Tag Archives: political economy

Who’s in Charge?

Posted on by
Reply

British Prime Minister Liz Truss and her then-Chancellor of the Exchequer Kwasi Kwarteng proposed a serious personal and corporate tax reduction for British subjects. The Bank of England Governor Andrew Bailey demurred—loudly—and sent the British securities and debt markets into a tailspin.

As a result of the turmoil, Truss folded, fired Kwarteng, and removed the corporate tax reduction.

That wasn’t enough for Bailey and now the TINAs—Tories in Name Alone—and now Truss has virtually quit the game altogether: she’s now withdrawn all of the tax reductions, even those income tax reductions that would have benefitted the ordinary British subject.

Never mind, either, that the tax reductions would have spurred British economic growth and gone a long way toward getting its high inflation back under control and back down.

Elected Truss doesn’t seem to be in charge. Bureaucrat Bailey does. On the other hand, between the two of them, only Bailey seems to have the courage to stay the course he’s set.

One of those TINAs, a carefully unnamed Conservative lawmaker who won his district in 2019 with a 65% majority had this:

One says that he lies awake at night worrying about being kicked out when the country next goes to the polls.
“I’ve got private school fees to pay and my mortgage is going through the roof[.]”

More worried about his elite status and personal welfare than he is about the job his constituents hired him to do.

And isn’t all of that a sad state of affairs for the British people.

Unions for Socialism

Posted on by
Reply

It doesn’t get any clearer than this.

Workers at an Apple Inc store in Oklahoma City’s Penn Square Mall have voted to organize, styling themselves the Penn Square Labor Alliance.

Here’s the deal, though, as laid out by Charity Lassiter, a member of the new organization’s organizing committee:

Now that we’ve won the election, it is our hope that management will come to the table so that we may collectively work towards building a company that prioritizes workers over profit and encourages employees to thrive[.]

To hell with profit, to hell with business success—which is how jobs get created, how wages increase—companies exist as non-governmental social welfare organs.

That’s the stuff of socialism.

Another DoJ Failure

Posted on by
Reply

DoJ has fined a business in Maryland $300,000 because it asked its employees for particular items of documentation as proof of citizenship or legal resident alien status instead of accepting the generic sets of documents that “Federal law” allows. Per DoJ,

Federal law allows workers to choose which valid, legally acceptable documentation to present to demonstrate their identity and permission to work, regardless of citizenship, immigration status, or national origin.

Regardless of…immigration status. So a company wants to be careful that it’s hiring legal workers by applying tighter standards to its own workforce, and DoJ objects. ‘Course if the company is caught with illegal aliens in its employ—that regardless of immigration status part—it could lose its license to operate.

But never mind.

Biden’s Union Push

Posted on by
Reply

Or maybe it’s Biden’s union putsch.

The Labor Department on Tuesday proposed a rule that aims to reclassify millions of independent contractors as employees. About 20 million Americans work as independent contractors, which have more autonomy than employees and can set their own hours and work for multiple companies at the same time.

But that autonomy is anathema to the Left: it’s much harder to unionize all those independent contractors, much harder to bring them under control until they’re created formal employees and so can be forced into unions in closed shop States. And make no mistake: the Progressive-Democratic Party is bent on eliminating all right-to-work laws so that every State becomes a unionized closed shop State.

This move by the Biden administration is just an early one on its path to making it easier to convert these free market jobs to mandatory union jobs. And to increase government control over average Americans and so to increase Party power.

Continued Inflation Pressure

Posted on by
Reply

The Producer Price Index rose 0.4% in September (against analysts’ expected rise of 0.2%), and it’s up 8.5% year-on-year.

This matters because the PPI reflects the prices—and price increases—that suppliers face for the components of goods that they must acquire in order to produce those goods. Those supplier prices are then passed up the supply chain to subsequent suppliers and on through to the final product that consumers buy.

That means that consumers can expect commensurate price increases—continued inflation—in the weeks and a few months into the future, a lag whose delay depends on the specific product being produced and sold/bought, but a lag whose outcome is unavoidable.

That’s not just a prediction with a high degree of confidence behind it, either. Much of that future consumer inflation is concrete because it’s built in.

The Bureau of Labor Statistics estimates that trillions of dollars in long-term contracts are pegged to versions of the PPI.