President Trump economic policy -vs- Joe Biden economic policy
When wages (blue line) are above inflation (red line) our income is growing, life is good and the working class has more disposable income to enjoy life. However, when wages (blue line) are lower than inflation (red line) our income is shrinking, life is a struggle and the working class has less disposable income to enjoy life.
♦ Point One – Nothing happens accidentally. The road to a “service-driven economy” is paved with a great disparity between financial classes. The wealth gap is directly related to the inability of the middle class to thrive.
♦ Point Two – There is nothing of value behind the obtuse term “service-driven economy.” The multinationals are paying for this administration, just like they paid the Obama administration; paying for economic policy that advances their interests. Congress goes along with the K-Street demands, because Wall Street is now the primary benefactor of legislative intent. Nothing about their effort is done with American interests in mind.
At the most troubling level, Joe Biden believes what people tell him to say for the reason they tell him to say it. This reality underscores the reason why Barack Obama’s network selected Biden as their disposable front man in 2020. Biden sounds convinced, because Biden is convinced. He’s wrong, factually and fundamentally wrong, but he believes what he repeats in public.
The most painfully obvious examples of this dynamic are present when Joe Biden explains economic things based on what other people have told him. The guy really is the modern personification of the naked emperor parading around to show off an invisible coat that he genuinely believes he’s wearing. The self-deception would be embarrassing except for the fact he is only deceiving himself; so people laugh…. but this is dangerous.
Questioned today about inflation, Joe Biden starts talking about his Build Back Better program. It really is worth watching to see how oddly emphatic he is in the belief that if government pays for a thing (childcare, healthcare, prescriptions) the cost of that thing somehow mysteriously disappears.
Biden believes that if government subsidizes something there is no longer a cost associated with it. He believes this.
Setting aside the historic fact/truth that anything government pays or subsidizes ultimately costs more, the real cognitive dissonance in Biden’s worldview is that any cost associate with a ‘thing‘ disappears if the government pays for that ‘thing’. From that bizarre viewpoint, the disappearance of public expense for that government subsidized thing then creates “deflation”, or a lowering in overall prices.
This claim is abject nonsense. Truly and genuinely batshit crazy nonsense.
Example. According to Joe Biden’s talking point: if government pays for college education, the price of a college student’s car drops. It doesn’t. To make that claim is absurd in the extreme. The college student may have more money to pay for a car if they are not paying for tuition, but the car itself doesn’t change in price.
A person may have more money to pay for groceries if they are not paying for childcare expenses, but the price of the groceries doesn’t change. The inflation on the prices of products at the grocery store does not change just because some families no longer have daycare expenses. But Joe Biden believes it does. (more…)
Joe Biden may be celebrating his historic achievement in reaching an inflationary milestone previously set by Jimmy Carter, but the working class is paying the price for their economic stupidity.
The Bureau of Labor Statistics releases the November inflation rate today [DATA HERE] showing another rise in the annualized rate of inflation of 6.8 percent. As you review the data, ask yourself this question: ‘Is there anything in the current economic landscape to indicate this is going to stop?’ The honest answer is no. Here’s why…
As the BLS accurately (albeit briefly) notes, their inflation data reflects the cumulative increases in costs of products and services at all stages in the supply chain. Raw materials cost more (extraction, regulation impact), processing costs more (energy impact), transport costs more (fuel impact), final goods assembly costs more and handling costs more. From field-to-fork or mining-to-showcase, the total cost to create stuff costs more. [AP Interactive Chart]
Yes, the inflation data is backward looking. Meaning, it is looking back toward the previous period to compare costs. However, despite the White House protestations to the contrary, that’s not a good thing, because it is going to get worse.
The contracted price for goods delivered (depending on sector) are net terms in 30, 60 or 90 days. Meaning, the purchase price on final goods wholesalers are receiving now, were agreed upon months ago. Those terms for current arriving goods are no longer valid. The new terms (purchase orders) carry higher costs, and as an outcome higher prices to consumers are still coming.
Tesla CEO Elon Musk was seemingly channeling his inner Galt during a video interview with Joanna Stern of the Wall Street Journal at the CEO Council Summit. Apparently Mr. Musk can see what’s on the other side of this spending horizon and doesn’t want to experience it. WATCH:
U.S. nonfarm productivity is a measure of economic activity within the engine of the U.S. economy. The U.S. productivity rate is a measure of how much value is produced by the economy through demand for the products and services, and the labor associated with the creation of those products and services.
I have often used the example of making bread {Go Deep}. If you are making 10 loaves of bread, there is a set amount of cost associated with each loaf created. The total cost of each loaf is the total cost to produce the entire batch divided by ten. However, if you have customers demanding 15 loaves of bread, you make more profit on the last five because it doesn’t cost 50% more in material or labor to make 50% more loaves.
Your productivity in the last five loaves is higher because the fixed costs of production (raw materials, energy) barely change, and the labor is only slightly higher. The opposite is also true. It costs more per loaf to make fewer than ten loaves because the fixed costs and your labor are pretty consistent, yet the finished value of 7 loaves is less than the finished value of ten.
Anecdotally, it has looked for quite some time that around May of this year the economy peaked, plateaued for a few weeks, and then began a slow downward progression. Today the Bureau of Labor statistics puts some revised data to that third quarter (July, August and Sept) economic activity {data here}. The quantified results align with what we sensed was taking place.
In the aftermath of the White House demanding that media pundits put a positive spin on economic news, the National Economic Council Chairman, Brian Deese, appears at the Brady Room podium today [Full Video Here] to put the finishing touches on their Potemkin village of economics.
The statistics cited by Deese were jaw dropping in the level of spin used to create them. First, the economic council cite their own national employment forecasts for economic recovery (under their ‘American Rescue Plan’), then celebrate they are ahead of schedule for a timeline they created.
When asked about inflation, Deese then proclaims he is not going to get into the business of economic predictions; which the media just accept without reminding him that his economic policies are entirely based on his own predictions… which he just cited in the prior moment of self-congratulation. Additionally, according to Deese (without any citation to demonstrate validity for his claim), the NEC Chairman says “real household income” is at its pre-pandemic level; which seems highly unlikely given the scale of inflation.
When asked if inflation will continue into next year, Deese refused to answer the question. Keep in mind, the discussion of inflation is a percentage of change from a previous price 12 months earlier. If an item doubles in price this year (from $2 to $4), and then goes up to $4.50 in the following year, you can claim that inflation is dramatically decreasing. However, that does not mean prices will ever return to the prior level, or that the next year price is any more affordable. WATCH:
The fact remains that White House energy, regulatory, fiscal and monetary policies are devastating for Main Street. All of those policies impact the domestic economy with increased costs from field to fork.
Cumulatively, all of the White House economic policies are increasing housing costs, transportation costs, medical costs, food costs, retail costs and service costs. At the same time, wages are only modestly rising to keep up with those massive cost increases. No amount of spin is going to stop the reality of the inflation storm from hitting U.S. consumers.
As we shared during the Obama-era baseline budget spending and deficit mess: “Half of something you just quadrupled is not less than you started with.”
Yesterday, Rachael Rollins was confirmed by the Senate as Joe Biden’s selection to be the U.S. Attorney for Massachusetts {LINK}. Watch the former District Attorney Rachael Rollins previously respond to a local Boston media crew.
Watch what happened, and remember, this person is now the U.S. Attorney for Massachusetts:
https://youtu.be/5cfiCuKFVGc
The severe leftist disposition exhibited in that video was well known to the U.S. Senate prior to her confirmation hearings.
Texas Senator Ted Cruz highlighted and warned his peers about the danger that Mrs. Rollins’ worldview as district attorney represented if she was put into a position of significant authority. Arkansas Senator Tom Cotton also gave numerous warnings and for a time blocked the nomination.
Alas, eventually the Senate approved of Mrs. Rollins despite all the warnings. The Senate vote was a 50/50 tie. No Republicans voted to support Rachael Rollins, and Kamala Harris stepped in to break the tie.
This one minute segment from Anthony Fauci’s discussion with MSBNC journalist Andrea Mitchell is eye-opening and alarming. Within the interview, Dr. Fauci states that individual rights to medical autonomy must be *forcibly* removed by the state under the premise of a communal good. This is the exact mindset of the Fabian Socialists throughout history.
Dr. Fauci stated, “Free will. I respect that, but these are unusual times.” Pull your chair a little closer, and allow me to whisper in your ear: ‘There will always be unusual times.’
Historically, this type of communal outlook has been used as a talking point to justify some of the darkest times in world history. Politicians, eugenicists and some very disturbed world leaders with grand opinions of their own importance, have long espoused this same ideology. It is a twisted and sick worldview that eventually leads to the same repeated conclusion. WATCH [1 minute]:
The most sovereign of all human conditions is the right of an individual to be free. As soon as the state begins eroding the right of the individual, bad things start to happen. The communal mob is a fickle assembly who will always cull itself with ever-changing denominators of purity….
Considering the recent Democrat freakout over the ‘economic narrative‘, which included a request for corporate media to circle the wagons, their desperation is starting to make sense.
Patrick Murray is a notoriously partisan pollster from Monmouth University {use searchbar}. Leftist favorite Murray puts the spin in spin-master when it comes to media polling and narrative engineering.
The Monmouth engineer recently released a heavily spun poll warning the communists and leftist Democrats, showing checkbook issues are the top concern priority for Americans – far beyond any concern about the COVID madness.
Keep in mind, Murray skews polls in extraordinary ways; however, yet even Monmouth cannot avoid seeing that 29% of leftist Americans are very concerned with inflation, while only 18% are concerned with COVID [pdf here]. Monmouth’s polls are always skewed with responses from the DNC base, so consider that result amid their own tribe. Democrats are twice as worried about their household bills and inflation as they are worried about Omicron or any variant therein.
This explains the massive freakout in the backrooms of the White House and DNC at the moment. Their economic policy chickens are coming home to roost.
“Concerns about inflation have taken center stage in discussions around America’s kitchen tables. And, as one would expect, many are placing the blame squarely on Washington,” said Patrick Murray, director of the independent Monmouth University Polling Institute. (link)
When you ignore the public spin Murray puts on the polling (Republicans horrible etc), the bottom line is devastating for Democrats. This aligns with a recent Wall Street Journal survey showing that Latinos are flocking to the Republican Party, and there is now an even 50/50 split amid Hispanic voters.
A simple question should be posed to the FDA about their vaccine authorization position:
“How does a person give ‘informed consent‘ when the information is withheld?“
Perhaps the judge in the case against the FDA will ask the question, perhaps not, but the question remains.
The FDA took a grand total of 108 days to decide the Pfizer vaccine was safe, given the data shared with them by the pharmaceutical company. The same FDA is now saying they need 75 years to provide the public with the same data. This is not a confidence building position by a federal regulatory agency attempting to instill public confidence.
Aaron Siri, the lawyer suing the FDA to get custody of the documents used by the FDA in approving the vaccine, is providing an update today [SEE HERE]. Mr Siri notes the FDA is now saying they will not be able to complete fulfillment of the public records release until the year 2096.
Aaron Siri – […] “My firm, on behalf of PHMPT, asked that this information be disclosed in 108 days – the same amount of time it took for the FDA to review and license Pfizer’s vaccine.
I have often used the example of making bread {
Patrick Murray is a notoriously partisan pollster from Monmouth University {