Tag Archives: economics

To Repeat

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In a Wall Street Journal article centered on the problems volatile energy prices cause for central banks, there’s this allegation:

The pass-through of higher energy prices to other goods and services, along with their volatility, could make it harder for the Federal Reserve to tell what price shocks are temporary and thus set interest rates appropriately.

Wrong answer.

I’ve said it before, but it bears repeating. Instead of trying to play the market, or even to time it, the Fed needs to set its benchmark interest rates at levels historically consistent with the 2% inflation rate that it’s historically used for its target inflation rate, and then sit down and shut up.

Full stop.

Part of the Agreement

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…on Reduced-Build Back that Senators Joe Manchin (D, WV) and Chuck Schumer (D, NY) settled on last week is this Progressive-Democratic Party gem, and which illustrates in no small part the depth of the betrayal that is Manchin’s agreement.

The Senate drug agreement would require the Health and Human Services Secretary to “negotiate” prices for 10 of the top-spending drugs in Medicare starting next year and 20 by the end of the decade. If drug makers don’t accept the government’s offered price, they would get slapped with a 95% excise tax on their sales. Take his offer or else.

If that’s not the opening shot in the destruction of the American pharmaceutical industry, it’s certainly the beginning of the end of the industry’s interest in innovating and in leading the world in innovation.

That’s to the severe detriment of every American citizen who gets sick.

Some Lipstick for the Pig

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Here’s some of what’s in the Build Back Reduced bill—formally styled Inflation Reduction Act—that Senator Joe Manchin (D, WV) and Senate Majority Leader Chuck Schumer (D, NY) agreed, which Manchin euphemizes as an all-in energy policy:

[T]he Interior Department would be required to offer up at least two million acres of federal land and 60 million acres of offshore acreage to oil and gas producers every year for the next decade. If Interior officials fall short, they wouldn’t be able to advance some permitting aspects of the wind and solar projects on federal land.

Offer up. But at what price? And for what duration before the leases expire? Look for the Biden administration to use lease pricing to actively discourage producers from buying leases, to slow walk the subsequent permit applications that would enable the leases to be acted on, and to use the failure to get the permits on time as excuses to terminate the leases/allow them to expire.

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.

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.