Harris Plans

Ex-Vice President and former Progressive-Democratic Pary Presidential candidate Kamala Harris is expanding her midterm campaign schedule to include New Hampshire, where she’ll push for Party’s candidates for Governor and Senator.

That raises questions in my notoriously peabrained mind.

Is she going because Party is starting to get worried about its Senate majority prospects?

Is she going because Party is increasingly confident of its chances and is piling on and adding a Governor seat flip?

Is she going because Harris is desperately trying to show her relevance for her 2028 Presidential campaign?

My money is on door number three.

Rahm Emanuel’s Latest Installment

Over the last several weeks, Progressive-Democratic Party Presidential candidate hopeful Rahm Emanuel has been publishing sections of his campaign platform in The Wall Street Journal. His latest installment is here. Emanuel talks a good game, but as Long Time Reader might expect, I have thoughts on it.

The carried-interest rule suggests that those in the business of buying and selling companies need the incentive of a special tax break. They don’t.

This is a conveniently plausible assertion, but it’s wholly unsubstantiated. Let Emanuel supply the facts and logic underlying his claim.

To be effective, reforms will need to work hand in hand with an enforceable international floor.

Absolutely not. Such a move gives foreign governments too much influence over our domestic economic policies. The only legitimate “international floor” needs no enforcement mechanism; the floor is however low individual nations let their domestic tax policies go and stay competitive. Progressive-Democrats spend ‘way too much time and energy trying to limit competition.

[R]aise the capital-gains rate closer to the rate that prevailed during the late 1980s, when it was the same as the tax on ordinary income. … You can’t claim that narrowing the gap between passive income and earned income would undermine the incentive to invest when we saw robust growth in exactly those conditions.

Yes, I can. Emanuel first needs to prove–or at least provide evidence–that the growth under those conditions would not have been even more robust had that gap not been narrowed. Showing a counterfactual is hard, but Emanuel isn’t even trying.

[E]liminate the stepped-up basis that allows them to pass fortunes from one generation to the next free from capital-gains taxes. This policy has nothing to do with driving economic growth and serves only to preserve inherited wealth.

 Contra Emanuel, there’s nothing wrong with a family preserving its wealth. Aside from that, it’s not for Government, or for Progressive-Democrats who want to run Government, to dictate to the rest of us the proper way to handle our wealth.

It’s instructive, too, that Emanuel is not proposing even working toward a single low (in the range, I suggest, of 10-15%) tax on all income regardless of source (viz., those capital gains), with no deductions, credits, subsidies, loopholes, or other froo-froo.

In that environment, private-equity fund managers, firefighters, police officers, and teachers–and Warren Buffet and his (ex-?) secretary–all would be paying the same rates, with the rich still having their bigger bills.

Know Better Socialism Made Manifest

Michigan’s Socialist Progressive-Democratic Party candidate for Senator, Abdul el-Sayed, is a poster child for socialism’s Know Better ideology. He’s claiming now that

[m]ost billionaires don’t park their money making more businesses. They park their money in the stock market. That is not meaningfully investing in opportunity. It’s just investing in other billionaires.

Not only is el-Sayed completely ignorant about how rich folks gained their wealth generally, he’s completely ignorant of how they grow their wealth. (I’ll leave aside the shibboleth that they already have “enough” wealth and shouldn’t be looking to earn more.)

He’s also insisting he’s the primary, if not sole, arbiter of what constitutes meaningful investing. The folks who got their wealth by investing in their own way in areas of their choosing don’t know as much about it as he does, and so he must direct their investing for them.

El-Sayed’s position is insulting to us average Americans in two ways.  One is that we’re too stupid to manage our own financial affairs; his Socialist Government must do that for us. The other is that we’re stupid enough that we cannot see his self-absorbed arrogance in representing himself as Knowing Better how the Evil Rich should deploy their assets than do those Evil Rich, or that he won’t be coming after us later.

Bonus third insult: that we’re stupid enough to believe he’s not as economically ignorant as he really is.

Absolutely

New York City’s Socialist Progressive-Democratic Mayor Zohran Mamdani defines Socialism this way:

Socialism to me means you’ll have whatever you need to live a dignified life and that it is the government’s job to deliver on that[.]

He’s correct as far as that simple statement goes, but Mamdani cynically uses it to disguise his call for outright socialism. The core tenets of socialism, though, are that Government knows best what’s good for us, Government caps opportunity in an effort to enable the least of us to keep up with the most capable, and Government achieves these by taking the wealth of the successful and redistributing it among the least successful. Socialism achieves equality of poverty in every instance.

Free market capitalism, on the other hand, enables all of us to live dignified lives and to do so with only minimal government intervention. In a capitalist society, government’s (note: small-g government) primary roles are two, and they are critical: one is to minimize crime, and the other is to promulgate rules that protect free markets: sanctity of contracts and honesty in the negotiations that produce those contracts.

Capitalism further allows each of us to prosper as well as we might, beginning from equality of opportunity, given our individual endowments of ability, work ethic, and luck. None of us have our abilities or the outcomes of our abilities truncated artificially by Government.

“Dignified,” too, is more than just being personally comfortable. It’s possible to live a dignified life only if it’s a moral and virtuous life, as Ben Franklin and John Adams had it those ~250 years ago. That means we take care of each other as well as ourselves.

Notice two things about that: we take care of each other; we do not depend on—create ourselves dependent on—Government to do for us. Our individual prosperity flows from, and increases via, free market capitalism, an economic system under which each man [is] guaranteed the opportunity to show the best that there is in him. The other thing, then, is that the personal prosperity that comes from this system vastly potentiates our ability to take care of ourselves and, especially, of each other.

Free market capitalism, in fine, combines the opportunity for individual prosperity with individual dignity as the only truly moral economic system: it’s the only system that leaves each participant in a free and voluntarily done economic exchange better off than he was before the exchange.

Socialism has no capability to achieve any of that.

Costs and Aggregated Statistics

A Just the News news writer wrote that [p]ositive US economic indicators have been left out of much of the mainstream media’s reporting on the state of the economy.

He’s right—the mainstream media really is that mendaciously biased. His claim, though, also is wholly irrelevant in the present election season.

All those economically favorable data that the news media studiously ignores are aggregated data; they refer to the nation and not to any particular individual, not even to any small groups of people in local communities.

Folks don’t care that, as a nation, inflation is down sharply from the Biden years or the nation’s median household income has risen to nearly $87,500. Who is this Mr/Ms Median Household person, anyway? Has anyone actually met him or her? Nor do folks care that the nation‘s jobs data are favorable.

What an individual—a voter—cares about is that he’s personally paying gas prices that are up 30-40 percent over the pre-Biden years; he, the trucker, is personally paying diesel prices that are up nearly double; her grocery bills at the local grocery store are up 40-50 percent; his/her income—what he or she gets in an actual take home paycheck—doesn’t stretch to pay those higher costs. It’s not that he notices that his take home pay isn’t growing enough to keep up with inflation—generally he doesn’t. Nor does he need to, what he sees is that his paycheck no longer covers his gas, groceries, utility bills, and on and on. That’s if the individual has a job at all, which personal datum is invisible in those aggregated statistics. He’s just a depersoned number in the collection of labor statistics.

What are politicians, especially Republican politicians, going to do about that? This is what, so far.

Republicans are going to be swept into oblivion next month if they don’t stop hiding under their desks avoiding these simple facts and get out among their constituents—diners, rec centers, town halls, letters to local editors, interviews on local television and radio stations—and say, in so many words, what their particular policies are that will address their constituents’ particular cost of living concerns.

Being specific is the bane of politicians, exposing them as specifics do, to broad criticism and sharp opprobrium. It’s time now, though, for Republicans to find some backbone and be specific, which, as a happy side effect, would let them point out the failure of their opponents to have any sort of plan for these ills other than that they’re not Trump and they’re not Republicans.