Tag Archives: political economy

Hostage Taking

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Recall that the President Joe Biden (D) administration, some months ago, said it would

withhold food assistance funding from schools unless they comply with the administration’s guidance on a range of LGBT issues.

After these months of trying to get the administration to retract that threat—after all, in Dole v South Dakota, the Supreme Court said the Federal government could use funding to influence, but not to coerce, State compliance—22 Republican AGs have filed suit to try to force the administration to retract its threat. Notice, too, that no Progressive-Democratic Party AGs are party to the suit.

Indiana Attorney General Todd Rokita has the right of it:

[T]hey’ve [the Biden administration] reached a new level of shamelessness with this ploy of holding up food assistance for low-income kids unless schools do the Left’s bidding.

It truly is disgusting that this Progressive-Democrat Biden administration would use children as hostages in its attempt to coerce K-12 schools into accepting Party’s extremist position.

Who Checks the Checkers?

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Senator Rob Portman (R, OH), in his capacity as Ranking Member of the Senate’s Committee on Homeland Security and Governmental Affairs, released a report detailing a decade-long effort by the People’s Republic of China to infiltrate the Federal Reserve system. The report concluded, in part, that

the Fed failed to mount an adequate response. The report’s findings show “a sustained effort by China, over more than a decade, to gain influence over the Federal Reserve and a failure by the Federal Reserve to combat this threat effectively.”

Of course, Fed Chairman Jerome Powell demurred from that report.

“Because we understand that some actors aim to exploit any vulnerabilities, our processes, controls, and technology are robust and updated regularly. We respectfully reject any suggestions to the contrary,” he wrote in a letter to Senator Rob Portman of Ohio, the committee’s top Republican.
Mr Powell detailed the central bank’s information security and background screening protocols, including reviews of foreign travel and personal contacts for staff who have access to restricted information. “We take seriously any violations of these robust information security policies[.]”

Of course. However, any procedure, no matter how robust or frequently updated, is only as good as the people executing the procedure. I have to ask: who does that vetting for the Fed? Who follows up on those travel reviews and contacts? What’s the Fed’s IG role in these procedures? How closely is the DoJ’s FBI involved?

That last, given the FBI’s demonstrated bias and too-often outright dishonesty, is especially important.

Lawlessness

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Michigan Governor Gretchen Whitmer is busily mandating prevailing-wage requirements for contracts let by the State’s government. Never mind that she’s defying the will of the legislature—and in the present case, the will of the citizens of Michigan—in doing so.

…a citizen initiative under the Michigan Constitution. We collected tens of thousands of signatures, sending the issue straight to the Legislature. Lawmakers overwhelmingly stood with taxpayers, bypassing the governor [then-Governor Rick Snyder (R)] and ending prevailing wage for the whole state.

It hardly matters, though, since Progressive-Democratic Party politicians like Whitmer think petty laws don’t apply to their august selves.

Jimmy Greene, Associated Builders and Contractors of Michigan President, who spearheaded that citizen initiative, isn’t done, though, and neither are the good citizens of Michigan.

So with the help of the Mackinac Center Legal Foundation, we’ve filed a lawsuit asking state courts to throw out the prevailing wage.

The fight still won’t be done, though. The suit is a necessary step, but even with a victory in the courts, there’s no reason to believe Whitmer’s bureaucrats won’t tacitly enforce the union wage business simply by which companies they select for contract award and the weasel-worded pseudo-rationales those bureaucrats provide.

It’s necessary to take the next couple of steps, also: vote the Progressive-Democrats out of office en masse in Michigan, and then the newly installed Executive Branch politicians will need to follow through and fire the bureaucrats, also en masse.

Another CFPB Overreach

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Now it’s preparing to force banks to make whole those their customers who are conned by money-transfer service scams, regardless of whether the bank had anything to do with the scam.

Bank customers no longer should be responsible for their own decisions, even their foolish ones. We average Americans, holds the CFPB and its MFWIC, Rohit Chopra, are just too grindingly stupid to be responsible for ourselves.

Currently, banks must repay customers for charges they did not authorize. Chopra and his CFPB want banks, in addition, to have to refund these third-party transfers, done on the banks’ systems, if the customer authorizes the transaction and later changes his mind and cries foul. Customers are no longer expected to do their own due diligence regarding their money. That’s too much responsibility, you see.

This is one more reason this creature of Elizabeth Warren, this Consumer Financial Protection Bureau, needs to be disbanded, the law creating it wholly rescinded, and metaphorical salt poured on the pages of the Code of Laws of the United States of America, our USC, and the child pages in our Code of Federal Regulations, our CFR, that contained it.

In a Nutshell

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In a Wall Street Journal article on the rising price of natural gas resulting from the current spate of hot weather, there’s this regarding the broader role of natural gas prices in inflation.

Pricier natural gas adds not just to the cost of dialing down the thermostat but also to that for making fertilizer, steel, cement, plastic, and glass.

And, through that fertilizer price increase, the cost of food—directly in the cost of wheat-, corn-, soya bean-based foodstuffs, and indirectly in the cost of beef, chicken, and other meat animals that are fed these plants.

And, through corn’s role in ethanol production, the cost of fuel.

Which is pretty much the full reach of our economy.

The inflation resulting from limits on natural gas production also results from similar limits on oil and coal production.

But hey, we can all just go out and buy electric cars….