Using Taxpayer Money To Create The Illusion Of Fiscal Responsibility

On Thursday, Issues & Insights posted an article about a change in Medicare law included in the Inflation Reduction Act and the consequences of that change.

The article reports:

We have no doubt that, in the years to come, the media will describe the Biden-Harris administration as “scandal-free.” But that’s only because for the past four years they’ve vigorously ignored any and all scandals.

Case in point is the $15 billion giveaway that Biden-Harris snuck through this summer without a single hearing, vote, or advance notice, in an attempt to buy seniors’ votes. Followed up by a campaign email to these same seniors on behalf of Kamala Harris, also paid for by taxpayers.

Is any of this legal? Who cares, if it helps Harris win in November? At least, that’s how the mainstream press is treating this scandal.

The article explains:

The criminally misnamed “Inflation Reduction Act” that Joe Biden signed on Aug. 16, 2022, after Harris cast the tie-breaking vote, including among its many horrid provisions, several that affected Medicare Part D – the drug benefit for seniors – is set to go into effect in 2025.

Biden and now Harris have been running around claiming that this was a tremendous deal for seniors, except those provisions added huge costs to these drug plans that were going to jack up monthly premiums for this benefit by an average of $110 – a 179% increase!

So, to avoid that, the administration conjured up a “demonstration project” whereby insurance companies would agree to hold monthly premium increases to $35 or less in exchange for a pile of cash.

The Congressional Budget Office figures this will cost $5 billion a year – in borrowed money – plus another $2 billion a year in added interest costs on the national debt.

Critics have pointed out that this wasn’t a “demonstration project,” normally understood as a small-scale effort to test a change in rules governing a program. Instead, it was a subsidy handed out to every insurance company offering Part D plans.

So basically, all Americans are paying for seniors’ Part D Medicare so that the public won’t know that the cost went up. Well, I just told them.

The Health and Human Services sent out a letter touting the Medicare changes.

This is a part of that letter:

“I want to make sure you’re aware of the historic changes to Medicare that are lowering health care costs,” it begins, that are “a result of the Inflation Reduction Act that I signed into law and that Vice President Harris cast the tie-breaking vote to secure.” It goes on to say that “these are just some of the ways my administration has worked to help you save money on your health care costs.”

(No mention is made of the $15 billion they’re planning to spend to make budget-shattering premium increases.)

The letter is flagrant electioneering, paid for by taxpayers, and in clear violation of the Hatch Act, which outlaws the use of federal staff or resources “for the purpose of interfering with or affecting the result of an election.”

Last week, the Foundation for Accountability and Civic Trust filed a complaint with the U.S. Office of Special Counsel saying that the email “was entirely political in both its purpose and language,” and “has been described as ‘a sales pitch for Kamala Harris.’”

Don’t look for this story in the mainstream media.

Another Consequence Of The “Inflation Reduction Act”

The Inflation Reduction Act was bad news. It did pretty much everything except reduce inflation. Now it is becoming clear that the law is going to have a very negative impact on the cost of Medicare Part D for senior citizens.

Issues & Insights reports:

Go to Kamala Harris’ campaign website and among the very short list of alleged achievements is this: “She cast the deciding vote to lower drug prices and cap insulin prices for our seniors.”

The only problem is that drug costs for seniors have skyrocketed since Harris signed that bill.

Harris is pointing to the criminally misnamed “Inflation Reduction Act,” which got zero Republican votes, and which was supposed to lower the cost of prescription drugs by giving, as Harris puts it, “Medicare the power to negotiate lower drug prices with Big Pharma.”

When George W. Bush established Medicare Part D, he let private insurers negotiate with drug companies over prices and then compete for seniors’ business. The result was a program that cost both seniors and taxpayers far less than government bureaucrats had expected, offered seniors a wide range of options, and had premiums that barely budged for more than a decade.

…Seniors next year will face premiums that are 57% higher, on average, than they were in 2021.

“Seniors in some states face even bigger hits to their wallets,” finds a state-by-state analysis done by the Heritage Foundation. “Under the Biden-Harris administration, Medicare drug plan premiums jumped by more than 90% in 10 states. Premiums more than doubled in three of those states (California, 122%; New York, 116%; and Nevada, 104%).”

And the number of plans offered has been cut in half. Which means less competition, which in turn will fuel further price hikes.

As the Congressional Budget Office noted in a recent report, premiums are shooting up “in part because the Part D redesign led to higher costs for those plans.”

…Here’s how the leftist news site Politico put it:

One of President Joe Biden’s signature domestic achievements is set to cause a significant spike in Medicare premiums for millions of Americans just ahead of the November election. Now, his administration is preparing to dole out billions of dollars to private insurance companies to blunt the impact of the increase.

The jump in premiums is a consequence of efforts to reduce what older Americans pay for prescription drugs, part of the 2022 Inflation Reduction Act. Insurance companies are on the hook for what patients used to pay and are raising drug plan premiums to make up the difference.

This isn’t a “signature domestic achievement.” It’s a scandal of epic proportions. And it gets worse.

Two months ago, House Energy and Commerce Committee Chair Cathy McMorris Rodgers issued a statement noting that not only is the “Inflation Reduction Act” costing seniors, it has led to a 35% increase in the cost of new drugs and the cancellation of three dozen research programs by pharmaceutical companies.

Vice-President Harris was the deciding vote on The Inflation Reduction Act–she broke the tie.

The Problem With Kamala Harris In Six Numbers

On Monday, Issues & Insights posted an article listing six numbers that are a problem for the Kamala Harris campaign.

These are the numbers:

1. $17,080 – According to the House Budget Committee, that $17,080 was, as of this summer, the annual Harris-Biden “inflation tax” on the average American household.

2. 662,566 – U.S. Immigration and Customs Enforcement (ICE) has copped to having more than 600,000 illegals with criminal backgrounds on its national docket…

3. 323,000 – 32,000 unaccompanied children who, according to the Office of Inspector General of the Department of Homeland Security, did not appear for court dates between fiscal years 2019 and 2023 – and 291,000 who never even received Notices to Appear during that period? For whom ICE admits it has “no assurance” that they “safe from trafficking, exploitation, or forced labor?”

4. 0 – Kamala’s commitment to net zero – from which she has not backed off, and cannot without a revolt in her radical progressive base – amounts to the fracking ban she claims is not in the cards.

5. and 6. $6.75 trillion and 5,044 – The former represents federal outlays for fiscal 2024. The latter is the number of nuclear warheads in the U.S. arsenal. No sane individual would make this woman-child (and watch the last 20 seconds in particular), the chief executive in control of an enterprise of this size with this level of firepower.

On November 5th, the voters will decide whether or not these numbers are acceptable.

What Global Warming Is Really About

On Friday, Issues & Insights posted an article about global warming. The article includes a number of statements by people who claim to be alarmed at global warming that might cause you to question their motives.

The article reports those statements:

  • Christiana Figueres, one-time executive secretary of United Nations’ Framework Convention on Climate Change, admitted that the climate activists’ agenda is not to protect the environment but to break capitalism. The task ahead, she said in 2015, is “to change the economic development model that has been reigning for at least 150 years, since the Industrial Revolution.”
  • The late Rajenda Pachauri was the U.N. Intergovernmental Panel on Climate Change Chairman until 2015. He openly conceded “the protection of planet Earth, the survival of all species and sustainability of our ecosystems” was “more than a mission” to him. It was his “religion” and “dharma.”
  • Activist and influential author Naomi Klein once wondered if the fearmongering was “the best chance we’re ever going to get to build a better world?” The world must “change, or be changed,” she says, because an “economic system” — our free and open markets — has caused environmental “wreckage.”
  • Democratic Rep. Alexandria Ocasio-Cortez said almost five years ago that Miami will not exist “in a few years” due to the effects of global warming. She of course had a plan, not to deal with the changes, but to pass Democratic Party policies. “The interesting thing about the Green New Deal is it wasn’t originally a climate thing at all,” former Ocasio-Cortez chief of staff Saikat Chakrabarti said, according to the Washington Post Magazine. “Do you guys think of it as a climate thing?” Chakrabarti asked an aide to Washington Gov. Jay Inslee while the pair met at a Washington, D.C. coffee shop in May. “Because we really think of it as a how-do-you-change-the-entire-economy thing.”

The free market will always provide a cleaner environment than government regulation. It should also be noted that many of those complaining about the carbon footprint of our cars are flying around the world in private jets. If they truly believed climate change was an existential crisis, would they be doing that?

 

 

The Quest For Unity

America right now is a divided country–there are not only major divisions between the major political parties, there are major divisions within each of the two political parties. It’s hard to find unity anywhere.

On Monday, Issues & Insights posted an article titled, “Want More Unity And Freedom? Try Returning To Constitutional Federalism.” What a great idea.

The article states:

The current electoral cycle has featured a political culture in which candidates and their partisans claim to be advancing unity, but the primary form of the unity advanced is agreement among some that they want what does not belong to them or to dictate what others can do, and that they want government to “make it happen.” Unfortunately, that is not the kind of widespread unity that benefits “we the people.”

That is what recent events, from the attempted assassination of Donald Trump to Joe Biden’s argument for why he was staying in, then getting out, or the race, to Harris’s promises to unify people by giving them even more federal “something for nothing” have only turbocharged.

But as long as the dominant political culture remains unchanged, and even more so if it intensifies, all those self-depictions of being unifiers will remain empty promises. If we really wanted more unity in the sense used outside current politics — general agreement, rather than some who agree to harm others for their purposes — we would be well advised to revisit the federalism designed in our Constitution, because of the limits that places on the latter usage.

At America’s creation, a decentralization of power — a federal system, rather than a national system, (more accurately termed “The States, United solely for specified joint purposes,” than “The United States”) — played a key role in protecting Americans’ liberties from infringement. That also allowed more unity at the federal level by eliminating many fights over who could exercise federal power to over-ride the choices of citizens and their governments that were closer to home.

The article concludes:

Power in American life has been increasingly taken from individuals and local self-government, to be increasingly centralized in the federal government. Federalizing everything, including plainly private and local choices, has not benefited nor unified America, as clearly indicated by the increasing intensity of the battles to control what is to be imposed on everyone. We need to resurrect the federalism of the Constitution again, leaving people to make their own decisions outside of those very few areas where their choices must necessarily be in common. 

Felix Morley (a Pulitzer Prize-winning journalist and college administrator) saw this clearly:

The value of federalism, in preventing the prostitution of freedom, becomes more clear … the founding fathers put restraints on government so that the governed might be free.

If America is to re-establish federalism, the liberties it protects and the far greater potential for unity it  preserves, Felix Morley’s Freedom and Federalism is a great place to begin. As its cover summarized:

A government of free men is like a strong-standing arch. The solid stones of which it is built is called freedom. Neither the building blocks of individual liberty nor the arch of freedom will stand secure without the keystone of federalism. It is federalism that holds up the arch. It is federalism that makes possible the preservation of both liberty and freedom.

That is why lovers of liberty and freedom — self-ownership and solely voluntary arrangements, over as wide a canvas as possible — need to rediscover the force of federalism in resisting the ever-growing reach of centralized political determination, which is tyranny, even when it is tyranny of the majority.

If democracy is at variance with federalism, and if federalism is conducive to freedom, it would follow that, far from maintaining freedom, democracy is inimical to it.

If the American people want unity, they need to vote for liberty.

 

Regulations Matter

On Thursday, Issues & Insights posted an article about the regulatory nightmare that is being created by the Biden administration.

The article reports:

Just after Ronald Reagan won the presidential election in November 1980, economic adviser David Stockman wrote a memo warning the president-elect that he faced an “economic Dunkirk” thanks to the disastrous economy he was inheriting.

Among Stockman’s warnings was that the Carter administration had set a “ticking regulatory time bomb” that would blow up the economy.

“They have spent the past four years ‘tooling up’ for implementation through a mind-boggling outpouring of rulemakings, interpretative guidelines, and major litigation – all heavily biased toward maximization of regulatory scope and burden,” Stockman wrote.

Stockman – who would later serve as head of the Office of Management and Budget and ended up losing Reagan’s trust – had that part wrong. While Carter was a disaster as president, at least he showed an ability to learn on the job. And so late in his term, Carter embarked on a deregulatory campaign to fight inflation. Among other things, he freed the trucking and airline industries from onerous government mandates.

“Carter gave Reagan the phenomenal gift of deregulation. Combined with the (Reagan) tax cuts that largely took effect in 1983, the economy went on a growth tear,” wrote Brian Domitrovic, a scholar at the Laffer Center, in Forbes. “All the capital that Reagan freed up via his tax cuts found room to roam in the deregulated world which Carter had set up.”

Unfortunately the Biden administration has not studied the lessons of history. The article lists some of the regulations the Biden administration has put in place:

  • Force car owners into inconvenient, expensive, range-deficient EVs.
  • Impose emission standards on large trucks that, the industry says, will be “the most challenging, costly and potentially disruptive heavy-duty emissions rule in history.”
  • Sharply raise the cost of drilling for oil and gas on public lands and raise the cost of water.
  • Make it nearly impossible to get permits to expand or build new facilities in most areas of the country without violating impossibly strict clean-air standards.

The article concludes:

In his 1980 memo, Stockman said avoiding an economic Dunkirk required “an initial administration economic program that is so bold, sweeping, and sustained that it totally dominates the Washington agenda (and) holds promise of propelling the economy into vigorous expansion and the financial markets into a bullish psychology.”

Reagan delivered.

It will take even greater levels of boldness today. And while there is hope for such a comprehensive program under the return of Donald Trump, if Biden wins in November there will be no rescuing the economy this time.

Deregulation will be one of the keys to reviving the struggling economy. Despite the fact that the Biden administration keeps telling us that the economy is strong, people are working two jobs to keep up with inflation, there are layoffs in a number of industries, and high interest rates are making it very difficult for new home owners to afford a home.

Exactly Who Does Congress Represent?

On Wednesday, Issues & Insights posted the results of a Scott Rasmussen poll.

The article reports:

Among all Americans, just 7% said they would want their candidate to win by cheating. As Rasmussen put it, he’d rather see that number lower, but that’s not bad.

But more than a third of the elite 1% he surveyed would condone cheating. And among those who are “politically obsessed” – meaning that they talk about politics every day – that number shot up to 69%.

Keep in mind that this elite 1% group is overwhelmingly liberal. According to Rasmussen, these are mainly well-educated urbanites who make more than $150,000 a year and think Joe Biden is doing a great job. Nearly three-quarters identify as Democrats.

They are also highly influential when it comes to policy, and they are completely out of touch with everyday Americans. A few examples from the survey:

    • Nearly 60% say there is too much individual freedom in America – double the rate of all Americans.
    • More than two-thirds (67%) favor rationing of energy and food to combat the threat of “climate change.”
    • Nearly three-quarters (70%) of the elites trust the government to “do the right thing most of the time.”
    • More than two-thirds (67%) say teachers and other educational professionals should decide what children are taught rather than letting parents decide.
    • Nearly three-quarters (74%) say they are financially better off than before COVID, compared with 20% of the general public.

These elites are also the people who are constantly wailing and gnashing their teeth about how Donald Trump is a “grave threat to democracy.” You can’t turn on the television, open a newspaper, or go to any mainstream news site without being warned that “democracy is on the ballot this November,” or told that Trump is a wannabe dictator, his followers semi-fascists, blah, blah, blah.

Yet most of these same elites would be happy to see Biden and the Democratic Party rob and cheat to steal an election rather than let Trump win a second term in office.

It is time Americans elected people who actually represent them. Our current elected officials clearly represent only a small minority of the people. All of us need to get involved in primary elections to change this–until we change the candidates, we won’t change the results.

When The Numbers Just Don’t Add Up

Issues & Insights posted an article Monday about President Biden’s claims in his State of the Union address about the taxes the wealthy pay versus the taxes he thinks the wealthy should pay. The bottom line is ‘simply hang on to your wallet no matter how much you make,’ but the article refutes some of his claims.

The article reports:

First, consider his claim that the tax rate paid by billionaires is 8.2%. That plays well with soak-the-rich leftists. But where did he get this number?

Not from the IRS. It calculates the actual tax rate that various income groups pay, including the ultra-rich. Its data show that the 400 people with the biggest incomes in America were paying an average tax rate of more than 23%. Congress’ Joint Committee on Taxation figures that the tax rate on the top 0.4% of families is 26%.

So where does Biden come up with an 8.2% tax rate? He changes the definition of taxable income to include all unrealized gains from investments.

If you have money in the stock market, any gains in the value of those stocks would count as income to Biden, even if you don’t sell the stock. Presumably so would any gains in the value of your home. Or the value of any other assets you possess.

By artificially inflating income, Biden can make their tax burden seem tiny. 

The idea of taxing unrealized gains — in other words, extending the income tax to things that aren’t income — could very well be unconstitutional in addition to being economically reckless.

Just for the record, Americans are already taxed on unrealized gains–every year we pay a real estate tax on what the city or county assesses is the value of our house. We haven’t sold our house. The only actual gain from our house is having a place to live, yet every year we pay taxes on it.

The article concludes:

What about his claim that taxing the wealth — not the income — of billionaires would raise $500 billion?

Sounds like a lot, doesn’t it? Except Biden is hoping nobody notices the caveat — that it’s $500 billion over 10 years. In other words, $50 billion a year.

Even that might sound like a lot … until you put it in context.

That $50 billion wouldn’t even cover one month’s worth of interest payments on the national debt, which was $69.2 billion in January.

It wouldn’t even pay half of the increase in the deficit in the first five months of this year compared with last year. (The deficit from October through February was $830 billion, which is up $108 billion from the same months the year before.)

The idea that an extra $50 billion could finance a new childcare entitlement, paid leave, and home care isn’t just ludicrous, it’s insane.

We don’t expect Biden to know or understand what he’s reading on the teleprompter, but shame on anyone else for believing the lies he’s spewing.

Someone needs to explain the Laffer Curve to the Biden administration.

Lady Justice Has Totally Lost Her Blindfold

On Friday, Issues & Insights posted an article about the lawfare that has been aimed at President Trump.

The article reports:

Was the $355 million fine against Donald Trump, for a “crime” that even the judge issuing the ruling admitted hurt no one, a bridge too far?

New York Gov. Kathy Hochul seems to think so, which is why she rushed out to say that other people doing business in New York have nothing to fear: “Law-abiding and rule-following New Yorkers who are businesspeople have nothing to worry about because they’re very different than Donald Trump and his behavior.”

What she should have said is: “if they are different from Donald Trump and his political views.”

Because nothing about this case, or the multitude of other unprecedented legal attacks against the former president — the attempts to kick him off ballots, the two bogus impeachments, the Russia hoax, the endless stream of media mis-reporting — has anything even remotely to do with “upholding the law” or “protecting Democracy.”

These attacks are all a message to anyone who would dare to run as a conservative. Do so, and we will stop at nothing to destroy you.

Because there was no actual ‘victim’ in this ‘crime,’ the money collected will go to the State of New York. Isn’t that special? A state struggling with expenses can simply take money away from one of its leading businessmen.

The article concludes:

What’s been happening since has been a public display of the left’s new, scorched-earth strategy for dealing with the political opposition. It started in the run-up to the 2020 election. As Time magazine so glowingly reported in early 2021, there was a “cross-partisan campaign” to defeat Trump, or as Time put it, “protect the election.”

Their work touched every aspect of the election. They got states to change voting systems and laws and helped secure hundreds of millions in public and private funding. They fended off voter-suppression lawsuits, recruited armies of poll workers and got millions of people to vote by mail for the first time. They successfully pressured social media companies to take a harder line against disinformation and used data-driven strategies to fight viral smears. They executed national public-awareness campaigns that helped Americans understand how the vote count would unfold over days or weeks, preventing Trump’s conspiracy theories and false claims of victory from getting more traction.

Since then, the left has added lawfare to its arsenal, which has now reached peak absurdity for the simple reason that Trump refuses to give in. But make no mistake, scalping Trump will only whet the left’s appetite for more scalps.

And who will be there to stop them?

This is where we are:

First They Came  by
Pastor Martin Niemoller

First they came for the Communists
And I did not speak out
Because I was not a Communist
Then they came for the Socialists
And I did not speak out
Because I was not a Socialist
Then they came for the trade unionists
And I did not speak out
Because I was not a trade unionist
Then they came for the Jews
And I did not speak out
Because I was not a Jew
Then they came for me
And there was no one left
To speak out for me.

There Is Spin, And There Is Spin

On January 18th, Issues & Insights posted an article about the difficulty the Biden presidential campaign is having gaining traction.

The article notes:

Rep. James Clyburn, who is a co-chairman of Joe Biden’s reelection campaign, recently tried to explain the president’s predicament by saying that he’s “delivered for the American people in such a way that nobody seems to grasp.”

As campaign slogans go, that’s not exactly “Morning in America.” But the truth is that everybody grasps what Biden has delivered. It’s what he’s delivered that they don’t like.

Clyburn, talking on MSNBC, said the public just needs to “look at the facts and stop listening to all of this tweeting and stuff that’s going on out there that’s not good for the American people.”

We took the South Carolina Democrat’s word for it, and here’s what we found that Biden has delivered, at home and abroad.

This is the list of what President Biden has delivered:

The cost of living has skyrocketed.

Real wages are down.

Poverty is up.

The national debt has exploded.

Deficits are on the rise.

Illegals are flooding across the border.

Attacks on the U.S. are up.

The world is a more dangerous place.

Please follow the link above for further details.

Does anyone want four more years of this?

An Odd Shift In Reporting By The Mainstream Media

Some of us who watch the mainstream media closely are often suspicious when the media starts covering a story that they have purposely ignored. Generally there is a political motive behind the sudden coverage.

On January 3rd, Issues & Insights posted an article wondering why the mainstream media was all of a sudden concerned about the number of illegal aliens coming into America every day.

The article notes:

After spending three years largely ignoring the border, the mainstream press is suddenly all over it, with headlines blaring about a “surge,” “crisis” and “call for action.” Why now?

…Weirdly, the press is even exaggerating the current “surge.” Consider that CNN story, which says:

“Border authorities encountered more than 225,000 migrants along the U.S.-Mexico border this month, marking the highest monthly total recorded since 2000, according to preliminary Homeland Security statistics shared with CNN.”

Except that’s not true. According to U.S. Customs and Border Protection data, illegal crossings exceeded 225,000 in August, September, October, and November of this year, and in six previous months since President Joe Biden took office.

As a matter of fact, illegal crossings have averaged more than 200,000 since Biden moved into the White House.

Also weird is the fact that the Department of Homeland Security is leaking these numbers for maximum effect, given that Homeland Secretary Alejandro Mayorkas has spent the past three years insisting that the “border is secure.”

The article points out when the crisis began:

So again, we ask, why now? This is a crisis that began the moment Biden took the keys to the White House.

The Financial Times – in an article headlined “Surge in border crossings creates political upheaval in the U.S.” – offers a clue. It notes that “the migration issue is gaining salience among Democrat voters” and quotes Houston immigration lawyer Charles Foster saying: “It’s gotten to the point that the vast majority of Republicans and a growing percentage of Democrats agree with this concept that the border is wide open now.” 

A December Wall Street Journal poll finds that Biden trails Trump by 30 points on voter confidence in securing the border.

Is this part of the effort on the part of the Democrat party (in conjunction with the mainstream media) to force President Biden not to run again? I believe we will know the answer to that question sometime in March.

If You Wanted Your Pizza Delivered…

Beginning in 2024, California’s new minimum wage law passed by the Democrat legislature will go into effect. The new law sets the fast-food minimum wage at $20 an hour. That’s a pretty good place to start if you are a worker. However, what does it do to the bottom line of a company who is in business to make a profit (most companies are in business to make a profit)?

On Thursday, Issues & Insights posted an article detailing the impact the law, which will go into effect in April, has already had.

The article reports:

The state will raise its overall mandated minimum-wage rate from $16 an hour to $16.50 an hour overall, starting in 2024. But some industries will get an even bigger wage shock: fast-food minimum wages go up to $20 an hour starting in April. Meanwhile, workers in the health care industry will see their minimum wage rise to $18, $21 or $23 an hour, depending on the job.

It’s about time, you say?

Let’s start by saying we’re not against anyone getting a raise. But raises should come from the companies themselves, not from government decrees. As study after study in recent years show, government-mandated minimum wage hikes usually hurt those they’re meant to help.

It’s an irony that seems lost on California’s leftist political class, now in total control of the state, continues to “help” those at the bottom rungs of the economic ladder by making it more expensive for businesses to hire them and keep them working.

Already, with California’s looming minimum-wage tax on fast-food chains in the state, employers are tweaking costs by reducing hours, laying off workers and charging you more for that cheeseburger, fries and a drink that you crave.

Though the calendar says it’s still 2023, franchisees of the Pizza Hut chain have announced this week they’re laying off 1,200 drivers who used to deliver their piping-hot pies door-to-door. With the new higher wages, they can’t afford to keep drivers working.

The article points out some other consequences:

So who will suffer?

“Every time we raise the minimum wage, kids lose their jobs,” Ohanian explains. “This isn’t efficient, and it isn’t right. We should not be implementing policies that prevent people from being able to work.”

As for the argument that the hike is needed to “keep up with inflation,” whose inflation are we talking about? Just the workers? How about the businesses? With three-quarters of their costs being labor-related, they have to take immediate action, or go out of business.

And then there are the customers. They, not the businesses, will foot the bill when they buy a suddenly-much-pricier cheeseburger or a pizza. Prices will go up, as they inevitably do, when higher costs can’t be offset by gains in productivity.

For the curious, there are literally dozens of studies and reports out there (including our own) that explode the myths of raising minimum wages, ranging from Walter B. Williams’ 1977 landmark study for Congress that showed minority youths suffered most when minimum wages rise, to more recent studies showing that non-wage losses after a minimum-wage hike offset any gains for workers.

What will now happen, no doubt, is that there will be more automation (robots already prepare food at McDonald’s, Chipotle, White Castle, Panera and other outlets), more self-service terminals, and fewer workers overall.

And, oh yes, stores will close. Marginal stores that can’t make up the higher costs will simply shut down, thanks to inflation and higher wages.

Sometimes when the government aims to help, it simply makes things worse for the people who are struggling to make ends meet already.

 

 

When Eyes Are Opened

The Biden administration has not been good for the average American. Food and housing prices are up. Gasoline prices have come down, but not to the pre-Biden levels. The Biden administration’s economic and energy policies are costing middle class and lower class Americans money. Some Democrats are beginning to realize that these policies are becoming very unpopular.

On December 27th, Issues & Insights reported:

The only thing more uplifting than watching several prominent liberals drift rightward is the cluelessness of those on the left as to why it’s happening.

This drift is obvious enough, since it includes journalists once heralded by the left such as Matt Taibbi (who won a Young America’s Foundation award) and Glenn Greenwald, and Democratic politicians, including Tulsi Gabbard, Robert F. Kennedy Jr. (whose speech at a Daily Caller award ceremony drew many loud cheers from the conservative audience), and Sen. John Fetterman (who recently declared that “I am not a progressive”).

Celebrities such as Russell Brand, David Chappelle, and Bill Maher (who “has been riding an asphalt roller over the far left,” according to Townhall) are part of the shift, as are a handful of prominent business leaders, Elon Musk for instance.

That’s to say nothing of the fact that surveys show once tried-and-true liberal constituencies – Hispanics, Asians, blacks, working class, and the young – are abandoning the Democratic party.

The article concludes:

For many in liberal cities such as San Francisco or New York or Chicago, it’s skyrocketing crime, abandoned storefronts, sidewalks full of homeless tents and human waste, and legions of illegal immigrants housed in bus stations, hotels, and abandoned schools. All of it the result of leftist policies.

For still others, it is the many forms of brutal intolerance the left shows toward anyone who doesn’t fall in line with whatever that day’s dogma happens to be, whether it’s school shutdowns, “transgender rights,” the climate “crisis,” or critical race theory. The left is constantly burning former friends at the stake for being heretics.

For many parents, it’s having the government call them domestic terrorists because they complained about lockdowns and gay pornography in their school libraries.

Now, it’s the left’s virulent antisemitism that was always there but only became glaringly apparent in the wake of Hamas’ genocidal attack on Israel.

The intolerance, bitterness and hate, the unquenchable desire for control, disdain for free speech, and fanaticism have always been features – not bugs – of the left, something we’ve been saying here for years.

The only reason leftists have been able to pretend otherwise is that they had better PR. But that, too, is failing them.

We can only hope those on the left continue to scratch their collective heads about why people are leaving their ranks, until one day they end up in the dustbin of history. Where they belong.

We have proof that leftist policies don’t work. It’s time Americans started paying attention to that proof.

The Silence Is Deafening

On Thursday, Issues & Insights posted an article about the media’s ignoring the hostages that are currently being held by Hamas. President Biden invited the families of American hostages to the White House on Monday.

The article reports:

CNN reported that: “Ruby Chen, whose son Itay is a reservist missing since the militant group’s October 7 attacks on Israel, said a number of the families of American hostages were in Washington, D.C., this week, and had reached out to the White House asking to attend the reception but were not invited. A White House spokesperson declined to comment.”

The White House then scrambled to have these families meet President Joe Biden on Wednesday.

Biden isn’t the only one who doesn’t seem to care much about these hostages. The press has been weirdly quiet about their plight and seems content to wait for Biden to “negotiate” their release. If they’re even still alive.

Who are these hostages? Who are the families? What are they going through? It’s possible there have been news reports telling the world about the seven American men and possibly one American woman who are being held captive by these murdering, butchering, raping terrorist thugs. But we couldn’t find any. Even Biden’s unbelievable invitation foul-up was given ho-hum treatment.

This is in stark contrast to other such stories, where the press devotes endless amounts of ink to personalizing and humanizing victims — if they’re the right victim of the right sort of crime, that is.

This media blackout is not for lack of trying by the families. USA Today notes that these families have a public relations firm representing them. And several told CNN that “they wanted the international community – both governments and the Red Cross – to push more forcefully on behalf of their loved ones, to speak out against the terrible conditions they’re experiencing and for their release.”

Where is the outrage?

 

What Happened To The Revenue?

On Tuesday, Issues & Insights posted an article about tax revenues under the Biden administration. The Laffer Curve is at work.

The article reports:

Friday afternoon, the Treasury Department reported that, despite a growing economy and low unemployment, the federal deficit shot up by $320 billion in fiscal year 2023. That’s unusual. But what’s really bizarre is why the deficit exploded.

According to the report, overall spending actually dropped by 2% compared with 2022 as the COVID-19 spending splurge abated.

What drove up the deficit this year was a sudden and completely unexpected 9% drop in tax revenues. Not only did revenues come up hundreds of billions lower than last year, but they were well below what everybody expected them to be.

At the start of the year, the Treasury Department and the Office of Management and Budget projected revenues for fiscal 2023 at around $4.7 trillion. The Congressional Budget Office figured it would be $4.8 trillion.

The actual amount: $4.4 trillion.

In other words, there’s between $300 billion and $400 billion worth of missing tax revenues.

…In a normal world, a better-than-expected economy would result in more revenues for the federal government, not less.

Keep in mind, too, that it’s exceedingly rare for tax revenues to drop from one year to the next. In fact, it’s happened only eight times since 1960 – always around an economic downturn – and the average decline was just 4.7%. Even when the COVID lockdowns caused a massive recession, revenues only dipped by 1.2% in 2020. (Revenues plunged nearly 17% during the financial crisis.)

It’s also worth noting that revenues continued to climb after the Kennedy, Reagan and Trump pro-growth tax cuts went into effect.

The article concludes:

But that’s not what happened this year. The federal government is still tremendously bloated – spending in 2023 will be 43% higher than it was the year before COVID-19. The national debt now tops $33 trillion. Social Security and Medicare are racing toward insolvency. Biden is pushing Congress for another $100 billion to finance the never-ending war in Ukraine and provide aid to Israel.

Did the Biden administration overcount revenues in the past two years to paper over the colossal spending increases? Is the White House goosing employment and other economic data today to make the economy look better than it is? Is Biden’s budget team just hopelessly incompetent?

Preston Bashers of the Heritage Foundation speculates that the shortfall could be the result of a sharp drop in capital gains tax revenues, the explosion in “green” tax credits, and other factors.

Somebody in the Biden administration should be made to explain what happened.

In the meantime, we’re now deeper in debt than ever. Way to go Brandon.

I am not sure, but I don’t believe there is anyone in the Biden administration who has actually run a business. We need to go back to the days of putting a businessman in the White House–not a politician.

Some Thoughts On Impeachment

I don’t like the fact that an impeachment inquiry has begun. First of all, I think it’s theater–I don’t expect much to come of it. I don’t expect the media to report most of what is uncovered; and frankly, it may simply be a distracting waste of time and money. However, it is resulting in some interesting observations and commentary.

On Monday, Issues & Insights posted an article about the impeachment of President Biden.

Some observations from the article:

In just the past few days we’ve seen a multitude of such warnings. Here’s a small sampling:

    • “Impeaching Biden Is a Desperate Gamble That Will Backfire”
    • “Republicans would love to impeach Biden. It would backfire on them.”
    • “How Republicans’ Push to Impeach Joe Biden Could Backfire”
    • “Could the Biden impeachment inquiry backfire on Republicans?”
    • “Will the House GOP’s Biden impeachment probe backfire?”
    • “This is the White House’s Dream!”

Here’s the strange thing. Every one of these headlines appeared in leftist newspapers, were penned by leftist authors, or were uttered on leftist cable news programs.

It’s almost as though these outlets all got their marching orders from a single source. Which, it turns, out, they did – the Biden White House.

An Aug. 31 story in The Hill – headlined “White House warns GOP Biden impeachment will backfire” – says that “the White House remains steadfastly confident that if the GOP goes forward with an inquiry … it will hurt Republicans more than it could hurt Biden.”

The story quotes White House spokesman Ian Sams saying that:  

This baseless impeachment exercise would be a disaster for congressional Republicans, and don’t take our word for it: just listen to the chorus of their fellow Republicans who admit there is no evidence for their false allegations and that pursuing such a partisan stunt will ‘backfire.’

Rep. Steve Israel, D-N.Y, added “It’s vitally important for congressional Democrats to be in sync with the White House and the Biden campaign.”

We all remember the story of Br’er Rabbit and Br’er Fox and the briar patch. That’s what the leftist talking points remind me of–they are saying that if the Republicans impeach President Biden, it will hurt Republicans. They are implying that it would be better for the Republicans not to impeach President Biden. They are not admitting that making the evidence against President Biden public will hurt Democrats.

 

 

The Results Of Out-Of-Control Spending

On Wednesday, Issues & Insights posted an article about the budget deficit.

The article reports:

Over the weekend, the Washington Post let it slip that all is not well in Bidenomicsville. The deficit, it reports, could end up hitting $2 trillion when the current fiscal year ends in three weeks, which it describes as an “unexpected deficit surge.”

In other words, the deficit will nearly double this year, calling the lie on one of President Joe Biden’s favorite boasts about how he cut the deficit more than any president in history.

But while this apparently comes as a shock to the Post, as well as other liberal news sites that picked up on the Post report, anyone paying attention knew this was happening.

Back in February, for example, we pointed out that Biden’s reckless economic policies had added more than $5 trillion to projected deficits, even as he claimed he’d done more to cut the deficit than “any president in history.”

…Now, households are paying dearly in the form of sharply higher prices for food, energy consumer goods, rents, and just about anything else they buy.

At the same time, Biden pushed through tax hikes and unleashed federal regulators, who are now gleefully writing rules to ban gas stoves, force electric car sales, slap massive new costs on energy producers, with plenty more to come. These are all anti-growth policies that are having their expected effect.

This is what Bidenomics is all about. And now we have a budget crisis that is snowballing.

That’s because while revenues keep coming in “unexpectedly” low (thanks to Biden’s sluggish economy), interest rate hikes are fueling massive increases in the cost of financing the federal government’s $30 trillion debt load.

Shutting down the government to stop the spending may be the only way we even have a possibility of not seeing our economy collapse under the weight of the federal debt.

We Need A President Who Will Put Americans’ Interests First

Every four years, we elect a President of America. That person is not elected to be President of the world, he is elected to be President of America. Lately it seems as if some of our Presidents have forgotten this basic fact.

On Friday, Issues & Insights reported:

The Biden administration has just spent two years negotiating with a group of foreign countries to raise taxes on U.S. companies operating overseas. Now we’re being told it’s been “delayed” for two more years. But why delay a bad decision? It’s an awful idea that should be rejected out of hand.

“Americans have already been crushed by inflation caused by the Biden administration,” argued West Virginia congresswoman Carol Miller, in a recent op-ed. “But now, they want to add fuel to the fire by giving American taxes to foreign countries, raising costs for Americans, and sticking us with the bill for funding a global socialist agenda.”

Her analysis is spot on. The U.S. Treasury and White House have no business negotiating a deal to subvert America’s sovereignty and erode its economic power, which the accord with the 38-nation Organization for Economic Cooperation and Development (OECD), headquartered in the ultra-deluxe Château de la Muette in Paris, is clearly meant to do.

For the record, the U.S. already imposes a 10.5% minimum tax on U.S. businesses’ foreign income, and last year imposed a 15% “global minimum tax” on big multinational companies’ profits. And the standard corporate rate here in the U.S. is now already 21%, well above 15%. So what’s the issue?

Under the OECD “deal” that both President Joe Biden and Treasury Secretary Janet Yellen have embraced, there’s something called the Undertaxed Profits Rule (UTPR). That guideline basically would let other countries tax a U.S. company at a higher rate if the country determines that it is paying less than the 15% somewhere else. And the other country, not the U.S. taxpayer, gets the revenue.

The opportunity from this rule for global tax abuse and even graft are clear. Moreover, U.S. tax rates by law have always been determined by Congress and the president, not by foreign bureaucrats.

The first thing to understand here is that corporations do NOT pay taxes–they simply consider them a business cost and past the expense on to consumers. Higher taxes mean lower wages for employees and higher prices for the product produced.

The article concludes:

The House Ways and Means Committee has already held hearings, and will no doubt hold more in the future to halt or radically change the Biden-Yellen “deal,” which excluded congressional input. No doubt, more hearings are on the way.

Meanwhile, a post from the Committee’s website after a hearing earlier this month said it all: “Committee Members found the proposal would hurt American companies, kill American jobs, give Chinese Communist Party-sponsored businesses a global economic advantage, and surrender $120 billion in U.S. tax revenue.”

Sound like a good deal to you?

Who does our representative government represent?

The Individual States As Laboratories

When our Founding Fathers put together the Constitution, they envisioned that the states would act as policy laboratories–that when one state enacted a policy that worked, the other states would copy that policy. That is a great idea, but unfortunately egos, lust for power, and other things interfere with that basic idea.

On Thursday, Issues & Insights posted an article illustrating the differences in the outcomes of some of the economic policies various states have chosen.

The article reports:

President Joe Biden last week bragged that his economic policies — straight from the Democrats blueprint that says “borrow, tax, spend, regulate, then do it all again” — are working. But as we’ve noted, Bidenomics has been a wreck, a flop that is taking us into a recession.

Not only did Biden openly boast as our sclerosis grows worse, he also, as Democrats always do, took a jab at “trickle-down economics,” claiming it has “failed the middle class … failed America … blew up the deficit” and “increased inequity.”

…We don’t see Biden or any other Democrat ever coming around to supply-side economic policies, the correct terminology for what they sneeringly call “trickle-down economics,” which asserts that lower taxes and less regulatory meddling fuel economic growth. Yet they are exactly what our economy — any economy – needs, now and forever.

In our post-lockdown world, the states that have the strongest economic recoveries are the red ones on the map. And what do they have in common? Low taxes and light regulation.

We can see this vividly in the rankings of states that have had the greatest increases in hiring over the last year. Of the top 10, only two are blue, or Democratic, states.

(The Washington Post marks Georgia, fourth on the list, as one of three blue states because Biden took its 16 electoral votes, but that is misleading [intentionally, we’re sure] because it is a red state with large Republican majorities in both chambers of the legislature and a popular [53% of the vote in 2022] GOP governor. Nevada, next at fifth, is also considered blue even though it too has a GOP governor.)

The next seven states, according to the Post, are also red or Trump states and they tend to “​​have unusually low tax rates and lean on extractive industries such as mining or petroleum. We’ve seen firsthand the economic boom that gas and pipelines can bring to struggling regions.”

The article also notes:

“Heavily taxed blue states such as New York and California,” the Free Beacon continues, “last year had some of the country’s most drastic drops in tax revenue. At the same time, Republican states are enjoying the highest revenue increases even as they keep income taxes low.”

All I ask is that when people who have the sense to get out of blue states and move to red states move is that they don’t bring their blue state policies with them!

When Fact Checkers Check President Biden

Recently President Biden made a speech where he claimed that Bidenomics was working for everyone–inflation was down, jobs were up, etc. Well, that sounds wonderful, but the numbers tell a different story.

Issues & Insights reported:

The middle class made huge gains during the “trickle-down” Reagan boom and was making huge gains during the Trump boom until the Biden-backed COVID lockdowns gutted it.

Truth is, the only way Biden can make the case for “Bidenomics” is by lying. Examples:

    • “U.S. has had the highest economic growth rate, leading the world economies since the pandemic.”

Except it didn’t. The U.S. ranks 146th in real GDP growth in the world so far this year, came in 151st place last year, and was 66th in 2021, according to the International Monetary Fund.

    • “We created 13.4 million new jobs.”

Also false. Because almost 10 million of those were simply refilled jobs lost during the pointless COVID lockdown. Under Biden, the number of net new jobs is less than 4 million — which is nothing to brag about, given that the working-age population has grown by 6.8 million since Biden took office.

    • “Americans are back to work who’ve been on the sidelines, and they want to come back.”

Another falsehood. There are almost 10 million people who’ve dropped out of the labor force as of today, which is 2.7 million higher than it was just before all the COVID lockdowns.

    • Just in my first two years in office, my team and I have reduced the deficit by $1.7 trillion.

His biggest lie yet. As we pointed out in this space earlier, a Congressional Budget Office report released at the start of this year showed that “Biden sharply increased the deficit last year, this year, and next year, and he has set the country on course to add a total of $5.45 trillion to the federal deficit over the following decade.”

The only thing that Biden said that was truthful in his speech is that “Bidenomics is working.”

It’s working all right, assuming that Biden’s plan was to destroy America.

Please follow the link to the article. It includes a number of charts that actually illustrate what has happened to the American economy since 2021.

It’s The Economy, Stupid!

It’s the economy, stupid! Those were the words Bill Clinton used to win the 1992 election. The economy was slowly rebounding from the bi-partisan tax increases that President Bush had agreed to, but a lot of Americans did not realize that. On Monday, Issues & Insights posted an article about our present economic state.

The article reports:

Once upon a time, Democratic presidents understood how important a healthy economy was. President Bill Clinton and his advisers won two elections living by the mantra, “It’s the economy, stupid.” Get that right, they thought, and everything else follows. But today, Americans think President Joe Biden doesn’t get it, June’s I&I/TIPP Poll shows.

The online I&I/TIPP Poll, taken from May 31-June 2 and including responses from 1,358 adults nationwide, asked the following: “To what extent do you agree or disagree with the following statement: The American economy remains strong, as it transitions to steady and stable growth.”

That statement, by the way, was not made up. It’s a direct quotation of what Biden told Americans after the Commerce Department reported in April that real GDP growth in the first quarter was a disappointing 1.1%. It has since been revised up slightly to 1.3%. We did not, when surveying Americans, identify who made that statement.

Do Americans agree with Biden that the economy’s strong, steady and stable? Overall, I&I/TIPP found, 55% of Americans disagreed that the economy “remains strong,” while just 36% agreed. The poll has a margin of error of +/-2.7 percentage points.

The article concludes:

Meanwhile, the World Bank has slashed its growth estimate for the U.S. in half, saying the economy is “likely to remain weak.” That could impact America’s standing around the world.

“Nearly all the economic forces that powered progress and prosperity over the last three decades are fading,” the World Bank warned. “The result could be a lost decade in the making … for the whole world.”

One major indicator of economic misery: weekly wages, adjusted for inflation. The current “recovery” features 26 straight months of shrinking wages, after taking into account not just pay but also inflation and number of hours worked. When real wages decline for middle-class Americans, their standard of living also declines.

…It wasn’t until the economy soured, with roaring inflation and soaring oil prices, that the Watergate scandal really began to gain traction. Americans simply lost patience with someone they saw as both economically incompetent and corrupt. Nixon resigned on Aug. 9, 1974, rather than face almost certain impeachment.

I&I/TIPP publishes timely, unique, and informative data each month on topics of public interest. TIPP’s reputation for polling excellence comes from being the most accurate pollster for the past five presidential elections.

The people who write Issues & Insights are the former editorial board of Investor’s Business Daily. They are very well educated on economic issues.

The Question Of The Day

On Wednesday, Issues & Insights posted an article asking the question, “If Biden’s Economic Plan Is ‘Working,’ Why Are Tax Revenues Plunging?” That is a very good question.

In 2018, Investors.com reported:

Taxes: Critics of the Trump tax cuts said they would blow a hole in the deficit. Yet individual income taxes climbed 6% in the just-ended fiscal year 2018, as the economy grew faster and created more jobs than expected.

The Treasury Department reported this week that individual income tax collections for FY 2018 totaled $1.7 trillion. That’s up $14 billion from fiscal 2017, and an all-time high. And that’s despite the fact that individual income tax rates got a significant cut this year as part of President Donald Trump’s tax reform plan.

Income Taxes After Trump Tax Cuts

True, the first three months of the fiscal year were before the tax cuts kicked in. But if you limit the accounting to this calendar year, individual income tax revenues are up by 5% through September.

Other major sources of revenue climbed as well, as the overall economy revived. FICA tax collections rose by more than 3%. Excise taxes jumped 13%.

As John Kennedy once said (as he lowered taxes), “A Rising Tide Lifts All Boats.

The article at Issues & Insights reports:

President Joe Biden loves to brag about the masterful job he’s doing managing the nation’s economy, as he did on Tuesday when cheering the latest inflation news – which saw food prices up almost 7% from last year – and “our historic economic progress.”

The day before that, the Treasury Department released its monthly financial statement, which shows that the federal deficit for this fiscal year has already topped $1 trillion and that’s a big factor behind this is a sharp reduction in federal tax revenues from last year.

Wait, you say. If the economy is “strong” and “historic” as Biden claims, why are revenues cratering and deficits exploding?

Or, as the Washington Times put it: “Uncle Sam’s income has plummeted this year, sending the federal deficit spiraling deeper into the red than analysts had predicted and leaving officials grasping for answers.”

The article concludes:

…But what we can say for certain is that the only thing “historic” about the current economy is how delusional the president and the media are about what is actually going on.

You can only lie to people about how good the economy is for so long when they are feeling inflation every day in gas and supermarket prices.

We Can Dream

On Tuesday, Issues & Insights posted an article with the following headline:

Headlines We’re Never Going To See In Our Lifetime

Here is the list:

“Scientists Blame Climate Crisis For Unusually Mild Weather“

“Washington Post Wins Pulitzer for Exposing Biden Corruption“

“Transgender Woman Charged With Hate Crime in Men’s Room Mass Shooting“

“Sloth and Gluttony Added to Months Celebrating Cardinal Sins“ “

D.C. Memorial to 45th and 47th President Set to Open Next Week“

“Berkeley Suspends Students for Disrupting Conservative Speaker“

“Teachers Union Announces It Will No Longer Donate to Political Candidates“

“MSNBC Documentary About EVs — ‘Rape of the Planet’ — To Air Next Week“

“Democrats Realize They’ve Been Using The Word ‘Fascist’ Wrong For Decades“

“Latest Star Wars Trilogy Voted Better Than Original“

“New York’s High Taxes, Crime Cause Massive Influx of Citizens“

“After Lifetime of Public Service, Senator Retires With Modest Wealth“

“Big Tech Firms Denounce Censorship, Vow Never to Work With Gov’t Again“

“Bullet Train from L.A. to San Francisco Opens“

“Eight Cabinet Agencies Shuttered After Audit Finds Them Useless“

“Why Is The Mainstream Media So Fixated on Democratic Scandals?“

“5 Years Later: ‘Net Neutrality’ Zealots Admit They Were Entirely Wrong About Everything“

“Time Needed to File Federal Income Taxes Dips Below 30 Minutes”

“After Drifting Leftward for Years, Drudge Rediscovers Conservative Roots“

“God Gets Most Number of Thanks At Oscars”

There is also a list of headlines we might actually see:

Meanwhile, here are some headlines that we just might see someday.

“L.A. Bans Use of Sidewalks by Pedestrians After Homeless Complain About Traffic“

“In Science Breakthrough, Man-Made Air to Power Wind Turbines“

“NFL Promises Next Super Bowl Will Feature Better Ads“

“San Francisco Converts Downtown to World’s Largest Water Park“

“Electric Grid Fails Stranding Millions of Drivers“

“Math-Fluid Group Demands ‘≃’ Get Added to LGB Acronym “

Why We Can’t Have Nice Things

On Thursday, Issues & Insights posted an article about the impact the Biden administration has had on the pocketbooks of Americans. It’s not a pretty picture.

The article notes:

In one of the most memorable presidential debate moments, Ronald Reagan asked voters if they were better off in 1980 than they were when Jimmy Carter was elected in 1976. The obvious answer was, for most, a resounding “no.” Whoever runs against the Democratic nominee next year needs to bring back that question, because it’s a certainty that in the fall of 2024, we’ll still be worse off than we were in pre-pandemic 2020.

And for that, we can thank, or rather blame, Joe Biden.

In a poll taken earlier this year, 41% of Americans said they were financially worse off than they were two years earlier when Biden took office, the highest number in “ABC News/Washington Post polls dating back 37 years.” Only 16% said they were better off, the lowest number since 2009, when only 8% said their financial situations were better.

At roughly the same time in Donald Trump’s term, only 13% said they were worse off than when he became president while a quarter said their finances had improved.

An America struggling under Biden is not a new development. In a survey conducted in the spring of 2022, 52% said they were worse off than a year earlier; 39% said they expected to be worse off in one year than they were when they were asked the question in June.

Last year’s New York Times|Momentive Poll further discovered that “The number of people who expect periods of widespread unemployment or depression to occur in the next five years has risen to 71%, another new high,” while 41% said “now is a bad time to make large purchases.” This was “up from 36% in April and slightly” exceeded “the 39% that number reached in April 2020 at the start of the COVID pandemic.” 

A few months after those poll results were released, the Heritage Foundation published an analysis that determined the average American had lost $4,200 in annual income since Biden stumbled into the Oval Office.

It’s where we are, folks. I will make a calculated guess that most Americans want the economy to improve. Unfortunately, under the Biden administration, the economy will not improve. When the economy tanks in the next month of two, the Democrats will blame the Republicans for not raising the debt ceiling. That’s how Washington works. A recession is coming. The only way the Democrats can avoid being blamed is if the Republicans refuse to raise the debt ceiling–then the Democrats can blame the Republicans. Refusing to raise the debt ceiling will not be the cause of the recession, but Americans who watch the mainstream media will not know that. Hang on to your hats–the next two years is going to be rough, and if a Democrat is elected to the White House in 2024, the next six years are going to be very rough.

Remembering The Yugo

On Tuesday, Issues & Insights posted an article titled, “EVs Are The Yugo Of The 21st Century.” I think they are on to something.

The article reports:

Way back in the mid-1980s, communist Yugoslavia exported the Yugo, a compact car that sold for around $4,000. It was so poorly made that bumping into a pole at 5 mph could total it.

Fast forward to today, and a new class of cars has a similar problem. A minor accident can cause a total loss, even if the car’s been driven only a few miles. The only difference is that these cars aren’t cheap imports from some godforsaken socialist state. These are state-of-art electric vehicles that come with an average sticker price of $55,000.

Why are insurance companies totaling low-mileage EVs that have been in a fender bender? For the same reason you could total a new Yugo when backing out of a parking spot. The cost of repair is exorbitant.

As Reuters reported recently, “For many electric vehicles, there is no way to repair or assess even slightly damaged battery packs after accidents,” which means the only viable option is to replace the battery, which represents about half the cost of the car.

The article notes:

A replacement battery for a $44,000 Tesla Model 3 can cost up to $20,000.

One expert told Reuters that Tesla’s Model Y has “zero repairability” because its battery is built into the structure of the car.

The article concludes:

EV advocates say not to worry. Car makers, they say, are designing batteries to be more modular and replaceable. They promise that repair costs will eventually come down, and all will be well.

Maybe so, but that’s why force-feeding this technology is so reckless.

In a normal market, carmakers would work out such kinks before mass producing a vehicle, much less converting their entire fleets over to a new and relatively untested technology. If they couldn’t resolve problems of affordability, reliability, and repairability to consumers’ satisfaction, automakers would scrap the effort and move on to something else.

But our elites think they know better. And they want new cars to be 100% electric within a decade. So, carmakers feel like they have little choice but to plow ahead.

Which brings up another way that today’s EVs are like the Yugos of yesteryear.

One auto critic said of the Yugo that it “had the distinct feeling of something assembled at gunpoint.”

That was probably literally true in the case of the Yugo. But it is essentially the situation with EVs today. Consumers aren’t banging on dealership doors demanding EVs. Ford reported last week that its e-car division is losing billions of dollars a year.

Car companies are pouring money into electric cars only because the government is holding a gun to their heads, saying build EVs or die.

About the same time the Yugo came out, the first Hyundai arrived in America. My husband and I bought the first Hyundai that arrived in New England. Hyundai was made in a free country under the free market; Yugo was made in a communist country where free enterprise was not the way things were done. Hyundai is still going strong. My husband actually drives a Hyundai today. Where is the Yugo?