Tag Archives: political economy

A Question

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The Wall Street Journal had one regarding the several bills the Progressive-Democrats are taking up in the Senate now that Congress has returned from its extended long weekend vacation.

Will Senate Democrats be able to gain bipartisan support for any of their new initiatives?

The answer, of course, is No. Senate Progressive-Democrats aren’t interested in bipartisanship, so they aren’t looking for any. Senate Majority Leader Chuck Schumer (D, NY) and many of his fellow Progressive-Democrats have made this clear with

some Democrats…call for pressing ahead without Republicans. Democrats could pass tax and spending legislation with a simple majority, using a process called budget reconciliation….

And

Mr Schumer has made it clear Democrats are ready to go it alone if necessary on legislation, bringing bills to the floor that don’t have enough support to pass under current rules.

That’s an effort to put the Republicans on the record as voting against Progressive-Democrat priorities, but more importantly, it’s a move to discipline the few Progressive-Democrats who aren’t sufficiently far Left, pushing them to support ending the Senate’s filibuster.

The Progressive-Democrat “negotiations” in the Senate and the White House that are currently going on are a sham, just Progressive-Democrats filling a square to manufacture campaign talking points.

The Biden Oil Price Spike

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President Joe Biden (D) has killed the Keystone XL Pipeline, is blocking oil production from Federal lands, killed oil production in northern Alaska, is working to kill fracking altogether, is working to kill American oil (and natural gas) production, and has given the go ahead to Russia’s Nord Stream 2 pipeline. In sum, he’s actively working to kill American energy independence.

All of that is driving up American citizens’ energy costs, and that is reflected in the market’s anticipation of spiking oil costs. Here are a couple of graphs illustrating that. They illustrate the expectation that oil will soon cost $100/barrel, after several years of $50-$65/barrel. The first presents the spike since the start of the year in the number of West Texas Intermediate $100/barrel futures contracts against a current $70 price.

This graph reflects the price of a $100/barrel call option on WTI for delivery in December this year and next.

The expectation of actual market pricing of $100 is rising, also, sharply enough to drive up the price of the option.

This is what expert traders (some of whom are trading on the trends themselves and not on underlying oil prices, to be sure) are seeing as the future price of oil for our citizens. Even if oil settles out at its current price of $70 or just a little higher (and the anticipations turn out to be overstated), this current price represents a sharp increase over the last several years, when Government wasn’t moving so zealously to restrict our nation’s oil supply.

This is what Biden has wrought for our nation’s energy supply and cost of energy.

An Inappropriate Judicial Question

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The Apple-Epic trial has gone to the jury (in this case, the judge, the matter being a bench trial). This case centers on the level of commissions Apple charges app developers for marketing their apps in Apple’s App Store and whether those app developers can, under Apple’s rules, market their products/collect revenue for their products through other venues as well as the App Store—vis., in-app advertising.

In the course of the trial, the presiding judge—the “bench”—US District Judge Yvonne Gonzalez Rogers, has asked an inappropriate question.

…confronted Mr Cook [Apple CEO] with survey data that, she said, indicated that 39% of developers were either very dissatisfied or somewhat dissatisfied with Apple’s distribution services. “How is that acceptable?” she asked.

There is much to decry about Apple’s business practices, particularly with its App Store.

In particular, one would think those survey results to be unacceptable, to developers, users, even to Apple.

However.

The question is a business matter, solely among Apple, its customer/developers, and the market in general. It is not at all a judicial matter, and it is completely out of place and inappropriate for a judge to ask in a courtroom.

Some Words on Timidity

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RR Reno, editor of First Things, had an interesting op-ed about why he isn’t interested in hiring graduates of our Ivy League schools. His disdain wasn’t so much for the woke activists effectively running those schools as it was for the rest of the pupils (my term; his more generous one was “students”) there [emphasis added].

Student activists don’t represent the majority of students. But I find myself wondering about the silent acquiescence of most students. They allow themselves to be cowed by charges of racism and other sins. I sympathize. The atmosphere of intimidation in elite higher education is intense. But I don’t want to hire a person well-practiced in remaining silent when it costs something to speak up.

The same applies to existing CxOs of our businesses who show themselves too timid to speak against the woke, or against anything else in which they do not believe. If they’re that timid, how can the companies they run be expected to compete—domestically or globally?

Those meek, acquiescent pupils? Look at the example set for them at those schools: the meek, acquiescent persons of the schools’ administrations, who have spent the last several years, if not their professional lives well-practiced in remaining silent when it costs something to speak up against their woke activist pupils. That studied [sic] timidity doesn’t excuse the silent pupils’ own timidity (their peers provide a different example), but those…administrators…with their example make their timid charges’ paths that much harder.

The Desperation of Green Subsidies

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There’s this graph, via Power Line, that illustrates the impact of subsidies—here the production tax credit (PTC) for wind power in particular—and their expiration, on wind energy production facility investment and installation.

Those green bars (because Power Line has a sense of irony) represent the new wind-energy systems installed the year after the PTC was allowed to expire.

Wind power, among “green” energy production systems, just isn’t ready for market.