Category Archives: Economics

Miscellaneous economy stuff

More Federal Money to States and Locals?

Posted on by
Reply

The “unrest” sparked by the murder of George Floyd in Minneapolis, and now by the killing of Rayshard Brooks in Atlanta, is encouraging Congressmen to include increased funding for State and local jurisdictions in any “next stimulus” package that might be in the offing.

States and cities facing budget shortfalls have warned they might need to pare back spending on public safety, including police officers and fire protection.

“Including police officers and fire protection” is a cynical excuse for spending yet more OPM.

State and local jurisdictions aren’t effectively using the Federal monies they’re being given now, though. This is demonstrated by the rioting, looting, bad policeman (not bad police force) incidents that continue to proceed with no, or too slow, consequences.

There’s no need to throw more Federal money—more money from the taxpayers of other jurisdictions—down those ratholes until they start cleaning up their own messes.

“American Retreat from Europe”

Posted on by
Reply

Congressman Mac Thornberry (R, TX), Ranking Member of the House Armed Services Committee, has misunderstood the American situation in Europe. In his Thursday Wall Street Journal op-ed, he asserted that

press reports surfaced of a proposal, backed by some in the administration, to withdraw a significant number of troops from Europe….

His piece went on in that vein.

Thornberry is badly mistaken along a number of dimensions.

First, the alleged withdrawal of troops is from Germany, not from Europe.

More than that, though, Germany along with the majority of NATO members have demonstrated that they have no interest in defending themselves or each other—for starters, they’ve all welched on their own commitments to spend even minimally—a whole 2% of their national GDP—on NATO capability.

We can’t force those nations to defend themselves, nor should we spend American treasure or risk American blood trying. Poland and the Baltics do have such an interest, and that’s where our troops should go. All of those currently stationed in Germany should go, not just the token 9,500 currently being bandied about by “reports” for withdrawal. Apparently, too, at least some of those supposed to be taken out of Germany would be slated for Poland.

Overarching all of that is this. Germany isn’t upset over the 9,500 American troops supposedly to be withdrawn from the country. Germany is upset over the loss of all those millions of American dollars being spent on the German economy by the tens of thousands of American dependents of those soldiers, as well as by the soldiers themselves.

Constitutionally Mandated Federal Funding

Posted on by
Reply

House Progressive-Democrats have unveiled their “police reform” bill, a proposal crafted explicitly without Republican input. That last is neither here nor there for this post’s purpose. What matters is this claim in Eliza Collins’ Wall Street Journal article describing that bill and its alleged purpose:

The bill doesn’t provide any new federal funds for police departments, except where constitutionally mandated for data collection, according to Democratic aides.

This is an amazing claim. Maybe those Progressive-Democratic aides—or even Reporter Collins—would like to point to that clause in our Constitution that mandates Federal funds to police departments for any purpose, let alone “data collection.”

A Misunderstanding

Posted on by
Reply

In an article centered on reports that President Donald Trump is planning to withdraw 9,500 troops from Germany—relocating at least some of them to Poland—Bernd Riegert had the following:

[T]he US personnel [to be removed from Germany] essentially work within the framework of NATO for the Pentagon’s European and Africa Commands. They operate the Ramstein airbase, a military hospital and a military training facility. They are important pillars of NATO infrastructure, but they do not, strictly speaking, contribute much to Germany’s national defense.

Wow.

At least some of those reassigned soldiers would be sent to Poland. Shoring up Polish defenses, militarily and politically (as that reallocation also would signal), against Russian aggressions doesn’t contribute to Germany’s defense? Again, wow.

If the troops allegedly to be removed work in important pillars of NATO infrastructure, but they’re not supporting Germany’s national defense, if those important pillars—Ramstein AB, European Command, Africa Command, training, hospitals—don’t contribute to Germany’s national defense, then in what way does NATO contribute to Germany’s national defense?

It’s already clear that Germany has chosen to not fulfill its obligations to NATO and therewith to not support the (mutual) defense of the other member nations. If Germany does not believe that NATO contributes to Germany’s defense, then what’s the point of any NATO forces in Germany?

It’s Time

Posted on by
Reply

The People’s Republic of China has begun welching on its trade agreement with the US. Government-controlled companies buying American farm products have begun canceling their orders to American farmers, orders made under that agreement. So far, the canceled orders amount to chump change.

However.

“A handful of shipments of livestock feed, corn, pork, cotton and some meat imports are pushed back,” said a senior Chinese shipping executive involved in China farm imports who asked not to be identified and who has been briefed on Beijing’s move.
“Private Chinese exporters are not part of this, but it could escalate, depending on how the relationship between the US and China goes forward,” this executive said.

The threat is clear.

It’s time to find, and redirect our farm products to, other markets and stop selling them to the PRC. The PRC is simply too unreliable a trading partner—which should be expected, given that the nation has placed itself as an enemy of us rather than as a competitor.