Monday, October 7, 2019
Bureaucrats and war
The constitution provides for three branches of government, the executive, legislative and judicial but in time the fourth estate came to be seen as another branch of government, the fourth estate being the press. When congress passes a law it is up to the various government agencies to set up the regulations dictating how the law will be carried out. Over the past 40 plus years these various agencies have assumed greater authority culminating in the Obama administration. This was best illustrated by the EPA who wrote more than 4,000 regulations. Trump has threatened to reduce the number of federal employees, made it easier to fire these people and reduced some benefits along with undoing many of the regs instituted under Obama. The result is the rise of the fifth estate known as the bureaucracy. These are appointed federal employees who stay on regardless of what party is in control and they are not happy. They have been responsible for leaks since the day Trump was elected and some say even before. Trump has been under attack by these bureaucrats and this will continue even if he is reelected. They are fighting to preserve the status quo and see their kingdom being challenged by Trump. It has become an all out war.
Sunday, October 6, 2019
Tariffs or not
Do import taxes (tariffs) make a difference.
Of the 17.2 million cars and light trucks sold in the USA in 2018, 12 million were light trucks and of this number only 7,000 were made outside the USA. The reason is the 25% tax the US imposes on imported light trucks. In other words almost all foreign pick ups are made in the USA. In almost every other area the import taxes favor other countries and that is why Trump is pushing to eliminate all tariffs. Governments around the globe like tariffs because those tax dollars go directly to the governments who then use that money to give benefits to citizens in the hope of getting votes but that money comes from the citizens in the form of higher prices.
Saturday, October 5, 2019
Food stamps
An ABAWD is a persons between the ages of 18 and 49 who has no dependents and is not disabled. There is a federal law that states these people are required to work 20 hours per week to keep their benefits but many states waive this requirement and about 3 million SNAP recipients fall in this category.
For at least a decade, most Illinois residents who receive food stamps have been exempt from a federal law that requires them to work or risk losing their benefits.
The federal government is considering a change to long-standing policy in the Supplemental Nutritional Assistance Program (SNAP, formerly known as Food Stamps) that would constrain states’ ability to waive work requirements for able-bodied adults without dependents (sometimes referred to as ABAWDs).
WTO and China
China opened up its economy to free market ideas in 1978 and poverty level dropped from 88% in 1981 to 6% in 2017. During the 80's and 90's China desired entrance to the World Trade Organization (WTO) but the west refused until 2001 when China agreed to follow the other countries in regards to tariffs and international property rights (patent protection and such). China did not act according to their agreements and many objected but no one did anything about it until Trump came along. Trump, not being a politician, started a trade war with China, which he knew could jeopardizes the booming economy. Other presidents did nothing but if they were to act they would have waited until they were reelected, but not Trump. He just plows ahead.
Friday, October 4, 2019
Techies
The wealth gap in the United States and throughout the world is widening and there are a number of reasons for this least of which is tax policy. On the lower end of the ladder are the sports stars, rappers, and CEO's but at the top are the tech giants. There are dozens of young people almost exclusively men who have become billionaires almost overnight. This is most obvious in California where these young techies are worth trillions and just last year 11 new tech billionaires joined the club. Right behind this group are the hedge fund managers. The number of jobs created by these super rich is a leading cause for economic growth. The techies do it with innovation and the hedge funds provide the start up money. There are millions working in jobs that did not exist 25 years ago. If each generation could have a Steve Jobs and a Bill Gates the country would thrive.
Thursday, October 3, 2019
Hamptons
This AM on TV they were interviewing farmers in a restaurant in Hampton, MN a town of 700 about 15 miles from here. The announcer said not to confuse this with The Hamptons. These two place are worlds apart. Farmers living in farm houses in the middle of corn fields and billionaires living in mansions on the beach. They were talking to these people in advance of Trumps upcoming appearance in Minneapolis.
Wednesday, October 2, 2019
Court power
One of the results of the fighting between parties in politics today is that the Supreme Court is gaining in influence. Since congress can't get anything done both Obama and Trump have used executive powers to enact rules and in most cases the courts have reversed the rules. The peoples house is no longer in control which means that voters have lost their power. Instead of government by the people we have government by the court.
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