Tag Archives: political economy

Progressive-Democratic Party Agenda

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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

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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?

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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.

On Harris’ Housing Subsidy Gimmick

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Progressive-Democrat Vice President and Progressive-Democratic Party Presidential candidate Kamala Harris wants to fork over $25,000 to every first-time home buyer looking to buy a house to help them buy. The quick and dirty of that silliness is as follows.

Harris and her team don’t believe in or don’t understand the truism of a simple supply-demand graph that’s taught in any serious high school Intro to Econ class. Throwing money at a supply of something whose supply cannot grow as fast as the increase in money will only run up the price of that something, along with the price of the inputs to that something—and that input price inflation will slow the demand-encouraged increase of the supply of the something.

Those getting the 25 stacks aren’t going to be helped at all beyond the first few. Those getting the Harris Bucks later not only will find it difficult to find a house among that reduced and reducing supply, they’ll be no more able to afford that find than they are now.

Ignored by Harris with her gimmick are those who’ve become empty nesters and those at the other end of their lives, retirees, looking to downsize into smaller, used to be cheaper, housing. These folks will be actively harmed by the same outcomes that will render the gimmick merely useless to those first-time buyers.

Alternatively, and more likely, these Harris Bucks are just a 21st century bread and circus vote-buying scheme and who cares about those first-timers and downsizer wannabes. Richard J Daley is spinning in his grave over not having thought of this.

Hmm….

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The wonders in New York City’s government has spent some $4.88 billion on means of support for illegal aliens “migrants” in the city over the two years ending with the end of FY2024.

Imagine the benefits to the city’s residents and to their city’s economy were those billions of dollars spent on a couple of alternatives:

  • increased policing with more cops on the beat, and/or
  • increased prosecution of criminals rather than releasing them on no bail, and/or
  • recriminalizing misbehaviors like shoplifting, vandalism, assaults

Even [trigger alert] leaving some of that money in the hands of city residents through tax rate reductions.