Daily Archives: 19 November 2024

Inflation vs Prices, but Not in Isolation

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Not in isolation from each other, but more importantly, not in isolation from other factors that also impact our economy.

The Biden-Harris administration and the associated “advisors” on staff focused on inflation during the just concluded campaign season (the article at the link mentions spending packages during the first Trump administration along with spending packages at the onset of the Biden-Harris administration as causes of that inflation), but they missed other key factors.

…roughly 40% of voters said the economy was their top issue, far outstripping any other. Those voters backed Trump by a 22-percentage-point margin. Inflation has declined without a recession, but many were thinking instead about how prices are still high.

This was while the Progressive-Democrats and the Left kept on about how inflation was abating (that the Biden-Harris administration’s spending had caused the sharply higher inflation is beside the point of this post), while us average Americans were concerned about prices. After all, we pay our bills based on actual, extant prices, not based on how prices change from time to time.

That’s not all, though:

White House officials interviewed for this story defended their record by pointing to how the ARP was designed at a time when it wasn’t at all clear the country was about to escape the pandemic. Virus counts and deaths were rising as Biden took office.

The data, collected in real time, made clear that while the Wuhan Virus was enormously contagious, it wasn’t very dangerous except to one relatively small slice of our (and the world’s) population: the very old and especially those with severe comorbidities. Outside of that, the mortality rate from the virus was a very small fraction of one percent; even the risk of hospitalization was not much larger than that tiny rate. The rising virus counts and deaths were solely the result of the virus’ enormous infection rate.

And yet, the Biden-Harris administration extended the virus-related declared national emergency for another two years, which facilitated the administration’s ability to control our economy wholly independently of actual economic factors.

Then,

Strong demand from Biden’s additional fiscal stimulus…ran headlong into crippled supply chains and discombobulated labor markets.

This would have been known, and was at the time, to any high school economics student. The hard drop in labor had already occurred—those shutdowns—and was already in rapid recovery at the end of the Trump administration, for all that employment still had a considerable ways to go, and the disruption to the supply chains—from the various nations’ shutdown of their borders—had already occurred and was in full disruption. It’s a basic tenet of economics, too, that when demand outstrips production supply, prices have nowhere to go but up. It was clear at the time, too, that production supply was going to be disrupted for some time as producers were not going to be able to expand production (they couldn’t even maintain their original production rates) from those labor and input supply chain dislocations.

The administration worthies and the press ignored all of this in their determination to panic-monger and deprecate everything Trumpian in that preceding administration.

There’s this laugher (otherwise it’s simply insulting to our intelligence), too:

White House and Democratic officials have argued that overall US economic outcomes were better than those achieved in nearly every other advanced economy.

Whoopty-do. None of us, average Americans and elitists alike, live in any of those “other advanced economies.” We live here, in our US economy, confronted with our US economic outcomes, and those outcomes were highly disruptive to our lives when they weren’t being outright destructive of our livelihoods.

That these folks still are making excuses rather than learning from those mistakes makes it unlikely that Party can be trusted with our economy any time soon.

Audit Failure and a Target for Reduction in Force

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The Pentagon has failed, again, the audit of its finances. This makes seven in a row, and it calls into question how hard the relevant officers and civilians are trying, along with their level of competence.

A total of 1,700 auditors worked on the 2024 audit, which cost about $178 million.
A breakdown of the audit found that 15 of the 28 standalone financial audits received a failing grade….

Pentagon Comptroller Michael McCord:

…the Department has turned a corner in its understanding of the depth and breadth of its challenges[.]

After seven years.

As Elon Musk and Vivek Ramaswamy look around the Federal government for places to cut, and as SecDef nominee Pete Hegseth (assuming he’s confirmed, even as the Left and their Progressive-Democrats ramp up their smear campaigns) looks into the Pentagon establishment he’d be overseeing, here is a lucrative, target-rich environment to enter.

A RIF is a Reduction in Force, a move whereby the military branches occasionally winnow down their ranks of officers and enlisted that each branch deems excess to its needs. The financial types—both military and civilian—in the Pentagon’s budgeting and acquisition sections, from supervisors on down, have by their successive and apparently determined failure to perform have self-selected for RIF. Start with McCord and his disingenuosity.

The RIF shouldn’t be limited to these folks, though. To the extent they’re getting bad, or merely slow, data with which to work, Pentagon training staff (and training is at the center of the Pentagon’s mission), branch Secretaries and Chiefs of Staff, and their financial staffs should be similarly targeted, over and above the Secretaries and Chiefs themselves being fireable by the incoming President for reasons suitable to the President.

Nor should it stop there. The Combatant Commands and the supporting commands—supply, transport, personnel, and so on—need to be closely scrutinized with a view to assessing the quality and timeliness of the data they’re sending to the Pentagon. Those personnel, again both military and civilian and again regardless of rank or position in the hierarchy, need to be RIFed also.

No doubt, this will lead, if carried out with sufficient breadth and depth, to a large reduction in the personnel complement of the Pentagon and of those additional establishments.

That opens up a twofer. Many of the critics of Hegseth’s nomination stew openly about his lack of experience in leading so large an organization as Defense. One approach for dealing with that is to shrink Defense. These RIFs would go a long way in that direction.