Tag Archives: Economic growth

Political Or Good Policy?

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At a time when Americans are still dealing with inflation, the Federal Reserve has cut interest rates by half a percentage point.

On Wednesday, Breitbart noted:

The Federal Reserve moved to cut interest rates by a half percentage point—the first reduction since the central bank cut rates to near zero when the pandemic struck in 2020—in a vote of confidence that inflation will continue to moderate and an attempt to fend off a further increase in unemployment.

“Recent indicators suggest that economic activity has continued to expand at a solid pace. Job gains have slowed, and the unemployment rate has moved up but remains low. Inflation has made further progress toward the Committee’s 2 percent objective but remains somewhat elevated,” the Fed said in a statement.

…Fed officials have also said that they now view the risks to their mandate to maintain full employment to be greater than the risks of a resurgence of inflation. Earlier this summer, the unemployment rate tripped the Sahm Rule threshold by rising more than a half a percentage point above its recent low, typically a signal that the economy is already in a recession. Claudia Sahm, whose research is behind the rule, has said she does not think the economy is currently in a recession but worries that restrictive monetary policy could unnecessarily increase unemployment even more.

The article concludes:

The longer-run projection for the fed funds rate rose to 2.9 percent, four-tenths of a point above the 2.5 percent the Fed had consistently projected from 2019 through the end of last year. In the June projections, officials had indicated an expectation for a longer run rate of 2.8 percent.

On the other hand, unemployment is now seen as going higher. When the Fed last released projections in June, officials forecast a four percent rate of unemployment at year-end. The new projections have unemployment rising to 4.4 percent. Next year, unemployment is seen as staying at 4.4 percent, up from the earlier estimate of 4.2 percent. Similarly, the median projection for economic growth ticked down to two percent from 2.1 percent this year.

Eleven officials voted for the rate cut. One Fed governor, Michelle Bowman, dissented, preferring a quarter-point cut.

I am not an economist, so I don’t have a lot to say about this. However, I do think inflation has continued to be a problem that cutting interest rates might exacerbate. I am hoping that the Federal Reserve has made the right decision for the right reasons and that this is not a political move.

The Real Economic Numbers

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On Tuesday, Breitbart posted a cheat sheet for anyone watching the debate who might wonder about the economic information cited. The cheat sheet came in very handy, as much of what Vice-President Harris cited in terms of economic numbers was pure fiction.

Here are the numbers on the Trump economy and the Biden economy:

  • Peak Inflation for Trump: 2.85%
  • Peak Inflation for Biden-Harris: 8.98%
  • Peak annualized inflation for Trump: 6.3% in September 2017
  • Peak annualized inflation for Biden-harris: 16.05% in June 2022
  • Cumulative Trump Inflation: 5.9%
  • Cumulative Biden-Harris Inflation: 19%
  • Cumulative Trump grocery inflation: 6%
  • Cumulative Biden-Harris grocery inflation: 20.9%
  • Rent increase under Trump: 12.5%
  • Rent increase under Biden-Harris: 22.1%
  • Months of PCE inflation above two percent under Trump: 5
  • Months of PCE inflation above two percent under Biden-Harris: 40
  • Manufacturing Jobs Added under Trump: 414,500
  • Manufacturing Jobs Added under Biden-Harris: 138,000
  • Growth of Manufacturing Jobs under Trump: 3.5%
  • Growth of Manufacturing Jobs Under Biden-Harris: 1.07%
  • Trump employment growth: 6.5 million
  • Percent Trump employment growth: 4.3%
  • Biden-Harris employment growth: 2.6 million
  • Percent Biden-Harris employment growth: 1.7%
  • Trump wage gain: 6.46%
  • Biden-Harris wage gain: 5.17%
  • Trump wage gain: 6.54%
  • Biden-Harris wage gain: 0.00%
  • Foreign born population growth under Trump: 2.2%
  • Foreign born population growth under Biden-Harris: 12.6%
  • Foreign-born employment growth under Trump: 7.5%.
  • Foreign-born employment growth under Biden-Harris: 14.2%.
  • Foreign-born workers as a percentage of all U.S. workers under Trump: 17.4%
  • Foreign-born workers as a percentage of all U.S. workers under Biden-Harris: 19.6%
  • Trump average budget deficit 2018-2019: $809 billion
  • Biden-Harris average budget deficit 2022-2023: $1.5 trillion
  • Trump budget deficit as share of GDP in 2018: 3.8%
  • Trump budget deficit as share of GDP in 2019: 4.6%
  • Biden-Harris budget deficit as share of GDP in 2022: 5.3%
  • Biden-Harris budget deficit as share of GDP in 2023: 6.2%
  • Average economic growth in first three years of Trump administration: 2.7%
  • Average economic growth in first three years of Biden-Harris administration: 3.4%
  • Average economic growth under Biden-Harris excluding 2021 pandemic rebound: 2.2%
  • Average return of S&P 500 in first three years of Trump administration: 16.3%
  • Average return of S&P 500 in first three years of Biden-Harris administration: 12.3%
  • Peak 30-year mortgage interest rate under Trump: 4.94%
  • Peak 30-year mortgage interest rate under Biden-Harris: 7.76%

If Vice-President Harris truly cared for the financial well being of American families, she would tell them to vote for President Trump!

Recognizing Marxism Part II

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Author:  R. Alan Harrop, Ph.D

In a previous article, I outlined seven indicators that a politician or government is advocating destructive Marxist principles or actions. Here are a few more that we should be aware of if we want to protect our freedoms as true American patriots.

First: Government giveaways. Marxist governments seduce citizens for support by providing things, seemingly for free. Examples:  free healthcare for all, canceling student debt, providing guaranteed income for all, and recently, free down payment money for first time home buyers. Of course, the government does not create wealth but merely takes from a person who earned it, and gives it to another who did not earn it. This is actually wealth transfer which penalizes the hard-working person.

Second:  Inflation. Most, if not all inflation, is caused by excessive government spending that exceeds revenues. The government does this by printing money that is not backed by actual economic growth.  Printing money is the Marxist way of buying votes while at the same time devaluing the buying power of the currency. This essentially amounts to a tax that makes citizens poorer. The Harris campaign’s recent announcement that inflation will be reduced by going after corporations who are “gouging the public” is misdirected and typical of trying to blame private companies for government caused inflation. Price controls always lead to shortages and increased inflation.

Third:  Suppressing dissent. Controlling the press, limiting free speech, and prosecuting opposition occurs in all Marxist countries such as China, North Korea, Russia, Cuba, and Venezuela. Alarmingly, this is now occurring in America. Blocking people from social media platforms, falsely prosecuting January 6th demonstrators as “insurrectionists” (while allowing actual rioters after the George Floyd incident to go free) are examples of what Marist governments do. The most glaring example, of course, is the Biden/Harris administration’s persecution of Donald Trump for bogus crimes. This has never happened before in the history of this country and represents a serious change which should alarm us all.

Fourth:  Intentionally distorting the truth. Truth is not a Marxist value. Marxists will say anything in order to hide the truth from the people. This includes mislabeling their destructive actions to hide the real impact. For example, the so-called Inflation Reduction Act did nothing but increase inflation. The Biden/Harris administration spent billions of dollars on green energy and other programs that required borrowing more money, that the government did not have. Another example, is the tragic effort to encourage the surgical mutilation of children. They call it “Gender Affirming Care” when it is the exact opposite. Instead of encouraging children to accept and be content with their birth gender, they advocate gender hormone blockers and genital surgery in an effort to change the child’s true gender. Some states like California and Wisconsin (where VP candidate Tim Walz is governor) threaten to take a child away from the parents if they refuse to agree to hormone blockers or surgery.

Fifth:  Open borders. Marxism always attempts to eradicate the national traditions of any country they control. One way of doing this is to flood the country with immigrants who do not share the principles, values, and traditions of that country, thereby allowing the government to define the culture. Demeaning a country by focusing on flaws from their past diminishes patriotism and love of country and ignores the positive accomplishments.  This is especially destructive to the youth.

The issue facing America in 2024 is whether there are enough clear-thinking patriots who recognize the destructive path we are on and are willing to do what is necessary to reverse course.  The upcoming election will answer that question, once and for all.

We Can Predict The Future Based On The Past

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On Saturday, The American Thinker posted an article pointing out the differences between the Trump administration and the Biden administration in the area of law and order. The contrast is stark. Logically, whichever administration is elected in November will implement policies similar to those they have espoused in the past.

The article reports:

As the November election approaches, the choice between Donald Trump and Kamala Harris could not be clearer, especially for working-class Americans and business owners alike.

After four tumultuous years under Joe Biden’s and Kamala Harris’s administration, where economic policies have faltered and crime rates have surged, Trump’s track record provides a compelling case for his return to the White House.

His administration’s unparalleled support for law enforcement and focus on economic prosperity stand in stark contrast to the failures of the current administration, promising a restoration of safety and stability that America desperately needs.

Under Trump’s leadership, the nation saw a significant decline in violent crime, a trend that reversed under Biden. By 2019, violent crime had fallen for the third consecutive year, with a decrease of over 5 percent since 2016 and a reduction in the murder rate by over 7 percent. This progress was not accidental but the result of deliberate, effective policies.

Trump’s administration launched Operation Legend to combat rising violence in cities, leading to more than 5,500 arrests and demonstrating a robust response to escalating crime.

…Contrast this with the Biden-Harris approach. Under their tenure, the FBI reported a rise in violent crime, exacerbating the struggles of American communities. Their administration’s reluctance to fully back law enforcement agencies has led to weakened public safety and heightened fears among citizens. The surge in violent crime under Biden’s watch starkly contrasts with the progress made during Trump’s presidency.

The article notes:

As we approach the November 2024 election, the choice is clear. Donald Trump’s track record of supporting law enforcement and fostering economic stability stands in stark contrast to Joe Biden and Kamala Harris’s failed policies. Trump’s administration demonstrated a commitment to restoring safety and order, which directly contributed to economic growth and stability. His policies not only addressed crime effectively but also ensured that businesses and communities could thrive.

Biden-Harris’s administration, with its record of rising violent crime and economic instability, has proven that his approach is not effective. Kamala Harris, as Biden’s successor, promises to continue these failed policies, further undermining public safety and economic prosperity.

For working-class Americans and business owners alike, supporting Donald Trump this November represents a vote for a proven leader who understands the critical link between law enforcement and economic stability. Trump’s track record of reducing violent crime, supporting law enforcement, and fostering a conducive environment for business growth underscores his capability to lead the nation towards a safer and more prosperous future.

This November, you are not only making decisions that will impact your pocketbook, your vote will impact your family’s safety and the safety of your community.

 

Targeting Taxpayers

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Author: R. Alan Harrop, Ph.D

The Coastal Carolina Taxpayers Association is committed to ensuring that citizens receive accurate information about policies that impact taxes. The election in November will have a major impact on federal taxes. It is important to note that 47% of earners paid no federal income tax in 2022 and the top 1% of earners paid a whopping 76% of federal taxes collected. This means that there are a substantial number of people who have no stake in how much federal taxes increase. Also, be aware that the Left’s constant refrain that the top earners do not pay their fair share is a lie.

What can we as taxpayers expect in the future? Let’s take a look. First, if a leftist Democrat, like Kamala Harris, is elected we can expect that Trump’s tax cuts from 2017 will be allowed to expire in 2025 increasing taxes substantially; particularly on middle class wage earners. Second, we can expect an increase in spending on “green new deal” programs, which are not only a hoax, but will destroy this country. Subsidies and mandates for wind, solar, and electric vehicles will increase your tax debt. The war on fossil fuels is the major cause of the increased price of energy and inflation. Third, runaway government spending has increased the federal deficit to over $35 trillion, which amounts to $104,000 for every man, woman and child in this country. This will only get worse, and ultimately must be paid by you the taxpayer. Fourth, the so-called student loan forgiveness scam (which is really a transfer of the debt to you the taxpayer) will be pursued in order to buy votes from those who actually benefited from the loans. Fifth, the open border policy is costing taxpayers billions of dollars in direct payments, housing subsidies, food stamps and free healthcare. Kamala Harris has previously advocated free healthcare and Medicare/Medicaid for all, including illegal immigrants. Since hospitals are not allowed to turn people away, you are actually paying this bill now, and it will get worse.

Of course the biggest tax of all is rampant inflation, which has increased the cost of living for the average American over 23% since Biden/Harris took office. Even though the inflation rate has diminished somewhat, prices continue to increase and will never return to their previous levels. In the meantime, mortgage rates, housing prices and rising rents are an increasing burden on the American people, especially the young. The American Dream is being shattered by excessive government spending.

By contrast, a Republican administration is likely to expand energy production, which will not only ease inflation, but provide revenue from the sale of oil and gas to other countries. Trump’s “Drill, baby, drill” plan needs to be implemented. Tax rate cuts to stimulate economic growth and productivity can be expected and are the only positive way of attacking the federal debt. Shrinking the federal government such as eliminating the federal Department of Education and cutting agency budgets are planned. President Trump’s commitment to closing the border will not only reduce taxes but ensure greater security and protect American jobs. Last, but not least is Trump’s commitment to revoke China’s most favored nation status which would help level the playing field and return manufacturing to this country, as well as provide revenue from equal tariffs as appropriate.

Regardless of other issues, and there are many, the impact on taxpayers of this coming election could not be more profound. As taxpayers this should be of the highest concern.

The Legacy Of The Biden Presidency

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On Saturday, The Washington Examiner posted an opinion piece evaluating President Biden’s legacy as President. It wasn’t a real positive article.

The article notes:

Leaving aside whether or not the country needed saving from Trump, Biden has not “done an excellent job as president,” as claimed by the sweetly generous New York Times. If he is “one of the most consequential presidents in our nation’s history,” as the dulcet-tongued Rep. Adam Schiff (D-CA) said when he asked Biden to step aside, those consequences have been overwhelmingly negative.

I guess Schiff believes that flattery will get you everywhere.

The article continues:

Biden could have been remembered as a president who united the country and passed the baton to a new generation of leadership. To do this, he needed to govern as a commonsense centrist and then stick to his word and pass the baton. The economy was already adding 1.4 million jobs a month before Biden was sworn into office. If he had simply speeded the reopening of the economy after the COVID shutdowns, he would have presided over strong, equitable economic growth.

Instead, he allowed fawning historians to convince him he could be the second coming of Franklin Roosevelt. This manipulated by the Left, he pushed for massive and unneeded spending on a purely partisan basis, sending inflation through the roof and thus punishing vulnerable workers. As a direct result of Biden’s partisan overspending, consumers have accumulated $12.8 trillion in housing debt, $1.62 trillion in car debt, and $1.1 trillion in credit card debt, all record highs. According to the latest Federal Reserve Economic Well-Being survey, inflation has worsened the finances of 65% of people, including 19% who said it was “much worse.” Almost one-fifth of adults, 17%, said they could not pay all their bills in the month before the survey was taken.

No wonder voters disapprove of Biden’s handling of the economy by 20 points.

The article concludes:

It is hard to see how Biden’s botched withdrawal from Afghanistan, a politically rushed maneuver that got 13 American service members killed, did not encourage Russian aggression. And while Biden has done some good in managing NATO’s response to the invasion of Ukraine, he has been slow and indecisive in getting Ukraine the weapons it needs to push invading Russian troops out.

Then there are the divisive actions Biden has taken on forcing women’s dorms and bathrooms to take in men, forcing consumers to buy electric cars, and selectively prosecuting his political opponents.

There is a reason — indeed many reasons — that Biden has the lowest approval rating among presidents at this point in his presidency: He is a bad president. No amount of flattery from the New York Times or Democrats eager to push him out of his reelection campaign is going to change that.

Biden must go not because his legacy is splendid but because he has been an unmitigated calamity for America.

That pretty much sums it up!

Projection As An Art Form

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“President Trump is a threat to our democracy” is the cry of those panicked on the political left. First of all, we don’t have a democracy–we have a representative republic. Second of all, President Trump is not the one limiting free speech and jailing his political opponents. But there are some other current lies that need to be debunked.

On Sunday, The New York Post reported:

Projection is blaming someone else for your own bad behavior.

We saw a classic case of projection in Thursday’s presidential debate, when President Biden — who is overseeing annual budget deficits of $2 trillion — asserted that his predecessor, Donald Trump, added more to the federal debt than anyone else.

It’s part of the latest leftist argument: that if Trump wins the election, he will run deficits twice as large as Biden would.

Debate moderator Jake Tapper joined the chorus of federal finance falsehoods when he claimed Trump had “approved $8.4 trillion in new debt,” while Biden’s actions will increase the debt by (merely) $4.3 trillion over a decade.

Those numbers are based on the predictions of the Committee for a Responsible Federal Budget (CRFB). This group opposed the Trump tax cuts which increased federal revenue.

The article continues:

The fundamental flaw of the CRFB analysis is revealed if we examine the projections of the Congressional Budget Office.

The CBO’s projection for 2021, the last fiscal year of the Trump administration, forecast the federal debt to reach about $35.3 trillion by 2031, that is, over the next decade.

Today, 3½ years into the Biden administration, the latest estimates from the CBO project the debt will hit over $42.5 trillion by 2031.

The article concludes:

Biden wanted to spend $2 trillion more in the last year and a half, but conservatives in the House blocked the added bloat. 

You can bet the farm that if the radical left wins the White House and Congress in 2024, that $2 trillion outlay will be first on their legislative agenda. 

Biden’s other big lie, backed by the CRFB analysis, is that extending Trump’s tax reform will drown the economy in debt.

Yet federal tax revenues have increased since that tax reform was enacted — and federal revenues as a share of GDP have not fallen.

All of the increase in today’s debt has been due to massive, out-of-control federal spending — by both parties.

Trump spent and borrowed too much, full stop.

But with a debt headed to $50 trillion if reelected and a political agenda that stifles economic growth, Biden has set America on an unsustainable fiscal path that will lead to financial oblivion.

It’s the spending, stupid.

 

Economic Growth Has Significantly Slowed

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On Thursday, The Daily Signal posted an article about the revised downward economic growth in the first quarter of 2024. America is not doing well economically.

The article reports:

The U.S. economy grew less than previously thought in the first quarter of 2024 amid a slowdown in consumer spending, the Bureau of Economic Analysis announced Thursday.

Gross domestic product was revised down in the first quarter from 1.6% to 1.3% year-over-year in a sign that the economy is not as strong as initial estimates indicated, according to a release from the BEA. Economists originally expected growth in the first quarter to be around 2.2%, more in line with the above trend growth seen in the third and fourth quarters of 2023, which were 4.9% and 3.4%, respectively.

The revision was due to new information that shows that consumer spending, private inventory investment, and federal government spending were lower than initial estimates, while state and local government spending, nonresidential and residential fixed investment, and exports were slightly greater than original tallies, according to the BEA.

Current-dollar GDP was also revised down to 4.3% from 4.8%, and real gross domestic income totaled just 1.5% in an initial estimate from the BEA.

Consumer spending is down because consumers are being forced to spend more on necessities and less on extras.

The article concludes:

In an attempt to bring inflation back down to around 2%, the Fed has placed its federal funds rate in a range of 5.25% and 5.50%, a 23-year high, which has put pressure on consumers and businesses to slow spending. The hike in the federal funds rate has increased the cost of credit across the board, making it more expensive to take out debt, such as through credit cards.

The cumulative amount of debt held by Americans totaled $17.69 trillion in the first quarter, with $1.12 trillion of that being on credit cards. The share of people who were behind 90 days or more on their credit card payments in the quarter jumped to 10.7%, outdoing the pandemic high of 10% in the first quarter of 2021.

Job growth has also slowed as of late, with the U.S. adding just 175,000 nonfarm payroll jobs in April, far lower than the 242,000 that were expected, while the unemployment rate ticked up slightly to 3.9%. In April, there were fewer gains in government jobs than in previous months, contributing largely to the slowdown, with March adding 303,000 new jobs.

This problem was government-caused and can be government-solved. Cut taxes and cut spending–that is the solution if Congress ever has the integrity to do it.

Can Lies Get Him Re-elected?

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Recently President Biden did a sit-down interview with CNN’s Erin Burnett. She didn’t ask him any really hard questions, but she did ask about his current low standing in the polls. On Wednesday, Red State posted some highlights from the interview and also did some fact checking.

The article reports:

Burnett said that the polls showed that voters trusted former President Donald Trump more on the economy. She ticked off several problems with the Biden economy including the cost of buying a home which has doubled, real income is down, economic growth is down “far short of expectations,” and consumer confidence was at a “two-year low.”

“With less than six months to go until Election Day, are you worried you’re running out of time to turn that around?” she asked him. Biden looked out of it while she was talking, and his response was pure denial of reality.

…”We’ve already turned around,” Biden claimed falsely. He simply refuses to accept the facts, claiming the polling data “has been wrong.”

Bottom line? Trump is ahead in the polls, including in all the swing states. That’s what Joe can’t deal with.

…Then he straight-up lied and said that inflation was at 9 percent when he came into office.

In fact, inflation was at 1.4 percent when he came in and he helped to drive it up above 9 percent.

Recently President Biden blamed corporate greed for the inflation problem. What he fails to note is that corporations are in business to make money. It is not up to him to decide how much money corporations make. Generally speaking, the free market determines profit margins. If the government would get out of the way of the free market, they might see the beginning of a true economic recovery.

Unfortunately, The Jobs Report Tells The Story

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The Biden administration has spent a lot of time trying to convince Americans that Bidenomics is working. Most Americans are not convinced because all of us buy groceries and gasoline on a regular basis. Now that the jobs numbers for April have been released, the true condition of the American economy is becoming obvious.

On Friday, Townhall reported the following:

The U.S. economy added 175,000 jobs in April according to the latest employment situation report from the Bureau of Labor Statistics released Friday morning, the smallest job gain in some six months and significantly below Wall Street estimates for the month.

It was expected that April would bring 240,000 to 250,000 new jobs, and the unemployment rate would remain at 3.8 percent. Instead, April was a big miss, and unemployment ticked up to 3.9 percent.

The article continued:

The labor force participation rate remained at 62.7 percent in April and the average workweek slipped down to 34.3 hours while average hourly wages rose 0.2 percent for a 12-month increase of 3.9 percent.

Comparing wage growth with inflation, the Consumer Price Index (CPI) showed core inflation was still running at an annualized 3.8 percent in March, meaning Americans’ wages are barely keeping up with still-rising costs.

The hourly wage numbers are a tribute to creative math. If the number of hours worked is decreased, but the income remains the same, it appears to be an increase on paper. It is not an actual increase. If I work 15 hours and make a total of $150, I earn $10 an hour. If I work 10 hours and make $150, I am making $15 an hour. My income has not increased, but my hourly wage has. So scaling down the average workweek increase the average hourly wage.

The article concludes:

“Today’s jobs report confirms the economy is reentering stagflation,” said Alfredo Ortiz, CEO of Job Creators Network, of Friday’s report. “Only 175,000 jobs were created last month, well below the recent average and expectations,” he emphasized. “More than half of new jobs were created in the unproductive government and quasi-government healthcare and social services sectors that don’t provide growth,” explained Ortiz. “Combined with slow economic growth and resurgent inflation, these jobs numbers suggest stagflation has returned.”

Welcome to the results of Bidenomics.

Following The Science?

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On Friday, Just the News posted an article about some recent comments by Representative. Cori Bush, D-Mo, about the causes of recent problems with the American electric grid.

The article reports:

A House Oversight and Accountability subcommittee hearing Tuesday examined threats to the security and reliability of the U.S. electricity grid, which can lead to more blackouts.

While reliability assessments regularly find that increased reliance on wind and solar, increased demand from electrification, an underbuilt electrical delivery network, and rapid retirements of on-demand generators are creating an increased risk of blackouts, Rep. Cori Bush, D-Mo., ranking member of the subcommittee, instead blamed other sources of the problem, namely, white supremacy. She also threw in “climate change” for good measure.

The article notes:

Fallon (Pat Fallon, R-Texas, chairman of the Subcommittee on Economic Growth, Energy Policy and Regulatory Affairs) also talked about threats from cyberattacks by “foreign adversaries” meant to cripple the grid. “It’s critically important for Congress to engage in serious discussions to identify the risks to this reliability and safeguard our grid against threats,” Fallon said.

He said many of these risks are caused by the federal government, including the attempts to get rid of all fossil fuels, which he said are needed for providing consistent power generations. He also pointed to regulations that are increasing demands on the grid, including more electrification of appliances and heat, as well as electric vehicle mandates.

Bush, in her opening statement, argued that the problems of electricity reliability were unrelated to wind and solar. Fossil fuels, Bush said, were the problem, and they were especially harming non-white people.

“Decades of pollution and overuse and over reliance on fossil fuels have disproportionately harmed black and brown communities in St. Louis, and throughout the world,” Bush said.

If we truly want to know what the problem is with our electric grid, we only have to look to Germany and Spain–both countries attempted to build an energy infrastructure based solely on green energy, and both countries discovered that was not possible. The sun does not shine all of the time, and the wind does not blow all of the time. Reliable back-up sources of energy are needed. It is time to take an honest look at natural gas and nuclear energy as the path forward to lowering pollution. It is also time to acknowledge that although America needs to make an effort in the direction of cleaner energy, until China and India stop building coal plants, our efforts are insignificant.

Creating An Energy Crisis In America

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The last real energy crisis America experienced was in the 1970’s. It was then that the country discovered that there was a price to be paid for not being energy independent. We have forgotten that lesson.

On Friday, Red State reported:

In a Friday morning announcement, the White House and Department of Energy (DOE) revealed their next target — and it’s enormous.

The White House is halting the permitting process for several proposed liquefied natural gas (LNG) export terminal projects over their potential impacts on climate change, an unprecedented move environmentalists have demanded in recent months.

[T]he pause [will] occur while federal officials conduct a rigorous environmental review assessing the projects’ carbon emissions, which could take more than a year to complete. Climate activists have loudly taken aim at LNG export projects in recent weeks, arguing they will lead to a large uptick in emissions and worsen global warming.

The article concludes:

Chatterjee (former Federal Energy Regulatory Commission Chair Neil Chatterjee) was right— but here’s the thing. Facts, data, and science only matter to Democrats when they support the left’s narratives. We saw it with COVID-19. When facts don’t support the left’s narratives, they are to be dismissed, lied about, or outright ignored. (See: “Anthony Fauci.”)

Finally, House Speaker Mike Johnson released a statement following the White House announcement, warning that Biden is playing into Russian President Vladimir Putin’s hand.

This announcement by President Biden is as outrageous as it is subversive. Stalling LNG export terminals, like Calcasieu Pass 2 in Louisiana, not only prevents America’s economic growth, it empowers our adversaries like Vladimir Putin.

Since Russia’s invasion of Ukraine began, American petroleum producers have increased LNG shipments to our partners in Europe to prevent a catastrophic, continent-wide energy crisis and to provide an alternative to Russian energy exports.

It is outrageous that this administration is asking American taxpayers to spend billions to defeat Russia while knowingly forcing allies to rely on Russian energy, giving Putin an advantage. 

This policy change also flies in the face of the commitments made when the White House announced the joint US-EU Task Force less than two years ago to reduce Europe’s dependence on Russia and strengthen energy security.

Nailed it. The question is, whether Biden is capable of understanding the gravity of the Speaker’s statement. The answer is no doubt chilling.

The Bottom Line

If the environmental alarmist crowd came out today and announced it has changed its position on natural gas, Joe Biden would be singing its praises before he eats his pudding cup and goes nighty-night.

Pleas follow the link to read the entire article. We are committing economic suicide.

The Accomplishments Of The Biden Administration

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On January 2nd, The Daily Caller posted the following headline:

Biden Added $745 Billion Worth Of Regulations In 2023

Just what we needed.

The article reports:

The Biden administration promulgated over $745 billion worth of regulations in 2023, according to information supplied by Advancing American Freedom (AAF) to the Daily Caller News Foundation.

The Biden administration has used rulemaking procedures in agencies to enact several of its left-wing policy initiatives, such as stringent emissions standards to encourage the adoption of electric vehicles and student loan forgiveness plans. From Jan. 1 to Dec. 29 of 2023, the administration greatly exceeded both the Trump and Obama administrations in terms of the regulations it issued, adding to the 743 rules since 2021, according to data from AAF, a government regulations watchdog.

Remember that when President Trump took office, he began removing regulations in order to allow the American economy to grow. What impact have these new regulations put on by the Biden administration had on economic growth?

The article notes:

“Since January 1, the federal government has published $745.2 billion in total net costs (with $129.2 billion in new costs from finalized rules) and 251.3 million hours of net annual paperwork burden increases (with 60.5 million hours in coming from final rules),” AAF told the DCNF. “[T]he Biden Administration heads into 2024 with to-date final rule cost and paperwork totals exceeding those of the Obama Administration by $173.7 billion and 91.4 million hours, respectively.”

The article reports:

Moreover, in the last working week of the administration from Dec. 26 to Dec. 29, which was shortened due to Christmas Day, the administration added $45.6 billion in total costs and added 43.4 million annual paperwork burden hours, according to AAF.

The article includes the following statement:

Today, we released new standards for fridges & freezers that reflect a joint agreement with manufacturers & advocacy groups.

This will save Americans $5B/year & underscores our ongoing work with industry partners to promote innovation & cut energy costs.https://t.co/0Q9UKTRB31 pic.twitter.com/mXWh6SxR2U

— Secretary Jennifer Granholm (@SecGranholm) December 29, 2023

Can we please have a new President in 2025 before this administration can do any more damage.

Hidden Inside The Covid Relief Bill

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Yesterday Just the News posted an article about the tax increases hidden in the recently passed Covid Relief Bill.

The article reports:

There is more than $57 billion worth of hidden tax increases in President Joe Biden’s $1.9 trillion coronavirus stimulus bill, Just the News has learned.

The final version of the legislation expands the number of employees who are covered by the $1 million limitation on the deductibility of executive compensation.

According to National Law Review, section 162(m) of the tax code “generally prohibits a public company from deducting more than $1 million in compensation paid to a current or former covered employee in a taxable year,” and under current law “the covered employees are the chief executive officer, chief financial officer, and the three other highest compensated officers for the taxable year.”

The executive compensation deduction change in the stimulus bill covers 5 more of a company’s highest paid employees.

“TCJA [Tax Cuts and Jobs Act] included such a limit, but Dems essentially doubled it to make it more draconian,” a House Ways and Means Committee minority spokesperson said. “Dems are under no illusions that their bill is about growth, so them putting a cap on executive pay is just political messaging.”

A $500,000 limit on the amount of losses that “passthrough corporations” can use to get liquidity is also tucked inside the bill, according to a Joint Committee on Taxation document obtained by Just the News.

The Joint Committee on Taxation spokesman also noted that the above provision that the Democrats have ended was what allowed small businesses to get the fast tax refunds from the IRS that kept many of them alive during the lockdowns.

The article continues:

Another tax provision in the stimulus, the second largest rescue package in U.S. history, involves new limitations on the interest expenses that multinational corporations can deduct on tax returns.

This change makes doing business in America less attractive and will return us to the days when American corporations moved overseas.

Aside from the cost of the Covid Relief bill, it is a bill that will stifle the growth of the American economy. That growth would have at least provided some of the money needed to fund the bill. We are headed back to the days of very slow economic growth or no growth at all.

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For everyone who believes that the Trump administration only helped the rich, here are the numbers (the chart is from Power Line Blog):

Under President Trump the percentage of poor, lower, and middle middle class people decreased. The percentage of upper middle class and rich increased. People at all economic levels prospered under the Trump administration. The Workforce Participation rate climbed to 63.4 before the coronavirus arrived. Unfortunately the Biden administration’s economic policies will reverse much of these gains.

Good Economic News

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CNBC is reporting today that America’s Gross Domestic Product grew at a rate of 33.1% annualized during the third quarter. It was anticipated that the growth rate would be 32 %.

The article reports:

Coming off the worst quarter in history, the U.S. economy grew at its fastest pace ever in the third quarter as a nation battered by an unprecedented pandemic started to put itself back together, the Commerce Department reported Thursday.

Third-quarter gross domestic product, a measure of the total goods and services produced in the July-to-September period, expanded at a 33.1% annualized pace, according to the department’s initial estimate for the period.

The gain came after a 31.4% plunge in the second quarter and was better than the 32% estimate from economists surveyed by Dow Jones. The previous post-World War II record was the 16.7% burst in the first quarter of 1950.

Markets reacted positively to the news, with Wall Street erasing a loss at the open and turning mostly positive.

The article includes two Tweets that provide insight into the election:

Please note that Joe Biden gives no facts to back up his claims. We are not out of the woods yet with the coronavirus, but we are moving forward. The Democrats in the House of Representatives have chosen to hold the stimulus package hostage to their pet projects to prevent the help to those who need it from being disbursed. I suspect that the funds will be allocated after the election.

Economic Growth In America

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Yesterday Just the News posted an article about some recent comments by economist Stephen Moore.

The article reports:

As the U.S. economy rebounds following the coronavirus crisis, the last four months have produced historic levels of job creation for the U.S., economist Stephen Moore said Sunday. 

“May, June, July and August have been the four biggest months of job creation in the history of the United States. We’ve regained over 10 million jobs in four months,” Moore told John Catsimatidis’s radio program on WABC 770 AM, according to The Hill. 

The outlet noted that despite recent reporting that the unemployment rate has further declined it still remains much higher than it was in January.

It is going to take a while for the economy to recover from the coronavirus lockdown. It is also going to take a while to figure out whether or not the lockdown was actually effective or other actions would have been more appropriate. However, the economy is growing, and will continue to grow if President Trump is reelected. If former Vice-President Joe Biden is elected, taxes will go up, tariffs on China will go down, and economic growth will either stall or stop.

When Principles Depend On Who Is In Power

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Yesterday Fox News posted an article detailing the Democrat’s reaction to President Trump’s suggested payroll tax cut. The tax cut is designed to counter some of the economic losses caused by fears over the coronavirus.

The article notes:

Democrats are lining up to condemn President Trump’s proposal to eliminate payroll taxes amid the coronavirus outbreak, even though many of them were lock-step in supporting former President Obama’s two-percent payroll tax cut in 2010.

The apparent flip-flop came as stocks rebounded on Tuesday on news of the president’s coronavirus initiatives, with the Dow posting its third-biggest point gain in history. Trump has called for a “dramatic” payroll tax cut, and Fox News is told there has been consideration of suspending the payroll tax for three months, through the fall, or even through the end of the year.

The article notes the Democrats’ previous stand on this issue:

House Speaker Nancy Pelosi, D-Calif., is working with Democratic leaders on their own stimulus package, and has suggested that a payroll cut likely won’t be included because it amounts to “tax cuts for major corporations.”

However, in a 2011 press release, Pelosi called a brief extension of Obama’s payroll tax cut a “victory for all Americans” and said it would put “nearly $40 per paycheck in the pockets of the average family.”

“Today is a victory for all Americans – for the security of our middle class, for the health of our seniors, and for economic growth and job creation,” Pelosi said at the time. “The American people spoke out clearly and, thanks to President Obama’s leadership, 160 million Americans will continue to receive their payroll tax cut – nearly $40 per paycheck in the pockets of the average family. I salute the work of the unified House Democratic caucus on behalf of the American people.”

The article concludes:

“According to those knowledgeable about the events that played out over less than a week, the agreement was the product of a fast-paced series of telephone contacts, conference calls and consultations with Congressional leaders,” the Times wrote. “A critical negotiation on Sunday led to a surprise cut in employee payroll taxes as the men sought to wrap up the deal.”

For Republicans, the sudden change in tone on payroll taxes as a means of economic stimulus was evidence of election-year opportunism.

“Like clockwork, Democrats never miss an opportunity to oppose President Trump,” Republican National Committee spokesperson Steve Guest told Fox News.

As for the new proposal on Capitol Hill, a source familiar with the proposal tells Fox News that addressing the Trump administration’s payroll tax proposal is “the fastest possible way” to address economic concerns. The source said that crafting proposals such as “unemployment insurance and dropping money out of helicopters” takes months to engineer. But the payroll tax could hit immediately – especially if they include both employers and employees.

The reluctance among some Republicans is a payroll tax cut could explode the deficit. However, Fox News is told that there are concerns that if Congress waits to act amid the declining economy, an even bigger hit to the deficit might result — as large as “a $1 trillion direct score on the deficit.”

Unfortunately the game is played on both sides. I believe there may be a handful of people in Congress who actually put the welfare of the country ahead of the welfare of their political party. I just wish there were more of them. As a country, we need to learn to work together in times of crisis–not simply use the crisis for political gain.

Why I Love The Alternative Media

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Yesterday John Hinderaker posted an article at Power Line Blog titled, “Landmark Trade Deal With China; New York Times Hardest Hit.” The article details some of the actual facts of the trade deal and contrasts those details with the reporting of The New York Times.

Some examples:

Reaction was predictably partisan. On CNBC, Steve Bannon said that President Trump “broke the Chinese Communist Party,” and the U.S. “gave up very little in the end.” On the same program, hedge fund manager Kyle Bass said that he sees the agreement as a “‘temporary truce’ in which the U.S. got the better of China.”

At the New York Times, on the other hand, there was wailing and gnashing of teeth:

President Trump signed an initial trade deal with China on Wednesday, bringing the first chapter of a protracted and economically damaging fight with one of the world’s largest economies to a close.

Has the trade conflict with China damaged the U.S. economy? To some degree it has, although it has certainly hurt China’s economy more. This is the kind of short-term pain that Barack Obama, for example, was unwilling to accept. And yet economic growth under President Trump has been considerably better than under Obama.

The deal caps more than two years of tense negotiations and escalating threats that at times seemed destined to plunge the United States and China into a permanent economic war.

No one thought “permanent economic war” was a realistic possibility, except, perhaps, readers of the always-hysterical New York Times.

The agreement is a significant turning point in American trade policy and the types of free-trade agreements that the United States has typically supported. Rather than lowering tariffs and other economic barriers to allow for the flow of goods and services to meet market demand, this deal leaves a record level of tariffs in place and forces China to buy $200 billion worth of specific products within two years.

Phase One reduces or eliminates some tariffs and leaves others in place for Phase Two. This isn’t really all that complicated, but the Times wants its readers to think that Trump’s approach represents a departure from an imagined, purist practice of the past.

Please follow the link above to read the entire article. It is a beautiful example of how the mainstream media takes good news and attempts to make it bad news because it involves an accomplishment by President Trump.

How Does Economic Growth Influence Your Vote?

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During the Democrat debate last night, former Vice-President Joe Biden made a very interesting statement.

Townhall reported the following:

Former Vice President Joe Biden stated he is more than willing to “sacrifice” the ongoing economic growth, resulting in the displacement of thousands of blue collar workers, in order to shift towards a more green economy. 

“The answer is yes, because the opportunity, the opportunity for those workers to transition to high paying jobs, as Tom said, is real,” Biden said during the sixth Democratic presidential debate on Thursday.

“We’re the only country that’s taken great, great crises and turned them into enormous opportunities. I’ve met with the union leaders. For example, we should in fact be making sure right now that every new building built is energy contained, that it doesn’t leak energy, that in fact we should be providing tax credits for people to be able to make their homes turn to solar power,” he continued.

Instead of fossil fuel jobs, Biden said there is an opportunity to install 550,000 charging stations across the United States so that the country can own the electric vehicle market. 

“There are so many things we can do. We have to make sure we explain it to those people who are displaced, that their skills are going to be needed for the new opportunities,” Biden added.

I wonder if the former Vice-President understands what it will be like for those workers as he ‘transitions’ the economy. I wonder if he is planning to make their house payments and their car payments. I wonder if he remembers the hardships the Obama administration caused to the coal industry workers in West Virginia. We really cannot afford to elect a President who plans on taking jobs away for the good of the people.

Joe Biden Continues To Say Really Odd Things

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CNS News posted an article today about some recent comments by former Vice-President Joe Biden. The former Vice-President made the remarks at the opening of a new campaign office in Iowa.

The article reports:

Biden twice envisioned what could be accomplished with “Trump out of the way”:

    • “Literally, with Donald Trump out of the way, there’s not a thing we can’t do.”
    • “With Trump out of the way, we’ve never been in a better position to lead the world.”

The former Vice-President stated:

“Literally, with Donald Trump out of the way, there’s not a thing we can’t do. Our ability to compete is incredible. We are the wealthiest country in the history of the world. We have more great research universities in America than all the rest of the world combined, and every major life-changing thing that has come out in the last 25 years has come out of one of those universities. We have the greatest researchers in the world. We’re in a position where our workers are, literally, three times as productive as workers in Asia. So, why do we walk around like, ‘Oh, my God, what are we going to do?’ We’re in trouble because of Trump.

“With Trump out of the way, we’ve never been in a better position to lead the world in the 21st century and restore America’s integrity and word around the world. So folks, that’s why I’m running. That’s what I hope we’re going to be able to do. We have enormous capacity. Thank you, thank you for being here. I promise you, you’re probably going to see more of me than you want to see, but I plan on winning Iowa.”

The article concludes:

Biden did not mention that Trump had not been in his way during the eight years Biden served as vice president in the Obama Administration.

I guess the former Vice-President hasn’t realized that our current economic growth began when he and President Obama got out of the way.

The Numbers Are In

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CNBC is reporting today that nonfarm payrolls rose by 128,000 in October, exceeding the estimate of 75,000 from economists surveyed by Dow Jones.

The article notes:

There were big revisions of past numbers as well. August’s initial 168,000 payrolls addition was revised up to 219,000, while September’s jumped from 136,000 to 180,000.

The unemployment rate ticked slightly higher to 3.6% from 3.5%, still near the lowest in 50 years.

The pace of average hourly earnings picked up a bit, rising 0.1% to a year-over-year 3% gain.

The article also reports:

Central bank leaders have largely praised the state of the U.S. economy, particularly compared with its global peers. The Fed earlier this week lowered its benchmark interest rate a quarter point, the third such move this year, but Chairman Jerome Powell clearly indicated that this likely will be the last cut for some time unless conditions change significantly.

“The October jobs report is unambiguously positive for the US economic outlook,” said Citigroup economist Andrew Hollenhorst. “Above-consensus hiring in October, together with upward revisions to prior months, is consistent with our view that job growth, while clearly slower in 2019 than in 2018, will maintain a pace of 130-150K per month. Wage growth remaining at 3.0% should further support incomes and consumption-led growth.”

The economic policies of President Trump have resulted in significant economic growth for America. American workers at all levels are enjoying the benefits of these policies. The decision for the voters in 2020 will be whether or not they choose to continue this economic growth.

Success Often Breeds Success

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When President Trump campaigned for President, he said he wanted to redo America’s trade deals and bring manufacturing back to America. He has renegotiated the trade deals. Congress has yet to approve the deal with Mexico and Canada, but a lot of manufacturing has returned to America. The Washington Times posted an article today about public opinion of President Trump’s trade policies.

The article reports:

“Bipartisan consensus has emerged that foreign trade is good,” wrote Gallup senior analyst Lydia Saad. “Americans’ broad view of trade is the most positive it has been in more than a quarter-century.

…“Both Republicans and Democrats have become more positive about trade over this period of improving economic conditions,” she noted. “However, support for trade among both groups jumped sharply after Trump took office in 2017.”

The 2019 poll numbers now reveal:

• 70% of Americans say trade with other nations has a positive effect on “innovation and development of new products.”

• 67% say international trade has a positive effect on U.S. economic growth.

• 63% say trade has a positive effect on American businesses,

• 58% say trade has a positive effect of the quality of products.

• 51% say trade has a positive effect on jobs for U.S. workers.

I wonder if the positive results of President Trump’s policies will be reflected in the 2020 election.

 

 

 

The Delusional Candidate

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Yesterday One America News posted an article detailing some recent statements by presidential candidate Joe Biden.

The article reports:

Joe Biden is campaigning to roll back President Trump’s tax cuts. The former vice president made his case Wednesday in his hometown of Scranton, Pennsylvania.

Biden touted his middle class background and announced his intent to hike the corporate tax rate from 21 percent to 28 percent. He claimed the repeal would help the middle class by hitting the wealthy and corporations.

“The wealthy didn’t need [tax cuts] in the first place,” said Biden. “Corporations have spent them on stock buybacks.”

Then Joe Biden claimed that former President Obama is responsible for the current economic success in America:

“Donald Trump inherited a strong economy from Barack and me,” stated the former vice president. “Things were beginning to really move — just like everything else he’s inherited, he’s in the midst of squandering it.”

The article then notes the actual economic facts:

Recent data from the Census Bureau revealed the middle class has experienced an economic boom since President Trump took office. The average family income rose over $5,000 since 2017. Under the Obama administration, household incomes only grew by about $1,000 by the end of eight years.

The main things that increased in the Obama economy were unemployment and the number of people on food stamps. Admittedly, President Obama became President at a difficult economic time, but his policies resulted in the slowest and leanest economic recovery in American history. President Trump’s economic policies have resulted in economic growth in all segments of the economy. The middle class and all minorities are enjoying higher wages and more jobs. A return to the economic policies of President Obama would be a step backward–not a step forward.

Good Economic News For Americans

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According to Investopedia:

A FICO score is a type of credit score created by the Fair Isaac Corporation. Lenders use borrowers’ FICO scores along with other details on borrowers’ credit reports to assess credit risk and determine whether to extend credit. FICO scores take into account various factors in five areas to determine creditworthiness: payment history, current level of indebtedness, types of credit used, length of credit history, and new credit accounts.

Yesterday The Federalist posted an article about how the Trump economic policies have impacted the FICO scores of Americans.

The article reports:

Americans’ average FICO score has hit an all-time high of 706 on the personal credit rating scale. Ethan Dornhelm, the vice president for scores and analytics at FICO, told CBS News that a score of more than 700 basically qualifies individuals for just about any credit at favorable terms.

FICO scores range from 300 to 850. A score above 700 is considered great, and a score above 760 is considered excellent. This high national credit score may be largely attributed to the strong economy, with its historically low unemployment rate, and the Tax Cuts and Jobs Act.

“This record-long stretch of economic growth has helped minimize reliance on debt to pay the bills,” said Joel Griffith, a research fellow at The Heritage Foundation. “Low interest rates help ensure a greater portion of loan payment goes to paying down principal rather than merely making interest payments.”

Creditworthiness is now increasing, which means Americans have the ability to rely on their paychecks, not just borrowing from their futures, to fulfill their financial obligations.

Americans’ average FICO score hit a low during the financial downturn of 2008, with a score of 686. After the recession passed, the nation’s average FICO score continuously grew.

Is giving Americans more access to larger lines of credit such a good thing? According to Griffith and Federal Reserve Bank data, U.S. household debt is also declining. Even now that Americans are able to take on more debt, they are not. They’re paying off their credit cards and increasingly lowering their other debt.

Unfortunately, this national accomplishment has not been a topic discussed among 2020 Democratic nominees. Why have the Democratic presidential candidates shied away from talking about the economy? Because, they call for an economy that “works for everyone,” when the current system is working for more people than ever before.

A Gallup poll shows that 88 percent of Americans believe the current U.S. economy is either “fair,” “good,” or “excellent.” That’s because this economy has provided 5.1 million new jobs and dropped the unemployment rate to 3.7 percent — the lowest rate in nearly half a century.

Leadership and economic policies make a difference to ALL Americans. The tax cuts and economic policies of President Trump have ‘worked for everyone.’ The government cannot create an economy the ‘works for everyone’ by taking money from people who earn it and giving it to people who did not earn it. An economy  that ‘works for everyone’ is created when everyone has the opportunity to find a job or start a company and create their own success.