The IRS Magic-Money Tree Bears Little Fruit

September 9, 2024 by Dan Mitchell @ International Liberty  

I’ve been arguing for a long time that we need tax simplification rather than a bigger budget for the IRS.

The clowns in Washington have a different perspective, however, and they approved the Biden-Harris plan to dramatically increase the IRS budget because that supposedly would generate hundreds of billions of dollars in additional tax revenue.

Well, they definitely achieved the first part. If you go to the supplemental materials section of the most-recent Biden-Harris budget and access the massive excel file for outlays, you can scroll down to get detailed numbers for the IRS budget.

As you can see, the IRS budget has skyrocketed in recent years (and I didn’t even count things such as IRS payments of so-called refundable tax credits since that’s merely redistribution being laundered through the tax code rather than operational funding).

But what about the second part? Has all this money led to a torrent of tax revenue.

The Treasury Department wants people to think the answer is yes. Here’s a headline from a September 6 press release.

Sounds impressive until you remember that folks on the left (and some naive/stupid folks on the right) claimed that super-sizing the IRS budget would produce much more.

In reality, the torrent turned out to be a trickle.

Dominic Pino of National Review summarizes how the goal posts have been moved.

After lots of hemming and hawing, Democrats finally got their huge boost in IRS funding in the so-called Inflation Reduction Act in August 2022. This $80 billion boost over ten years was supposed to help to “close the tax gap” by improving IRS enforcement to collect money taxpayers owed but were not paying. …The target was those evil rich guys sitting on piles of money. …

At various stages in the Democrats’ quest for a bigger IRS, they were throwing around numbers as high as a $1 trillion to be collected from better enforcement. …the Treasury itself in May 2021 thought it could raise $700 billion over ten years from better tax enforcement. …

By October 2021, the White House had revised its estimate to $400 billion over ten years. Still a ton of money. …Once the Inflation Reduction Act actually came into being, Democrats were banking on the IRS provisions raising $203.7 billion over ten years. …Then, in February 2024, the Biden administration cranked up the crazy again.

The Treasury released a new study that claimed if the current IRS funding levels were made permanent, …the Inflation Reduction Act’s provisions could raise up to . . . wait for it . . . $851 billion over ten years. …

There is not — and never was — any possible way that the IRS is going to raise several hundred billion dollars over ten years from better tax enforcement. This was magical thinking from Democrats. And they only wanted it to be true so that they could immediately spend the money raised on progressive policies. They got the spending; we get the debt.

You don’t know whether to laugh or cry at these results. Politicians lied through their teeth, but it worked.

And Dominic is right, The Biden-Harris Administration is pushing for further massive increases in IRS spending.

P.S. Actually, there’s nothing to laugh about from today’s column, so I’ll compensate by going to the archives for my collection of IRS humor, including the Obama 1040 form, a death tax cartoon, a list of tax day tips from David Letterman, a cartoon of how GPS would work if operated by the IRS, an IRS-designed pencil sharpener, two Obamacare/IRS cartoons (here and here), a sale on 1040-form toilet paper (a real product), a song about the tax agency, the IRS’s version of the quadratic formula, and (my favorite) a joke about a Rabbi and an IRS agent.

Workers Worry Thanks to Harris & Biden

By Robin Itzler

Editor's Note:  This is one of the commentaries selected from Robin's weekly newsletter Patriot Neighbors. Any cartoons appearing will have been added by me.  If you wish to get the full edition, E-mail her at PatriotNeighbors@yahoo.com to get on her list, it's free. RK 

Technically, the United States is not in a recession. Emotionally, a plurality of Americans think we are. A recent Bankrate survey revealed that 59 percent of U.S. adults feel the Harris/Biden economy is in a recession, the result of rising costs and stagnant wages. Respondents shared personal financial struggles as the primary reason they believe the economy is failing.

If they aren’t personally affected by disastrous economic conditions, they know someone who is. Or they are watching stores and restaurants go out of business. For instance, this summer Red Lobster closed 100+ restaurants amid bankruptcy proceedings. Now the seafood eatery announced 23 MORE locations will be shuttered.

It’s all depressing!

Through the second quarter, 3,200 brick-and-mortar stores have closed, according to retail data provider Coresight, which tracks store closures and openings across the U.S. Although a few retailers (Dollar General, for example) are planning to expand this year, Coresight reports that many major chains have announced fewer openings compared with a year earlier.

One reason for store closures is that consumers have spent all their COVID money. There’s no more money for frivolous purchases or vacations. Instead, they must go back to living within their means. Thanks to Joe Biden and Kamala Harris, their means are not enough.

JACK DANIELS NO LONGER DRINKING DEI:

Another iconic American brand that has finally realized that if they go woke, they will go broke is Jack Daniels. Bottler Brown-Forman sent an internal employee memo announcing they would stop linking executive compensation to progress on DEI. Jack Daniels will be ditching its participation in the LGBTQ+ alphabet Human Rights Campaign’s Corporate Equality Index survey.

Wisely, Jack Daniels plans to focus on its core business (duh!) so that executive incentives and employee goals are tied to business performance, not making the Human Rights Campaign happy.

To share your thoughts with Brown-Forman’s CEO Larson Whiting: Click hereto contact Jack Daniels, Phone: 888-515-5225 Write: 280 Lynchburg Hwy, Lynchburg, TN 37352

LOWE’S GOING HIGH: Nailing the DEI!:

Lowe’s announced that it would no longer make donations to pride events and is putting an end to Employee Resource Groups (ERGs) that are focused on race and sexual orientation. Lowe’s will also be ditching its participation in the LGBTQ+ alphabet Human Rights Campaign’s Corporate Equality Index survey. Bravo again to Bobby Starbuck and his outstanding efforts.

Just like so many other national corporations that have recently announced they are going to focus on activities that align with their core business (duh!), Lowe’s said that their community and philanthropic efforts will include safe and affordable housing, disaster relief and skilled trades education especially for military veterans and homeless people.

To share your thoughts with Lowe’s CEO Marvin Ellison: Email (media): Click here to contact Lowe's Home Improvement, Phone: 704-758-1000 Write: 1000 Lowe's Blvd. Mooresville NC 28117 

Over the next few weeks, we will look at unique moments in our nation’s history where God was recognized. In 1956, the phrase IN GOD WE TRUST legally became the United States’ National Motto. On February 9, 1961, President John F. Kennedy (who would not be welcomed in today’s Democrat Party) said:

“The guiding principle of this Nation has been, is now, and ever shall be IN GOD WE TRUST.”     President John F. Kennedy                             

 

Stopping Woke, It's DEI-ing

By Robin Itzler

Editor's Note:  This is one of the commentaries selected from Robin's weekly newsletter Patriot Neighbors. Any cartoons appearing will have been added by me.  If you wish to get the full edition, E-mail her at PatriotNeighbors@yahoo.com to get on her list, it's free. RK

As has happened many times, when a board of directors hires a CEO who has little understanding of the company’s history and core values, he or she will make decisions and say things that insult its most ardent customers. Harley-Davidson’s CEO Jochen Zeitz, who took over in May 2020, has been moving the Americana iconic brand woke. But Patriots pushed back at the insanity!

Bobby Starbuck, who has done outstanding reporting on companies that are DEI-ING from ridiculous progressive diversity, equity and inclusion programs, shared that Harley-Davidson is now UN-woking and will focus on its core business. (Duh!) For instance, Harley will no longer participate in the LGBT+++++++++ Human Rights Campaign that rates companies on how trans they are, among other progressive criteria.

From showrooms to boardrooms, Patriots are pushing back at DEI insanity. After all, how many Harleys do you see with pride flags?

To share your thoughts with Harley Davidson’s Jochen Zeitz: Email (media): media@harley-davidson.com Phone: 414-343-4056 Write: 3700 West Juneau Avenue in Milwaukee, WI 53208

When an industry leader makes a major revamp such as saying goodbye to DEI insanity, competitors follow. Polaris, which produces the Indian motorcycle, has removed references to DEI from its website. The company said in a statement: “...the phrase DE&I has evolved from a general term into something increasingly politicized with varying interpretations.”

The Day Trump is Sentenced

Marxist-Democrats want to shout, “Trump is a convicted felon!” Do Marxist-Democrats want to brew a civil war-like situation so they can declare martial law and start arresting people?

What should Patriots do if Trump is sentenced to prison for a “bookkeeping error” that no other politician has ever received prison time for?  We reached out to various authors and columnists and over the next few issues will share their thoughts about the communist lawfare taking placing against Donald J. Trump.

Susan Daniels - Author of “The Rubbish Hauler’s Wife Versus Barack Obama”

If they send Trump to prison, they guarantee him a win and the Secret Service must go with him.  I think Judge Merchan will give him house arrest. Yes, of course, Marxists want martial law so they can cancel the election. 

There is something more interesting at play. Trump recently filed asking that his sentence be stayed until after the election. Bragg and Merchan immediately said yes when he asked them to hold off on the original sentencing date of July 11. If they now insist on sentencing him on September 18, it means that the government was involved in the assassination attempt. 

Bragg and Merchan were not agreeable to anything before and yet said "yes" immediately to his first request. Perhaps, they were told to do that. They may not have been told why to agree just that they should. Trump would have been long dead by September if fate had not intervened.

Patriots should stay calm. If the election is stolen again, then they should revolt in any way they can. Follow the Democrat playbook and let's see how they like it.

Follow Susan Daniels on Substack

Bidenomics: Lies, Liars, and Statistics

 By Robin Itzler

Editor's Note:  This is one of the commentaries selected from Robin's weekly newsletter Patriot Neighbors. Any cartoons appearing will have been added by me.  If you wish to get the full edition, E-mail her at PatriotNeighbors@yahoo.com to get on her list, it's free. RK

Jobs Revised Down!

Harris-Biden Labor Dept. lied Here is another reason not to believe government reports. Last week the Bureau of Labor Statistics (BLS) reported that the United States had a staggering 818,000 FEWER jobs in the year ended March 2024 than previously reported. That equals 68,000 FEWER monthly jobs than the Harris-Biden administration gleefully touted to the American public. 

There were 115,000 fewer manufacturing jobs and 45,000 fewer construction jobs. Gee, why bother issuing reports? This was the largest downward revision in employment figures in 15 years! Many political observers believe that the Harris-Biden administration’s Department of Labor INFLATED the jobs numbers so they could pretend the economy was going well. 

Then they admitted their mistake (when people were focused on the DNC convention and pro-Hamas protests) so that the Federal Reserve lowers interest rates. Lowering interest rates would pump more money into the economy SHORT TERM, allowing for some job creation just as the election season closes. The fact that it would cause MORE inflation later doesn’t concern the communist duo Kamala Harris and Tim Walz.

Are You Better Off Than You Were Four Years Ago?

In “Press Claims Inflation is Licked Because Consumers Are Refusing to Pay High Prices,” Jack Hellner shares how great things are today:  

In 2020, credit card debt in the United States decreased by 9 percent from 2019, reaching $770 billion in the first quarter of 2021. In 2024, credit card debt is $1.1 trillion, up more than 50% in less than four years. 

Credit card delinquencies have increased by over 100 percent from 4.1 percent in the fourth quarter of 2021 to 8.9 percent today. 

The percentage of credit card debt that is over 90 days late is the highest since 2012.

Auto loan delinquencies have increased from 4.9 percent in the fourth quarter of 2021 to 7.9 percent this year which is a decade-long high. - Housing prices in 99 percent of U.S. counties are more UNaffordable than ever for the average American earner, according to a new report from the real estate data site Attom. 

 As of August 2023, the personal savings rate in the United States was 3.9 percent, which is well below the average of 8.9 percent over the last decade. - Auto insurance rates rose 2.6 percent in March and are up 22 percent from a year ago. Many people are dropping auto insurance because they can’t afford it. 

More Americans are dropping home insurance due to rising premiums. According to a 2024 study from the Insurance Information Institute, 12 percent of Americans no longer have home insurance, which is up from 5 percent in 2019. This is the highest percentage of uninsured homeowners the group has ever seen.

It's The Economy Stupid!

By Robin Itzler

Editor's Note:  This is one of the commentaries selected from Robin's weekly newsletter Patriot Neighbors. Any cartoons appearing will have been added by me.  If you wish to get the full edition,   E-mail her at PatriotNeighbors@yahoo.com to get on her list, it's free.  RK 

 

Thank you, Democrats.  JPMorgan boosts chances of a recession in the United States by the end of the year to 35 percent. Just last month, JPMorgan had the number at 25 percent. That’s a big jump for a 30-day period. Below is a sampling of recent layoff or closure announcements. Notice the wide variety of industries that are doing so well under the Harris/Biden administration (NOT!).

Axios (media) – The left-left-left media site announced on August 6 that 50 staff members would be laid off. CEO Jim VandeHei belched, “We’re making some difficult changes to adapt fast to a rapidly changing media landscape.”
Broadcasting & Cable (TV trade publication) – shutting down.
Big Lots (retail) – In June, Big Lots announced it would be closing 150 stores; however that number has since grown to 315. In California, 75 stores will be closing (30 in southern California). When all the closures are completed, there will only be 34 Big Lots stores in California.
Cisco (technology) – In February, the company laid off an estimated 4,000 employees. Last week, Reuters reported that thousands more (possibly another 4,000) might be let go soon.
Dell (technology) – In 2023, Dell cut 13,000 jobs. Due to a drop in personal computer sales, Dell just announced there will be another 12,500 in layoffs that started last week.
Geodis (global freight transport and logistics operator) – Recently announced facilities closing in Texas, Georgia and New York; along with job reductions at an Illinois operation, the company will be laying off 384 workers.
Intel (technology) – CEO Pat Gelsinger announced in early August that it would be reducing its workforce by 15 percent (15,000 employee positions). Layoffs are starting now and will be completed by the end of the year.
Multichannel News (TV trade publication) – Shutting down.
Optum (healthcare) – The United HealthGroup company is closing clinics in multiple states and laying off 524 employees across California.
Paramount Global (media entertainment) – Will cut its workforce by 15 percent in another round of layoffs focusing on communications, legal and technology.
Stellantis (automotive) – Is laying off 2,450 plant workers at its Warren, Michigan plant as it discontinues the popular Ram pickup truck (more economical version). The announcement came one day AFTER radicals Kamala Harris and Tim Walz spoke to United Auto Workers members. (Polls show that while the auto leadership is endorsing the Marxist duo, the rank-and-file membership will be voting for Trump.)
Stop & Shop (food retail) – This regional chain (mostly in the northeast) that started in 1892 will close 32 of its 400+ outlets by early November.
Texas Children’s Hospital (healthcare) – Reduced its staff by 5 percent, roughly 1,000 employees.
Willamette Falls Paper Company (paper) – announced on August 6 that it would be laying 158 out of the company's 223 total employees. The West Linn, Oregon company is one of the city’s largest employers.

Remember: the Consumer Price Index (CPI) excludes FOOD AND ENERGY! The FOOD INDEX rose 0.2 percent in July, the second straight month of rising prices.

Bidenomics Delusion from the Media

July 13, 2024 by Dan Mitchell @ International Liberty

Bidenomics has been a failure, as measured by variables such as poverty, subsidies, inflation, protectionism, household income, fiscal policy, red tape, and employment.

But if asked to pick the most important problem for Biden (both politically and economically),my answer would be inflation-adjusted income.

Simply stated, American families are on a treadmill, struggling to have their incomes keep pace with inflation.

As illustrated by the chart, they have not been winning that contest.

But that isn’t stopping the supposed referees in the press from declaring victory for the president.

I wrote in February about the Washington Post grading Biden on a curve. Then I  wrote in May and also wrote in June about the New York Times doing the same thing.

Today, we’re going to look at a new example of bias from the Washington Post. White House economics reporter Jeff Stein has a story asking why Biden is not getting credit for a “booming” economy.

The inflation report released Thursday represented virtually everything the White House has been hoping to see for years. …Overall prices dropped on a monthly basis for the first time in four years… Democrats could fail to take advantage of a spate of economic news that would otherwise be expected to buoy the president’s electoral prospects. In addition to moderating inflation, the economy is set to grow by 2 percent in the second quarter this year. Wage growth is up, and the number of weekly jobless claims ticked down again to the lowest level since May…

“Democrats had a strategy for this campaign, and it was touting Biden’s accomplishments on the economy, which are becoming clearer by the day…,” said Dean Baker, a liberal economist at the Center for Economic and Policy Research, a left-leaning think tank. “As long as there are concerns about Biden’s health, the economic news will not be front and center, no matter how good it is.”

…Democrats are bracing for the prospect that Trump could again inherit an economy they believe is booming due to the policies passed during their time in government.

With all this glowing analysis, a reader from another planet might wonder why Biden isn’t heading to a landslide victory, even with his problems with aging.

But that’s only because that extraterrestrial reader would be unaware that the author ignored the variable that matters most for voters – which is whether they enjoying more income or struggling to keep pace.

At this point, I normally would share income data from the Labor Department or Census Bureau to show that Biden has not done a good job with household income.

But perhaps it would be more convincing (at least for left-wing readers) to share data from unexpected sources. So here’s a tweet from a journalist at a left-leaning publication (Vox), citing data from a left-leaning source (Brookings Institution).

You can click here to peruse the details of the Brookings report.

But all you really need to know is that households – at best – have been treading water. That’s stagnation, not a boom.

P.S. Here’s a comparison of Reagan’s economy and Biden’s economy.

P.P.S. Criticizing Biden’s policies does not imply an endorsement of Trump’s policies. Indeed, many of Biden’s policies are identical (see here and here) to Trump’s policies.

Leftist Insanity Equals National, Economic, and Cultural Suicide!

“The barbarians are not at the gate. They are inside the gates, and have academic tenure, judicial appointments, government grants, and control of the movies, TV, and other media.” — Thomas Sowell economist, social philosopher, and political commentator 

By Robin Itzler

Editor's Note: This is one of the commentaries selected from Robin's weekly newsletter Patriot Neighbors. Any cartoons appearing will have been added by me. If you wish to get the full edition, E-mail her at PatriotNeighbors@yahoo.com to get on her list, it's free. RK

Bidenomics: 

Good news if you’re illegal/foreign born There’s good news for foreign born (and that includes illegal alien migrant invaders). According to the Bureau of Labor Statistics, 637,000 foreign-born workers joined the U.S. labor market in the last year. For native-born Americans, the news stinks! The same report shows that 300,000 native-born Americans disappeared from the workforce.

(Press 1 to hear this in Spanish, Press 2 to hear this in Chinese, Press 3 to hear this in Arabic ….) 

Following the release of this data, Heritage Foundation economist E.J. Antoni tweeted: “No wonder Americans view the economy so terribly: they aren’t the ones [with] the jobs; native-born employment is not only millions below pre-pandemic trend, but even below pre-pandemic level, while millions more foreign workers are employed today than Feb ’20, and back to trend.” 

Most Americans are not into mental illness a.k.a. woke pride, but companies shove it down our throats any-way. However, out of respect for cultures that abhor woke pride, many of these same companies won’t promote pride to their Middle East customers. 

At least BMW admitted it in a tweet: This is an established practice at the BMW Group, which also takes into consideration market-specific legal regulations and country-specific cultural aspects You can see how these logos do not change to pride for the Middle East. If these companies—and there are many others—can respect foreign customers who find pride crap abhorrent, why can’t they respect American  customers? 

As to BMW, the company has a long history of placating to different markets. How fast can you say, “BMW and Nazis?” 

In March 2016, when the company celebrated BMW’s first century, BMW apologized for working with the Nazi Third Reich—picture from BMW’s Nazi era. As reported in British Daily Mail: German car giant BMW used its 100th centenary celebrations today to apologize for its Nazi past. The apology and statement of ‘profound regret’ for its role in using forced labor to supply armaments and aero engines to Hitler’s Third Reich was made as it unveiled a vision of its next chapter of car development. It said it was ‘explicitly facing up to this dark chapter of its past’ in the city where the Nazi party had its origins. 

However, this company put safety ahead of profits.  You probably use this item every day and don’t realize that the company that invented this safety feature refused to patent it to allow other companies throughout the world to use it on their merchandise. The corporation wasn’t interested in making money. Their focus was on saving lives. What company put safety ahead of profits?

In 1885, Edward J. Claghorn devised the first U.S.-patented seat belt that went across the lap to help keep occupants from being thrown from cars. You’d think that all car manufacturers would have included the safety feature, but that wasn’t the case. While some states mandated seatbelts, others didn’t. It wasn’t until 1966 that the federal government passed a law requiring all new cars beginning with the 1968 model to include seatbelts. However, at the time there was no law requiring drivers and occupants to use seatbelts. That came later. 

Miss Woke:  

Beauty is in the eye of the wokesters There are thousands of beauty pageants held throughout the United States.   The judges in the Miss Maryland USA pageant ignored all the attractive, intelligent and charming female entrants and selected Bailey Anne Kennedy, a biological male.  Why didn’t the female contestants refuse to be in the pageant with a male?  This is another example where women can do something to stop this insanity, but they don’t.

Are We Now A Radical Socialist Nation?

Unless the rigged trial in New York City is quickly overturned, the answer is yes, we are a radical socialist nation with a two-tiered justice system. Some other recent events that make us wonder if the republic can be saved. 

• If you’re a woman who would like to be in a locker room with a male, you will be pleased that a 24 Hour Fitness internal memo says members and employees must go by the person’s preferred gender. As if that isn’t enough, the company’s policy is that the American flag and U.S. logos are only allowed to be worn on holidays. However, the BLM and pride symbols can always be worn every day. Facing backlash once the memo became public, 24 Hour Fitness announced that employees could wear American flag pins every day. To share your thoughts with 24 Hour Fitness CEO Karl Sanft: Email -Phone: 800-432-6348 - Write: 1265 Laurel Tree Lane, Ste 200. Carlsbad, CA 92011

• A 37-page report by Policy Horizons Canada, a Canadian government agency, discussed all current world issues that could directly affect the nation. Included was a hypothetical about what Canada should/should not do if there is a civil war in the United States. From the report: “U.S. ideological divisions, democratic erosion, and domestic unrest escalate, plunging the country into civil war.”  

Some Points to Ponder:  

This is no longer right vs left. It’s good vs. evil. When you are considered an extremist for flying the American flag, you know who America’s enemies truly are.  We're being told that Joe Biden is right on top of his game and he'll always go with his core values.  Okay, and we trust those values why?  Here are some things I'm willing to trust more than Joe Biden. 

A brownie from Snoop Dog, gas station sushi, Casey Anthony running a daycare, cocktails with Bill Cosby, a barbecue with Jeffrey Dahmer, a road trip with Brian Laundrie, and stock advice from Martha Stewart.

Joe Biden says "My policies are working fine"! Well, perhaps his touchstone for being successful is based on when Trump was in office, our car’s gas tank could only hold $35. Now thanks to Joe Biden, it can hold $90. 

Corporate America Debates Bidenomics and Trumponomics

Reactions to the candidates’ economic policies are mixed but have one thing in common: uncertainty.

By Andrew Moran | Jun 17, 2024 @ Liberty Nation News, Tags: Articles, Business News, Good Reads, Opinion

Editor's Note:  As a now retired small business owner who was heavily involved in my industry's trade associations I can tell you definitively, big business and small business are not on the same page.  Large companies are not conservative in their thinking or actions.  They're along to get along lackeys and mostly only care about the next quarterly statement.  Small business is part of the fabric of the nation's culture and see things much differently, and in for those involved in their trade associations it's a battle with these people, so as you read this please keep that in mind.  RK

President Joe Biden has been reaching out to corporate America for advice on bolstering the economy, the same group he has accused of price gouging consumers and ripping off the country. Former President Donald Trump, the presumptive Republican nominee, thinks the business community is on his side heading into the November election. What do businesses – small and large – have to say about the two men vying for another term in the White House?

Corporate America Stroking Its Chin

Will Wall Street pick a candidate in the 2024 election? Like any good market watcher, businesses are conducting a cost-benefit analysis to determine which man they should support later this year.

The incumbent, he showered domestic and foreign corporations with generous taxpayer-funded subsidies while demanding they pay their fair share and hurling accusations of “shrinkflation” and “greedflation.” As for the real estate billionaire mogul, Trump signed the landmark Tax Cut and Jobs Act and cut red tape, but he also stimulated the heartburn remedy industry through his on-again, off-again trade wars with America’s neighbors, Europe, and China.

Looking ahead to what the next four years could bring, the private sector will have to swallow either the red or blue pill.

The Biden 2025 budget has endorsed taxing unrealized gains and raising the capital gains tax that could confiscate roughly $2 trillion from corporations and high-net-worth individuals over 11 years. Stephen Moore, the co-founder of the Committee to Unleash Prosperity Now, recently called these endeavors an “economic cyanide pill to the US economy.” Indeed, according to topline preliminary estimates from the Tax Foundation, these levies would reduce the long-run GDP by 2.2%, cut long-run wages by 1.6%, and cost approximately 788,000 full-time jobs. Meanwhile, Biden’s landmark legislative pursuits, from the Inflation Reduction Act to the US Chips and Science Act, will continue to dole out hefty welfare payments to companies engaged in renewables and anything green-oriented.

Trump wants to extend tax cuts, lower the corporate tax rate, expand America’s energy sector, dismantle his opponent’s green agenda, and curb illegal immigration. Despite including trade policies that might appeal to businesses, Trump’s blueprint might be one of his biggest drawbacks for corporate America.

Earlier this year, Trump proposed an across-the-board 10% tariff on all imports to the United States and suggested slapping Chinese imports with levies surpassing 60%. Estimates show this initiative could make a $1,700 dent in US household finances every year. Supporters argue that Trump’s first round of tariffs, which they saw utilized more as a weapon than economic policy, did not have as much inflationary impact as initially thought. Plus, as Liberty Nation News reported in May, the administration recently revealed a plethora of new and higher tariffs on China and its green economic initiatives.

In the meantime, in the run-up to the election, American business leaders continue to submit various grievances to the administration: a lack of skilled workers to fill employment vacancies, a better government permitting process, and tax breaks for research and development expenses. Although the White House is listening, that does not mean it will “agree” on everything, says Deputy Treasury Secretary Wally Adeyemo.

“One of the things we don’t do is pretend we’re going to agree with the business community on everything,” Adeyemo told the Associated Press. “We want feedback and we’re going to continue to talk to you.”

What About Small Businesses?

President Biden and his team have championed the growth of entrepreneurship since arriving in 2021. However, US officials have ignored the financial pain small businesses have been feeling. The data show small business bankruptcies have rocketed over the past year. But how do smaller outfits feel about the current economic and political landscape? The views are mixed.

The National Federation of Independent Business (NFIB) released the results of its May 2024 Business Optimism Index, reaching the highest level of the year. However, it was stuck below the historical average for the 29th consecutive month as owners listed inflation and interest rates as their top business problems.

The May Freedom Economy Index survey of 80,000 small businesses, courtesy of RedBalloon and PublicSquare, revealed that 49% think they “definitely” or “probably” will not survive another four-year term of Bidenomics. In addition, 90% of small business owners say controlling the border should be a top priority for a potential Trump administration. As for the broader economy, 64% predict the country is headed toward stagflation – a mix of high inflation and stagnating growth – and 37% believe the Federal Reserve will raise interest rates.

“It’s been a difficult three years for America’s small businesses,” said PublicSquare CEO Michael Seifert. While many inside the Beltway may feel like things are good, that isn’t translating to Main Street America — the frontlines of our small business economy.”

Anatomy of Bidenomics, Trumponomics

Large corporations and small firms will have to engage in a balancing act. Under the current president, companies can continue receiving lavish taxpayer-funded benefits but also have to endure higher tax bills and a bombardment of unfounded criticisms. Should Trump return to 1600 Pennsylvania Ave. in January 2025, businesses can possibly enjoy lower tax rates but will also contend with the uncertainty regarding America’s trade relations in the global economy, whether in China or Europe. Ultimately, business leaders will need to study the Bidenomics and Trumponomics textbooks closely to make a final decision.

 

Read More From Andrew Moran

The Remarkable Accomplishments of Joe Biden

By Robin Itzler

Editor's Note: This is one of the commentaries selected from Robin's weekly newsletter Patriot Neighbors. Any cartoons appearing will have been added by me. If you wish to get the full edition, E-mail her at PatriotNeighbors@yahoo.com to get on her list, it's free. RK

According to incoherent Joe Biden, the economy is doing fantastic. In California, the state’s inept Democrat Governor Gavin “Hair Gel” Newsom thinks forcing restaurants to pay workers $20 an hour for jobs that require minimal skills is a good thing. (Why not pay these workers $30 an hour? Or $40?) We tried reaching out to Gov. Newsom, but he was busy touting California’s 5.3 percent unemployment—the highest in the nation.

Let’s be fair. Maybe Bidenomics is a rousing success!

99-Cents-Only Stores (retail) – Closed its doors for good. 

BioMarin (pharmaceutical) – Is laying off about 5 percent of its workforce (170 employees).   

Indeed (job-search website) – In its second rounds of layoffs, the company said goodbye to nearly 8 percent of its workforce, most are United States employees that worked in the research and development units.  

Media Matters (leftist media watchdog) – Has started laying off staffers.  

Red Lobster (restaurant) – 99 stores in 28 states are listed as “temporarily closed” following its recent Chapter 11 bankruptcy filing. However, “temporarily” is very temporary since many of these restaurants have put their kitchen equipment up for auction on a restaurant liquidator’s site.  

Rubio’s Coastal Grill (fast-food restaurant) – Is closing 48 restaurants in California because of the “rising cost of doing business.” Now all those workers who earned $20 an hour since April 1, will be earning ZERO dollars an hour. The privately-owned chain said in a statement:

“Rubio’s Coastal Grill…after a thorough review of its operations and the current business climate, has decided to close 48 underperforming locations in California as of May 31, while keeping 86 stores in California, Arizona, and Nevada open.”

Tesla (automotive) – Has laid off employees in its software, service and engineering departments. Its been reported that nearly 7,000 employees were terminated across multiple locations that included Texas and California.  

Tik Tok (social media short-video platform) – Laid off 1,000 employees worldwide, many of its operations and marketing workforce.  

Toshiba (technology) – Announced plans to cut 6 percent (4,000 employees) of its domestic jobs as part of its restructuring efforts.  

Walmart (retail) – Focusing on its corporate staff, the retail giant wants to reduce its workforce by having some employees at its tech hub relocate. The number of job cuts has not yet been reported.

Are We a Socialist Nation Now? 

Crossing the Rubicon, What Does it Mean? 

From the Merriam-Webster dictionary: In 49 B.C., Julius Caesar led his army to the banks of the Rubicon, a small river that marked the boundary between Italy and Gaul. Caesar knew Roman law forbade a general from leading his army out of the province to which he was assigned. By crossing the Rubicon, he would violate that law. "The die is cast," he said, wading in. That act of defiance sparked a three-year civil war that ultimately left Julius Caesar the undisputed ruler of the Roman world. It also inspired English speakers to adopt two popular sayings -crossing the Rubicon and the die is cast-centuries later. Rubicon has been used in English as the name of a significant figurative boundary since at least the early 1600s.

 Unless the rigged trial verdict in New York City is overturned quickly, the answer is yes, we are a radical socialist nation. Some other recent events that make us wonder if the republic can be saved

Planet Fitness is Unfit:

Once it was learned that Planet Fitness allows MEN to use WOMEN’S bathrooms, their stock went down. To gain back some customers and shareholders, Planet Fitness has teamed up with country star Tim McGraw. McGraw must support having men use women facilities. From the Planet Fitness operational manual: 

“Some members may feel uncomfortable with a transgender member using the same locker room facilities, bathrooms, showers, or other facilities/programs separated by sex. This discomfort is not a reason to deny access to the transgender member.” “...strive to address transgender members with names, titles, pronouns, and other terms consistent with their self-reported gender identity ... adding that the gym can “terminate a person’s membership immediately for any violation of this policy.” 

To share your thoughts with Planet Fitness CEO Colleen Keating: Email - Phone: 844-880-7180 - Write: 4 Liberty Lane West, Hampton, New Hampshire 03842

Bidenomics and Credit Card Debt

You can vote your way into socialism, but you have to shoot your way out.

By Robin Itzler

Editor's Note:  This is one of the commentaries selected from Robin's weekly newsletter Patriot Neighbors. Any cartoons appearing will have been added by me.  If you wish to get the full edition,  E-mail her at PatriotNeighbors@yahoo.com to get on her list, it's free.  RK

 

  

Getting the truth about Joe Biden’s economy from Joe Biden is like spitting into the wind and expecting to avoid getting wet.  It will not be heard from by Joe Biden, he and the Democrats spin, twist, distort, and obfuscate in order to give the impression everything is just dandy, he's created "new" jobs, as  Sen. Rick Scott shows is simply another lie.  

With Joe Biden eating ice cream in the Oval Office, anyone who wants to purchase a house in 2024 will spend one-third to one-half MORE on their monthly mortgage payment compared to what they would have spent when Donald Trump was in the White House. Interest rates on 30-year fixed-rate mortgages are now between 7 and 7.5 percent. In 2020, 30-year-fixed rate mortgages averaged 3.38 percent, according to Bankrate data.

$500,000 home at 7.5 percent = $3,496 monthly mortgage.

$500,000 home at 3.3 Percent = $2,190 monthly mortgage.

What are Americans to do?

Charge everything! Use plastic money! According to Lending Tree, the average credit card interest rate is a huge 24.66 percent. Thanks to Joe Biden and Democrat policies, credit card debt is soaring. According to a survey by Scholaroo, a national firm that matches college students with potential scholarships, the U.S. national average for credit card debt is a whopping $6,555.

New Jersey: has a massive average credit card debt of $8,155.

Mississippi: is the lowest with a still very high $5,295.

Do you think people with this large amount of debt are paying just the monthly minimum?  

GUESS!  500,000 disappeared in America?  

Half a million—that’s an alarmingly large number and yet the Biden administration doesn’t seem to care that 500,000 are gone. Kaput! No más! Farewell! No matter how much we look, these 500,000 might be gone forever. 

So then, what disappeared? 

Full-time jobs are disappearing When the Bureau of Labor Statistics announces its monthly jobs report, it includes ALL jobs—both part-time and full-time. However, over the past year 500,000 FULL-TIME jobs have disappeared. The jobs growth the Biden administration keeps touting is from part-time positions. The jobs report is a game that sadly deceives most Americans. 

 “Well That Didn’t Work”.  How's that for a title to a book about communism?

 

Joe Biden Must Think Bidenomics is a Bust: He Rarely Mentions it Anymore

By Robin Itzler

Editor's Note:  This is one of the commentaries selected from Robin's weekly newsletter Patriot Neighbors. Any cartoons appearing will have been added by me.  If you wish to get the full edition,   E-mail her at PatriotNeighbors@yahoo.com to get on her list, it's free.  RK

 

For the first time since December 2022, the monthly jobs report showed very few GOVERNMENT jobs – only 8,000 of the 175,000 new non-farm jobs reported for April. Did the Bureau of Labor Statistics play with the numbers since each month there were complaints that most jobs were coming from the government and/or government-related industries? 

Your guess is as good as ours. Still the April report was below the 240,000 estimates from the Dow Jones consensus. Where did most of the 175,000 jobs come from?  Health care 56,000. transportation & warehousing 22,000, social assistance 31,000, retail 20,000.   

The global outplacement and business executive coaching firm Challenger, Gray & Christmas announced that U.S. based employers cut 64,789 jobs in April.  Bidenomics is doing such a great job with the economy that the Biden team has STOPPED mentioning Bidenomics. Let’s look at some recent Bidenomics successes:

• Bristol Myers Squibb (pharmaceutical) – Announced it will reduce its headcount by 6 percent – 2,200 employees. Byju’s (edtech) – Said goodbye to approximately 500 employees from sales, marketing and teaching roles.
• Google (technology) – While the company reported fantastic first-quarter earnings, it also laid off about 200 employees from its “Core” teams. Core units are responsible for building the technical foundation behind flagship products and for protecting users’ online safety. Don’t worry – those jobs didn’t disappear. Googles hired in India and Mexico where salaries are much lower.
• Southwest Airlines (aviation) – Announced it will end 2024 with 2,000 fewer employees. Details were not provided. Tesla (electric vehicles) – Thousands of employees were let go from across different departments. With challenges in sales and competition, the goal is to reduce their overall workforce by about 10 percent.
• Whirlpool (major home appliances) – Has laid off about 1,000 employees worldwide due to declining sales.
• A “Restaurant Apocalypse” Is Starting to Sweep Across America, and That Is Really Bad News for the U.S. Economy
• Red Lobster Closes Almost 50 Locations Around U.S.
• Yellen: We Can Likely Be Fiscally Sustainable with ‘Higher Ratio of Debt to GDP’
•  Will soaring inflation be the death knell for Biden’s reelection hopes?
•  New report: Trucking industry firm finds a transition to ‘electric’ semis hikes operating costs as much as 114%
•  Biden 2.0 -- Be Afraid, Be Very Afraid -Stephen Moore  May 14, 2024 -Could a second Biden term be more injurious to the economy than his first term? It seems unimaginable given the first three years gave us 20% inflation, a $2,000 loss in average real incomes for the middle class, 6 million added illegal immigrants, a war on American energy that has caused gas prices to rise by more than 40% to $3.64 a gallon, the collapse of our many major cities, another $6 trillion added to the national debt, the unaffordability of new homes, and the chaos on college campuses.......... Tax rates on investment up to 70%.......$2 trillion in new debt spending..........A "net zero" energy policy.......An end to state "right-to-work" law....... The antitrust assault against Silicon Valley............ Could American businesses and families survive getting smashed by these gale-force winds of another Bidenomics hurricane in 2025 without capsizing the ship of state? I wouldn't bet on it.

And we're shocked why he no longer talks about how wonderful his economic vision of America is? It's a election killer. 
 

Government Plays With Jobs Numbers

By Robin Itzler, From Her Patriots Neighbors Newsletter

Editor's Note:  This is a selected commentary from Robin's weekly newsletter Patriot Neighbors. Cartoons may  be added by me, if you wish to get the full edition,  E-mail her at PatriotNeighbors@yahoo.com to get on her list, it's free.  RK

No matter which party is in power, Deep State bureaucracies that run our federal government consistently gaslights the American public. 

Hey, didn’t you write this last week about the inflation numbers?

Speaking of inflation … the Consumer Price Index ROSE in March to 3.5 percent. FOURTH MONTH IN A ROW INCREASE. Thank you, Joe Biden! 

Government gaslighting holds true for the monthly jobs report released by the U.S. Bureau of Labor Statistics (BLS). According to BLS, in March, the U.S. economy added 303,000 jobs and left the unemployment rate at 3.8 percent.

Yeah, right. Does this feel like a healthy economy to you?

Of the 303,000 March jobs, 72,000 were healthcare related (i.e., businesses that are connected to the government, i.e., Medicare, Medicaid, Obamacare, etc.). Of the 303,000 March jobs, 71,000 were added in government.

• The majority of new jobs are part-time.
• For the 12 months ended March 2024, more than 650,000 native-born Americans lost their jobs. 
• For the 12 months ended March 2024, more than 1 million foreign-born workers got jobs. The labor force participation rate has held steady and in March at 62.7 percent. 

Using BLS’ own statistics, that means there are fewer people working now than before the COVID-19 “scamdemic.” 

The BLS monthly jobs report is meaningless and should be placed at the bottom of a bird cage! Eleven out of 12 monthly reports in 2023 were revised down several months after Joey paraded to the podium to talk about the great jobs report. (Maybe they promised him ice cream afterwards.) 

This trend continues into 2024! 

• February’s job report was revised down by 5,000.
• January’s job report was revised down by an astounding 124,000.
• December’s job report was revised down by 43,000.  

How many people in the private sector could continually give their CEO an important report and come back month after month with revisions?  

Of course the propaganda media insists that's all a huge Bidennomic success story.  Well, if you like that "success" story, here are 11 more Bidenomic "success" stories.

Bidenomic "Success" Stories

The executive coaching firm Challenger, Gray & Christmas released a report that employers in the U.S. announced 90,309 job cuts in March. This was a 7 percent INCREASE in job cuts from February. That is the highest monthly total since January 2023, when there were 102,943 cuts.

President and CEO of Job Creators Network Alfredo Ortiz said of the March jobs report:

"Looking under the hood of today's jobs report shows it isn't the home run that Democrats and the media claim. Approximately, half of all jobs created last month came in unproductive government or quasi-government healthcare sectors. Full-time jobs continue to decline, while part-time jobs are on the rise. The Main Street labor market is far weaker than the topline numbers or the conditions on Wall Street or K Street suggest."

Corn Pop disagrees and says that is a lot of malarkey. Let’s look at some recent Bidenomics successes:

1.  99-Cents Only Store (discount retailer) – Began liquidating and shutting all its 371 stores on April 5.
2.  Aludyne (lightweight solutions) – The Georgia company is letting 193 employees (8 percent) go of its 2,300-employee workforce.
3.  Apple (technology) – Included in its state filing that it will be laying off 614 workers in California. The affected employees worked at eight different facilities in Santa Clara.
4.  Bloomer Chocolate Company (food) – By the end of May, will be closing its factory in Chicago’s Fulton River District, which puts 226 people out of a job.
5.  Lands’ End (retail) – Has laid off 10 percent of its corporate staff.
6.  Lidl (grocery store chain) – Plans to layoff about 200 corporate level employees.
7.  Quaker Oats (food) – The Chicago-based unit of Pepsico since 2001, opened its Danville, Illinois plant in 1969. The company announced the plant would be closing, which means 500+ jobs will be gone.
8.  ShipMonk (eCommerce) – Will lay off 148 of its 600 workers (25 percent reduction) by June 30.
9.  Student Transportation of America (transportation for public and private schools) – The Florida headquartered company has about 5,000 staffers and will say goodbye to 225 of them.
10.  Transunion (credit reporting) – Recently reduced its staff by 640 jobs.
11.  Unilver (consumer goods) – Will be laying off 7,500 workers worldwide.

Read my article,  “99 Reasons I’m in Mourning” about the 99-Cents-Only Store closure."

99 Reasons I’m In Mourning

Robin M. Itzler @ American Thinker

“Want to go shopping?” I would ask a friend, and we both knew that included a visit to the neighborhood 99¢ Only Store. We might spend the day shopping at discount retailers, or fashionable clothing boutiques, upscale or discount grocery chains, but somewhere on our journey there would be a trip to “99.”

The “99” was always fun as we found good deals on household products, canned goods, fruits, and vegetables. For budget-conscious shoppers, especially those lacking extra dollars in their wallets because of Bidenflation, the 99¢ Only Store and other dollar stores often meant the difference between buying or passing on a product.

Dollar stores are the perfect place for average Americans to understand how Bidenomics has failed easily. A 99-cent item in December 2020, Donald Trump’s last full month in office, now sells for $1.49. You don’t have to be a mathematician or economist to calculate that after three-and-a-half years of Joe “Big Guy” Biden’s ruinous economic policies, that is a whopping 50 percent increase!

Image: A 99¢ Only Store in Las Vegas by TaurusEmerald. CC BY-SA 4.0.

Ah, but aren’t government agencies reporting a consumer price index of around 3.2 percent? They can announce whatever they want, but those who do the weekly shopping know those numbers aren’t accurate.

History of single-price stores

Headquartered in Commerce, California, there are 99¢ Only Stores in Arizona, California, Nevada, and Texas. Founder Dave Gold pioneered the single-price retail concept in 1982.

However, single-price selling has been around for a long time. The concept of offering an array of merchandise at uniform prices started more than 145 years ago. It’s a success story that could only happen in America, where our constitutional republic and free-market capitalist system offer people with humble beginnings immense opportunities to achieve their goals.

In 1879, Frank W. Woolworth opened a store in Utica, New York, that only offered items at five or 10 cents. The store failed. It’s a good thing Woolworth didn’t give up. He quickly opened the same type of store in Lancaster, Pennsylvania, and it was an immediate success.

A hurtful incident in his youth made Woolworth determined to offer discounted items and treat every customer with respect.

In a formative moment as a child, Frank traveled into Watertown with his brother to find a birthday present for their mother. The siblings had scraped together fifty cents for the gift. They spotted a silk headscarf in the window of a department store and went in to pay. They were very hurt when the sales staff teased them for paying in loose change, sneering that next year they might raise enough for a proper gift. Frank walked out and bought a similar item in another shop where the staff were more polite. In later life he recalled the event, and how he had told to his brother that one day people would be able to buy five or even ten items for fifty cents, and shops would give helpful and friendly service to everyone, both rich and poor.

When Woolworth passed away in 1919, the New York Times obituary said that “he made his money not by selling a little for a lot, but by selling a lot for a little.” The Woolworth chain closed its last store in 1997.

Dollar stores today

High rents and theft are a key reason many dollar stores are closing in medium and large cities. However, dollar stores in rural locations are thriving. Dollar General just opened its 20,000th store in Alice, Texas, with plans to open 800 more this year! By focusing on rural locations, they have less competition, lower real estate expenses, and less chance of retail theft. (At least not at levels seen in larger cities where culprits walk in, shove items into bags, and walk out knowing there’s little chance they will be arrested and/or prosecuted.)

Who knows how long the other dollar chains will last? Family Dollar, whose parent is Chesapeake, Virginia-based Dollar Tree, Inc., announced it will close 600 Family Dollar and Dollar Tree stores.

The Dollar Tree empire employs nearly 212,000 employees (retail staff, distribution center, and store support). How many will be affected by the announced Family Dollar and Dollar Tree closures?

As to the 99¢ Only Stores closures, news reports have focused on disappointed customers. If you are lining up to buy discounted items at the “99” during its final weeks of operation, be extra kind to the hardworking employees. Staff have told media outlets that they received the required 60-day notice but will not receive any severance.

Maybe once the stores close, all the “99” employees should head down to Mexico. Wearing a sombrero, they could waltz back across Biden’s Open Border. Once on American soil, they can tell border patrol agents they have 99 reasons for seeking asylum in the United States. At that point, it’s possible a Democrat party representative will tell them (in Spanish) about 99 freebies they can receive as the Biden administration gives illegal alien invaders free medical, free housing, free education, free food, free iPhones, to list a few.

These freebies were never given to hardworking but low-paid 99¢ Only Store employees or America’s heroic but now homeless veterans.

Add the death of dollar stores to the list of Biden failures

The death of the “99” and other dollar stores can be added to Joe “Big Guy” Biden’s growing list of “accomplishments”:

• Concern for Ukraine’s borders, not America’s borders.
• Rampant violent crimes (many committed by illegal aliens) that injure or kill innocent Americans.
• A “defund the police” mentality that is reducing police forces in major cities.
• Giving squatters more rights than homeowners.
• Incentivizing an illegal alien invasion using an array of freebies.
• Allowing fentanyl, other toxic drugs, and human trafficking to come through the porous border.
• Sky-high inflation (20+ percent last three years).
• Multiple international fiascos: disastrous Afghanistan withdrawal, Russia invading Ukraine, and Hamas attacking Israel.
• Ongoing support for Hamas, a terrorist group which has as its goal destroying Israel and killing Jews and Christians.
• Making enemy nations Iran and China rich.
• Record-breaking high gas prices.
• Destroying America’s energy independence.
• Pushing electric vehicles when the infrastructure cannot support them.
• Promoting failed solar panels and wind farms that kill animals and can’t provide the promised energy.
• Ignoring SCOTUS decisions (i.e., paying off student debt).
• Embracing the mentally ill trans agenda.
• Engaging in lawfare against members of the opposing political party.
• Giving us a two-tiered justice system.

That’s just a few of Joe Biden’s Democrat “successes.” Dollar store closings are number 99 on the list.

Robin M. Itzler is a regular contributor to American Thinker. She can be reached at PatriotNeighbors@yahoo.com.

Bidenomics Inching Closer to Government Price Controls

by Andrew Moran | Mar 11, 2024@ Liberty Nation News | Tags: Articles, Business News, Opinion 

Bidenomics is about ushering in the retro economy. Since President Joe Biden’s time in the White House began, inflation touched a 40-year high, interest rates climbed to a 23-year high, and household food spending reached a 33-year high. Price controls, a potential public policy emanating from the brightest minds in the administration, could be enacted for the first time in about a half-century. What is old is new again.

Creeping Toward Price Controls

As part of his efforts to clamp down on what he calls greedflation, President Biden launched a new “strike force” to fight “unfair and illegal corporate pricing.” What this even means is unclear. The joint Federal Trade Commission and Department of Justice task force will target businesses and how they price their goods and services. The White House’s chief argument is that inflation has slowed so much since peaking in June 2022 that consumers should be witnessing relief by now.

“Over the last year, supply chains have returned to normal, and inflation has come down,” said National Economic Council Director Lael Brainard in a call with reporters. “Some corporations aren’t passing those savings on to consumers. President Biden is fed up with corporate practices that unfairly raise costs for consumers and he’s taking action.”

Liberty Nation has debunked this myth. If companies were ripping off consumers, the producer price index, which is essentially what businesses pay, would have been flat during the current inflationary episode. Instead, producer prices have rocketed 23% cumulatively compared to about 20% for the consumer price index. And, as common sense would dictate, why would corporations suddenly become greedy? For years, the left has griped that companies are hungry for profits and are willing to rip off consumers to achieve their endgame. In other words, it does not make sense.

The chief concern is that the president could be inching toward reintroducing government price controls in the US economy unless he gets his way.

Bidenomics Meets Nixonomics

In August 1971, then-President Richard Nixon issued a 90-day freeze on prices and wages to rein in inflation. It had been nearly three decades since the federal government imposed price controls on the public. Unsurprisingly, the Nixon Shock was an economic failure, triggering a recession, manufacturing stagflation, depreciating the US dollar, and creating shortages. In the preceding months, Nixon knew of the ramifications of wage and price controls, warning that these prescriptions were socializing the United States.

Here is what Nixon stated in February 1971:

“Here’s my concern about the freeze… There is strong support for a wage board and wage-price controls and particularly from sources like [Federal Reserve Chair] Arthur Burns. The difficulty with wage-price controls and a wage board, as you well know, is that the God damned things will not work. They didn’t work even at the end of World War II. They will never work in peacetime.”

The then-president was correct. They never work, whether in wartime or peacetime. And yet, despite the mountain of evidence rejecting this flawed policy mechanism, officials worldwide have employed these measures. In the world’s largest economy, they are slowly making a comeback, and observers, including the US Chamber of Commerce, are noticing.

Neil Bradley, US Chamber of Commerce executive vice president, cautioned about the incremental approach to establishing government price controls. He wrote following Biden’s announcement of another task force (there have been a dozen since 2021): “This effort by the Biden Administration to use regulatory agencies to micromanage how private businesses set prices will have the same result: shortages, fewer choices for consumers, a weaker economy, and less jobs.”

Consumers have already witnessed some of the effects of price controls introduced by the administration. In the Inflation Reduction Act, officials installed price caps on various prescription drugs under the legislation’s provisions. Earlier this year, Liberty Nation reported that several companies are raising prices for other products, suspending research into treatment for other ailments, and adjusting timelines for creating other medications.

Like rent controls, price controls on anything never work.

The War on Profiteers

In 1919, economist John Maynard Keynes discussed how the so-called profiteers would be society’s target in an inflationary climate. “To the consumer, the business man’s [sic] exceptional profits appear as the case (instead of the consequence) of the hated rise in prices.” In other words, when this odious tax ravages consumers, the public will turn its collective wrath on capitalists. Businesses thrive while everyone else suffers, they would say. Keynes’ ideas can be harshly judged, but these sage words are appropriate for today’s world.

 

Read More From Andrew Moran