Category Archives: ethics

What Damages?

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Stipulate, arguendo, that Republican Primary Presidential candidate Donald Trump was, indeed, guilty of civil fraud as New York judge Arthur Engoron ruled regarding the way Trump valued his properties in order to obtain loans. As a result of that civil conviction, Engoron has ordered, among other things, that Trump must pay more than $350 million in “ill-gotten profits” which are some sort of “damages.”

I have to ask: what damage? What ill-gotten profit? All the bank loans were repaid in full along with all of the associated interest accumulated over the lives of the loans. Think about that for a moment. The question of damage goes, or should go, far beyond the proximate question of whether the banks got all that was due them under the terms of those loans.

Had Trump valued his properties in line with Engoron’s claims—Mara Lago, for instance was worth only $18 million in Engoron’s judicial (not financial) estimation rather than the $420 million (at least) at which Trump valued it—the associated loans would have been far smaller, and the banks would have made far less money. What damage, indeed?

And those “ill-gotten profits” that Trump made with those loans? Those loans and associated profits allowed some of his businesses to survive and those employees to continue to have good jobs, and those loans and associated profits allowed other of his businesses to grow and those businesses to hire more employees into growth-created good jobs.

That’s One Spin

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Battery car sales seem to be falling off in California.

The Los Angeles Times reported on Thursday that Tesla sales fell significantly in the back half of 2023, declining by 10% in the final quarter alone. This sales drop came despite California’s previous pledge to ban the sale of new gas-powered vehicles in the state by 2035.

The LA Times is busily spinning the reason for the fall-off. The outlet is claiming

“controversial pronouncements” from Tesla CEO Elon Musk.

It added

There’s no survey to prove it, but there’s plenty of anecdotal evidence to suggest liberal-leaning California car buyers are done with Elon Musk’s abrasive personality and his stands on political issues.

No data; LAT just Knows Better.

And this:

If enough buyers here are truly fed up enough with Musk to influence their purchasing decisions, Tesla’s sales could continue to suffer.

On the other hand, Greg Bannon, AAA‘s Automotive Engineering Director, told the LAT

The government and automakers have spent billions on something consumers may not want.

Of course. Who is this Bannon guy, anyway? It couldn’t possibly be that consumers, even in California, are increasingly becoming less enamored of battery cars.

Mm, mm. Nope.

This IRS Needs to Go

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First, it was the Internal Revenue Service targeting Conservative organizations that were applying for tax-exempt status by slow-walking approvals or outright denying approval on purely political grounds. Then it was the IRS “leaking” of a plethora of Conservative and Republican Americans’ personal tax information. There were, too, a host of similar IRS failures between those and since.

Now we get the Treasury Department Inspector General for Tax Administration report that shows that this IRS misbehavior is longstanding and a feature of the agency. Here are a few of the things TIGTA found.

  • 19 contractors’ most recent background investigations were not favorable as of July 13, 2023. However, these contractors still retained their access to one or more sensitive systems because the IRS did not take action to suspend or disable the contractors from the IRS’s systems, as required
  • 279 contractors and employees no longer with the agency still had access to at least one sensitive computer system. “Actions were not always taken to timely remove users once they separated from the IRS”
  • For some sensitive systems, the IRS does not have adequate controls to detect or prevent the unauthorized removal of data by users

The IRS managers don’t even know what systems they have in operation.

  • the IRS struggled to come up with a complete list of sensitive computer systems, eventually identifying 319.
    To perform this evaluation, we [TIGTA] requested information from the IRS that identifies all sensitive systems. However, our ability to obtain a complete and reliable inventory of its sensitive systems was an ongoing challenge throughout this evaluation.

In fine, as TIGTA put it,

The fact remains that for some sensitive systems, the IRS does not have adequate controls to detect or prevent the unauthorized removal of data by users[.]

Plainly, the IRS’ managers aren’t even pretending to try to install controls.

We need a Federal Revenue facility to oversee Federal tax collection and collected revenue handling, even under a vastly simplified Federal tax code. But this agency is beyond repair. It must be disbanded entirely with its personnel returned to the private sector—most especially not reassigned elsewhere in the Federal government—and replaced with a new, streamlined Federal Revenue facility.

TIGTA’s report can be read here.

Freed Hostages

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Israeli forces—the IDF, Shin Bet, and a police counterterrorism unit—successfully raided a specific target in the Gaza Strip southern edge city of Rafah and rescued two hostages that were being held by the terrorist Hamas.

This came while Progressive-Democrat President Joe Biden stepped up his pressure on the Israelis to not go into Rafah, unless they have a plan to protect the civilians, even though Biden has no evidence that the Israelis aren’t already taking extreme measures to protect civilians, measures that include telling civilians where the Israelis intend to strike next and when—measures that also give the terrorists time to leave the target zone. Nor does Biden have any evidence that the Israelis haven’t been taking such measures all along in this war that the terrorists have inflicted on Israel.

This is the level of the brilliance in the Biden White House.

Don’t Destabilize the Alliance

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That’s NATO Secretary General Jens Stoltenberg’s request of Republican Presidential Primary candidate Donald Trump over Trump’s continued, bluntly phrased, pressure on NATO members to meet their spending commitment of 2% of GDP to NATO.

It isn’t Trump’s rhetoric that risks NATO destabilization, though. When Trump was President, he threatened US withdrawal from the alliance if the other member nations didn’t start meeting that commitment. At the time, only a handful aside from the US were meeting the commitment, and after his threat, a few more stepped up and met theirs. This after 50 years of “pretty please” had fallen on deaf freeloading ears.

Now, with renewed pressure from likely Republican Presidential candidate Trump, more are meeting their commitment. According to Stoltenberg, 18 of the 31 members are “on track” to meet their commitment (meaning they still haven’t, but now are saying the right words in their respective legislatures).

That leaves 13 members who are shirking their duty. That leaves 13 members who are betraying their fellow members by rendering themselves incapable of meeting their Article V commitment to those members in any concrete way. That leaves 13 members who are imposing risks on their fellow members by rendering themselves so plainly incapable of resisting an attack on themselves that they tacitly invite one, requiring their fellow members to spend their blood and their treasure to rescue them.

That leaves 13 members who are the ones risking destabilizing the NATO alliance.