How Free Stuff Is Used To Addict The Urban Poor To Welfare thumbnail

How Free Stuff Is Used To Addict The Urban Poor To Welfare

By John Eidson

Lifeline is a federal program originally intended to provide low-income people with a free landline phone. Sensing a chance to get more poor people to vote for them, Democrats expanded the program to include free cell phones. To maximize the number of subsidized cell phone recipients, “free phone” vans patrol low-income areas of every Democrat-run city in America, a practice that has resulted in massive fraud.

The “free phones” van pictured above set up shop on a street in a predominately African American area of Baltimore. As revealed in this must-see report by the city’s Fox45 TV, within just three years of Barack Obama’s election, fraud exploded the number of subsidized phones in Baltimore from 6,000 in 2008 to 231,000 in 2011.

Baltimore isn’t the only place where Democrats have used free phones to addict the urban poor to government dependency. In a viral video that illustrates how readily poor people will vote for politicians who promise them free stuff, a welfare recipient in Cleveland, Ohio screamed at a TV reporter that minorities would be voting for Obama because he gives them free phones.

HOW DEMOCRATS DISINCENTIVIZED WORK

Prior to 1995, the federal government gave more money to states that increased their welfare rolls. The following year, President Bill Clinton signed into law major bi-partisan welfare reform that required those receiving public assistance to work in exchange for taxpayer-provided benefits.

Known as “The Personal Responsibility and Work Opportunity Reconciliation Act of 1996,” the new law changed the rules by instead rewarding states that decreased welfare rolls. The encouraging result was a sharp drop in both welfare dependency and child poverty.

Thirteen years later, Democrats eviscerated the 1996 welfare reform law. Written behind closed doors with zero bi-partisan support, the 2009 stimulus bill passed into law by President Obama and a Democrat Congress effectively ended the requirement that able-bodied adults perform work in exchange for government benefits.

As allowed by the stimulus bill, the Obama administration replaced actual work requirements with the following “work” requirements: Bed rest, personal journaling, motivational reading, smoking cessation classes, weight loss classed, personal care and helping others with household tasks.

Proving that these activities were actually performed was done through the honor system. Defining leisure activities as work enabled Democrats to mislead voters to think that welfare recipients still had to earn their government benefits.

Under the new rules, welfare recipients were disincentivized to transition toward self-reliance, resulting in a return to record levels of welfare dependency and child poverty. The Democrat message to the urban poor: Keep voting for us and we’ll see that you keep getting welfare, this time with no strings attached.

HOW OBAMA EXPLODED FOOD STAMP ROLLS TO RECORD LEVELS

No one minds helping the needy, but Democrats have turned food stamps into a way of life for millions of able-bodied people—under President Obama, 13 million more recipients were added to food stamp rolls. In a move that helped explode food stamp usage to all-time record levels, the Obama administration ran ads designed to lure more people to apply for federal food assistance:

● Obama USDA pamphlet suggested holding food stamp parties to increase participation

“Host a social event. Make it fun by having activities, games and food, and provide information about signing up for food stamps!”

● To expand food stamp rolls in rural areas, the Obama USDA ran ads that denigrated and discouraged self-sufficiency

A 2011 USDA pamphlet revealed that local food assistance offices were rewarded for “counteracting” the pride that many rural Americans have in being self-reliant.

● Obama USDA’s “outreach” used Spanish-language ads to boost food stamp use among legal & illegal immigrants

To prevent taxpayers who do not speak Spanish from discovering the content of the ads, the USDA website did not provide English translations. When the ads were exposed in conservative media, the USDA removed them from its website.

According to a report by the Congressional Research Service, food stamp usage among able-bodied adults doubled after the Obama administration suspended work requirements.

THE PLIGHT OF URBAN AMERICANS IS WORSE THAN EVER

Over the last half-century, trillions of dollars have been spent to help lift the black underclass, with a mother lode of anti-poverty funding having gone to blue state governors and blue city mayors. According to Bob Woodson, a former executive of the National Urban League, 70% of the $22 trillion in anti-poverty funding never reached the disadvantaged people it was intended to help. Instead, the lion’s share was siphoned off by high level elected Democrats, who perpetuated inexcusably wasteful bureaucracies that devoured massive sums of anti-poverty funding in ways that did virtually nothing to improve the plight of the inner city poor.

For six consecutive decades, residents of our inner cities have been economically consigned to communities ravaged by urban decay, rampant crime, rat-infested government housing, sorry schools, generational poverty and chronic hopelessness, with each election bringing a new round of empty promises from the party that that uses welfare addiction and the race card to win elections. While the black underclass faces a daily struggle just to survive, the Democrats they helped elect live in new homes, drive new cars and dine at exclusive restaurants.

WELFARE KILLS THE HUMAN SPIRIT

By the mid-1980s, it was apparent that giving on-going welfare to able-bodied people was a counterproductive policy that inflicted lasting harm on the urban poor. Using government benefits to help impoverished people get on their feet is one thing; knowingly habituating them to welfare as a means of securing their vote is a cruel and cynical thing to do.

By continually pushing welfare on those already addicted to the demeaning lifestyle of government dependency, the Democratic Party is guilty of an unconscionable crime against the most vulnerable people in our society.

Except on Election Day, Democrats couldn’t care less about the urban poor. One day, white liberals will be filled with shame when will realize the unmitigated carnage their vote has foisted on generations of impoverished black Americans.

©John Edison. All rights reserved.

The New York Times Reveals the Horrors of Capitalism—By Showing China’s State-Run Hospitals thumbnail

The New York Times Reveals the Horrors of Capitalism—By Showing China’s State-Run Hospitals

By Foundation for Economic Education (FEE)

If the Times had visited one of China’s many private hospitals, they would have found something quite different from the chaos depicted in China’s public health care facilities.


The New York Times released a 10-minute video last month entitled “How Capitalism Ruined China’s Health Care System.” The video attempts to blame capitalism for the many problems in China’s health care system.

“Under Mao Zedong the Communist state provided free health care for all,” the narrator tells us. “Decades later China adopted a unique brand of capitalism that transformed the country from a poor farming nation into an economic superpower. Life expectancy soared. But the introduction of capitalism and the retreat of the state meant that health care was no longer free.”

As a resident of China and a recipient of outstanding private health care here, I was confused as to why the Times would show us the horrors of a capitalist system without actually visiting a private health care facility.

All of the horrors depicted in the high-quality video—the long lines, the scalping, and the hospital fights—occurred at government-run health care facilities. If the Times had visited one of China’s many private health care facilities, they would have found something quite different.

I know first-hand how outstanding the care at private facilities is in China. Last year I had my appendix removed here. I accidentally walked into the public hospital directly across from the private hospital. The emergency room was filled with at least 100 Chinese patients.

Upon seeing my white European face, hospital staff directed me to the private hospital across the street, Shanghai United. I was welcomed by friendly staff who were fluent in English. The ER doctor was American. I had an ultrasound and CT scan performed within the first two hours. Eight hours after that, my appendix was removed, and I was high on morphine.

China’s private hospitals are the opposite of the chaos depicted in the Times’ video. Wait times are practically non-existent. You don’t have to bribe anyone to be seen.

The exceptional care that I enjoy here along with wealthier residents of China is, sadly, only a dream for most Chinese today. Why? Because it is precisely where you find the profit incentive restored and government regulation absent that you also find superlative health care.

In the video, the Times praises Chairman Mao’s introduction of “free” health care and claims that when capitalism was introduced into the country, the state retreated and care was no longer free.

Neither statement is true. First, health care was never free; it was paid for by tax revenues. Second, the state never retreated; rather, its regulatory apparatus became vaster and even more invasive. Out of sheer necessity, China allowed for the creation of private hospitals to ease the burden of the country’s heavily bureaucratic and deteriorating health care system.

The fact that the Times refused to visit even one private hospital or mention the higher cancer survival rates of patients receiving private care raises serious questions. At the very least, failing to feature a single private medical facility while blaming capitalism for the dysfunction of China’s public health system is intellectually dishonest.

The Times video begins with a man making drugs in his home for his elderly, cancer-stricken mother, a common practice among poor Chinese. He states that there are three kinds of drugs in China: expensive drugs from the West, smuggled drugs from India, and DIY drugs. However, there is a fourth category of drugs never mentioned: Chinese-developed medicine.

These domestic options aren’t sparse, either. China actually has the world’s second-largest prescription drug market. So why isn’t this man taking advantage of the cheaper, domestic option? The Times declines to investigate, but those of us who live here know exactly why he’s refusing Chinese medicine: the quality of the drugs is very poor.

Chinese doctors actually advise against taking Chinese prescriptions due to the lack of transparency on their ingredients, instead suggesting patients rely almost exclusively on Western medicine. (A Chinese pediatrician once warned me not to give my children a simple cough syrup developed in China.) So, while the Times contends that capitalism is killing the Chinese, it is the presence of capitalist-created drugs that allows the Chinese to survive.

The mystery ingredients of Chinese drugs don’t tell the full story, however. The entire pharmaceutical industry operates under contradictory procedures and policies, including price fixing.

In the 1980s, the government began divesting in public hospitals and relocated those funds to subsidize prescription drugs for the poor. Simultaneously, however, the government put price controls on the drugs, making it impossible to turn a profit selling them, which destroyed the incentive for developers. With a paltry investment and a near-zero profit policy, the drug industry is at a stalemate, producing garbage drugs that are unable to yield returns.

The Times video depicts the ungodly long line most Chinese face to see a physician.

“It’s about 5 a.m. and about 100 people have gathered in line in downtown Shangai,” the narrator says softly. “This isn’t the line to the movies or a holiday sale. It’s the entrance to the Shanghai Cancer Center at Fudong University. Those who are willing to lose a night’s sleep trying to try to get in line have one question in their mind: will I get to see a doctor today?”

It’s an appalling scene. We see sick people waiting in massive lines to receive medical attention. Scalpers are selling places in line to those most desperate. Some people are unceremoniously pulled out of line by security right before entering the hospital (presumably for cutting).

There’s just one problem. The Shanghai Cancer Center is a public hospital, not a private one.

The long lines, scalpers, bribes, and physical fights with hospital staff—all of these exclusively happen in the public, communist, government-run hospitals. These things do not happen at China’s private hospitals.

In an egregious bit of sleight-of-hand, the Grey Lady asserts that capitalism is ruining Chinese health care while presenting us with a hospital where capitalism is not practiced. What viewers are watching is the medical system created by central planners.

Along with income from the municipal medical schemes that citizens must pay into, the state hospitals depend on foreign-made drug sales and testing for their revenues. This makes hospitals fertile ground for bribes from pharmaceutical companies, unnecessary drug prescriptions, and excessive testing. The excessive testing is not only a giant waste of money, but in hospitals where doctors get less than three minutes with patients, it is a massive waste of time.

The government also heavily regulates reproduction programs due to the two-child policy, forcing hospitals to obtain a license from China’s Ministry of Health to perform fertility testing and treatments. Almost all of the licenses are only authorized for the state-run hospitals. Simply offloading the initial fertility testing to the private sector would take enormous pressure off the public system.

Market efficiencies are missing from China’s system because they were destroyed long ago by the tenets of communism. Private property and profit motive were replaced by a government-run system designed by central planners.

Sadly, the Times video ends with a quote from the now deceased elderly mother. She repeats what her doctor told her: “Your cancer is not yet severe, take some medicine and go home. You will be fine.”

That’s not the standard response one would expect after being diagnosed with a terminal illness, and viewers see why. The woman was denied treatment. Weeks later she was dead. There is a name for this: rationing.

Rationing can come in many forms, one being a dearth of primary care physicians (PCPs). In China, the government sets fixed salaries for PCPs, which are much lower than what one could earn in the private sector. Naturally, this attracts fewer professionals into primary care. In fact, less than 30 percent of medical school graduates choose primary care. Additionally, to ensure access to basic medical services for all, fees for services are set lower than costs at government-run facilities.

For the poor, this makes public hospitals appealing. Their inpatient treatment is usually fully or mostly covered by the government. And getting in isn’t always a problem. Chinese public hospitals often boast about the number of beds available — ranging from 1,000 up to 10,000 — in comparison to private hospitals, which usually have fewer than 500. The quality of the care is another story.

The absence of normal market forces creates a glaring problem: few doctors and many patients (particularly poor ones whose costs are fully covered). Hospitals simply can’t keep supply up with demand. Staffs are overwhelmed by the sheer number of patients, creating more stress in a high-pressure environment. Inevitably, people are denied care, hence the violence directed toward staff featured in the Times video. (In fact, stabbings and mob-style attacks have risen 23 percent a year on average since 2002, according to the China Hospital Management Association.)

The government also rations prescription medicine by simply excluding certain drugs from coverage, making prescriptions the largest out-of-pocket expense for patients. Even public emergency transport services are completely unreliable in China. Public ambulances simply don’t show up or are too busy, so patients often must take taxis.

The widespread dysfunction of China’s health care system depicted by the Times is not particularly unique.

The United Kingdom’s National Health Service is currently “imploding” as record numbers of patients are waiting 12 hours to get into emergency rooms. Last year, the BBC reported patients were literally dying in hospital corridors.

China’s experience is what inevitably results, sooner or later, from government-run medicine. The Times is correct to label it tragic. But it takes some real chutzpah to blame the tragedy on capitalists.

If the Times had wished to see capitalism in action, they had only to visit one of China’s private hospitals. I have been to the ER no fewer than six times in Shanghai at various hospitals. Each time I have been registered immediately and sent to a consultation room within 10 minutes of arrival.

And I even have the appendix scar to approve it.

COLUMN BY

Sarah Lilly

Sarah Lilly is an American expat and political writer living abroad in Switzerland. She blogs at Red State Abroad.

EDITORS NOTE: This FEE column is republished with permission. ©All rights reserved.

Bombs Away !! A Razor Thin Congressional Democrat Majority Is About to Transform and Break America and Must Be Stopped: Here’s How thumbnail

Bombs Away !! A Razor Thin Congressional Democrat Majority Is About to Transform and Break America and Must Be Stopped: Here’s How

By The Editors

The U.S. House and Senate Democrats are attempting to ram through over 2,500 pages of transformational legislation with a Senate reconciliation vote (50 + VP) and a House vote that has a 3 vote Democrat majority (smallest in past century). THERE IS ABSOLUTELY NO MANDATE FOR THIS. It is our belief that Nancy Pelosi and Chuck Schumer know their majorities are at great risk in November 2022 and with the disastrous record of President Biden thus far (Afghanistan, foreign policy, Covid, southern border, inflation, economy, energy, etc., etc.), they are desperate to cement their goal of permanent Democrat power with an entitlement state that cannot be reversed and irrevocably alters America and our individual sovereignty. Enormous increases in federal debt, crushing  tax burdens for all citizens, severe inflation beyond what is now occurring and economic stagnation are just some of the very predictable near and long term results. This progressive, socialistic legislation will cement this Democrat dream. It is the centerpiece of a Bernie Sanders and Alexandria Ocasio-Cortez socialist conquest of America. IT MUST BE STOPPED.

The TAKE ACTION box below addresses this assault on Americans in greater detail. Be assured that the majority of U.S. citizens do not want this legislation. Please refer to the paragraphs in the TAKE ACTION link below. How can we stop this assault on American families, their values, individual liberty, citizenship, energy, small business, and future opportunity and economic growth for future generations? We must inform our U.S. Representatives and Senators that it is absolutely unacceptable to do this. We suggest the following themes in short emails easily sent (please cut and paste the messages below) to legislators from the TAKE ACTION link below. The email portals and phone numbers for the Arizona U.S. Representatives and Senators Sinema and Kelly (up for reelection in 2022) are there. It takes only a few minutes to inform them how you, your families, your neighbors and so many you know are against this perverse effort to transform America. Please do not hesitate – we are moving toward this cliff very quickly. Senator Sinema may (??) stay strong and not vote for it. Senator Manchin from West Virginia has said no to this but he has caved in the past – he should be contacted and strongly reminded his state is a deep red state and his constituents are vehemently against this. Senator Kelly is facing election in 14 months – his vulnerability is essential to point out. All U.S. Representatives face election every two years – make it clear that they are all at significant risk.

Here are four suggested messages for each of the following groups – 1. Senators Sinema and Manchin, 2. Senator Kelly, 3. AZ Democrat Representatives (5) and 4. AZ Republican Representatives (4). Please move on this – repetitively and forcefully make your voices heard and felt as often as possible. If this disaster is foisted on the nation, there is little chance to turn it back – entitlements are never removed. Ergo – BOMBS AWAY. Let it rip and do not relent in informing  them until this assault on every American and our great Republic is stopped.

(1) Senator Sinema (or Manchin),

Dear Senator Sinema (or Manchin),

I ask that you reject the pending legislation in the Senate that is moving toward a reconciliation vote (50 + the Vice-President). It is not a true reconciliation process but rather transformational legislation that has absolutely no bipartisan support and intended to produce one-party rule in America, truly an un-American legislative goal. As we move through the Covid pandemic of the past 18 months and recover the nation’s economy and some semblance of normal American life, passing this legislation will not benefit the nation, your constituents or our children’s future. Intellectual honesty demands that it be rejectedif this ‘budget’ reconciliation bill becomes law, every current issue or crisis in America will be worsened (debt, energy, strong inflation, immigration, taxes, healthcare, etc.) and the blame will be on the party that forced it into being – you and your party.

You have publicly stated your objections to this attempt to transform America with a single party vote with its huge expansion of the federal government, vastly more crushing debt and taxes on all, yes all, citizens. You are in an historic moment and I implore you to vote no on this legislation. You represent Arizonans (or West Virginians) but your vote greatly impacts all American citizens. The majority of your constituents are polling strongly against this legislation and its intended purpose. Please stay strong and vote no on what is clearly Bernie Sander’s vision of  America’s future.

(2) Senator Kelly:

Dear Senator Kelly,

You are at an historic moment in this nation’s history. As a new freshman Senator with an impending election, you have the ability to determine the outcome of the reconciliation bill being pushed through the Senate. Arizonans know that it is not a true reconciliation process but rather transformational legislation that has absolutely no bipartisan support and intended to produce one-party rule in America, truly an un-American legislative goal. As we move through the Covid pandemic of the past 18 months and recover the nation’s economy and some semblance of normal American life, passing this legislation will not benefit the nation, your constituents or our children’s future. Intellectual honesty demands that it be rejected – if this ‘budget’ bill becomes law, every current issue and crisis in America will be worsened (massive debt, energy, strong inflation, immigration, crushing taxes, healthcare, etc.) and the blame will be on the party that forced it into being – you and your party.

November 2022 is less than 14 months away. This legislation will determine the outcome of next year’s election despite multiple issues of great distress for the American people. I implore you to reject Senator Schumer’s (and Senator Bernie Sander’s) legislative attempt to transform America to one-party rule and vote no on what should never be passed without bipartisan support for all constituents of our Republic.

(3) Democrat U.S. Representatives (AZ):

Dear Representative …..,

As an Arizonan and American, I implore you to vote no on the pending 10,000 page (yes, 10,000 pages!) legislation in the U.S. House that will be subjected to a Senate reconciliation vote (50 + the Vice President) to pass. You know very well, as Speaker Pelosi does, that it is not a true reconciliation process but rather transformational legislation that has absolutely no bipartisan support and intended to produce one-party rule in America, truly an un-American legislative goal. As we move through the Covid pandemic of the past 18 months and recover the nation’s economy and some semblance of normal American life, passing this legislation will not benefit the nation, your constituents or our children’s future. Intellectual honesty demands that it be rejected – if this ‘budget’ bill becomes law, every current issue and crisis in America will be worsened (massive debt, energy, strong inflation, immigration, crushing taxes, healthcare, etc.) and the blame will be on the party that forced it into being – you and your party.

November 2022 is less than 14 months away. This legislation will determine the outcome of next year’s election despite multiple issues of great distress for the American people. I implore you to reject Speaker Pelosi’s and Senator Schumer’s (and Senator Bernie Sander’s) legislative attempt to transform America to one-party rule and vote no on what should never be passed without bipartisan support for all constituents of our Republic.

(4) Republican U.S. Representatives (AZ):

Dear Representative …..,

We know that the 10,000 page House bill that will be treated as a reconciliation bill in the Senate (50 + the Vice President) will get absolutely no Republican votes. I thank you for that. Arizonans know that it is not a true reconciliation process but rather transformational legislation that has absolutely no bipartisan support and intended to produce one-party rule in America, truly an un-American legislative goal. As we move through the Covid pandemic of the past 18 months and recover the nation’s economy and some semblance of normal American life, passing this legislation will not benefit the nation, your constituents or our children’s future.

I humbly implore you to publicly and forcefully call this egregious legislative attempt what it is – an attempt by a leftist dominated Democrat Party desperate to transform the nation to a progressive, socialist ruling class and one-party dominance. It is un-American, it is wrong and it is against everything this Republic with its founding principles is about.

The battle is now joined, the polling is not with the Democrats and despite your minority status, it is time to shout out the truth loud and clear to the public, to every U.S. House and Senate member and to the media – this is a Bernie Sander’s socialist assault on the nation and its citizens that will diminish our liberty, our people and our children’s future. Stand strong, be loud and clear and please influence every Democrat House member who is not radical – if this process becomes law, it will be disastrous  for their party and for each of them in 14 very short months but with incalculable and permanent damage to our nation and its future.

The Legal Doctrine of “Carbon Crimes”—Torturing Law and Reason to Rid the Planet of Climate Change Deniers

By Dr. Lucas Bergkamp

The climate movement has discovered criminal law as a tool for conducting climate politics. To complement civil lawsuits against states and corporations, the movement’s activists intend to invoke torture and a newly proposed crime of “ecocide” to target corporate executives, politicians, and others who stand in the way of their preferred policies. In pushing their agenda, these activists receive assistance from the judiciary—specifically, the European Court of Human Rights.

The use of criminal law to pursue climate politics is a further step in the radicalization of the climate movement and poses a threat to economic and political freedoms, the rule of law, and democracy. If the movement is able to realize its plans, all those who do not support ambitious climate policies would have to fear prosecution and imprisonment. Conversely, threatening criminal sanctions against politicians and corporate executives will create powerful incentives to adopt ambitious climate policies and the dominant pro-climate narrative.

Lucas Bergkamp explains how criminal law, in the climate movement’s vision, should supplement civil and administrative law to eliminate any and all opposition to its plans for the realization of a climate utopia.

European government of judges

Over several decades, the European Court of Human Rights (ECHR) has evolved into a European government in itself. Based on doctrines designed to enable it to expand its powers at its discretion, the Court has enacted a series of mandates for new laws and policies for Europe. There is little democratic control over the Court’s role in advancing progressive politics. Once the Court has spoken, national parliaments are unable to undo its pontification because a human right trumps national law; national judiciaries are compelled to execute the Court’s judgments, even if their own national law provides otherwise.

While imposing its high moral demands on executive governments, the Court believes itself to be quite exempt from any moral or legal constraints. In a previous contribution, I discussed how climate change litigation before the Court has undermined the rule of law, the separation of powers, and democracy. In this article, I focus on the Court’s role in criminalizing the climate debate. Its reckless disregard of judicial impartiality, the right to a fair trial, and judicial restraint is another manifestation of the Court’s support for the progressive movement.

Criminalizing “climate denial”

A decade ago, an American lawyer argued that climate denial is arguably punishable as criminal deception and fraud under existing law. In 2015, Al Gore said that “climate change deniers should be punished.” President Trump’s withdrawal from the Paris Climate Agreement was viewed as a crime against humanity: “This is murder.”

A recent book, Carbon Criminals, Climate Crimes, describes “what corporations in the fossil fuel industry, the U.S. government, and the international political community did, or failed to do, in relation to global warming.” On UNESCO’s website, a prominent feature article advocates that “climate crimes must be brought to justice” and that “states and corporations must be held accountable for their actions or inaction regarding climate change.”

The rationale supporting criminalization

The argument for criminalizing “climate denial” typically boils down to the following argument articulated by Jeremy Williams:

“Given what we know and have known for decades about climate change, to deny the science, deceive the public, and willfully obstruct any serious response to the climate catastrophe is to allow entire countries and cultures to disappear. It is to rob … the poorest and most vulnerable on the planet of their land, their homes, their livelihoods, even their lives—and their children’s lives, and their children’s children’s lives. For profit. And for power…. These are crimes. They are crimes against the earth, and they are crimes against humanity.”

This emotional outcry is not only an impenetrable amalgamation of factual and moral reasoning but also assumes what must be proved. To prevent disaster, rationality needs to be brought back into the analysis. Unfortunately, as the ECHR demonstrates, we cannot rely on the judiciary to do so.

The “European Climate Change Court”

In 2020, the ECHR signaled to the human rights community that it was open to receiving applications from climate activists. The Court and the Council of Europe held a conference, “Human Rights for the Planet,” in which several judges, including the Court’s president, played key roles. The speeches delivered by the Court’s judges were rightly perceived as an open invitation to activists.

Several climate cases are now pending before the Court. As expected, climate-emergency rhetoric dominates the arguments presented by the plaintiffs. The Court has already demonstrated how far it is willing to go to rewrite the law to save the planet.

“Climate emergency”

The European Court of Human Rights, to which its president refers as the “European Climate Change Court,” has used the opportunity presented by the climate litigation that it invited to take the lead in criminalizing the climate debate. It has done so in a number of ways. First, the Court’s president and one of its vice presidents have declared publicly that “we are facing a dire emergency that requires concerted action by all of humanity” and that “we will face the collapse of everything that gives us our security.” Thus, the Court’s leaders have openly and unreservedly endorsed the climate movement’s alarmist rhetoric. They have done so not based on science but on alarmist declarations by Sir David Attenborough, a well-known biologist and climate activist.

Second, to prevent any argument on the facts, the judges added: “No one can legitimately call into question that we are facing a dire emergency that requires concerted action by all of humanity.” They also committed the Court to the cause: “For its part, the European Court of Human Rights will play its role within the boundaries of its competences as a court of law, forever mindful that Convention guarantees must be effective and real, not illusory.”

No right to a fair trial for deniers

By issuing these warnings, the Court effectively closed down any debate on climate change and climate science before any trial has even begun. In doing so, it deprived defendant states of an important argument to defend themselves against allegations that their climate policies are inadequate to fight the alleged climate crisis. Before they could present the relevant scientific evidence showing that there is no such thing as climate emergency or climate crisis, the Court’s leading judges told the defendant states that they should not dare to deny.

By labeling any argument that there is no climate crisis “illegitimate,” these leading European judges, who should serve as examples of judicial impartiality, have endorsed the climate movement’s climate-denier rhetoric. This rhetoric is an inappropriate, unethical play on Holocaust denial. Simultaneously, and directly relevant to this contribution’s subject, the Court’s “illegitimacy” label also raises the specter of criminal prosecution.

There is no climate crisis

It is hard to think of any judicial conduct that shows greater partisanship and disregard for the principle of judicial impartiality than the conduct of these European human rights judges. The right to a fair trial, guaranteed by article 6 of the European Convention on Human Rights, has effectively been set aside for climate deniers. The question should be asked whether, given the opinions expressed by its leaders, the ECHR can legitimately rule in any climate case.

The Court’s denial of justice is all the more shocking in light of the science, which does not support the proposition that there is a climate crisis. The European Commission has stated: “The term ‘climate emergency’ expresses the political will to fulfil the obligations under the Paris Agreement.” In almost 4,000 pages, the recent Intergovernmental Panel on Climate Change (IPCC) AR6 report does not once employ the terms “climate crisis” or “climate emergency” because these terms do not belong to the scientific terminology (they occur only in a descriptive section on communication). Rather, they are political slogans, as the Commission suggested. To the point, the undefined “climate emergency” is an invention by activists.

Torture

Remarkably, even the finger-pointing at perceived climate denial was not sufficient for the ECHR. In the first climate case pending before it, the Court decided, on its own volition, to add “torture” to the charges against 33 states that allegedly do not do enough to combat climate change, as required by the 2015 Paris Agreement on Climate Change. The Court suggests that these states may have committed “torture” by adopting “inadequate climate policies.”

Torture, of course, is a serious crime. The Rome Statute of the International Criminal Court (ICC) provides that torture, “when committed as part of a widespread or systematic attack,” is a crime against humanity. Consequently, not implementing adequate climate policy would be a crime against humanity that can be prosecuted by the ICC. What would the victims of actual torture think of the Court’s misuse of this term for political reasons?

Judicial threats

Corporate executives of companies deemed to be responsible for greenhouse gas emissions, politicians that do not support ambitious climate policies, and everyone else who advocates against the climate movement’s agenda would be exposed to criminal prosecution and imprisonment of up to 30 years. This is not a far-fetched interpretation of the relevant law but, as explained below, a fairly straightforward application. Obviously, the ECHR was well aware of what it was doing by slipping in “torture,” but it nevertheless felt comfortable proceeding in this manner.

Needless to say, the threat of life imprisonment is a very powerful disincentive. As an academic author for UNESCO put it:

“Criminal sanctions are the most potent tools we have to mark out conduct that lies beyond all limits of toleration. Criminal conduct violates basic rights and destroys human security. We reserve the hard treatment of punishment for conduct that damages the things we hold most fundamentally valuable. Climate change is causing precisely such damage.”

This seems to be exactly what the judges on the ECHR believe. Corporate executives will have to think twice about corporate climate policies and will be inclined to cave in to activists’ demands. Likewise, politicians skeptical of the current climate policies may feel compelled to give up their resistance. All other dissenters may also be inclined to choose personal security over honesty. Economic freedom, political freedom, and freedom of speech would be obliterated. Is this what the Court’s president means when he says that the European Convention guarantees must be “effective and real, not illusory”? The Court’s inexplicable decision to add torture to the charges in the first climate case only adds to the concern that human rights protect only those who endorse progressive causes, not those who have other political preferences.

Ecocide

By invoking the crime of torture in the climate debate, the ECHR may also have intended to assist the efforts to get ecocide recognized as a crime. “Ecocide” refers to the “devastation and destruction of the environment,” but no official legal definition yet exists. For decades, greens have been trying to get ecocide recognized as an international crime—but so far, to no avail. In the last two years, however, due to the rise of the climate crisis narrative, they have made significant progress. There now is much activity aimed at persuading international organizations to legislate on ecocide. In May 2021, the Inter-Parliamentary Union (IPU), a global organization that claims to empower national parliamentarians to promote, inter alia, sustainable development, adopted a resolution calling on all “[m]ember Parliaments to reinforce criminal law to prevent and punish widespread, long-term and severe damage to the environment” and “to examine the possibility of recognizing the crime of ecocide to prevent the threats and conflicts resulting from climate-related disasters and their consequences” (emphasis added).

In June 2021, an expert panel convened by the Stop Ecocide Foundation published a definition of “ecocide” intended to serve as the basis for an amendment to the Rome Statute of the ICC. Once the Rome Statute is amended to include ecocide, individuals suspected of having committed ecocide can be tried before the ICC.

The amendment’s breadth

With this amendment, the prohibition of climate denial becomes redundant because the Rome Statute threatens imprisonment against not only those who commit a crime but also anyone who “induces the commission of such a crime,” “aids, abets or otherwise assists in its commission or its attempted commission,” or “in any other way contributes to the commission or attempted commission of such a crime by a group of persons.” Moreover, the Rome Statute applies equally to all persons, without any distinction based on official capacity; specifically, elected representatives and government officials are not exempt from criminal responsibility.

Thus, politicians, corporate executives, thought leaders, and anyone else can be subject to criminal prosecution if they express an opinion or pursue a policy deemed to be “anti-climate” that therefore may result in ecocide. In the fight against climate denial, this tool would be of incalculable value.

European Union “leadership”

The European Parliament has referred to ecocide in two recent reports and expressed the wish to recognize ecocide under EU law and diplomacy. To prepare the adoption of an EU directive on ecocide, the European Law Institute launched a project on ecocide. Taking advantage of the momentum, even before this project is finished, the ecocide movement is now pushing to get ecocide included in the EU Environmental Crimes Directive, which is currently being revised.

EU member states control a significant portion of the votes necessary for an amendment of the Rome Statute and can provide incentives to secure the additional votes necessary to get the crime of ecocide adopted. The consequences of such an amendment could be enormous if the ICC follows the example of the ECHR and jumps onto the climate activists’ bandwagon.

Climate change is ecocide

Make no mistake: while the definition of ecocide is broad and vague, the primary target of the ecocide movement is climate change. Civil liability law and human rights law give climate activists the tools to force governments and companies to comply with their demands, but this kind of litigation is expensive and takes time. The new crime of ecocide would give them a powerful instrument to shortcut the process by threatening criminal sanctions against corporate directors and officers, as well as reluctant politicians and opinion leaders, and to force them to change their ways.

Climate activists also believe that the term “ecocide” will have an emotive and stigmatizing effect that “causing climate change” does not have. As one author puts it:

“The term “ecocide” sounds dramatic. It is more emotive than “contributing to pollution” or “increasing greenhouse gas emissions” or “investing in fossil fuels.” It communicates the gravity and urgency of the irreversible destruction being inflicted on the environment. It unambiguously casts major polluters as “villains,” perpetrators of a crime (emphasis added).”

No protection

National laws do not protect the suspects. Under the proposed definition of the international panel, ecocide means “unlawful or wanton acts committed with knowledge that there is a substantial likelihood of severe and either widespread or long-term damage to the environment being caused by those acts.” Note that “unlawful,” which is broader than “illegal,” is the gateway to disregarding permits for emissions and compliance of activities and products with national laws.

The main trick is that this definition does not require any actual damage; knowledge of likely damage in the future is enough—which is a given, in light of the “settled science” set forth in the IPCC reports. Fundamental principles of criminal law are merely an afterthought, if they are on the radar screen at all.

Torturing human rights and criminal law

Needless to say, the ECHR’s suggestion that governments “torture” their citizens by implementing “inadequate climate policy” is both insulting to torture victims and unlawful. The inclusion of torture in a climate-policy lawsuit is the culmination of the Court’s progressive move away from a human rights adjudicator to a social policymaking institution. This activism has not only harmed the Court’s reputation as an impartial court of law but has also created serious problems for national legislatures faced with the often unhinged policy mandates imposed by the Court.

To be sure, we do have a torture problem, but it is not the European climate policymakers who are doing the torturing. Rather, the Court itself has tortured the law to fit its own ideology. The Court tortured the European Convention on Human Rights until it confessed that it is a program for progressive politics. It tortured the right to life and several other human rights until they agreed to include within their scope a whole series of so-called positive obligations, which only the Court gets to define. Perhaps most egregious, the Court tortured the Convention until it gave the Court the right to waive essential requirements imposed by the Convention to eliminate any limits on its jurisdiction, which then allowed the Court to move forward with the first climate change case, which it so desperately wanted.

The crime of climate change

The use of criminal law to pursue climate politics is a new chapter in the climate-litigation saga. Climate activists have discovered criminal law as a tremendously effective tool for climate politics. Governments and corporations can be subordinated through civil and human rights law, but to put pressure on corporate executives and politicians, criminal law is much more effective. Criminal law is the crowbar that pries open the doors to the boardrooms and the chambers where policy decisions are made.

What is remarkable is that the activists include not only the nongovernmental organizations that claim to “fight for the climate” but also Europe’s highest judges at the European Court of Human Rights. Are the limits on its authority really lifted by the self-declared crisis?

Lock them up!

In totalitarian states, political dissidents are controlled in three ways: they are removed from public life as a “danger to public order”; they are placed in psychiatric hospitals, since they suffer from mental illness; or they are imprisoned because they have committed crimes. The climate movement’s latest move pursues this third route of “delegitimization” and “denormalization” of its political opponents and those who disagree with the movement.

According to the climate movement, the alleged climate crisis would require urgent action to avert the impending catastrophe and save the planet and humanity. In its view, this requires that democracy, fundamental principles of law, and the limits of judicial power are set aside. In this struggle for survival, the climate movement has concluded that greenhouse gas emissions must be criminalized so that climate deniers can be locked up. Unfortunately, the ECHR has fallen victim to the emotional appeal of the movement’s rhetoric.

Threats to freedom

The climate movement’s strategy is clear: torture and ecocide must be part of its toolbox so that the sinners can be converted, deniers can be punished, and climate utopia can be realized. Inevitably, however, “climatism” results in the suppression of freedom and opens the path to climate totalitarianism. Ironically, the ECHR, which was created in the aftermath of the destruction of the Nazi totalitarian regime to act as a legal bulwark safeguarding individual liberty, has placed itself as the judicial enabler of this process.

*****

This article was published on October 22, 2021, and is reproduced with permission from The Heartland Institute.

Is Larry Summers Channeling Benjamin Anderson? thumbnail

Is Larry Summers Channeling Benjamin Anderson?

By James L. Caton

Larry Summers, who served as U.S. Treasury Secretary under Bill Clinton, and head of the National Economic Council in the early years of the Obama administration began sounding the alarm on the possibility of inflation several months ago. Until recently, I suspect few would have described him as an inflation hawk. And yet, he has been making the rounds of late to warn about the possibility of a “collision between fiscal and monetary policy.”

As someone who has supported fiscal expansion as a means of promoting macroeconomic stability, Summers has been unusually cautious. He seems to believe that the size of the output gap was not large enough to merit the unprecedented level of monetary expansion that has been administered by Jerome Powell.

In February, Summers participated in a discussion with Paul Krugman where he outlined his concerns. He notes that:

  1. The stimulus of 2020 was about twice the size of the output gap in the same year. The proposed stimulus for 2021 was, at the time, 4 times the size of the projected output gap.
  2. Unemployment compensation provided to the bottom 30% of earners was more than double their losses from Covid-19.

Elsewhere, Summers explains that the current labor shortage will drive up wages and that we have already seen monthly rents for new tenants increase by 17 percent, on average, above the rents paid by previous tenants.

Summers believes that the “toxic side effects of QE” are not being recognized by policymakers. In an interview, Larry Summers used a rather peculiar metaphor to describe this situation.:

So, I look at that dwindling hole. Then I look at expenditures that aren’t hard to add into the multiple trillions, and I see substantial risk that the amount of water being poured in vastly exceeds the size of the bathtub.

When I heard Summers use this metaphor, my mind was drawn to a passage I first read over a decade ago from Benjamin Anderson in his reflection on the Great Depression. In referring to monetary policy that preceded the initiation of the Great Crash in October 1929, he wrote:

When a bathtub in the upper part of the house has been overflowing for five minutes, it is not difficult to turn off the water and mop up. But when the bathtub has been overflowing for several years, the walls and the spaces between ceilings and floors have become full of water, and a great deal of work is required to get the house dry. Long after the faucet is turned off, water still comes pouring in from the walls and from the ceilings. It was so in 1928 and 1929.

Consistent with both statements is the belief that the monetary policy provided more stimulus than was merited by prevailing economic conditions. And consistent with Summers’ belief that excessive monetary support can be toxic, Anderson bemoans the extensive damage that can occur when the water spigot is left on for too long.

A Common Theme

While Summers and Anderson have contrary views with regard to fiscal stimulus, both recognize that there is an upper limit to the benefits of monetary expansion. Anderson viewed the Federal Reserve as financing a boom in stocks across the 1920s. “[T]he Federal Reserve System used them [open market operations] deliberately for the purpose of relaxing the money market and stimulating bank expansion in 1924 and 1927. At a time when unusual circumstances called for extra caution, they abandoned the old standards and became daring innovators in the effort to play God.” 

Compared to Summers, Anderson is quite conservative. Yet, Summers recognizes the theoretical limits of monetary policy. Summers has represented his views as “simple arithmetic.” Even before the crisis, Summers critiqued modern monetary theory (MMT). When asked why the U.S. can’t take advantage of its status as the world’s reserve currency, referring to its dominant position as an international media of exchange, Summers responded that “we won’t have the reserve currency forever if we do that. . . . In all things economics is a matter of balance.”

During our graduate studies, Peter Boettke constantly reminded my colleagues that “economics puts parameters on people’s Utopias.” No doubt. This is a universal of economics. And it is such recognition that separates the economist from the ideologue. I disagree with a number of policy stances promoted by Larry Summers, but I would be a fool to say that he is ignorant of macroeconomic theory.

Summers believes that fiscal policy should be used to promote better environmental outcomes and to improve equity while also accepting, as Alex Salter has argued, that the use of monetary policy for these aims is a recipe for disasterSummers is also “nervous” about the Fed setting out “to target the unemployment rate of particular groups without regard to inflation [as] that would be a good way to make really serious inflation.”

The Fed needs to concentrate on monetary policy. This is a serious job that requires serious focus. Perhaps Summers recognizes that the post-2008 monetary framework has created a fiscal Fed. Or maybe he will.

Summers’ demands for limits to the aims of monetary policy might be politically feasible under the old Volcker-Greenspan regime. Under that monetary regime, inflationary pressure placed strict limits on the expansion of the balance sheet. The political incentives now faced by both politicians and Fed officials promote precisely the sort of oversized fiscal expansions that we have observed in the last two years, the same expansions that Summers decries. 

The post-2008 framework has incentivized the destabilization of monetary policy. The sooner we recognize this fact, the sooner we can seriously discuss a solution to the problem.

*****

This article was published on October 13, 2021, and is reproduced with permission from AIER, American Institute for Economic Research.

New Study Finds Electric Cars Cost More To Refuel Than Gasoline Powered Cars thumbnail

New Study Finds Electric Cars Cost More To Refuel Than Gasoline Powered Cars

By Dr. Rich Swier

Anderson Economic Group EV Transition Series: Report Comparison: Real World Cost of Fueling EVs and ICE Vehicles compared the actual costs of fueling normally asperated cars and trucks versus all electric vehicles. Read the full study here.

The Anderson study noted that Electronic Vehicles (EVs) are, “often presumed to be less expensive to fuel than their ICE counterparts. There is a rationale in physics for this: due to greater thermal efficiency, electric motors convert energy more efficiently than combustion engines. However, this cost is only one of five.”

For a complete picture, Anderson notes that we consumers must consider:

  1. Commercial and residential electric power/fuel costs.
  2. Registration taxes.
  3. Equipment (e.g., chargers) and installation costs.
  4. Deadhead miles incurred driving to a charger or fueling station.
  5. The cost of time spent refueling

The study found:

  • There are four additional costs to powering EVs beyond electricity: cost of a home charger, commercial charging, the EV tax and “deadhead” miles.
  • For now, EVs cost more to power than gasoline costs to fuel an internal combustion car that gets reasonable gas mileage.
  • Charging costs vary more widely than gasoline prices.
  • There are significant time costs to finding reliable public chargers – even then a charger could take 30 minutes to go from 20% to an 80% charge.

In the Anderson Economic Group’s October 21, 2021 column “Real-World Electric Vehicle Fueling Costs May Surprise New EV Drivers” they wrote:

6 months of independent research finds fueling costs for electric vehicles (EV) are often higher than for internal combustion engines (ICE)

East Lansing, MI–October 21, 2021: Anderson Economic Group released today the first in a series of analyses examining the transition from ICE vehicles to EVs.

This initial 36-page study is the culmination of comprehensive research comparing the “apples-to-apples” costs involved in fueling both EVs and ICE vehicles. AEG undertook this study after noting that many commonly cited figures did not account for the true costs associated with EV charging.

AEG calculated the cost of chargers, additional road taxes, commercial charging fees, and “deadhead” miles for three different EV driving scenarios and compared these with 3 analogous ICE vehicle scenarios. The research found that fueling an EV is often more expensive than fueling an ICE vehicle. It further found that fueling costs are far more variable for EVs. The authors go on to note the significant time costs imposed on EV drivers as a result of both inadequate infrastructure and wait times associated with fueling, which can be five to ten times the cost for ICE drivers.

According to study author Patrick Anderson, “These numbers may be surprising to those who haven’t relied upon an electric vehicle, but it’s important we safeguard the public from ‘charger shock.’ Before consumers can feel comfortable buying EVs in large numbers, they need to understand the true costs involved.”

Read the full article.

About the Authors

Mr. Patrick Anderson is Anderson Economic Group’s principal and CEO. His company is one of the most recognized boutique consulting firms in the United States, with years of expertise in the US automotive industry. The company has consulted for manufacturers that include General Motors, Ford, DaimlerChrysler, Honda, and others, along with nearly 200 automobile dealerships representing virtually every brand in the market.

Mr. Alston D’Souza works in Anderson Economic Group’s strategy and business valuation practice area, where he serves as senior analyst and data scientist. While at AEG, Mr. D’Souza’s work has focused on damages and market analysis. He holds a master’s degree in econometrics and quantitative economics from the University of Wisconsin-Madison, and a Bachelor of Technology degree from the National Institute of Technology Karnataka (India).

ABOUT THE ANDERSON ECONOMIC GROUP

Founded in 1996, Anderson Economic Group (AEG) is one of the most recognized boutique consulting firms in the United States. The company has offices in East Lansing, Michigan and Chicago, Illinois. The automobile industry is a primary area of specialization for the experts at AEG, who approach this critical automotive transition from a perspective that recognizes the role everyday consumer choices will play in driving EV market trends.

AEG’s automotive clients include manufacturers, suppliers, trade associations, and dealers and dealership groups.

©All rights reserved.

WATCH: Unions Mostly to Blame for Supply Chain Shortages But Biden Thanks Them thumbnail

WATCH: Unions Mostly to Blame for Supply Chain Shortages But Biden Thanks Them

By Royal A. Brown III

The real cause of supply chain shortages are the Unions which provide Stevedores to unload ships and Warehouse Workers at our major ports.   Their contract exempts them from working on weekends and they already make well over $100,000 a year but have no fear – Beijing Joe Biden will influence them to start working 24 x 7 to clear up the backlog but, of course, with your tax dollars.

In the East Room of the White House last week, President Joe Biden announced the Executive Branch was taking decisive actions to resolve the supply chain issues plaguing the United States.

As media reports show, supply chain bottlenecks are leaving many people without essential goods, and are threatening to play Grinch with consumers this holiday season.

“I half-jokingly tell people ‘Order your Christmas presents now because otherwise on Christmas day, there may just be a picture of something that’s not coming until February or March,’” Scott Price, the international president for UPS, told the AFP wire service in September.

On Wednesday Biden announced he was addressing the problem of West Coast delays, saying the crucial ports of Los Angeles and Long Beach would soon be shifting to round-the-clock operations.

“After weeks of negotiation and working with my team and with the major union and retailers and freight movers, the Ports of Los Angeles announced today that it’s going to begin operating 24 hours a day, 7 days a week,” Biden said.

The president said that by moving to a 24-7 system, the US would be shifting to “what most of the leading countries in the world already operate on now, except us, until now.”

He then thanked union leaders shortly before his closing remarks.

“I particularly want to thank labor: Willie Adams of the Longshoremen and Warehouses Union, who is here today; the Teamsters; the rail unions from the Brotherhood of Railroad Signalmen; and the International Association of Mechan- — of Machinists; to the American Train Dispatchers Association; to Sheet Metal, Air, and Rail, and Transportation Workers Union, known as ‘SMART,’” Biden said.

There is little debate that the supply chain issues are a serious problem, and shifting to a 24-7 operation may indeed help alleviate some of the supply chain issues—though the problem is unlikely to be solved so easily.

The obvious question, however, is this: why weren’t these ports already operating around the clock “like most of the leading countries in the world”?

The answer can be found in the very unions Biden thanked.

As Sean Higgins of the Competitive Enterprise Institute (CEI) recently explained, there appears to be no state or federal regulation preventing around the clock work at these ports. It’s simply a union policy.

“The primary issue appears to be the unions, whose contract effectively dictates when work can be done,” Higgins explains.

It turns out that unions negotiated a sweetheart deal. It’s not just that, as the Los Angeles Times notes, union dock workers make $171,000 (plus free healthcare) a year on average. Or that union clerks do even better ($194,000 on average), and they themselves earn a far cry from foremen and “walking bosses” ($282,000). (Those fat compensation figures result in part from the fact that union bosses were able to negotiate holiday pay not just for federal holidays, but for everything from “Bloody Thursday” to the birthdays of union leaders such as Harry Bridges and Cesar Chavez.)

The wages are noteworthy, but the bigger problem for people depending on smoothly running supply chains are the restrictions on work hours the unions negotiated. Higgens notes the labor contract between the Pacific Maritime Association and the International Longshore and Warehouse Union (ILWU) creates an inflexible operating schedule:

[The] union contract limits the port to just three shifts in a day: two lasting eight hours and another lasting just five hours. All three go from Monday to Friday. These shifts overlap slightly but even if they didn’t, they would still only total 21 hours. Keeping the ports open for 24 hours would require the port to pay overtime every single day.

On top of that, the contract says that any work done on weekends or holidays is automatically time and a half too. So even if the port could offer shifts with a five-day work week that started on, say, Wednesday, it would have to pay those workers the equivalent of six days.

In other words, the contract makes it all but impossible for the port to remain operational for twenty-four hours a day and on weekends.

Now, the entire US supply chain problem doesn’t come down to the ports of Los Angeles and Long Beach, and the poorly negotiated union contract. But the importance of these ports is enormous.

Indeed, Biden himself notes that 40 percent of all shipping containers imported into the US come from these two ports—which have been idle some 60 hours every week during the biggest supply chain crisis in generations … because of a union contract.

To make matters worse, for years the union has blocked efforts to improve efficiency through automation.

“We were totally opposed to fully automated terminals and got the guarantees from our employers that they would not construct them during the life of our new package,” ILWU President Harrold Daggett noted two years ago after the union negotiated its contract.

This is known as “featherbedding,” a practice unions have perfected over ages that requires employees to implement time-consuming policies and procedures that increase labor costs and decrease productivity. As economist Henry Hazlitt once observed, these “make-work rules” reduce efficiency but “are tolerated and even approved because of the confusion on this point in the public mind.”

The reason the problem persists, Higgens says, is that people simply don’t want to create a political stir.

“You don’t even talk about that. You know, we don’t even try to influence that. But it’s really the root cause,” an anonymous carrier industry source reportedly told CEI.

There may be something to Higgens’s claim—if you’ve ever watched Martin Scorsese’s movie The Irishman, you know what I mean—but there’s a larger economic lesson to be learned.

As the economist George Reisman has observed, unions decrease productivity almost by their very nature.

[The] most serious consequence of the unions is the holding down or outright reduction of the productivity of labor. With few exceptions, the labor unions openly combat the rise in the productivity of labor. They do so virtually as a matter of principle. They oppose the introduction of labor-saving machinery on the grounds that it causes unemployment. They oppose competition among workers.

Granted, simply persuading ports to operate 24-7 around the clock (and no doubt covering the union costs) may solve some problems. But if Reisman’s observations are correct, Biden is seeking increased productivity and efficiency in the wrong place. Because of the incentive structure they operate under, unions are far better at leveraging power to negotiate sweetheart deals than boosting efficiency and productivity to improve the broader marketplace.

Indeed, just one day after Biden’s speech, union leaders were already making it clear they weren’t yet working around the clock—and had no timeline for doing so.

“It’s not a single lever we can pull today,” Gene Seroka, the Executive Director of the Port of Los Angeles, said in a media briefing. “There’s no timeline when suddenly we will wake up and everything will be 24/7.”

Jonathan Miltimore is the Managing Editor of FEE.org. His writing/reporting has been the subject of articles in TIME magazine, The Wall Street Journal, CNN, Forbes, Fox News, and the Star Tribune. Bylines: Newsweek, The Washington Times, MSN.com, The Washington Examiner, The Daily Caller, The Federalist, the Epoch Times.

Why the Push Is on to Make Pandemic Life ‘Permanent’ thumbnail

Why the Push Is on to Make Pandemic Life ‘Permanent’

By Foundation for Economic Education (FEE)

COVID-19 is new. But the reaction to the crisis is starting to look familiar.


One year after Americans were ordered to close down society for “two weeks to flatten the curve,” Bloomberg columnist Andreas Kluth warned, “We Must Start Planning for a Permanent Pandemic.”

Because new variants of SARS-COV-2 are impervious to existing vaccines, says Kluth, and pharmaceutical companies will never be able to develop new vaccines fast enough to keep up, we will never be able to get “back to normal.”

“Get back to normal” means recovering the relative liberty we had in our already overregulated, pre-Covid lives. This is just the latest in a long series of crises that always seem to lead our wise rulers to the same conclusion: we just cannot afford freedom anymore.

Covid-19 certainly wasn’t the beginning. Americans were told “the world changed” after 9/11. Basic pillars of the American system, like the Fourth and Fifth Amendments, were too antiquated to deal with the “new threat of terrorism.” Warrantless surveillance of our phone, e-mail, and financial records and physical searches of our persons without probable cause of a crime became the norm. A few principled civil libertarians dissented, but the public largely complied without protest.

“Keep us safe,” they told the government, no matter the cost in dollars or liberty.

Perhaps seeing how willingly the public rolled over for the political right during the “War on Terror,” authoritarians on the left turbocharged their own war on “climate change.” Previously interested in merely significantly raising taxes and heavily regulating industry, they now wish to ban all sorts of things, including air travelgasoline-powered cars, and even eating meat.

Since Covid-19, however, even the freedom to assemble and see each other’s faces may be permanently banned to help the government “keep us safe.”

Assaulting our liberty isn’t the only characteristic these crisis narratives have in common. They share at least two others: dire predictions that turn out to be false and proposed solutions that turn out to be ineffective.

George W. Bush warned Saddam Hussein had “weapons of mass destruction” capable of hitting New York City within 45 minutes. He created the Department of Homeland Security and the TSA to prevent, among other things, a “mushroom cloud” over a major American city.

Twenty years later, we know there were no weapons of mass destruction in Iraq, the terrorist threat was grossly exaggerated, and the TSA has still never caught a terrorist, not even the two people who tried to set off explosives concealed in their shoes and underwear, respectively.

The only effective deterrent of terrorism so far has been the relatively calmer foreign policy during the four years of the Trump administration, during which regime change operations ceased and major terrorist attacks in the United States virtually disappeared.

Predictions of environmental catastrophe have similarly proven false. Younger people may not remember that in the early 1970s, long before Alexandria Ocasio-Cortez was born, environmentalists were predicting worldwide disasters that subsequently failed to materialize. In 1989, the Associated Press reported, “A senior U.N. environmental official says entire nations could be wiped off the face of the Earth by rising sea levels if the global warming trend is not reversed by the year 2000.” The same official predicted the Earth’s temperature would rise 1 to 7 degrees in the next 30 years.

Ocasio-Cortez is famous for predicting in 2019, “The world is gonna end in 12 years if we don’t address climate change.” But Al Gore had warned in 2006 that “unless drastic measures to reduce greenhouse gases are taken within the next 10 years, the world will reach a point of no return.” So, isn’t it too late anyway?

As with the war on terrorism, the war on climate change asks us to give up our freedom for solutions that don’t work. Assuming climate change proponents have diagnosed the problem correctly and haven’t exaggerated the threat—huge assumptions by themselves— implementing their proposed solution won’t solve the problem, even by their own standards.

Its proponents know this. The U.S. has already led the world in reducing carbon emissions without the draconian provisions of the Green New Deal. If you listen to them carefully, the Green New Deal’s proponents propose the U.S. give up what freedom and prosperity remain to them merely as an example to developing nations, whom they assume will forego the benefits of industrialization already enjoyed by developed countries because of the shining example of an America in chains and brought to its economic knees to “save the earth.”

Fat chance, that.

The latest remake of this horror movie is Covid-19. While undeniably a serious pathogen that has likely killed more people than even the worst flu epidemics of the past several decades (although this is hard to confirm since public health officials changed the methodology for determining a virus-caused death), the government and its minions have still managed to grossly exaggerate this threat.

Gone is any sense of proportion when discussing Covid-19. Yes, it is certainly possible to spread the virus after one has been vaccinated or acquired natural immunity. But how likely is it? Is it any more likely than spreading other pathogens after immunity?

If not, then why are we treating people with immunity differently than we have during more dangerous pandemics in the past? Similarly, it is likely possible for asymptomatic people to spread the virus—a key pillar of the lockdown argument—but again, how likely is it?

The theory Covid-19 could be spread by asymptomatic people was originally based on the case of a single woman who supposedly infected four other people while experiencing no symptoms. Anthony Fauci said this case “lays the question to rest.”

The only problem was no one had asked the woman in question if she had symptoms at the time. When it turned out she did, the study on her was retracted. A subsequent study “did not link any COVID-19 cases to asymptomatic carriers,” and yet another after that concluded transmission of the disease by asymptomatic carriers “is not a major driver of spread.” Yet, policies based on this falsehood, like lockdowns and forcing asymptomatic people to wear masks, remain in place.

Most importantly, none of the government-mandated Covid-19 mitigation policies work. No retrospective review conducted with any semblance of the scientific method has found a relationship between lockdowns, mask mandates, or social distancing and the spread of Covid-19. In fact, the most recent study suggests lockdowns may have increased Covid-19 infections, in addition to all the non-Covid excess deaths they caused.

Over and over, authoritarians overhype crises to scare the living daylights out of the public and propose solutions that have two things in common: they demand more of our freedom and they don’t work. It’s always all pain and no gain. One wonders how many repetitions of this crisis drill it will take before the citizens of the so-called “land of the free” finally think to ask:

Why is freedom always the problem?

This article was republished with permission.

COLUMN BY

Tom Mullen

Tom Mullen is the author of Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty and the Pursuit of Happiness? and A Return to Common  Sense: Reawakening Liberty in the Inhabitants of America. For more information and more of Tom’s writing, visit www.tommullen.net.

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EDITORS NOTE: This FEE column is republished with permission. ©All rights reserved.

Why a Capital Gains Tax Increase Would Be a Massive Jobs [and Wealth] Killer thumbnail

Why a Capital Gains Tax Increase Would Be a Massive Jobs [and Wealth] Killer

By Foundation for Economic Education (FEE)

Although startups comprise less than one percent of all companies, they generate 10 percent of new jobs in any given year.


When discussing the economic growth of a post-COVID landscape, too often the role of angel investors is overlooked. Angel investors, or private investors who are often wealthy, finance small business ventures in exchange for equity. For small businesses, angel investors provide a much needed lifeline in the form of cash infusion that doesn’t have to be repaid, except in shared ownership. Private investment, most often through angel investors, is undoubtedly a driving force in technological advancement and job creation.

Unfortunately, angel investment has recently been threatened by the looming possibility of capital gains tax increases under the new administration. Long-term capital gains taxes are applied to assets, such as equity in business, owned for over a year when sold. As of now, long-term capital gains are taxed at 20 percent for wealthy investors. The White House is now calling for a 39.6% top federal tax rate, nearly double the current amount.

As Chris Edwards, director of tax policy studies at Downsizing Government, explains, “In biotechnology and other leading-edge industries, after-tax investor gains are often reinvested in the next round of risky startups, thus creating a virtuous cycle.”

One of the reasons that nearly all high-income countries keep capital-gains taxes low is to help ensure that investors and entrepreneurs are incentivized to take the risk of committing time and resources to relatively risky start-up ventures, typically reliant on the type of scientific and technical innovation that fuels job growth and progress in the long run.

According to Census Bureau data, although startups comprise less than one percent of all companies, they generate 10 percent of new jobs in any given year. The Kauffman Foundation’s Tim Kane pointed out that “without startups, there would be no net job growth in the U.S. economy.” In the same paper, he lays out the argument that “in terms of the life cycle of job growth, policymakers should appreciate the tremendous effect of job creation in the first year of a firm’s life.”

Wealthy angel investors have been behind many US corporations that have revolutionized their field and led to unprecedented growth and technological progress. Henry Ford, for example, received an infusion of cash from coal dealer Alexander Y. Malcolmson. The first investor in Apple was a millionaire retiree from Intel, Mike Markkula. Jeff Bezos obtained $8 million from Kleiner Perkins to build Amazon.

An increase in capital gains taxes would discourage such high-risk investments that provide much-needed seed money to startups, and induce investors to shift their investments to dividend-paying stocks or bonds. While safer, these avenues of investment do not produce the jobs or innovation that startups do, and would hinder entrepreneurship.

“Such tax increases would be a blow to startup investment and entrepreneurship,” Edwards writes. “People considering launching technology startups would instead stay in salaried jobs because earning a smaller after-tax gain from a startup would not be worth all the extra stress, risk, and hard work.”

This tax increase would also make it harder for startups to attract skilled workers. Three-quarters of Silicon Valley firms offer stock options to employees to lure them away from their salaried positions at large companies. A significantly higher capital gains tax would make that benefit much less appealing.

A capital gains tax increase would come as a huge blow to angel investors who fund the new technologies and ideas that we often take for granted. To ensure future growth and progress, it is imperative that we create and maintain an environment that allows angel investors to operate and thrive.

COLUMN BY

Aadi Golchha

Aadi Golchha is the author of “The Socialist Trap: How the Leftist Utopia Will Destroy America” and an independent political analyst.

EDITORS NOTE: This FEE column is republished with permission. ©All rights reserved.

Biden on Energy Crisis: Begging Others to Save Him From Himself thumbnail

Biden on Energy Crisis: Begging Others to Save Him From Himself

By Tim Murtaugh

Editors’ Note: We agree very much with the sentiments in the article to follow, but we caution about too much emphasis being placed on the bungling of “Bare Shelves Biden”.  This is a crisis of policy more than the shortcomings of a simple political hack. It  extends well beyond the President who can’t even read a telepromter. The current supply chain crisis, the spike in energy prices, millions sitting at home with 11 million jobs unfilled, is the product of long held policy positions held by the entire Democrat Party and inherent in its “progressive ” agenda. We worry that Biden will be ditched at some point by the party, when he becomes a heavy liability. He may have even been chosen, with his cognitive short comings well known, so he could be ditched at some point. The aim might be to create enough chaos to justify the sacrifice a political animal on the alter of socialism, and then send in a new team of smarter operatives to exploit the crisis they themselves have created.  Therefore, while the criticism of Biden is well deserved, it should be remembered that he is just the errand boy and did not invent these failed ideas. As current anger builds, it would do well for conservatives to emphasize this is much more than the failure of one man. It is the failure of ideas and the failure of an entire political party.

President Joe Biden is drowning in a sea of crises of his own creation, and Americans are the ones who are paying the price.

There’s an ongoing humanitarian and national security calamity at the southern border.

Thirteen U.S. service members are dead, and an unknown number of our citizens remain stranded in Afghanistan following Biden’s disastrous withdrawal.

COVID-19 is still rampant, despite Biden’s promises that he would defeat the virus, while his vaccine mandate has divided the country.

Americans are not taking the millions of jobs available and the economy is stalled, as many have chosen the option of being paid by the government to stay home instead of working.

Biden’s administration failed to identify the growing supply chain disruption, which did not occur overnight and threatens to further strangle the economy. Labor shortages are a contributing factor, including a lack of truck drivers to help unload ships and transport goods (see the above point about workers not accepting available jobs).

And energy prices continue to rise, helping to drive mounting inflation and hurting Americans—especially those with moderate or low incomes—at a time when the economy should be hitting its stride coming out of the pandemic lockdowns.

It is on the costs of energy where Biden’s failures are most starkly visible.

On his very first day in office, Biden scrapped the Keystone XL pipeline, killing 11,000 jobs in the process and making good on his campaign promise to be hostile to the fossil fuel industry.

Continuing his assault on natural resource development, Biden suspended oil and natural gas leases in Alaska.

Former President Donald Trump had propelled America to energy independence, but Biden has purposely squandered it. His policies are designed to reduce domestic production of petroleum, meaning we have become necessarily more reliant on foreign sources.

Biden’s approach has been an economic disaster.

According to The Wall Street Journal, the price of crude oil has jumped by 64% to a seven-year high. The cost of natural gas has doubled in just six months. Heating oil is more expensive by 68%, just in time for winter. And gasoline is over $3 per gallon on the national average, up by almost a dollar over the past year.

Energy costs are one driver of inflation, which is already a concern and could get worse.

The situation he created has led Biden into embarrassing situations where he has been forced to plead for rescue.

Over the summer, his administration begged OPEC to increase oil production to combat rising gasoline prices. It refused.

This month, Reuters reported that the Biden White House has approached domestic oil and gas producers, asking for help. These are the very companies that Biden has been demonizing and now he wants them to save him from himself.

Anne Bradbury, the chief executive officer of the American Exploration and Production Council, explained who the culprit is.

“By pursuing policies that restrict supply and make it harder to produce oil and natural gas here in America, Americans will have to pay more for their energy,” she said.

But never fear, White House press secretary Jen Psaki indicated that the higher prices just mean that Biden’s policies are going according to plan.

“Certainly, we all want to keep gasoline prices low, but the threat of the crisis—the climate crisis—certainly can’t wait any longer,” she said on Oct. 6.

One week later, Psaki appeared to soften the message somewhat, in recognition of how higher energy bills affect people, but attempted to mislead about the scope of the problem.

“[T]he American people are, of course, impacted by rising prices of gas in some parts of the country—not all,” she said.

This, of course, is not true. Gas prices are higher in all 50 states.

White House chief of staff Ron Klain then underscored the indifference of the Biden administration to the concerns of regular Americans by approving of a tweet from Harvard economist Jason Furman, who labeled “economic problems we’re facing,” such as “inflation, supply chains, etc.,” as merely “high-class problems.”

Klain quote-tweeted Furman and enthusiastically agreed, posting “This,” with two hand emojis pointing to Furman’s original post.

For Americans still struggling, it must be jarring that the White House chief of staff thinks rising grocery bills—driven by fuel prices and inflation—are “high-class problems.”

Such a callous dismissal of real-world issues, the endorsement of an Ivy League elitist view that working people are just imagining things, simply feeds the prevailing belief that Biden simply is bad at his job.

But rather than face reporters or describe to Americans what he’s doing to combat these severe economic problems—and all of the other crises he’s inflicted on the country—Biden has almost entirely avoided taking questions.

On the rare occasions that he comes to the cameras to deliver remarks, most often he finishes speaking, turns around abruptly, and returns to the recesses of the White House.

It’s an apt image presented by an administration that is usually very concerned about visuals and symbolism.

Biden is leaving the lasting impression that, as he does to members of the press, he is simply turning his back on the American people.

*****

This article was published on October 18, 2021, and is reproduced with permission from The Daily Signal.

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Biden Ditches Alaska Oil Drilling Project Which KILLS Thousands Of Jobs

By Pamela Geller

There is one common thread running through every Democrat policy – it’s bad for America and Americans.

Biden Ditches Alaska Oil Drilling Project That Would’ve Created Thousands Of Jobs

  • The Biden administration abandoned an oil and gas drilling project in Alaska approved by former President Donald Trump, which it had previously defended.
  • “Today’s affirmation of our legal victory against the Willow project is a win for the climate and for an irreplaceable Alaska landscape,” Jeremy Lieb, an attorney for the group Earthjustice, said in a statement Wednesday. “We are glad to see that President Biden is taking positive steps in his commitment toward a cleaner energy future.”
  • While the administration chose against appealing a federal ruling that blocked the project, it previously vowed to defend the project and accused environmentalists of “cherry-picking” government records.

By: Daily Caller, October 21, 2021:

The Biden administration abandoned an oil and gas drilling project in Alaska approved by former President Donald Trump, which it had previously defended.

The Department of the Interior failed to file an appeal to a federal judge’s August decision blocking the multi-billion dollar Willow Project being developed by the Texas-based oil and gas firm ConocoPhillips. Judge Sharon Gleason of the U.S. District Court of the District of Alaska ruled that the federal government hadn’t adequately reviewed the emissions profile of the project, which she said would ultimately harm the environment and wildlife.

“Today’s affirmation of our legal victory against the Willow project is a win for the climate and for an irreplaceable Alaska landscape,” Jeremy Lieb, an attorney for the group Earthjustice, said in a statement Wednesday. “We are glad to see that President Biden is taking positive steps in his commitment toward a cleaner energy future.”

The Biden administration had until Tuesday to appeal Gleason’s decision.

While the administration chose against appealing the ruling – all but killing the project – it previously vowed to defend the initiative. In a May brief, the Department of Justice accused environmentalists of “cherry-picking” government records and said the Willow Project was in full compliance with relevant laws regulating such leases

“We hope the Biden administration’s choice to accept the federal court’s decision of halting ConocoPhillips’ Willow project is the beginning of the end of federal backing of fossil fuels,” Greenpeace USA senior research specialist Tim Donaghy said in a statement.

The Trump administration approved the project in October 2020 after an extensive review of its potential ecological impacts. Former Interior Secretary David Bernhardt said Willow was part of Trump’s pledge to increase “American energy independence.”

But several environmental groups joined a lawsuit challenging the project shortly after the Interior Department signed off on it.

The entire congressional delegation from Alaska – Sens. Lisa Murkowski and Dan Sullivan and Rep. Don Young – have been vocal proponents of the project, arguing it would produce 100,000 barrels of oil per day, lead to $10 billion in government revenue and create 2,000 construction jobs and 300 permanent jobs. They also applauded the Biden administration after its brief defending Willow in May.

“This decision won’t do one thing to help the environment,” Sullivan said in a statement following the August ruling. “To the contrary, it further delays one of Alaska’s most strategic energy development projects, which will benefit our adversaries that produce oil, like Russia, Venezuela and Iran, whose environmental standards are some of the worst in the world.”

“The Biden Administration needs to keep its commitment to the Alaskan people by continuing to defend the Willow project in court for the sake of American energy,” he continued.

Since July, oil and natural gas have hit multi-year highs across the world. The federal government recently projected that heating costs could increase 54% for Americans this winter and gasoline ticked up again Wednesday, reaching a national average of $3.36 per gallon, according to a AAA database.

The U.S. has also shown signs of returning to dependence on the Middle East and Russia for much of its oil and natural gas supply. The White House has repeatedly urged the Organization of the Petroleum Exporting Countries to boost its output amid rising prices.

The Interior Department declined to comment on the administration’s decision not to appeal the ruling. ConocoPhillips didn’t immediately respond to a request for comment.

EDITORS NOTE: This Geller Report column is republished with permission. ©All rights reserved.

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Brigitte Gabriel ROASTS Empty Shelves Joe Biden! [Video] thumbnail

Brigitte Gabriel ROASTS Empty Shelves Joe Biden! [Video]

By Brigitte Gabriel

Watch Brigitte Gabriel’s response to the Washington Post OP-ED telling Americans to ‘stop whining’, and ‘to not worry about short-staffed stores and supply chain woes’.

Biden aims to complete Obama’s demolition of a free and prosperous America.

By Lloyd Boyd, Frontpage Mag

“The president wants to make fundamental change in our economy and he feels coming out of the pandemic is exactly the time to do that,” said White House press secretary Jan Psaki in an October 12 briefing. The reference to “fundamental change” recalls a statement from the composite character president David Garrow described in Rising Star: The Making of Barack Obama.

“We are five days away from fundamentally transforming the United States of America,” the composite character said in November of 2008. The United States of America was already a top-heavy welfare state from FDR’s New Deal and LBJ’s Great Society, so the candidate, formerly known as Barry Soetoro, must have had something else in mind. In 2021 it should all be evident.

In 2008, the United States of America was also a democracy, in which the people choose presidents as different as Jimmy Carter and Ronald Reagan. Under the composite character’s fundamental transformation, the outgoing president picks his successor and deploys the upper reaches of the DOJ, FBI and intelligence community to support the president’s pick and attack her opponent, even after he wins the presidency. This fundamental transformation was on full display from 2016 through 2020, with massive election irregularities.

Long before September 11, 2001, the United States of America recognized the threat from radical Islamic terrorism. The composite character president looked the other way at Islamic terrorism and regarded his domestic political opponents as the true threat.

For example, in 2009 Department of Homeland Security boss Janet Napolitano released Rightwing Extremism: Current Economic and Political Climate Fueling Resurgence in Radicalization and Recruitment. This document warned of “white supremacist” types that reject federal authority. This was code for anyone less than worshipful of the composite character, particularly those who value their constitutional rights.

In the United States of America, people have the freedom to choose those products and services that best meet their needs. The composite character wanted the American people to get only the health care the government wanted them to have. In one of his most famous lies, he told the people if they liked their health plan and their doctor, they could keep their plan and their doctor.

The United States of America has defined borders and laws governing immigration. On the composite character’s watch, caravans of “migrants” began arriving at the border. They were welcomed into the nation and released into the population while their case for “amnesty” was considered. On the composite character’s watch, U.S. troops only guarded the borders of other nations, not their own. Joe Biden was good with it.

In 2014, Joe Biden proclaimed that those who enter the USA illegally are “already Americans.” Once installed in the White House, Biden transformed the Department of Homeland Security into the Department of Human Trafficking, shipping in people from all over the world, even in the throes of a pandemic. The new arrivals are being moved all over the country but DHS boss Alejandro Mayorkas won’t provide details. After 14,000 Haitians showed up last month, the composite character decided to weigh in.

The situation, he told reporters, “is a painful reminder that we don’t have this right yet and we’ve got more work to do. As big-hearted as he is, nobody understands that better than Joe Biden.” Americans want to be compassionate, the composite character added, but “at the same time, we’re a nation state. We have borders. The idea that we can just have open borders is something that, as a practical matter, is unsustainable.” The big-hearted Joe Biden fails to understand.

Thousands of migrants continued to arrive in October, with no let-up in sight. Mayorkas remained as obstructionist as ever, even as members of Congress called for his resignation. Biden took no measures to tighten up the border, and even supported the fake story that Border Patrol agents were whipping the Haitians, like slavemasters of old.

What the composite character wants Biden to “get right” is massive human trafficking without the bad optics. Witness the Biden ban on drones filming thousands of Haitians at the border. The nation has been fundamentally transformed into a borderless Zone of Free Benefits for all comers.

As this plays out, Joe Biden is busy ramping up vaccine mandates that have already disrupted supply chains, travel, and product availability all over the country. As Psaki says, Biden wants to make a “fundamental change in our economy.” As it happens, our economy remains basically market-based, with Americans choosing products and services that best meet their needs. Like his composite character ventriloquist, Joe Biden wants Americans to get only what the government wants them to have.

Joe Biden is the also bobblehead for Rip Van Winkle communist Bernie Sanders and a squad of kindergarten socialists. If the Biden Junta has its way with the economy, scarcity, strife and misery are sure to follow. That will help complete the fundamental transformation the composite character proclaimed in 2008. Happy holidays everybody.

EDITORS NOTE: This ACT For America video is republished with permission. ©All rights reserved.

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Student Loan Indebtedness and Social Justice

By Craig J. Cantoni

Editors’ Note:

Brought to America’s youth by unjust universities and an unjust government.

The Wall Street Journal recently ran a story about student loans. It was another story in a long list of stories over the years about the loan scams perpetrated by the bastions of social justice, universities, and by the main funder of social justice initiatives, the federal government, as enabled by both political parties.

Stories like this fuel the growing public sentiment to excuse student loan debt.

The story in question was about shenanigans at Baylor University, a private school with a religious founding but apparently without a moral compass. Like so many universities, it was consigning students to indebtedness while it was raising tuition way beyond the inflation rate and building swank facilities and a new football stadium.

Universities get the student loan money but taxpayers get the shaft if the borrowers default. In other words, the schools don’t have a monetary incentive to cut costs or be honest with parents and students about their expected return on investment. It’s a system designed by a madman.

At the same time, it’s difficult to be sympathetic with the parents and students featured in the Journal story, especially the main character. A public school administrator making $75,000 a year, she has a master’s degree from Baylor and $231,000 in federal loans for herself and her two kids. Apparently, a master’s degree from Baylor doesn’t teach someone enough to know how to conduct an internet search on student loans and the return on investment of different degrees—or how to use one of the scores of financial calculators on the internet that do the calculations for you in a matter of minutes.

Her reason for sending her kids to an expensive school like Baylor? In her words, she didn’t want to send her kids somewhere less expensive such as community college where they would overachieve. Huh?

Of course, the article said nothing about her lifestyle—whether she lives above or below her means. For all we know, she could be driving a $60,000 luxury car.

The article also mentioned nothing about the father of her children and why he isn’t helping with his kids’ college expenses. It’s become so normal for men to be missing from the household that such questions aren’t asked.

I’m typing this in my home in Tucson, where the University of Arizona is located—and where my son got a bachelor’s and master’s in engineering. His total cost over the five years for tuition, room, and board was about the same as the average price of a new car or a lifetime of expensive milkshakes, er, coffee, at Starbucks.

If the last point seems like hyperbole, consider this: If a 25-year-old were to begin investing $5 a day instead of spending the money at Starbucks, the investment would grow to over $200,000 by the age of 65, assuming an investment return of 5%, compounded monthly.

In addition to his scholarships and internships, my son worked for two years as a resident hall assistant in one of the oldest dorms on campus, one that had communal bathrooms and bare-boned facilities. The job subsidized his room and board, and he saved money by not eating on campus. Instead, he took the bus to a supermarket to buy groceries, which he kept in a refrigerator in the dorm’s kitchen.

No big deal. A little suffering in college makes for a better education and a better human being.

He graduated without any debt, and, given his current employment, the ROI on his degrees is very high.

The son takes after the dad, who worked through college and leveraged a degree from a no-name university into a rewarding career. But that was in an era in which colleges didn’t gouge students while indoctrinating them in social justice.

In any event, when the government ends up excusing college debt, as it definitely will, my son will be paying part of the student debt incurred by others. That’s called social justice, a misnomer if there ever was one.

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Biden Administration May Take Over Arizona Business Safety Enforcement

By Cole Lauterbach

Arizona soon could lose its authority over safety in the workplace.

The Biden administration has warned the state, along with South Carolina and Utah, its occupational and safety plan for businesses could be set aside and taken over by the federal Occupational Safety and Health Administration (OSHA).

Tuesday’s warning comes as the OSHA prepares to unveil its new COVID-19 vaccination requirements for larger businesses.

Arizona Gov. Doug Ducey said the move was disingenuous.

“The federal government’s threat to strip the [Industrial Commission of Arizona] of its OSHA authority is nothing short of a political stunt and desperate power grab,” Ducey said. “The ICA is actively engaged in a public input process, encouraging Arizonans from every corner of the state to participate, and now the Biden administration is attempting to silence input from citizens and stakeholders alike.”

Ducey promised federal authorities a court battle as he has with other issues in the past.

Twenty-two states have OSHA plans covering private and public-sector workers. OSHA approves of “plans” from individual states, allowing them to handle workplace safety regulations as long as they are as comprehensive or more than federal guidelines. In Arizona, the plan is managed by the Industrial Commission of Arizona (ICA).

The ICA wrote the OSHA in July, saying state laws already in place are “at least as effective” as the baseline federal plan. The office added wage, paid sick time and retaliation issues aren’t typical duties of an occupational regulator – something OSHA demanded to be included in the plan.

The state agency told the OSHA in the July it would start the rulemaking process and ask for public input.

James Wulff, the acting regional administrator for the OSHA, said the state’s laws aren’t sufficient in meeting the office’s Healthcare Emergency Temporary Standards, an enhanced set of regulations that focus on health care provider safety when dealing with COVID-19 cases.

“Please note that failure to do so may place Federal approval for the Arizona State Plan in jeopardy,” Wolff wrote in a Sept. 16 letter to Jessie Atencio, director of the Arizona Division of Occupational Safety and Health.

*****

This article was published on October 20, 2021, and is reproduced with permission from The Center Square.

ACTION ALERT: Demand Visa Choose People Over Profit thumbnail

ACTION ALERT: Demand Visa Choose People Over Profit

By National Center on Sexual Exploitation

In case you missed it, Mastercard is taking an important step to confront—and hopefully end—the horrific abuse on sites hosting pornography.

Their new policies have officially gone into effect as of October 15, 2021.

The new policies require banks connecting sellers of “adult content” (a.k.a. pornography) to Mastercard to ensure that the companies meet the following five standards:

  1. “Clear, unambiguous and documented consent”
  2. “Documented age and identity verification for all people depicted and those uploading the content”
  3. “Content review process prior to publication”
  4. “Complaint resolution process that addresses illegal or nonconsensual content within seven business days”
  5. “Appeals process allowing for any person depicted to request their content be removed”

This is a major step in protecting victims of rape and sex trafficking, child sexual abuse material, and those who are filmed or have content uploaded non-consensually.

Will you join us and tell Visa it’s not too late to reject profits from sexual abuse and exploitation, following Mastercard’s lead?


TAKE ACTION


EDITORS NOTE: This National Center on Sexual Exploitation column is republished with permission. ©All rights reserved.

‘Bracket Creep’: Voters in These 22 States Could See Direct Tax Hikes Due to Inflation, New Analysis Warns thumbnail

‘Bracket Creep’: Voters in These 22 States Could See Direct Tax Hikes Due to Inflation, New Analysis Warns

By Foundation for Economic Education (FEE)

Inflation is often described as a “hidden tax,” because it is driven by policy decisions and erodes citizens’ real purchasing power. But in 22 states, the high consumer price inflation observed over the last year could trigger direct tax increases as well, a new analysis warns.

The Tax Foundation’s Jared Walczak reports that 22 states and Washington, DC have at least one major provision of their state tax code that is not indexed for inflation. In 13 states, no major element is inflation-adjusted at all. These states are Alabama, Connecticut, Delaware, Georgia, Hawaii, Kansas, Louisiana, Mississippi, New Jersey, New York, Oklahoma, Virginia, and West Virginia, the Tax Foundation notes.

Often overlooked is what happens to state tax burdens when inflation is high.

Inflation is often called a hidden tax, but in many states it yields a far more literal tax increase as tax brackets fail to adjust for changes in consumer purchasing power. https://t.co/iPzOH7QiQo

— Tax Foundation (@TaxFoundation) October 19, 2021

This leads to “bracket creep,” Walczak explains, because people wind up in higher tax brackets as their nominal wages are inflated but their actual, real, purchasing-power wage has not increased.

“The absence or insufficiency of cost-of-living adjustments in many state tax codes is always an issue, as it constitutes an unlegislated tax increase every year, cutting into wage growth and reducing return on investment,” Walczak writes. “During a period of higher inflation, however, the impact is particularly significant.”

He offers the example of a Delaware resident who earned $60,000 in taxable income in 2019, and now earns $64,000 in 2021. Given the more than 5.4 percent consumer price inflation observed over the last year, her real income—purchasing power—hasn’t actually risen. Yet Walczak explains that her taxes would increase by about $264 because that additional $4,000 falls into a higher tax rate bracket.

The above example is just a hypothetical, but it could soon be a reality for the millions of Americans who live in the 22 states with a tax framework that fails to completely account for inflation. This is, frankly, bad news. The last thing the public needs after a year-and-a-half of government-induced economic struggles and harmful inflation is a tax hike to boot. It’s even more concerning that this tax hike will likely go unnoticed by many of the people it affects because of its indirect nature.

Voters shouldn’t let policymakers pull a fast one. If government officials want to raise our taxes, they should, at the very least, have to vote on it and be held accountable. We shouldn’t stand for this kind of underhanded, behind-the-scenes tax hike and the concerning precedent it sets.

RELATED TWEET:

United Airlines CEO says airfare prices are set to soar by Christmas as jet fuel prices rise https://t.co/dr6eZshwJe

— Daily Mail US (@DailyMail) October 21, 2021

EDITORS NOTE: This FEE column is republished with permission. ©All rights reserved.

The Left’s Reconciliation Bill Would Raise Energy Prices and Erase American Jobs [+Video] thumbnail

The Left’s Reconciliation Bill Would Raise Energy Prices and Erase American Jobs [+Video]

By Family Research Council

During a time in America when the price of basic household goods is rising and when employees across multiple sectors of the economy are facing a vaccine mandate or loss of their jobs, the Biden administration and progressives in Congress are now doubling down on making life even more difficult for the average American household. How? By making recklessly wasteful and counterproductive Green New Deal policies “the DNA” of the reconciliation spending bill that Democrats plan to push through by the end of October.

These Green New Deal policies will further drive up energy costs for those who can least afford it. They include forcing Americans to get 40 percent of their energy from wind/solar and other renewable resources within eight years. Not only would this policy dramatically increase the price for families to heat and power their homes, it could also potentially cost nearly 90,000 American jobs by increasing taxes on natural gas.

What’s more, the reconciliation bill also includes $222 billion in tax credits to pay for electric vehicles, which in reality turns out to be a tax credit for wealthy Americans, since they are mostly the ones who buy electric vehicles, which cost an average of $19,000 more than gas cars.

In addition, the bill includes eerily similar extraneous grants to what Obama did in 2011 when he gave a loan guarantee of $535 million to solar panel company Solyndra, which promptly went bankrupt. Biden’s bill includes $5 billion for “environmental and climate justice block grants” and another $100 billion in green energy special interest subsidies. It also includes $264 million for the EPA to conduct research with left-wing environmental justice groups on how to transition away from fossil fuels.

Other concerning aspects of the reconciliation bill include a push for Green New Deal policies in schools, including a $10 billion “environmental justice” higher education fund which is designed to indoctrinate college students. There is also an $8 billion grant to create a “Climate Conservation Corps” which would act as a kind of “climate police” in order to push far-left climate policies and programs.

To top it all off, the reconciliation bill includes an authoritarian Green New Deal forced compliance policy that punishes conservative states who fail to incorporate green provisions by mandating consequences for states that don’t meet green climate standards, while at the same time rewarding cooperating states with $4 billion in climate grants.

These are just some of the highly concerning and wasteful aspects of Biden’s “Build Back Better” reconciliation fiasco. For more on the ways in which Biden’s reconciliation bill undercuts families, be sure to read FRC’s new resource 6 Things to Know About Biden’s Anti-Family Budget Buster.

COLUMN  BY

FRC Staff

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EDITORS NOTE: This FRC-Action column is republished with permission. ©All rights reserved.

The Mass Repricing Of Goods And Services thumbnail

The Mass Repricing Of Goods And Services

By Pamela Geller

“Your savings, investments, retirement, purchasing power, and the quality of life that you’ve spent a life time planning and working is being shredded.”

Authored by MN Gordon via EconomicPrism.com,

by Tyler Durden, Zero Hedge, Oct 17, 2021 – 09:20 AM

Rising consumer price inflation is not going away.  This, of course, is counter to the “transitory” argument made by Federal Reserve Chairman Jerome Powell earlier this year.

Powell’s cohort, Atlanta Fed President Raphael Bostic, recently admitted inflation is not transitory.  This admission comes with assurances the Fed will properly manage it.  We have some reservations.

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The effects of rising consumer prices range far and wide.  For one, the pinch rising prices put on consumers is extraordinarily disruptive.  It acts like a hefty tax…eroding family budgets that are already stretched.  In this ongoing stagflation, personal income gains lag far behind rising consumer prices.

Industrial materials and consumer goods companies also feel the pinch.  They can pass on some rising prices to consumers.  They can also absorb through lower profit margins some short term price increases.  But there are natural limits to what price increases can be absorbed and passed along.

When input costs, including raw material and labor, push the costs of the final manufactured goods above what they can readily be sold for the business motive breaks down.  Halting operations makes the most business sense.

One industry feeling the pinch of rising natural gas prices is the fertilizer business.  As we noted several weeks ago, several fertilizer plants in the UK have had to suspend operations because of soaring natural gas prices.  Here in the US we’re not aware of any fertilizer producers suspending operations.  But fertilizer prices are up, nonetheless.

In fact, the Green Markets North American Fertilizer Price Index recently soared to a record high, thus eclipsing the prior record set in 2008.  Sky high fertilizer prices will further raise the cost of food production for farmers.

According to the Food and Agriculture Organization’s global food index, food prices are already at a decade high.  Plus, when you factor in the grow season in North America doesn’t begin until late-March, the increased fertilizer input costs, could lead to persistent food inflation well into 2022.

But it’s not just food.  Here’s one instructive example of how price inflation discombobulates the economy…

Someone Gets Squeezed

The price of cotton just surged to a 10-year high.  Rising cotton prices translate into rising jean prices.  Levi Strauss has already raised the price of its jeans, thus passing some of the price inflation to consumers.

Levi Strauss is also realigning its business to account for higher input costs.  This includes aggressive negotiation with cotton suppliers and cutting out the middlemen.  Here are several details:

“In its earnings call, Levi said it has already negotiated most of its product costs through the first half of next year, at very low-single-digit inflation. For the second half of the year, it expects to see a mid-single digit increase. And Levi said it plans to offset that hike with the pricing actions it’s already been taking.

“Levi has been shifting its business from a predominantly wholesale to a mixed base that has a growing share of direct-to-consumer sales. And with strong consumer demand and tightened inventories, it’s been able to sell more products at full price.”

As noted above, the price of cotton is at a 10-year high.  Year to date it’s up 47 percent.  If cotton accounts for 20 percent of the cost to make a pair of Levi’s jeans, and the company was able to negotiate product costs at a very low-single-digit inflation, then someone in the supply chain is getting severely squeezed.

How long will it be before whoever that is cries uncle, and reneges on its obligations?

For a cotton supplier, that would presumably be when the input costs – land, fertilizer, labor, and processing – are greater than their contracted cost with Levi.

In this respect, Levi may have a plan to account for higher cotton prices, for now.  But will they really get a mid-single digit increase during the second half of 2022 as management anticipates?

How much more price inflation can they pass on to consumers?

Are You Prepared for the Mass Repricing of Goods and Services?

The answers to these and other related questions are being considered by management teams across all industries.  The simple fact is when the price of raw materials and labor inflate, it becomes very difficult to plan operations and production.  Hedging strategies may help manage for rapid, short-term price spikes, but they cannot ultimately prohibit a long-term repricing of materials.

In short, we believe a long-term repricing of materials, goods, and services, is now underway.  Certainly, prices will continue to rise and fall to meet supply and demand dynamics.  Yet this will take place in a range that is being repriced higher.  It has happened before and will happen again…

In 1960, for example, a gallon of gas cost $0.31 per gallon.  Similarly, in 1960 a gallon of milk cost $1.00 per gallon.  Currently, the average price of gas and the average price of milk are $3.28 per gallon and $3.68 per gallon, respectively.  That’s upwards of a 958 percent increase for gas and 268 percent increase for milk over the last 60 years.

Sure, the price of gas and milk could come down some from today’s prices.  However, there’s no way they’ll ever drop back to 1960’s prices.  They’ve been repriced higher for good.

Why?  Are gas and milk somehow more valuable today than they were 60 years ago?

We surmise these essentials have generally the same utility value they always have.  Yet the dollar has been greatly devalued.  Moreover, this great devaluation is the consequence of rampant dollar debasement policies executed in tandem between the Fed and Congress.

The recent debt ceiling histrionics in Congress – and the elevation of the debt limit for what we believe is the 79th time since 1960 – are merely another milestone in the great dollar debasement saga.

Remember, price inflation starts with expansion of the money supply.  These days the expansion of the money supply is conducted in tandem by the Federal Reserve and the Treasury.  In short, the Treasury sells new debt to the Federal Reserve, which the Fed buys using credit created out of thin air.

Congress, through its debt ceiling increases, provides the Treasury with an unlimited tab.  Congress then spends this limitless money into the economy via spending programs galore.  As this new money flows through the economy, prices adjust higher, as the supply of money increases much faster than the supply of goods.

The point is, through policies of mass dollar debasement, we’ve now entered the next stage of the mass repricing of goods and services in the economy.  The price of just about everything will adjust upward by several hundred percent – or much, much more – over the next decade.

Pre-pandemic prices are gone forever…

…and your savings, investments, retirement, purchasing power, and the quality of life that you’ve spent a life time planning and working for will be shredded.

Are you prepared?

EDITORS NOTE: This Geller Report column is republished with permission. ©All rights reserved.

4 Scary Charts Show How Fast the Federal Government is Heading Toward Fiscal Disaster thumbnail

4 Scary Charts Show How Fast the Federal Government is Heading Toward Fiscal Disaster

By Brad Palumbo

Every day Americans will ultimately pay the price for the federal government’s recklessness.

The national debt is rapidly closing in on $29 trillion. The federal government now owes an astounding $228,999 per taxpayer. All the while, politicians in Washington, DC are bickering over whether to spend $4.5 trillion more or “just” $1.5 trillion. Yet almost entirely omitted from the debate over the so-called “infrastructure” spending bonanza is the fact that the federal government is already running off a fiscal cliff—as a new analysis makes plain.

The Manhattan Institute’s Brian Riedl recently released his 2021 Chart Book, and it paints a devastating picture of the federal government’s finances. Here are 4 charts that show just how fast it is approaching budgetary disaster.

Image Credit: Brian Riedl, Manhattan Institute

Riedl estimates the trajectory of the national debt even under the rosy assumption that new spending programs are not added. He nonetheless shows that the federal debt will nearly double by 2030.

Image Credit: Brian Riedl, Manhattan Institute

What matters is not just the total debt figure, but how it relates to the overall size of our economy, as measured by Gross Domestic Product (GDP), which reflects how much the US produces in a year. Right now we’re already above a 100 percent debt-to-GDP ratio, which is normally considered a red flag, yet under Biden’s proposed additions to the budget baseline the debt would reach an astounding 250 percent of GDP within 30 years. That’s right: We’d owe 2.5 times more than we make annually.

Image Credit: Brian Riedl, Manhattan Institute

Some progressives like to cite military spending and tax cuts as drivers of the nation’s deficit woes. (And there’s certainly plenty of room for cuts in the defense budget). Yet the reality nonetheless remains that the welfare state’s various entitlement programs are what’s really driving the problem. Riedl shows that the future deficits projected through 2031 are mostly driven by the enormous funds that will be needed to keep Social Security and Medicare from collapsing.

Image Credit: Brian Riedl, Manhattan Institute

No, it is not the GOP’s 2017 tax cuts that are really driving this problem. Yes, the reductions in the corporate tax rate, income tax cuts, and other changes will likely lead to the federal government collecting less revenue than it otherwise would have. Yet that’s a small price to pay for reducing the corporate tax rate’s harsh burden on workers and more generally letting Americans keep more of their own money. And, as Riedl shows, it’s only a marginal contributor to skyrocketing projected deficits.

Many Americans might see these figures and charts and feel their eyes start to glaze over. The federal government’s dismal finances can certainly seem like an abstract or far-away issue. But unless Congress drastically reins in its spending addiction, Americans will feel the consequences in their everyday lives.

In just a matter of years, the annual interest payments on the debt that taxpayers must finance are set to hit $1 trillion. If interest rates even modestly increase, that sum could skyrocket. Right now, even before all this new debt, taxpayers spend $800 million per day just servicing the interest on the national debt. Further progression down this path will ultimately mean massive increases in taxation.

So, too, we will face slower economic growth and lower paychecks as the debt crowds out private sector investment and drags down the economy.

“Deficit spending extracts resources from the real economy and there is no guarantee that the government uses these resources better than the private sector,” Mercatus Center senior fellow Veronique de Rugy told FEE in a previous interview.

Indeed, many studies show that higher debt leads to lower economic growth—aka, lower income growth for everyday Americans.

“We are likely already paying for the heightened debt levels in the form of lower living standards,” de Rugy said. “And we will continue to suffer if we keep this up.”

What’s more, we continue to court a fiscal crisis in the near-to-medium-term future. According to the Peter J. Peterson Foundation, high levels of federal debt mean a “greater risk of a fiscal crisis” that “could further destabilize the U.S. economy and erode confidence in U.S. currency on an international scale.”

So voters should find the trends exposed by Riedl’s revelations deeply concerning. If the federal government doesn’t get its house in order, it is everyday Americans, not politicians, who will ultimately pay the price.

Click here to check out Brian Riedl’s full chartbook and report.

*****

This article was published on October 16, 2021, and is reproduced with permission from the Foundation for Economic Education.

How the Fed’s Easy Money Spurred Today’s Financial Frenzies thumbnail

How the Fed’s Easy Money Spurred Today’s Financial Frenzies

By Joseph Mullen

Though the effective federal funds rate remains less than 0.1 percent, the reaction of the markets and financial press as the ten-year Treasury yield crossed the 1.5 percent threshold near the start of the month reminds us just how fragile our economy’s underlying monetary framework has become over the past two decades. Regularly at a minimum of at least 4 percent in the postwar period, ten-year Treasury yields haven’t crossed that threshold in over a decade and were in steady decline from 1992 onward.

This persistently loose monetary policy forces even the most risk-averse portfolio managers to take on equity premiums previously outside their comfort zone—see J.P. Morgan’s 2021 Long-Term Capital Market Assumptions report. This is because beyond the speculation cheap money facilitates among the most risk tolerant of asset managers, persistently low effective federal funds rates and Treasury yields cause yield compression. That is, long stretches of low interest on supposedly “safe” US Treasury securities force investors to “reach for yield,” a euphemism for taking on a higher risk premium by investing in less certain financial instruments or equities because of the lowered rate of return on safer investments. When the majority of market participants do so, however, this diminishes the returns of those exact assets.

In the bond market, for example, the rush for corporate junk bonds causes their price to rise and their yield to therefore fall, thus pushing their rate and the rate on Treasurys closer together. Under pressure to maintain their profitability and promised returns to expectant clients, fund managers no matter their risk tolerance are all forced by necessity in the same direction. This crisis waiting to happen is magnified when inflation is cause for investor concern, when low-yield securities hand investors a negative yield at year’s end when measured in real dollars.

Today’s enormous equity bubble is in no small part a direct result of this phenomenon. With an average cyclically adjusted price-to-earnings ratio (CAPE) across the three major indexes of almost 40—that is, companies on the three major indexes are trading at an average price of forty times their earnings per share as averaged out over the last ten years—it is little wonder that Fed minutes have become arguably the single most important macroeconomic determiner of equity futures. As anyone who follows the particularly overweight tech sector knows, even a small and brief spike in rates or Treasury yields causes the NASDAQ to tumble.

The story is a familiar one. Looking at the past thirty years, we find Fed policy tinkering first creating and then bursting bubbles: keeping rates too low for too long before aggressively jacking them up. Far from “solving” the ups and downs of the business cycle, the so-called great moderation of the 1990s was a result of Alan Greenspan’s overactive monetary policy, unleashing a torrent of cheap money and facilitating takeovers at any hint of trouble. Whether it was a currency crisis in Mexico, a government debt default in Russia, or even the Y2K scare, the answer was always the same: cheaper central bank liquidity. What followed was the dot-com bust and recession.

Even before the so-called boom in busts, the increase since 1980 in financial crises, currency crises, and bubbles, it was several government policies that kick-started the engine of financial innovation, which is wrongly blamed by many in the press and left-leaning academia for this increased economic instability: first by destroying the existing Bretton Woods monetary system through overspending on welfare programs and war, then by capping interest rates paid on bank deposits at a time when inflation meant depositors were losing money on their deposits, this while banks’ traditional revenue source, thirty-year fixed-rate mortgages, was being simultaneously made unprofitable for the same reason. Thus, institutions, depositors, investors, and borrowers were all but pushed into the uncertain waters of increasingly complex financial innovation.

From jumbo CDs to money market mutual funds, securitized mortgages, and derivatives, financial innovation became a fixture of the US economy, rising from just 4.2 percent of GDP in 1970 to 7.4 percent in 2018. In the end, even the government became totally dependent on these products to help finance its own debt and domestic consumer spending—which itself rose from just over 60 percent in 1970 to nearly 70 percent today.

It was Wall Street that acted as a magnet for dollar holdings abroad, which funded the cheap credit, reckless spending, and risky investing that has become so familiar today. Indeed, the real wonder is that the twin pillars of fiscal and current account deficits holding up the roof have held up as long as they have. How long they will continue to do so is anyone’s guess.

*****

This article was published on October 15, 2021, and is reproduced with permission from the Ludwig von Mises Institute.