Tag Archives: economics

American Energy Production

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In a piece centered on Texas’ role in our nation’s electricity production and especially on Texas’ role in our nation’s oil and natural gas production, there sat this nugget of information:

Fossil fuels—petroleum, natural gas, and coal—accounted for roughly 79% of total US energy production in 2021, according to the EIA.

This is the magnitude of destruction the Progressive-Democratic Party wants to wreak on our ability to heat our homes in winters, cool our homes in summers, travel to/from work or stores, or produce much of anything at all from food to manufactured products to communications facilities—all of which take energy as the first input. They don’t care about the destruction they intend to inflict on our economy in general.

No more drilling.
There is no more drilling. I haven’t formed any new drilling.

That’s President Joe Biden’s (D) solemn promise to do right now. All in the name of converting us to “renewable” energy sources…sometime. All without regard to those sources being entirely unreliable.

In Which Rubio is Mistaken

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The Senate passed a bill mandating a labor agreement agreed by railroad companies, management teams of a dozen rail unions, and the rank-and-file of most of those unions be imposed on all of those unions and railroad companies. The bill also barred a rail union strike.

In a separate vote, the Senate failed to pass a bill imposing a number of paid sick leave days for union employees on the rail companies.

Senator Marco Rubio (R, FL) is dismayed.

When workers are treated as little more than line items on a spreadsheet, they become indistinguishable from the freight cars they service….

And

…the measure only granted rail workers one day of paid sick leave all year—a stipulation that Rubio said “underwhelmed and alienated the men and women doing the hard work.”

And

Congress…told rail workers to suck it up and be grateful. We should have worked to meet the demands of the workers instead of appeasing labor leaders and companies.

Most, if not all, of that likely is true.

However.

It doesn’t matter how much any of that might seem like a good idea, or might even be a good idea, over the duration of a contract. It’s not government’s job to set the work compensation parameters for employers and their employees. Most especially, it is not government’s job to meet the demands of the workers. It’s government’s job to set the market conditions within which employers and employees can negotiate those parameters freely.

Senator Bernie Sanders (I, VT) wasn’t far off with his dig at Rubio: I always knew you were a socialist.

Government is a system of men and women, not an entity in itself. What those men and women might think is a good idea will vary over time for those men and women and certainly will vary as different men and women come into government from time to time. We need only see how government “good ideas” vary as Republicans or Progressive-Democrats are in ascendance from one Congress or administration to another.

At most—at most—where a national risk is in play (for instance, a steel worker industry-wide strike or lockout, or a nation-wide rail strike or lockout), government might require the two sides to settle through binding arbitration a disagreement they can’t settle through negotiation. With the arbiters chosen by the two disputants, not by government.

He Can’t Be Serious

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Can he?

Federal Reserve Chair Jerome Powell said in a speech last Wednesday that the overheated labor market needs to cool more for the Fed to be confident inflation could decrease toward its 2% goal. He said the biggest remaining barrier to taming inflation is a worker shortage, which is driving up wages and, in turn, the cost of goods and services.
“The labor market … shows only tentative signs of rebalancing, and wage growth remains well above levels that would be consistent with 2% inflation,” Powell said. “We want wages to go up strongly, but they’ve got to go up at a level that is consistent with 2% inflation over time.”

How is it business’ fault the Federal government insists, via monetary policy, on paying able-bodied workers not to work with its wealth of welfare payments?

How is it business’ fault the Fed initiated the present high inflation with its own profligate fiscal policy of injecting trillions of dollars into our economy with its artificially suppressed interest rates and its heavy Federal debt funding?

How is it business’ fault that the Federal government and the Fed insist on working at cross purposes in “managing” our economy and fighting inflation instead of letting our erstwhile free market economy—an intrinsically self-correcting economic system—run free and bring that Fed-government-caused inflation under control?

How is it business’ fault that they keep raising wages within their other inflation-caused rising costs so their employees can at least lose inflation-caused value on their wages more slowly?

Get Rid of the EV Subsidy Altogether

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Allied and friendly governments object to the Biden administration’s battery-operated car tax subsidy requirements that these vehicles be assembled substantially in the US or they’re not eligible for the subsidy. That puts battery-operated cars assembled in Europe, Japan, and the Republic of Korea at a substantial disadvantage in the competition for sales in the US.

They’re right, but for a different reason than they think.

The Biden administration should get rid of the battery-operated car subsidies altogether. If battery-operated cars truly were ready for market, they’d need no subsidy: Americans would buy them on the merits of the cars. If we don’t want them, or don’t want them in large numbers, government intervention (via subsidies here) is no more appropriate than is government intervention in any other section of our free market marketplace.

Full stop.

Why Not?

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Commerce Secretary Gina Raimondo (D) doesn’t want the US to decouple our trade or our trade relationship with the People’s Republic of China. It’s sufficient, she claims in all seriousness to safeguard [our] technology to ensure [our] economic competitiveness.

It’s important that we get the bilateral economic relationship right, not just by protecting but also by actively promoting our economic interests in trade. We are not seeking the decoupling from China.

Why not? There’s a broader concern here, that Raimondo and the Biden administration at large, carefully ignore than merely protecting our technology and technology advantages. That larger concern is our independence of action on the world stage in “competition” with a nation with the avowed goal of overtaking and supplanting the US in the world—of conquering us, whether overtly or functionally.

That goal, that threat is given concrete, measurable effect by the PRC’s

  • flooding the US with fentanyl and flooding Mexico with the components of fentanyl so that nation can flood US with fentanyl
  • our dependence on PRC for Critical Items in our supply chain
    • rare earths, which the PRC already has used in an attempt to extort Japan
    • lithium
    • cobalt
    • intermediate components in assembly of computer chips, computers, cell phones
  • overt threats against friends and allies, , Republic of China, Japan and Republic of Korea (East China Sea), nations rimming South China Sea
  • 2017 National Intelligence Law that makes every PRC company a spy for the PRC government and for the CCP
  • support for the barbarian’s invasion of Ukraine

Trade with the PRC funds their military development against that goal of replacing us.

The PRC is an enemy nation, and we should be doing nothing at all to support its economy, its economic adventurism around the world, its intelligence-gathering efforts, its own technological development, its military expansion and expansionism.

That requires decoupling altogether.