Why the Economy Isn’t working for Anyone but...

Short answer: structural incentives that redistribute income upwards, taking money from the less affluent and siphoning it to the ultra rich. And among those mechanisms, few have more of a negative impact than stock buybacks. Are Stock Buybacks Starving the Economy? From the article: “The new Roosevelt Institute and NELP research examines public firms in three major but notoriously low-wage industries— food production,...

On Interpreting Economic Statistics

The economy grew at an annualized rate of 4.1% last quarter. Why, we haven’t had that level of economic growth since Obama was President (4Q 2011, for those wondering, and also Q4 2009). But the more important question for the average person is not how well “the economy” has been doing, but how this growth has affected him or her. This level of economic growth only tells us that more economic activity is...

Subsidizing Agribusiness while Harming Farmers

Why do people keep repeating that Trump gave an unsolicited $12 billion bailout to “farmers”. Like the regular farm subsidies, you can expect that 75% of that money will go to the top 10% of “farms”. Really it is just a taxpayer giveaway to big agribusiness. And it is the most blatant of political bribes, coming in an election year, wrapped up in mom-and-apple-pie symbolism and papering over a huge...

Obama’s vs Trump’s Approach to Border ...

One of life’s great ironies is that Obama has been one of the strongest enforcers of border security. His administration considerably ramped up border enforcement. In fact, Obama had more or less already done everything that could be done in that area without starting to ramp up the police state to the point where it starts irritating regular law-abiding citizens. Now imagine if Obama had done any of the new things...

The Spurious Dragons of Environmentalism

According to the voting guide the Focus on the Family (a so-called Christian lobbying group that recently re-incorporated as a church): “Environmentalism, according to the source the manual recommends to church groups, is a “litany of the Green Dragon” and “one of the greatest threats to society and the church today.” ” Sorry, that is not Christianity. That is Mammon leading the faithful by the nose. It is beyond...

When the Shoe is on the Other Foot

So Jeff Sessions announced today that he and the Federal Government are suing California over Sanctuary Cities and their Sanctuary State efforts. Basically, California has decided they won’t devote state or city resources to upholding federal policies they disagree with. Unfortunately, conservatives have made sure that California has every right to do this, with a Supreme Court decision from back in the 1990s, when...

The GOP Tax Bill: Consequences Not Unintended

Since Trump’s tax bill was passed, publicly traded corporations have announced $88 billion in share buybacks (twice the previous rate). Separately they have announced $2.5 billion in bonuses for employees. So basically, less than 3% of the benefits of the tax cuts were passed along to the employees, and 97% of the benefits are accruing to the 1%. Anyone surprised? Further, around 40% of the stock market is owed by...

Gun Insanity

Gun rights in 2018: “The federal government briefly enacted a rule that people who were receiving Social Security benefits for mental illness and had been deemed unfit to handle their own financial matters could not buy a gun. But Congress passed, and Trump signed, a law overriding that one year ago.”

GOP Tax Plan XII: Election Gaming

Another feature of the tax bill – election gaming. The bill features a highly unusual 1-year loophole in 2018 for businesses to buy stuff. And they will, driving the economy crazy. It will then bust in 2019, because businesses will have bought several years worth of stuff in 2018, this will make 2019 a bust year. Since the single greatest predictor of electoral success (or failure) is the state of the economy –...

GOP Tax Plan XI: Loopholes

Wow, the loopholes in this new tax bill are just amazing! No rich person with half a brain and a decent tax accountant is going to pay more than 20% hereafter. The nominal 37.5% top individual rate is a joke; no truly high net worth individual will end up paying it. Meanwhile on the right they are cheering the changes and promising how this will really improve things for the average worker. Unfortunately the very last thing...

GOP Tax Plan X: Elite Favoritism

The economy is exactly what the elites want it to be. And post the GOP tax bill it will be even more of that. Elites will get an even larger slice of the pie, asset prices will further inflate as even more money chases existing real estate, stocks, and other investable assets. And the middle class – well things continue to get worse, as all the supports go underfunded and none of the abuses or upwards redistribution...

The VA and Privatization

Shulkin says he’s considering closing 1,100 VA facilities Yay, more privatization! Close 1,100 centers that are totally free to vets and give them all vouchers they can use to try to buy overpriced health care from the rapacious for-profit sector. Everybody wins! Well, except vets who will see their quality of care decrease and the value of their vouchers slowly buy less care over time. But the private sector will do...