion that increased government power will lead to improved security and disaster management.

Governments all over the OECD are managing the largest budgets in history, with billions spent every year on any imaginable item. One would assume that governments with such access to environmental reports, technology, and funding would have devoted more investment to water management, fire control, and all the required infrastructure. However, they did the opposite.

When we look at countries that successfully manage enormous acres of wood and water infrastructure, we can see that they abandon ideology and, in fact, prioritize spending on items that secure adequate risk prevention.

The only governments that let natural catastrophes happen and, at the same time, drain funds that would prevent them are those that have an agenda of interventionism and a sectarian view of nature, climate, and the economy. Instead of preventing natural catastrophes, progressives politicise them.

So-called progressive policies prioritise alleged ecosystem preservation over human lives and properties. Furthermore, their policies fail both ways. Their policies not only fail to preserve ecosystems but also put more lives at risk. Incompetent decisions in LA and California have not only damaged nature and killed people, but they have also destroyed billions of dollars’ worth of property. Telling the citizens who have lost their properties and dear ones that “I told you so” and that the solution to natural disasters is to go back to the 16th century is arrogant, condescending, and counterproductive. 

If you really believe in climate change and its consequences, you will never reject the measures that mitigate and offset the damage. No one cares more about the environment than rightful property owners.

Eliminating political interference in fire and flood prevention is the only way we can successfully prevent more disasters like the one in Los Angeles.

The solution to this problem is to eliminate unnecessary regulations and allow individuals to organise themselves to protect their property and land. This will save more lives and protect the environment better.

About Daniel Lacalle

Daniel Lacalle (Madrid, 1967). PhD Economist and Fund Manager. Author of bestsellers "Life In The Financial Markets" and "The Energy World Is Flat" as well as "Escape From the Central Bank Trap". Daniel Lacalle (Madrid, 1967). PhD Economist and Fund Manager. Frequent collaborator with CNBC, Bloomberg, CNN, Hedgeye, Epoch Times, Mises Institute, BBN Times, Wall Street Journal, El Español, A3 Media and 13TV. Holds the CIIA (Certified International Investment Analyst) and masters in Economic Investigation and IESE.

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