Don’t Only Blame Gensler

The Wall Street Journal‘s editors have their panties in a twist over SEC Chairman Gary Gensler’s imposing $393 million in fines on 26 companies that fail[ed] to track employee “off-channel” [personal] communications.

It’s certainly true that Gensler badly overstepped his bounds with those fines. The SEC, and no one in it, has any authority to surveil or to require surveillance of private company’s private employees’ personal communications. Gensler and his SEC should be swatted down—hard—in court for that excess.

However.

A major part of the blame for this overstep belongs on the management teams of those 26 companies. Those worthies demonstrated deeply disgusting cowardice when they meekly acceded to the fines. They’ve done a disservice to the companies of which they’re in charge, they’ve betrayed their shareholders, and they’re right next door to betraying the fiscal duties those managers have to their companies’ shareholders. Their meekness serves only to expose their companies to further government overreach, and it exposes their employees to further unwarranted (in both senses) surveillance by an overreaching government.

That betrayal vastly outweighs any financial “savings” from agreeing to pay the SEC fines…because it’s less costly than resisting in court. And it interferes with that necessary swatting-down, an interference that potentiates the likelihood of those future costs.

Two Questions…

that answer themselves.

Can the US and its allies deter all these rivals—including Iran and North Korea—at the same time, given the decay in the West’s military-industrial base and the unwillingness of voters to spend dramatically more on defense?

Of course we can, and the path to that is in that last bit: spending more on defense (while keeping in mind that a Critical Item for defense is a strong offense) and refurbishing our military-industrial base. Convincing us average Americans to spend more on defense is simpler and more straightforward than it apparently seems to the journalist crowd. It’s necessary and simple to explain the nature and depth of the threat posed by our four primary enemies, listed in my order of risk: Russia and the People’s Republic of China tied at the top; the one as demonstrated by its active shooting war of invasion and steady threats to continue west if its current land grab is successful. The other because of its active invasion and occupation of the South China Sea, seizing territory owned by other nations around the rim of the Sea and controlling sea lines of commerce that are critical to Japan and the Republic of Korea and extremely important to us, its increasing threats to invade and conquer the Republic of China, and the cyber war it’s already inflicting on us.

In third place is Iran, with its near production of nuclear weapons, which it will use promptly to destroy Israel and then shop to its terrorist surrogates and to any others who’ll have the purchase money. This nation already shops its conventional weapons—at heavily discounted prices—to its surrogates attacking Israel and commercial shipping on the Gulf of Oman and the Red Sea.

A distant fourth is northern Korea, whose rhetoric makes them worth watching carefully along with shoring up RoK’s and Japan’s defenses and our own in the northern and western Pacific, but not much more than that.

And then it’s necessary and simple, except for those politicians of both parties, to reallocate spending away from the billions of froo-froo already in the budget and toward the defense establishment. The only really hard part (and we all know what “hard” means) is getting rid of the deadwood, both civilian and in uniform, in the Pentagon and streamlining development and acquisition.

For our allies, it’s slightly more complicated (but only slightly). If they don’t want to spend more on defending themselves—especially in Europe and particularly those European NATO members who already are betraying their fellow members with their sloth—then it will be time to stand up a separate mutual defense arrangement among the US, the Three Seas Initiative nations, and Great Britain (for starters), and then walk away from NATO altogether.

And

And if not, should, and could, an accommodation be sought with one of the rival great powers? If so, which one—and at what cost?

There can be no accommodation with enemy nations whose solemn goal, often stated, is to conquer us. This is the goal of Russia and the PRC. Nor can there be an accommodation with an enemy nation whose oft-stated goal is to destroy Israel and then us. An accommodation with northern Korea is almost irrelevant, and wholly unnecessary—just do the watching and regional plussing up.

The cost of accommodating nations with those goals should be obvious—such a step would only be a step closer to their goals for those enemies. Too, that would only be the first step of a short path to our functional destruction: having accommodated our enemies once, they’ll only seek a further accommodation, and then another, then…, until we’re no longer capable of effective self defense.

Progressive-Democratic Party Agenda

This is what Party has in mind, should they be the winners this fall.

Party Presidential nominee Kamala Harris will push for these, among others, even as during this campaign season, she ducks away from interviews even by her friendly press (she hoped a couple weeks ago to reach an interview agreement “by the end of the month.” Keep in mind that even as she runs away from the press–and from the questions of us average Americans, these are the policies and goals she has strongly pushed for during her prior campaign for President and during her current stint as Vice President.

  • retreads of her and President Joe Biden’s policies of the last nearly four years
  • ban on fracking as part of her moves to eliminate our hydrocarbon energy capability
  • Medicare for all
  • open southern border
  • voting by and welfare payments to illegal aliens

Senate Majority Leader Chuck Schumer (D, NY) said what Harris lacks to fortitude or the integrity to say out loud for voters to hear and evaluate:

  • eliminate the Senate filibuster
  • control the Supreme Court with term limits and packing
  • impose federal takeover of elections
  • pass enormous spending and tax-hike legislation
  • additional housing entitlements

Harris’ goals are damaging to our economy and destructive of our American culture, bringing in those millions of illegal aliens with no incentive to assimilate into our culture but having access to our voting booths. Schumer’s goals are damaging to our economy and destructive of our republican democracy, converting us to a popular democracy, a form that has never worked in 2,500 years of attempts.

Price Controls and Ways Around Them

Donald Boudreaux and Richard McKenzie, economics professor at George Mason University and emeritus economics professor at UC Irvine’s Merage Business Schoo, respectively, reflected on Progressive-Democratic Party Presidential nominee Kamala Harris’ price control scheme and some ways around them.

[C]competitive market forces will encourage them to do so, even when illegal.

Competitive forces, especially, are human nature: all of us want our goodies for as little as possible, and where there are at least two suppliers of something, those suppliers will compete with each other on some form of price in order to get our business.

Thus:

  • “shrinkflation”— keep prices the same but shrink the portions of goods
  • nonprice adjustments, such as relabeling/redefining “select” grade steaks as higher-ranking “choice” grades
  • hire fewer workers
  • devote less effort to cleaning produce
  • reduce hours of operation

Another major way, for all that it’s an illegal path—that pesky human nature—is the black market. Price controls are an open door for these to thrive, even where they’re illegal. And yes, that includes here in these United States. Keep in mind, especially vis-à-vis black markets that human nature—wanting stuff for as little as possible—can be made to work strongly against black market: free markets, especially those without price controls, will always and everywhere be able to produce goods and services at less cost and so for lower prices than can any black market. The latter’s production costs always include things that are intrinsically absent in free markets: the cost of evading the lawman along with the risk premium necessarily charged against the likelihood of getting caught.

What’s in Harris’ Econ Plans?

Here’s an overview.

  • federal limits on price increases for food producers and grocers
  • legislation creating a new series of tax incentives for builders who construct “starter” homes sold to first-time homebuyers
  • $40 billion innovation fund for businesses building affordable rental housing units
  • provide $25,000 in potential down payment assistance to help some renters buy a home
  • accelerate Medicare and other federal programs to “negotiate” with drugmakers to lower the cost of prescription medications
  • work with state entities to cancel $7 billion of medical debt for up to 3 million qualifying Americans
  • make permanent a $3,600 per child tax credit
  • new $6,000 tax credit for those with newborn children
  • cut taxes for some frontline workers by up to $1,500

Each one of these is inflationary in its own right, and each one will drive a need to increase taxes in order to pay for them.

It seems to me—and the press is complicit in this, however unintentionally, with its focus—that Harris’ plan for price controls on those food producers and grocers to combat what she’s pleased to call “price gouging” is nothing but a distraction to draw attention away from her other proposals in order to get many of them enacted unnoticed.