Economic Advisors

President-Elect Donald Trump has them.

  • Larry Kudlow, the anti-Keynes, to run (maybe) the White House Council of Economic Advisers
  • Peter Navarro to Head the White House National Trade Council
  • Steve Mnuchin for Treasury Secretary
  • Wilbur Ross for Commerce Secretary
  • Linda McMahon for Administrator of the Small Business Administration
  • Gary Cohn to run the White House National Economic Council
  • Mick Mulvaney to head Office of Management and Budget
  • Rick Perry as Energy Secretary
  • Andrew Puzder for Labor secretary
  • Scott Pruitt for Administrator of the Environmental Protection Agency
  • Elaine Chao for Transportation Secretary
  • Betsy DeVos for of Education Secretary
  • Carl Icahn as special adviser on Federal regulations, a newly created and unpaid position

There’s much of Trump’s putative trade policy with which I disagree.

However, Progressive-Democrats don’t like these folks.  It’s hard to get a more ringing endorsement for an advisory team than that.

A Warren Buffett Acolyte

Patriotic Millionaires Chair Morris Pearl doesn’t want his taxes cut as part of a reform of our tax code.

Well, those of us who are less wealthy spend their money, they don’t invest it in assets. Investing in assets is not what grows the economy. Spending money is what grows the economy.

This is where he parts company with his sensei, though: he appears not to understand how a free market, capitalist economy works.

From where does Pearl think the things on which people spend money come—the turnip tree? From where does Pearl think folks get the money to spend—the dollar tree?

It takes folks working—jobs—to produce the goods and services on which we spend our money. It takes folks working—jobs—to earn the money to spend.  It takes both spending and asset investment—jobs creation—to grow an economy.  And that takes money left in the private economy—lower tax rates for all, including the rich.

Pearl also admits he’d only pay the taxes required; he wouldn’t make donations to the Treasury of amounts equal to the reduction in his taxes.  He just demands to impose his views on all of us.  In that, he follows his sensei assiduously.

More Obama Fiat

And the failures just keep coming.

This time, it’s President Barack Obama’s (D) effort to sabotage the oil industry as thoroughly as he’s done the coal industry.  Obama’s latest bit of I Know Better And Congress Be Damned is an Executive Order that is intended to ban

federal offshore drilling and mineral leases on some 3.8 million acres from Virginia to Maine and 115 million acres off the coast of Alaska, including some of the world’s great untapped repositories of hydrocarbons.

And he’s bragging that he thinks the move is permanent.

It’s a laughable as it is delusional.

The EU Strikes Again

In a 130-page decision from August that was made public on Monday, the European Commission, the EU’s executive arm, asserted that two Apple units registered in Ireland brought in $130 billion in profit over an 11-year period that should have been taxed at Ireland’s 12.5% corporate tax rate, but instead remained largely untaxed anywhere.

As the WSJ noted, this is an early volley in the struggle by European Union authorities to impose their tax will on scofflaw sovereign nations who are so impertinent as to apply to multinational corporations doing business within them national tax schemes and such emoluments as these nations deem useful rather than acceding to their EU Know Betters.

Never mind that the members of the EU still are sovereign nations.

Never mind that, in the present case, Ireland simply applied its domestic law to that subset of an international corporation doing business from within Ireland.

Never mind that Ireland has an unacceptably low (to the EU Know Betters) corporate tax rate, and so it’s winning the competition with continental Europe to attract business.

Maybe Ireland should reevaluate its relationship with the European Union.

A Disingenuous EPA

Talk about cost shifting.

The EPA is proposing a rule that will shift the cost of complying with its diktats—Superfund cleanups this time—onto private enterprise.  The rule

would cost the [mining industry] industry $171 million a year and save the EPA $527 million over 34 years

were the rule to be finalized.  Notice that: The EPA would save $527 million dollars over the 34 years–$15.5 million per year—while those $171 million per year inflicted on the industry works out to more than $5.8 billion over the 34 years.  And that’s per the EPA’s own Regulatory Impact Analysis.

Never mind that the EPA already has cost shifted at one environmental disaster that it caused, when it’s people blew out a closed mine in Colorado through their own idle carelessness and have yet to pay for the damage done and the cleanup.

Merry Christmas from the EPA.