Category Archives: Economics

Miscellaneous economy stuff

There’s a Reason for That

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As The Wall Street Journal‘s astute editors noticed, less than a dozen—10, by their count of the fingers of two hands and no toes of either foot—members of the Progressive-Democratic Party caucus in the House of Representatives are willing to oppose the Democratic Socialists of America agenda. My count via the thumbs of just one of my hands (or maybe the social finger of that hand), only one Progressive-Democratic Party Senator is willing to oppose the DSA agenda.

It’s an agenda of government control of our larger businesses (but it won’t stop there), government control of private property, government given (and so able to be taken away) national medicine, ever rising taxes because…”necessity,” and political rather than economic globalization through entirely open borders and an end to deportation of illegal aliens (there being no such thing in the DSA ideology).

Less than a dozen across our Congress. Eleven, out of an aggregate of 255 Progressive-Democrat Congressmen. Those 244 Progressive-Democrat Congressmen demonstrate pretty conclusively that the Progressive-Democratic Party is an overtly socialist party, the direction in which it began moving with the election of Barack Obama as President just 18 years ago, with the pace sharply accelerating after the election of the “squad” of Alexandria Ocasio-Cortez, Ilhan Omar, Rashida Tlaib, and Ayanna Pressley just eight years ago.

The Progressive-Democratic Party is rapidly and enthusiastically coming out of the closet, assimilating the DSA (or being swallowed by DSA), and openly asserting that DSA political and economic positions are its own. Those policies are what Party will attempt to inflict on our nation if it gains majorities in the House and Senate after this fall’s elections.

That’s the Point

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Recall that one of New York City’s Progressive-Democrat Mayor Zohran Mamdani’s goal was a plethora of city government-run grocery stores to sell groceries at “affordable prices”—which, for Mamdani, meant “cheaper than what existing grocery stores were selling.” He could mean only that, else he’d be conceding that those prices already were affordable.

The outcome of such a move is laid out in the subheadline:

His socialist supermarkets could put New York’s little grocers out of business.

That’s the point.

Like any good socialist, Mamdani wants government to control the producers. Especially if it’s the particular socialist’s government. Getting rid of the little businesses demonstrates to the larger stores and the chains—whose individual stores generally are franchises run by moms and pops or collections of them run by small- or mid-sized businesses—that they’d better kowtow to the socialist government or leave. In either case, that would increase government’s control over the remains.

Driverless Trucks and Good Paying Union Jobs

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Keith Hernandez, of Teamsters Local 727, doesn’t like driverless trucks.

Driverless trucks endanger good-paying jobs and the communities that rely on them… he says. And

Automation would remove the real-world, first-hand experience and knowledge drivers gain on the road.

No, they wouldn’t and don’t. All that “real-world, first-hand experience and knowledge” is contained in the computers that operate the autonomous vehicles. Delivery drivers are my friends and sales people, as Hernandez also claims? They may well be friendly, even friends, but that’s wholly outside of and separate from their role as drivers. And, no, neither the UPS driver, nor the FedEx, nor Amazon—nor even the Door Dash driver nor the pizza delivery guy are salesmen and women. They don’t pitch me, and I wouldn’t be interested if they did.

Driverless trucks, though, to the extent they succeed in safe, efficient, speedy delivery actually will reduce costs to consumers by taking the labor cost out of the picture. And if they don’t succeed, the truck drivers will continue to thrive in their own right.

No, leave it to a union man to take this tack. Your money belongs to the union. If it can’t get your money by forcing dues payments, it’ll try to get it by featherbedding into unneeded jobs, driving up your costs.

A Reformed Fed

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David Malpass, Undersecretary of the Treasury during Trump I and World Bank President during the reign of ex-President Joe Biden (D), correctly noted that the Federal Reserve Bank as currently constituted is using the wrong economic models and, as a result, has been a singular failure in controlling inflation and that it has been a failure all of this century.

He proposed some remedies.

  • Current models…need to be replaced with economic models that welcome strong investment, innovation, and job growth and recognize dollar stability as a prerequisite for price stability.
  • shrink its balance sheet to allow private-sector liquidity markets to rebuild
  • reduce staff and buildings
  • include the dollar in its inflation models
  • disentangle the Fed from fiscal policy
  • extract itself from the climate regulatory morass
  • allow regulatory innovations in banking and liquidity markets

A capitalist Federal Reserve Bank—what a concept.

There’s another reform, though, that’s an even more critical Critical Item, but this one is firmly on us citizens; it’s the responsibility of We the People. That is to reform Congress by firing those Representatives and Senators who disdain or are indifferent to the imperatives—and the intrinsic morality—of capitalism, and replace them with those who actively support capitalism.

As a man once said, that’s what elections are for. We the People are the electors.

Driving out the Successful

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In the race to see who can tax the rich the most, Rhode Island is contesting for the lead, courtesy of the State’s Progressive-Democratic governor, Dan McKee, and his legislature. The legislature has just passed and McKee just signed a bill that, among other items on Progressives’ wish list, raises the top income tax rate from 5.99% to 8.99%.

All races have winners and losers, and the losers in this race to tax are the citizens of those States whose governments keep raising taxes. It’s not just the Evil Rich who are losers in this race, though. The losers include all those whose portfolios—including 401(k)s and IRAs—benefit from the investments those rich folks make. The losers include the citizens of those high and higher tax-competing States who work, or would like to work, but the jobs aren’t expanding as much or aren’t being created at all because the Rich are constrained in how much they can grow their businesses or innovate from inside them. The losers include the small mom-and-pop businesses who fall into the Evil Rich category via the income pass-through nature of their businesses.

McKee’s tax on the rich in particular, will, as the editors at The Wall Street Journal noted, very heavily impact pass-through small businesses. What can those folks do? A glance at a map suggests a response, at least for the State over which McKee reigns. Rhode Island is 45 miles long, north to south, and its east-west width varies from 20 miles in the north to 35 miles in the south, with some detours to get to bridges across various fingers of Narragansett Bay and Mt Hope Bay. Those business owners easily could relocate to next door Massachusetts or Connecticut and still ably serve their existing customers. Those two States have high taxes, also, but not as destructively so as what McKee is inflicting.

For this Texan, for most of us in the Midwest and Pennsylvania, that’s an easy daily commute.