California Free Press

Off the Top of My Head

The Asylum Law Needs to be Changed

by John Lawrence

Right now anyone who can set foot in the US illegally can ask for asylum and have their day in court 4 or 5 years from now. So they get a free pass to live in America for at least 4 to 5 years. The asylum law was not set up to accommodate economic migrants which approximately 80% of them are. The result is that the border is overrun with desperate people seeking to set a foot on US soil. I am a proponent of legal immigration. However, there can be legal immigration without the border being overrun with essentially bogus asylum seekers. Even if the asylum law is changed, people will still attempt to get into the US illegally. For that reason the border needs to be strengthened whether by physical or electronic barriers. I hate to say it but Trump, despite his buffoonery about building a 30 foot wall and getting Mexico to pay for it, has a valid point, and I say that as a Democrat and one who thinks Biden is one of the greatest US Presidents. There is much confusion about legal immigration, illegal immigration, refugees, migrants and asylum seekers. Suffice it to say that the advantages of living in the US compared to any other country in the western hemisphere except Canada are such that people will risk their lives to get here, and that legal immigration pales in comparison with illegal immigration plus asking for asylum which legalizes getting across the border by any means necessary according to existing law.

Many plans have been put forward to stem the flow of illegal border crossers such as creating safe zones in other countries from which people could apply for asylum, setting up courts in other countries to separate out those who have valid claims of asylum and the approximately 80 per cent that don't. Also US aid to countries to create better conditions so that people don't seek to come to the US in the first place has been suggested. There is something to be said about processing people in Mexico or some other south or central American country to determine if they have a legitimate claim of asylum. However, it won't work as long as people can set foot in the US illegally and then ask for asylum which is how the law now stands. Immigration courts need to be streamlined. There shouldn't be 4 or 5 year back logs. Processing asylum seekers needs to be expedited. As it now exists, the system is ridiculous and people hoping to live in the US legally or illegally are exploiting the laws.

So the border needs to be strengthened in terms of both physical and electronic barriers - not necessarily Trump's 30 foot wall which can be fairly easily breached. Electronic barriers and increased manpower could be much more effective. Why isn't satellite imagery being used to detect border crossings? A situation needs to be created whereby it's not in anyone's interests to cross the border illegally because they will be caught and prevented from entering the US and also possibly because, after being caught, they will lose whatever rights they had for legal immigration or asylum seeking. At the same time legal immigration needs to be stepped up to augment the US work force which is badly in need of an increased number of workers in jobs that immigrants typically do. The situation at the border is representative of the dysfunction of American government in that a proper solution cannot be implemented due to the train wreck of American politics which makes it seemingly impossible to create an orderly border so that people and commerce can proceed in a legal manner.

Off the Top of My Head

Most "Aid" to Ukraine is Spent in the US Thus Benefiting US Defense Contractors and Adding to Inflation

by John Lawrence

Financial aid to Ukraine mostly benefits the US military-industrial complex from which Ukraine buys most of its weapons. This money, therefore, floods into the US economy thus increasing inflation because it's well known that money injected into the US economy by the government has an inflationary impact. In an article entitled "Most ‘aid to Ukraine’ is spent in the US. A total shutdown would be irresponsible" we find the following: "A lot of money considered to be "aid to Ukraine" is actually spent in the US. In this op ed, Mark Cancian argues that eliminating that funding would be bad business for both Ukraine and American interests." And the following: "As the discussion above shows, a large part of the aid is spent in the United States. Funding of US agencies, most of the funding for US military forces, most of the military equipment backfill and Ukrainian equipment purchases, and a part of the humanitarian assistance stay in the United States. In all, about $68 billion of the $113 billion enacted (60 percent) would be spent in the United States, benefiting the armed forces and US industry." So advocates for the military-industrial complex itself are arguing that, since the war in Ukraine benefits US business interests, taxpayers should continue to fund it.

Of course no one wants to talk about or connect the facts that when the government spends too much money into the US economy, it tends to have an inflationary impact. I support President Biden with the historic $1.9 trillion American Rescue Plan, the $1 trillion Bipartisan Infrastructure Law, the $53 billion CHIPS and Science Act, the $740 billion Inflation Reduction Act.  Biden has accomplished more than any President since Franklin Roosevelt. Nevertheless, critics of the war in Ukraine are correct when they say that supporting a US proxy war in Ukraine is having an inflationary effect on the US economy. Probably all the previous government spending, although beneficial, had a lot to do with causing inflation in the first place. More government spending is pouring even more money into the US economy at a time when the government should be using its authority to decrease the US money supply thereby helping to bring inflation down. Thy could do this, for example, by taxing the rich. Too much money sloshing around in the economy causes inflation. Too little money in the US money supply has the opposite effect - deflation.

The possibility arises that the US has gotten itself into a forever proxy war of attrition in Ukraine based on the noble premise that Ukraine has a right to join NATO. The alternative to that forever war, which will only result in the loss of many more Ukrainian lives, the destruction of Ukrainian families and the loss of billions of dollars of Ukrainian real estate and infrastructure, is a peaceful solution to the war along the lines of a ceasefire and Russian control of the portion of eastern Ukraine that it has controlled since 2014 including Crimea with western Ukraine becoming a member of NATO. Additionally UN peace keepers could patrol the border between those two entities to maintain a peaceful, stable border. Historically, Ukraine had been a part of Russia since the era of Catherine the Great in the eighteenth century, but only gained full autonomy by virtue of the fact that Premier Nikita Khrushchev granted it independence in 1954. So the history is complex. What is important now is to settle the conflict by a ceasefire and recognition of the current de facto borders. This is important not only from the point of view of Ukraine in light of a continued loss of life and real estate, but in view of the continued drain on the US economy. The money going to fund the war in Ukraine by the US could be better spent at home or not spent at all in light of the continuing, albeit reduced, inflation.

Off the Top of My Head

Congress Gets Paid While Government Shuts Down: Perfect!

by John Lawrence

A bunch of highly paid do-nothings keep getting paid while average paycheck-to-paycheck people starve. It doesn't get any better than this. The leader of the free world can't even keep its government functioning. What's wrong with this picture? Or, if you prefer, what a revolting development this is. Obviously, the founders did not contemplate this! Republicans want to reduce government spending, but they're not interested in reducing spending for the bloated defense department. They want to spend more on defense (offense), and they're only too happy to talk about all the wonderful new weapons the US is developing like the F-35 which continues to crash. Every one costs $150 million by the way. Recently a pilot bailed out of one and let it crash rather than trying to land it and save the country $150 million. And then there are the ATTACKEMS. What a clever name! Let's attack em before they ATTACKUS. Now Republicans don't want to spend any more money on Ukraine. Does that mean the US and NATO will have to negotiate a peace settlement? What a disaster - being forced to stop the killing because of an inability to ATTACKEM any more. As a last option we would be forced into peace instead of WINNING! What a disaster! No more killing? No more generals on TV telling us how disastrous this would be?

All the generals and spokesmen - and they are mostly men -  for the military-industrial complex, who only can think in terms of war and winning, cannot even contemplate that a negotiated peace settlement might be even possible. For them peace is an unmitigated disaster. Lockheed's profits might even go down. At least one thing Elon Musk has done is to show that it's possible to do great things without the venerable cost plus contracts that the military industrial complex prefers. Musk just gets paid for performance not cost plus. Cost plus contracts incentivize private industry to delay the finish date and run up costs because their profits are guaranteed to be a percentage of those costs. So, what the hell, the more something costs, the more money they make! Fortune magazine wrote: " Lockheed Martin’s $1.7 trillion F-35 fighter jet is 10 years late and 80% over budget—and it could be one of the Pentagon’s biggest success stories" Subtitle: "How America's biggest defense contractor turned a military spending fiasco into a business victory." You could say much the same for the bureaucracy at NASA. Musk totally showed them up with a workforce one tenth the size. Can you say "BLOATED" and by the way, "SCLEROTIC." Now the US government relies on Elon Musk for its space program. Pitiful. But at least it's saving the taxpayers money. You go, Elon!

Well, at least, SpaceX won't be shutting down although they probably won't be getting paid either. Perhaps Musk could build the next jet fighter for a fraction of the cost of the F-35. Meanwhile, part of the world is laughing at the fact that the US government can't even keep the lights on. And part of the world is crying in their beer about the fact that the US can't keep the lights on. I'll leave it up to you, dear reader, to guess what parts are laughing and what parts are crying.

Off the Top of My Head

These Two Things Do Not Compute: Shutting Down the American Government and Lecturing the World About the Virtues of American Democracy

by John Lawrence

The US power structure dominates the world in terms of its military bases. The US controls about 750 bases in at least 80 countries worldwide and spends more on its military than the next 10 countries combined. The US also controls the world's financial transactions. The dollar’s role as the primary reserve currency for the global economy allows the United States to borrow money more easily and impose painful financial sanctions. With the US' dominant position in world affairs, you would think that it would be impossible for a handful of representatives in Congress to shut down the entire US government. But that is exactly the situation the US and the world is in. The US is the leader in world affairs. Yet the leader can't even keep the lights on. Other countries are looking at this. Nixon called the US a pitiful, helpless giant. He said, "If, when the chips are down, the worlds most powerful nation, the United States of America, acts like a pitiful, helpless giant, the forces of totalitarianism and anarchy will threaten free nations and free institutions throughout the world." So what is the US when its government shuts down? Exactly that: a pitiful, helpless giant. Its military personnel on the 750 military bases won't get paid. How's that for demoralizing the military? Service members will continue to report for duty, though they will not get paid during a shutdown. And many of the hundreds of thousands of civilians who work for the Department of Defense will likely be furloughed, says White House National Security Council spokesperson John Kirby. Air traffic controllers will not get paid either although they will be required to report for work as well. Does that portend more close calls at airports?

The world is watching. American diplomats are fond of lecturing other world leaders about the pitfalls and shortcomings of their governments. However, their governments probably would not be caught in the pickle of a complete government shutdown. Nor would the governments of the civilized world, with the exception of the US, contemplate putting a person with 91 criminal indictments into the position of their President. The US is much in the need of updating. It is giving democracy a bad name in the sense that the national dialogue is turning into a clown show. Trump's rallies are providing entertainment for his base which is an audience that is more addicted to being entertained than it is to supporting a leader who is devoted to improving their lives. This reminds me of Hitler's rallies which were designed as pageantry for its entertainment value. It sure enthralled the German people. People are loyal to a leader who entertains them, who moves them, not one who will use the legitimate levers of government to improve their lives or to make the country and/or the world a better place. Joe Biden is the opposite. He has made the country and the world a better place despite not being very entertaining. That's why he's not leading Trump in the poles. Trump's base (cult) are excited by Trump. Biden's base, if you could call it a base, are ho hum. Oh well, I guess he's done some good, but I'm not excited. For Trump's base excitement is the sine qua non.

Getting back to the military NPR reports the following:

Separately, the Department of Defense says post and base services would be closed or limited, while elective surgeries and procedures in its medical and dental facilities would have to be postponed. Commissaries would remain open overseas but close in the U.S.

And certain Pentagon activities, like operational planning and military recruitment, will be paused.

Defense officials warned earlier this week that a shutdown would strategically "play into the hands of U.S. competitors" because it would cost time as well as money. Deputy Pentagon Press Secretary Sabrina Singh called it "the worst thing that could happen."

"The U.S. military's going to continue to do its job and protect our national security interests, and of our allies and partners as well," she said, adding that a shutdown would make those efforts harder. "When you don't have your full operating capacity to be able to help with the mission, to be able to conduct an exercise or training, of course, that gets to our national security and readiness."

Kirby agrees that a prolonged shutdown could harm national security, especially when it comes to delayed management of DOD contracts for things like maintenance, logistics and procurement.

So five Republican representatives can act collectively as dictators to threaten national security as well as domestic tranquillity, and there's absolutely nothing anybody can do about it. This is democracy in action? This is the vaunted "rule of law"? What exactly is this except a fly in the ointment of democracy or in any system that purports to be a democracy and what does this say about the world's military and financial leader? Other countries are watching this spectacle.

Off the Top of My Head

It's Not Biden's Job to Reduce Inflation. That's Jerome Powell's Job.

by John Lawrence

Republicans are so stupid. They blame Joe Biden for not doing something that's not his job to do. Furthermore, the way Powell is going about his job requires him to create more unemployment, to reduce economic activity. That's the traditional way to reduce inflation. So getting rid of inflation requires more economic pain not less. Then if there is a recession, they'll blame Joe Biden, not Jerome Powell, for that. As far as house prices being out of sight for more and more people, how about blaming the hedge funds and other entities that are bidding up asset prices. Eventually houses will be unaffordable for the masses of people which will turn the American people into renters and basically debtors. Is that Joe Biden's fault or the fault of hedge finds and other cash flush investors who are entering this market? In fact they are in the process of cornering this market. Higher interest rates are also hurting would be home owners and car buyers. Is that Joe Biden's fault or Jerome Powell's fault for raising interest rates? Joe Biden has no control over interest rates. The American consumer is all about me, me, me not what is best for the country as a whole.

Biden has done more than any President since Lyndon Johnson to improve the economy with the Chips Act, the Inflation Reduction Act, the American Rescue Plan and more. Nearly 11 million jobs have been created since President Biden took office – including 750,000 manufacturing jobs. It's the first time the US government has had an industrial policy. He kept the economy afloat during the COVID lock down. The US economy has been left to free enterprise for too long. With deregulation this has allowed corporate entities to pollute, to create dangerous products, to do nothing about carbon dioxide emissions.The government was just supposed to be hands off and let corporations run wild, all in the name of maximizing GDP. Well there are more important things than maximizing GDP like saving the planet from global warming. It is all ready too late to do that. It's only a question at this time of how bad it will get before some of the measures that are being taken today will kick in and save the planet, hopefully, from complete destruction. Each year heat waves and floods are getting more severe. Each year is hotter than the previous year. How important is it to maximize GDP under these conditions?

During World War II, the government made sure that the economy was completely focused on the war effort. Consumer consumption was kept low in order to support the war effort. Today with an even larger danger looming, the economy is going on its merry way with so many elements of it not focused on climate change. In fact I call it the Taylor Swiftization of the economy. Entertainment including professional athletics are very large components of GDP. Nero fiddling while Rome burned is nothing compared to what is happening today. Perhaps the energy going into these frivolous sectors should be refocused on climate change. But the American people don't even all agree that climate change is even a serious situation. They want more fossil fuels, more drilling, more pipelines, more gas production. Fortunately, some states like California are doing more like outlawing gas powered cars by 2035. However, 2035 is too late. Too little, too late is the story of the world's response to climate change. So major disasters will continue with the government's fiscal budget increasingly committed to bailing out these disasters. FEMA, by the way, is bankrupt, and insurance companies no longer want to insure.

Off the Top of My Head

How Trump and All His Co-defendants Will Win

by John Lawrence

In a nutshell: get one Trump voter on the juries. You need all 12 jurors to agree that someone is guilty. You need only one Trump voter on the jury to acquit. Who wins? The lawyers who will make millions. The media who will be transfixed with this legal circus. It'll end up being much ado about nothing. If Trump happens to be found guilty and actually faces jail time, he will probably leave the country. Why should a billionaire or semi-billionaire, who has assets in other countries and probably money stashed away off shore, willingly go to some sleazy jail or even some country club jail when he could live well in some other country? Trump is not exactly a loyal American citizen who adheres to the rule of law and playing fair. He can declare from abroad that he is some sort of President in Absentia and his loyal followers will still probably send him money. He will say he is prepared to come back to America as soon as his followers take political power and he can come in riding on a white horse.

Trump and his lawyers like constitutional scholar John Eastman who set up the fake electors scheme will work the system, and, if they can't convince one juror of their innocence, they will get themselves pardoned by the next elected Republican President which could be in 2024. American voters are nothing if not fickle. They have one of the best Presidents in American history who, despite great odds, accomplished more than anyone since Lyndon Johnson. Biden's popularity is in the tank despite his accomplishments. Why is this? Maybe because of his age. Maybe because he's not "charismatic" enough. Trump voters seem to be impressed by his charisma first and foremost. I guess charisma and popularity, not competence, is what gets you elected President in this country. Even as he faces 91 criminal indictments, on the TV it's all Trump, all the time. Just like the movie Trump is everywhere all the time all over the place.

Trump and his lawyers had a scheme for replacing electors, but it was not all that far fetched. Until 1913 state legislatures had control over electors. Passed by Congress on May 13, 1912, and ratified on April 8, 1913, the 17th Amendment modified Article I, Section 3, of the Constitution by allowing voters to cast direct votes for U.S. senators. Prior to its passage, senators were chosen by state legislatures. So Eastman and others were just trying to argue that there was something unconstitutional about the 17th Amendment. The Supreme Court might have been convinced that he was right and the state legislatures should have the final say in which case Trump would have been elected, not Biden. Republicans have used the Supreme Court before to get George W Bush elected in 2000 despite the fact that, when all the votes were counted, Al Gore really won the election. Bush convinced the Supreme Court to stop counting the votes. The result was the disastrous George W Bush administration in which he lied us into the Iraq war.

Republicans have been using dirty tricks for years to get themselves elected including gerrymandering and doctoring voter rolls to eliminate black voters. Black politicians and activists say that Republican lawmakers have used racial gerrymandering and voter suppression to secure those majorities and are using their political might to further consolidate power among mostly White Republicans. Republicans have been busy removing black voters from registration lists. According to Mother Jones: Fifty-five percent of the registration notices were sent to municipalities where Hillary Clinton had defeated Donald Trump, according to the Milwaukee Journal Sentinel, and nine of the 10 areas with the highest concentration of voters on the purge list were big cities and college towns that had voted for Clinton. Milwaukee and Madison, the state’s two Democratic strongholds, accounted for 14 percent of the state’s registered voters but 23 percent of the names on the removal list. Voters in predominantly Black neighborhoods or areas with large student populations were nearly twice as likely to be flagged for removal, The Guardian found.

Trump and his lawyers just took dirty tricks to a whole new level. Now they will win in court just by the process of jury selection. It only takes one to find any of the myriad of defendants not guilty.

Off the Top of My Head

The Best Democracy May Not Be One Achieved by Elections

by John Lawrence

For a truly democratic system we would have to go back to ancient Greece and the system developed by Aristotle: sortition. Sortition is the selection of a legislative body randomly by lot. If the American House of Representatives truly represented the American people it would be chosen in this way. There is no more representative way of choosing a democratic legislative body. In the ancient Greek legislative body known as the Council of 500, each representative was chosen by lot. If the American House was chosen in this way, it would a) eliminate the need for money in American politics and b) eliminate the need for political parties in American politics. People have been brainwashed to believe that only a government in which there are elections for the representatives is a true democracy. It's not the only or even the best way. Representatives chosen by lot are more representative of the American people than representatives chosen by election. So at least for the purposes of selecting this body, with sortition the two party system would go by the wayside.

So what would this say about the relative merits of a democracy in which the representative body was chosen by lot and a one party system such as the Chinese government. In other words how would a no party system compare to a one party system , and is a no party system more democratic than a one party system. Yes, certainly it would be. But is a two party system such as the US currently has necessarily more democratic than a one party system. In the Chinese system the lowest deliberative body is voted on by the people. Then there are 3 levels of elections. The first is for the municipal people's Congress which elects the people's congresses of provinces which elects the highest level the National People's Congress. If the National People's Congress were to be selected by lot, then the Chinese system would be truly democratic just as the American system would be if the House of Representatives were selected by lot. Based on this analysis one could argue that the Chinese one party system is just as much a version of democracy as the American two party system and that if both systems used sortition instead of elections by vote, both systems would be arguably more democratic. Whether a system is a one party system, a two party system or a multiparty system such as they have in Europe, the various systems should only be compared on the actual results the system is capable of manifesting and how much their various bodies reflect the wishes of the people.

The American system is currently on the brink of systemic failure due to the fact that there is such a great divisive split between the two parties.The American system notably does not always elect the best and brightest candidates. The Chinese system arguably is more merit based than the US system. In the US a clown and no nothing like Trump can be elected and cause great havoc. In fact he almost instigated a complete overthrow of the American system of democracy. People with money or financial backing stand a better chance of being elected than people of merit or good will. The First Amendment allows candidates to lie about virtually anything, and, if they can convince enough voters that their alternative facts are the true facts, they can win elections. While the Chinese system does not represent the ultimate democratic form of government, neither does the American system. Both systems could be reformed to allow more truly representative government and more successful and capable government. In fact in the US if the House of Representatives were formed by sortition and the Senate were formed by voting or sortition based on a pool of candidates that had at least minimal background, experience and educational requirements, the American system would be quite a bit more democratic than it is right now. The ideal system might be one that approaches as closely as possible to a no party system.

Off the Top of My Head

American Democracy Teetering on the Brink

by John Lawrence

So what are the possible outcomes? Let's assume Trump is the Republican nominee. Option 1: Trump is convicted and goes to jail before the 2024 election. In this scenario, Trump will probably lose the election for President. Independents will be aghast. Trump's base will not be able to organize sufficiently to carry out another assault on the seat of American democracy. There will be sporadic outbursts. In jail Trump will not have the media exposure he has outside of jail. Option 2: Trump is indicted multiple times but not convicted before the 2024 election. Trump probably still loses the national election, but is in a position as a free man to organize another insurrection, this time on a much larger level than the one on January 6, 2021. This could amount to civil war. Option 3: Trump loses the election and subsequently goes to jail. This could also result in a dangerous situation because Trump still has access to an outsize megaphone and continue to rile up his base before he goes to jail and cause trouble leading again to a possible civil war.

As long as Trump is a free man, he can continue to foment a revolution. He can continue to advocate for violence towards his perceived enemies, even those that are a legitimate part of the judicial and legal system. He is already attacking Jack Smith, the special counsel, who is prosecuting him on multiple counts regarding January 6 and also the document handling fiasco. Trump continues to insist that the American legal system is not legitimate. He continues to undermine the legitimacy of the rule of law. His followers essentially consist of a cult who want Trump exonerated irrespective of his purported criminality. As long as Trump is free, he will continue to whip up his followers and lead them to the brink of civil war. Who knows if in addition to Trump's calls for revolution, there is also a parallel movement going on to organize for a response to Trump's being convicted and put in jail or if Trump loses the election regardless of whether he has been convicted or not. Trump's followers are bound and determined to put Trump back in the White House by any means necessary. They will do whatever Trump eggs them on to do.

The United States' continued existence as a democracy cannot be taken for granted at this point. The Republican controlled House can throw the US into chaos if they decide not to authorize the budget. That in and of itself could shut the country down. There is a good chance that they will not authorize the continuance of government spending. There are many other ways that they could partner with Trump to bring the country down. Are some elements of the military also in league with Trump? Who knows. It seems that they were on January 6 when they wouldn't send troops to protect the Capitol on a timely basis. Obviously, some people in the military establishment sympathize with Trump. The influence of Fox News and other conservative media continues to amplify Trump's messages. The First Amendment guarantee of free speech enhances Trump's ability to foment a possible civil war. Trump's base who have grievances going back to loss of the Civil War combined with Trump's perceived grievances reinforce each other. An aggrieved leader and his aggrieved followers represent a volatile mixture

Trump almost succeeded in overturning the American government on January 6. Only Mike Pence stood in his way. Notably, firearms were not a part of the insurrectionists' arsenal as they invaded the Capitol. Marjorie Taylor Greene has said that next time they would bring their fire arms. Could another mob do what they did on January 6, and also be successful at it? Or could they be successful at the State level? These are tenuous times during which a number of scenarios involving Trump trying to take over the American government could play out. His base will never accept the outcomes of any indictments or even convictions. How will they react when he is sentenced to jail for the rest of his life? Or will the prosecutors chicken out when it comes to conviction and putting Trump in jail. If Trump is successful in fomenting a civil war, an unlimited right of Free Speech will be largely to blame. Can Trump be sentenced to shutting his mouth?

Off the Top of My Head

Supreme Court Judgments Undermine the US as a Nation

by John Lawrence

So Harvard can't admit students based on race but can admit legacy student based on the fact that their parents gave money to Harvard. First of all Harvard is a private institution. Why can't it decide for itself how to admit students based on policies of their own making. Why is the government telling Harvard how to admit students. Harvard as a private entity within the United States is entitled to its own freedom without government interference as dictated by the Supreme Court. This conservative Supreme Court will not hesitate to tell government to get out of the affairs of private individuals as it did in the case of the web designer who didn't want to design web sites for gays. Yet it wants to dictate to Harvard what its admission policies should be. If I started a college and wanted to admit only blacks, I suppose the Supreme Court would have an issue with that, but then isn't my admission policy free speech? It seems that everything else is. Whatever anyone wants to do, providing the Supreme Court agrees with it, it declares that that is free speech. The principle is that it doesn't want the government to set any policies at all. According to their philosophy government should be policy neutral. Government should just set a level playing field and then get out of everyone's business. But in the Harvard case they declared just the opposite should hold. The government should be in the business of setting admission policies according to the Supreme Court.

According to conservative philosophy by which the Supreme Court is dominated, the Federal government should have no role in public policy whatsoever. So one of the techniques it uses is to refer everything back to the states. The states should set all policies, not the Federal government. So if a state wants to ban books, it has a perfect right to do so. If a state wants to ban trans males from female sports or bathrooms, its has a right to do so. But of course the Federal government has no right to weigh in on one side or the other. This is the philosophy for overturning Roe vs Wade. Each state should set its own abortion policy. The Federal government does not have a right to set this or any other policy for the country as a whole. Presumably the Supreme Court at some point will also weigh in on the illegality of the Federal government setting policies on the environment and in particular climate change. When all is said and done the only legitimate function of the Federal government will be to have the largest defense department and defense budget in the world. The function of the Federal government will be confined to waging war.

So according to the Supreme Court's philosophy, all social programs like Obamacare or Social Security or Medicare will be relegated to the states. All Federal programs will be deemed illegal. The United States will not even be a nation any more in the sense that France or Germany or China is a nation. The United States will not be capable of having a national policy regarding climate change or anything else. The United States as a nation will be totally weak when it comes to anything except war. There the nation will be all powerful. But when it comes to anything that actually benefits human beings whether here at home or abroad, the United States will be little more than a hollow shell. Other nations will look at the United States, as Nixon stated, as a "pitiful helpless giant." Other nations will not trust the United States since already they know that national policies can change every four years based on which party is in power. Now they also know that the United States has a Supreme Court which is determined to undermine national power at every step and refer everything back to the states.

Off the Top of My Head

Former Rep. Liz Cheney (R-WY) Says Americans Need To Stop “Electing Idiots.”

by John Lawrence

Did the Founders design a Constitution that was idiot proof? Not according to Liz Cheney. Is this a flaw that is inherent to democracy? Not necessarily although it seems to be a flaw in the American system of democracy. There are other forms of democracy that may be more idiot proof. For instance, a democracy in which there are background requirements for political representatives such as education and experience. It is important to have a President who is educated and experienced in areas related to government. The Senate and House of Representatives also should have education and background requirements. Any corporation requires education and experience requirements for jobs. Why should the government be any different? The Hill reported:

Former Rep. Liz Cheney (R-Wyo.) suggested Monday that the problem with American politics is that “we’re electing idiots.”

“Look, I think that the country right now faces hugely challenging and fundamentally important issues,” Cheney said at an event with the cultural and community center, 92nd Street Y, New York. “What we’ve done in our politics is create a situation where we’re electing idiots.”

Cheney, who is a staunch opponent of former President Trump, offered the reflection in response to a question about whether she would run for president if polling showed that it would hurt Trump’s third White House run.

“I don’t look at it through the lens of, you know, is this what I should do or what I shouldn’t do,” the former congresswoman said. “I look at it through the lens of, how do we elect serious people? And I think electing serious people can’t be partisan.”

Cheney, who is a staunch opponent of former President Trump, offered the reflection in response to a question about whether she would run for president if polling showed that it would hurt Trump’s third White House run.

“I don’t look at it through the lens of, you know, is this what I should do or what I shouldn’t do,” the former congresswoman said. “I look at it through the lens of, how do we elect serious people? And I think electing serious people can’t be partisan.”

“I really believe, and I’ve never believed something as strongly as I know this, that the single most important thing for the country is that Donald Trump can’t be anywhere near the Oval Office again,” she said.

The question is how do you accomplish "not electing idiots" within the constraints of the American system? Or should the American system be redesigned to accomplish this goal? Perhaps the first item should be to educate the populace in such a way that the voting pubic contains as few idiots as possible. If the electorate is a bunch of idiots, then they will elect someone who looks like them - namely, an idiot. The second thing is that perhaps people running for office should be required to take a test, the results of which would show their knowledge of the position they aspire to whether it's the Presidency, the House or the Senate. Americans are subjected to testing all through their educational experience. Corporations that hire American workers are very interested in their test scores. They want to know whether or not the person they are hiring is an idiot. Why doesn't this apply to politicians as well? Otherwise, running for election comes down to a popularity contest and very often a blood sport. Is this the kind of person who should be running our government?

Off the Top of My Head

Is Voting a Necessary Component of Democracy?

by John Lawrence

Many people consider voting the sine qua non defining characteristic of democracy. However, the inventors of democracy, the ancient Greeks, did not. Their legislative body, the Council of 500, was chosen not be voting but by lot, in other words randomly. Arguably, random selection is more democratic since it guarantees a legislative body which actually represents and reflects all of the people. Voting, at least in the US, does not result in a legislature that reflects the actual composition of the electorate because the candidates need a lot of money even to get on the ballot. Random selection requires no money, just a complete list of all citizens. A legislature which reflects the actual composition of the electorate is more democratic than one that reflects only the composition of the moneyed class. Therefore, voting must be disassociated from democracy in the larger sense. So let's ask the question how is the Chinese legislature, the National People's Congress, chosen? It is chosen by the people by voting although the nominees are chosen by the Communist Party. It could be argued and debated how well the National People's Congress reflects the actual composition of the electorate. It could also be argued which system, the American system or the Chinese system is more democratic in the sense that the national legislative body represents and reflects the actual composition of their respective electorates. My guess is that the American two party system is only slightly more democratic than the Chinese one party system. Someone should do a study and comparison.

In addition to getting money out of politics, random selection, which is also known as sortition, would end the districting system and gerrymandering. The House would reflect the composition of the US electorate. Instead of an elaborate system of voting and majority rule, all you would need is a data base of all 330 million Americans and a program for random selection. Voting systems in and of themselves are controversial (which of the several available voting systems should be used), and majority rule is notorious for leaving out minorities.  The US system know as first past the post practically determines that the US will be a two party system. Third parties contribute the "spoiler effect," which we've seen all to often in Presidential politics, for example, when Ross Perot and Ralph Nader ran as third party candidates. They just take votes away from the party that they are closer to on the political spectrum helping the other party to win. The Chinese have a one party system and the US has a two party system which is probably only somewhat more democratic than the Chinese system if the measure of democraticness is that the legislature represents a reflection of all the people. The European parliamentary system is a multiparty system where minorities are better represented than in the US or Chinese systems, and hence, is more democratic than either of them. A further benefit of random selection us that extremists and extreme parties are unlikely to be over represented in the outcome. In fact political parties would have no reason to exist if the legislature was chosen by sortition.

Rousseau says in The Social Contract, " 'Election by lot,' says Montesquieu, 'is of the nature of democracy. ' I agree , but how is it so? 'The lot,' he continues, 'is a mode of election which mortifies no on; it leaves every citizen a reasonable hope of serving his country.' "Montesquieu , by the way was one of the chief architects of society that the Founders took as an example in their design of the US Constitution. Sortition was used in the Athenian democracy. With few exceptions, all magistrates were chosen by lot, beginning with the archons in 487–486 BC; likewise the Boule (council) of 500 and the juries of the law courts were chosen by lot. Sortition is used in the American system for jury selection.

My reform of the American system would be #1) The legislature should be chosen by sortition to serve 4 year terms. Pay would be high enough to induce the average person to want to serve. The only requirement would be US citizenship. #2) The Senate would be chosen by sortition among the people who met certain educational and experiential background requirements. The term would be 6 years. #3) The Supreme Court would be chosen from among the people with even more stringent background requirements especially in law and government. The term would be 8 years. #4) The President would be chosen by means of an electoral system with an advanced method of voting like approval voting. The electoral college would be abolished. The President would serve for 4 years with the possibility of serving two terms if the people elected him again. At any level of political participation people could opt out of the pool of which otherwise they might be randomly selected. We have already seen in 2016 with the election of Donald Trump how extremists can be elected by purveying false information and outright lies creating a cult following. The elimination of political parties altogether would transform politics from the Chinese one party system, the American two party system and the European multiparty system to in fact a more democratic no party system.

Off the Top of My Head

Why Americans Want Republicans and Democrats to Alternate Election Cycles

by John Lawrence

Democratic Presidents get elected and hand out a bag full of goodies, but there's no plan to pay for them. Then the American people elect Republicans because Republicans say in effect, "You don't have to pay for the goodies the Democrats gave you, and, furthermore, we'll even give you a tax cut." So is there any wonder why Democrats and Republicans alternate being elected? Or why the national debt keeps increasing? Goodies not paid for followed by tax cuts followed by more goodies followed by more tax cuts. The American people are wise to keep alternating these election cycles between Republicans and Democrats. Now that the Republican accusation of "tax and spend" aimed at Democrats has been followed by Democrat protestations of "tax the rich and spend", the wind has been taken out of Republican sails. Most of the national debt has been racked up by Republican tax cuts which mainly have benefited the rich. But as long as the Republican middle class has gotten teenie weenie tax cuts, they're more than satisfied. With Trump as their champion, Trump could even reduce taxes on the rich and increase them on the middle class and the Republican middle class would still love him. He's very special.

So why is the increasing national debt even an issue? For sure it never has to be paid off by our children or grandchildren ad infinitum. There are 2 reasons though why it is important. #1) The interest on the national debt is a budget item and it keeps increasing crowding out other budgetary items. #2) The Treasury debt assets held by other countries represent funds that can be used to purchase US assets. Of these #1 is probably the most worrisome. Interest on the debt could be controlled by the Fed and the Treasury working together. The Fed can buy Treasuries thus reducing the amount on the market or held by other entities. When interest is paid on Treasuries held by the Fed, it reverts to the Treasury Department so basically Treasuries held by the Fed are interest free - they cost the government nothing! Secondly, the Treasury Department can set the interest or coupon values for Treasuries very low. There is no need to raise the rates paid on Treasuries to reflect market interest rates because there is no need to sell any particular amount of Treasuries. Treasuries are just a safe warehouse for funds regardless of their coupon values and so there will always be a market for them, and the Fed can always by any unsold Treasuries. This is just a policy that has been in effect for years called quantitative easing. It's a tried and proven policy, and there is nothing new or revolutionary about it.

So let's examine the composition of the national debt. Without the Bush and Trump tax cuts, debt as a percentage of the economy would be declining permanently. The nation’s fiscal pictured changed in 1981 when President Ronald Reagan enacted the largest tax cut in U.S. history reducing revenues by the equivalent of $19 trillion over a decade in today’s terms. Although Congress raised taxes in many of the subsequent years of the Reagan administration to claw back close to half the revenue loss, the equivalent of $10 trillion of the president’s 1981 tax cut remained. The George W. Bush administration, empowered by a trifecta in 2001, enacted sweeping tax cuts that will have cost more than $8 trillion by the end of fiscal year 2023. These legislative changes—the Bush and Trump tax cuts—are responsible for more than 90 percent of the change in the trajectory of the debt ratio to date, and will grow to be responsible for more than 100 percent of the debt ratio increase in the future. The Trump tax cuts cost $7.8 trillion. The national debt is approximately 32 trillion,and, toting up the figures listed above, it can be seen that approximately $26 trillion of this is due to the Reagan, Bush and Trump tax cuts.

So politicians of both parties have colluded to give the American public everything they want: goodies plus a free lunch when it comes to taxes. American voters just need to alternate administrations! Americans don't vote for a President based on all he's done for the American people. Case in point: after all Joe Biden has done for the American people (in terms of goodies), Americans will probably elect a Republican President in 2024 so they won't have to pay for it. They will get a tax cut instead. And tax cuts are the gifts that keep on giving year after year ... mainly for the rich! Some might say this phenomenon of incentivizing voters to alternate the party in power is a flaw in American democracy. Keeping the same party over several election cycles might result in more consistency in government policy, but democracy is messy. The question is is it too messy. Is there a better way?

Off the Top of My Head

Interest on the Debt or the Whole National Debt Could Be Wiped Out by the Fed Tomorrow

by John Lawrence

One of the largest components of the Federal budget is interest on the debt. But the fact is that interest rates on Treasuries don't have to go up when the Fed raises interest rates. The Fed raises interest rates by adjusting the Federal Funds Rate. The Federal Funds Rate is one of the Federal Reserve’s key tools for guiding U.S. monetary policy. Here’s how it works: Customers deposit money at banks, and those deposits provide banks with the capital needed for extending loans and other forms of credit to their customers. Regulators require that banks and other depository institutions keep a certain percentage of their total capital in reserve, to help guarantee their stability and solvency. Banks often need to borrow money from other financial institutions overnight to meet regulators’ reserve requirements—or they may end up with excess reserve capital to lend out to their peers. The federal funds rate provides a reference for institutions as they are borrowing or lending reserves. A bond issuer such as the Treasury Department decides on the coupon rate for its bonds based on prevalent market interest rates, among other things, at the time of the issuance. So the Treasury Department has complete control over the coupon at the time of the issuance of the bond. It doesn't need to consult the market or the Fed or the secondary market for Treasuries which is the market in which Treasuries are traded after they are auctioned off originally. Furthermore, it does not have to rely on the primary market either to sell a sufficient amount of Treasuries so the government can pay its bills. That's because the Fed can buy any unsold Treasuries and just place them on its balance sheet. The Fed buys and sells Treasuries all the time.

All monetary policy decisions of the Federal Reserve--including buying and selling securities--are made independently of the borrowing decisions of the federal government and are intended solely to fulfill the mandate set out for the Federal Reserve by law--maximum employment, stable prices, and moderate long-term interest rates.

The Federal Reserve purchases Treasury securities held by the public through a competitive bidding process. The Federal Reserve does not purchase new Treasury securities directly from the U.S. Treasury, and Federal Reserve purchases of Treasury securities from the public are not a means of financing the federal deficit.

In financing the federal deficit, the federal government borrows from the public by issuing Treasury securities, which are sold at auction according to a schedule that is published quarterly. The Treasury determines the types and amounts of Treasury securities sold at auction with the goal of achieving the lowest financing costs for the federal government over time. The Federal Reserve does not participate in competitive bidding at Treasury auctions, and the Treasury's debt management decisions are not influenced by the Federal Reserve's purchases of Treasury securities in secondary markets.

When the Fed was goosing the economy with quantitative easing, QE, it bought mortgage backed securities and also Treasuries. Quantitative easing refers to the fact that the Fed bought up ill performing or bankrupt assets held by private banking institutions like Collateralized Debt Obligations, CDOs, which ere worthless mortgages packaged together, for cash which was then injected into the bank. Presto chango, now the bank was healthy again instead of being burdened by these worthless CDOs. When QE was in place, the Fed purchased other securities on the open market, including U.S. Treasuries. “Under this program, the Fed became one of the biggest buyers of Treasury securities in the market,” says Tom Hainlin, national investment strategist at U.S. Bank. So the point is that although "the Treasury's debt management decisions are not influenced by the Federal Reserve's purchases of Treasury securities in secondary markets," the Fed could purchase Treasuries if they went unsold when they were first introduced into the primary market, and it can always buy Treasuries on the open or secondary market. This flexibility means that the Treasury doesn't have to set coupon rates on its Treasuries based on market interest rates, and that means that interest on the national debt could be controlled. The Fed could buy up Treasuries with high coupon rates and replace them with low coupon rate Treasuries or not replace them at all. Interest on the national debt could be reduced to an insignificant amount based on the Fed's operations. The fact that the Fed's balance sheet is growing by all these QE activities means absolutely nothing. In fact the Fed's balance sheet could swallow up the entire national debt. It would be just a figure on an accounting sheet of no consequence.

To answer the question posed by this article, "Why do Interest Rates on Treasuries Have to Go Up When the Fed Raises Interest Rates", they don't. People will want to hold Treasuries regardless of their value because their money is absolutely secure. That's the key point.

Off the Top of My Head

Biden: The Least Appreciated Great President in American History

by John Lawrence

President Biden has gotten more real work done for the American people than any President with the exception of Franklin D. Roosevelt. So why is his job approval rating so low - just 39%? Chalk it up to the fickleness of the American people. They don't know a great President when they see one. Biden has been able to do so much with much narrower margins in Congress than FDR had in all his terms as President. In fact Roosevelt had Democratic majorities in both the House of Representatives and the Senate from 1933 until his death in 1945, and in those days the filibuster was a speaking filibuster that delayed but didn't terminate legislation and so was of little consequence compared to the fact that today 60 Senators are required to pass any bill.

So what are some of Biden's accomplishments? The Inflation Reduction Act is a historic legislative achievement that lowers costs for families, combats the climate crisis, reduces the deficit, and finally makes the largest corporations pay their fair share. For the first time, Medicare is able to negotiate the price of certain high-cost drugs, a month’s supply of insulin for seniors is capped at $35, Medicare beneficiaries pay $0 out of pocket for recommended adult vaccines, and seniors’ out of pocket expenses at the pharmacy will be capped at $2,000 a year. Historically low unemployment at 3.5%. A manufacturing boom is occurring. Companies have announced nearly $300 billion in manufacturing investments in the United States. These investments are ensuring the technologies of the future are made in America, and bringing back supply chains from overseas. And they are creating good-paying jobs, including union jobs and jobs that don’t require a four-year degree. As part of the bipartisan CHIPS and Science Act, the Department of Commerce is overseeing $50 billion to revitalize the U.S. semiconductor industry, including $39 billion in semiconductor incentives. The first funding opportunity seeks applications for projects to construct, expand, or modernize commercial facilities for the production of leading-edge, current-generation, and mature-node semiconductors. This includes both front-end wafer fabrication and back-end packaging. The Department will also be releasing a funding opportunity for semiconductor materials and equipment facilities in the late spring, and one for research and development facilities in the fall.

President Biden signed the American Rescue Plan to change the course of the pandemic and jump start our economic recovery. The American Rescue Plan funded our successful vaccination campaign, safely re-opened schools for in-person learning, helped 200,000 child care providers keep their doors open, and delivered relief to American families. Biden forged a consensus and got the Bipartisan Infrastructure Law passed – a once-in-a-generation investment in our nation’s infrastructure. We are rebuilding our roads, bridges, ports, and airports, upgrading public transit and rail systems, replacing lead pipes to provide clean water, cleaning up pollution, providing affordable high-speed internet to every family in America, delivering cheaper and cleaner energy to households and businesses, and creating good-paying jobs – including union jobs, and jobs that don’t require a four-year degree.

President Biden signed into law the PACT Act – the most significant expansion of benefits and services for toxic exposed veterans in more than 30 years. This law also enables the Department of Veterans Affairs to move more quickly in the future to determine if illnesses are related to military service, and it offers critical support to survivors who were harmed by exposures. And, the law authorized 31 new clinical sites and provides VA several tools and resources to ensure effective implementation of the law. The Biden Administration announced debt relief of up to $20,000 for Americans earning less than $125,000 per year who had Pell Grants in college, and up to $10,000 for all other borrowers below that income threshold. More than 40 million borrowers stand to benefit from this action, and about 20 million would see their debt entirely wiped out - and nearly 90% of this relief will go to borrowers earning less than $75,000 per year. In early 2023, the Biden-Harris Administration announced a plan to provide millions of borrowers with more affordable monthly student loan payments through changes to income-driven repayment plans.

The U.S. is positioned to achieve our ambitious climate goals of cutting our emissions in half by 2030 and net-zero emissions by 2050. The President has taken executive action and signed legislation to develop clean energy at home, accelerate the adoption of electric vehicles, and reduce pollution that endangers overburdened communities. And, the President is lowering energy costs for families, creating good paying jobs, and ensuring America leads the global clean energy economy. The President also protected more lands and waters in his first year than any President since John F. Kennedy. President Biden took action to lower the cost of health care for millions of Americans. Right now, four out of five people who sign up for health insurance through the Affordable Care Act can find health care coverage for $10 a month or less and millions of Americans on Obamacare are saving an average of $800 a year. Since he took office, there has been a combined 50 percent increase in enrollment in states that use HealthCare.gov and the nation’s uninsured rate is historically low at 8 percent. Over 16 million Americans signed up for quality, affordable health coverage, the highest number ever produced in an open enrollment period.

So what are Biden's most significant achievements? In my opinion infrastructure and climate action lead the way. These areas have been neglected too long, and the Biden initiatives will just barely make amends. In and of themselves, they are probably insufficient, but they are a good start, a start that has been delayed too long. Changing the narrative on taxation, I think, is a major accomplishment. Making it clear that a tax bill does not have to apply to everyone. By not raising taxes on anyone making less than $400,000, an oft repeated phrase, the narrative has been changed from "tax and spend" to "tax the rich and spend on helping the poor and middle class". Deficit reduction doesn't mean necessarily to stop spending on social programs as it means getting more money into government coffers by taxing the rich. Inequality is out of control; taxing the rich ameliorates this situation. What Biden did to get us through the COVID crisis is remarkable. It could have been an economic disaster for everyone; it wasn't. Student debt relief was a great achievement although it is still not clear how that will play out in the courts.

The American people by and large don't appreciate all that Biden has done compared to what any Republican administration would have done. Clearly, Democrats are on the side of rationality and helping the American people. Republicans are on the side of winning at all costs and helping the rich. They don't give a damn about helping the American people especially the middle class and the poor. The Republican mantra of reducing the deficit and the debt would have you believe that it can only be done in one way, that is by reducing spending. No, it can also be done by taxing the rich which would also reduce inequality. But this is all the Republicans have, that and the discredited policy of tax breaks for the rich that have done little to "trickle down" and have greatly contributed to the national debt. Enhancement of Obama's landmark health care legislation is another major achievement although Obama deserves much of the credit. It's a testimony of what the Democratic party is able to achieve for the country. The fact that Biden accomplished so much in a bipartisan way is something few other politicians could have hoped to accomplish especially in the political environment that exists today.

My criticism of Biden has to do with the Ukraine war. On the one hand he has prevented it from becoming a world war as of yet. However, in the negotiations preceding the war, I believe more could have been done to prevent the war in the first place. By not acknowledging or being sensitive to Russia's concerns about the encroachment of NATO on its borders which started during the Clinton administration and was hastened by Secretary of State Madeleine Albright, Biden and other diplomats missed an opportunity to defuse the crisis. Their policy was a de facto attempt to bully Russia into accepting the fact that Ukraine would also become part of NATO. Now the US is entrenched in a policy of Ukraine "winning" and Russia "losing" instead of a policy of a negotiated settlement to end the war, a negotiated settlement which could have been had before the war even started IMHO, for instance, by delaying Ukraine's admission to NATO for a period of time during which Russia's security concerns might have been addressed. In effect Ukraine has become a vassal state of the US instead of its historic situation of being a vassal state of Russia.

Off the Top of My Head

Government Deficit Spending Is Not the Problem: Lack of Labor and Physical Resources Is

by John Lawrence

Since the US dollar is a sovereign fiat currency, the US can never run out of dollars. The debt ceiling is a totally artificial limit which results in the US hoisting itself on its own pitard. According to Modern Monetary Theory (MMT) as espoused in The Deficit Myth by Stephanie Kelton, the only limit on government spending is inflation, and inflation is concerned with the amount and nature of resources available to soak up the money injected into the economic system by the government. According to this theory it makes sense that a lack of labor resources could lead to inflation. Consider that right now there is a shortage of air traffic controllers, and this is leading to a cancellation of flights. If there were more air traffic controllers available, the number of flights could be increased, and more economic activity would ensue. The constraint on flights available because of the lack of air traffic controllers leads to inflation because the money charged for each available flight can be increased. Essentially there is a bidding war for the available flights. If any resource including natural resources like steel and cement is not sufficient for the demand for those resources, then the price of those resources will increase leading to inflation. Right now in the US labor is becoming a scarce resource especially labor of the type necessary in the essential economy, that is the economy of goods and services necessary for the continuation and enhancement of everyday life. As more labor is developed for essentially useless services like the entertainment and social media industries, plumbers, electricians and carpenters are not available for useful services, and, therefore, the cost of those services increases.

Which brings us to Biden's Inflation Reduction Act which allocates $370 billion to rebuild infrastructure and fight climate change. These are all necessary and vital goals, but the question should be asked are the resources for this amount of spending sufficient or will this spending be inflationary. To put it more succinctly is the blue collar labor sufficient for the job? If not, the price of labor will be bid up and the spending will be inflationary. More and more these days students are encouraged to go to college where they end up after graduation working for Wall Street or hedge funds or in the entertainment/social media industry. They are not encouraged to go to vocational technical schools to become carpenters, plumbers and electricians. So they go into industries which are not essential to the real economy. There are shortages of labor for the real economy everywhere we look. In order to overcome these shortages, it would be necessary to step up legal immigration since immigrants by and large fill the jobs Americans don't want to do, and by and large Americans don't want to perform any kind of the less glamorous and remunerative type of labor necessary for production in the real economy. Also outsourcing has made it unnecessary for Americans to perform labor in the real economy. We rely either on immigrants or foreign workers for that.

The next thing is that all this infrastructure rebuilding is going to contribute to global warming as well as reducing it. Rebuilding all the bridges of America will require large amounts of steel and cement. Steel and cement production produce large amounts of carbon dioxide which is emitted into the atmosphere. The International Energy Agency estimates that direct CO² emissions due to crude steel production is approximately 1.4 tons of CO² per ton of steel produced. The cement industry is responsible for about 8% of planet-warming carbon dioxide emissions — far more than global carbon emissions from aviation. If the cement industry were a country, it would be the third-largest emitter of carbon dioxide in the world, after the U.S. and China. So rebuilding America's infrastructure will contribute to global warming while at the same time attempting to reduce global warming. The fact is that alternatives to steel and cement which do not produce greenhouse gasses are not available. Research on these topics needs to be stepped up. But more research in areas like artificial intelligence, of the kind which has no use in the amelioration of global warming, takes place while productive research into materials to replace steel and cement languishes. Also while more electric vehicles are being produced, the electric energy to power these vehicles is coming from power plants that still use fossil fuels to produce it. One form of greenhouse gas production is being traded for another. Nothing is gained unless all energy generating power plants are using renewable and non carbon dioxide producing fuels.

The problem is that limited resources both in terms of labor and physical resources will hamper efforts both in repairing American infrastructure and building infrastructure which reduces the amount of greenhouse gas production. Stephanie Kelton writes: "That's why MMT recommends a different approach to the federal budgeting process, one that integrates inflation risk into the decision making process so that lawmakers are forced to stop and think about whether they have taken the necessary steps to guard against inflation risk before approving any new spending. MMT would make us safer in this respect because it recognizes that the best defense against inflation is a good offense. We don't want to allow excessive spending to cause inflation and then fight inflation after it happens. We want agencies like the CBO helping to evaluate new legislation for potential inflation risk before Congress commits to funding new programs so that the risks can be mitigated preemptively. At its core  MMT is about replacing an artificial (revenue) constraint with a real (inflation) restraint." The artificial revenue constraint is the debt ceiling!

In the above passage the words "inflation risk" could also be replaced with "greenhouse gas emission risk." The CBO should evaluate both kinds of risks. So as the economy becomes more electrified in terms of electric cars and buildings, we need to think about the fact that the electricity generated by these increased demands needs to come from non carbon dioxide emitting sources. Also substitutes must be found quickly - in other words research needs to be stepped up - to find substitutes for steel and cement. To boot, non polluting energy sources must be found for ships and planes. Both human and physical natural resources must be taken into account. Have all these things been thought through?

Off the Top of My Head

Biden's Changing The Asylum Law Without Congress' Help

by John Lawrence

The asylum law in effect says that any alien who enters the US legally or illegally may apply for asylum. This incentivizes aliens to enter illegally, and, if caught, to simply request asylum. Since they would have to go before a court to determine if they should get asylum and the court is backed up for years, entering illegally and requesting asylum is a guarantee of at least currently five years in the US during which time they could attempt to remain hidden and not show up at court. The reality is that only about 40% of asylum seekers that show up for their court date actually get asylum. The rest are deported. According to U.S. and international law, a claim of persecution must be made based on one of five “protected grounds”: race, religion, nationality, political opinion, or membership in a particular social group. Poverty, scarce economic opportunities, displacement caused by natural disasters or a desire to reunite with family are not grounds for asylum under U.S. law. Here's the actual law:

Any alien who is physically present in the United States or who arrives in the United States (whether or not at a designated port of arrival and including an alien who is brought to the United States after having been interdicted in international or United States waters), irrespective of such alien’s status, may apply for asylum in accordance with this section or, where applicable, section 1225(b) of this title.

In order to dissuade asylum seekers from just showing up in a disorderly fashion en masse at the southern border, the Biden administration has been setting up a system to encourage people to apply for asylum in an orderly manner. This includes applying at a port of entry or applying from a country in south or central America. Also,they are disincentivized from coming across the border illegally because, if they do, they are ineligible for asylum for 5 years. Here's the new rule:

SUMMARY: The Department of Homeland Security (“DHS”) and the Department of Justice (“DOJ”) are issuing a final rule in anticipation of a potential surge of migration at the southwest border (“SWB”) of the United States following the termination of the Centers for Disease Control and Prevention’s (“CDC”) public health Order. The rule encourages migrants to avail themselves of lawful, safe, and orderly pathways into the United States, or otherwise to seek asylum or other protection in another country through which they travel, thereby reducing reliance on human smuggling networks that exploit migrants for financial gain. The rule does so by introducing a rebuttable presumption of asylum ineligibility for certain noncitizens who neither avail themselves of a lawful, safe, and orderly pathway to the United States nor seek asylum or other protection in a country through which they travel. In the absence of such a measure, which would apply only to those who enter at the southwest land border or adjacent coastal borders during a limited, specified date range, the number of migrants expected to travel without authorization to the United States would be expected to increase significantly, to a level that risks undermining the Departments’ continued ability to safely, effectively, and humanely enforce and administer U.S. immigration law, including the asylum system, in the face of exceptionally challenging circumstances. Coupled with an expansion of lawful, safe, and orderly pathways into the United States, the Departments expect the rule to lead to a reduction in the number of migrants who seek to cross the SWB without authorization to enter, thereby reducing the reliance by migrants on dangerous human smuggling networks, protecting against extreme overcrowding in border facilities, and helping to ensure that the processing of migrants seeking protection in the United States is done in an effective, humane, and efficient manner. In addition, the Departments are requesting comment on whether applicability of the rebuttable presumption should be extended to noncitizens who enter the United States without documents sufficient for lawful admission during the same temporary time period at a maritime border.

DATES: Effective date: This rule is effective on May 11, 2023.

This document is scheduled to be published in the Federal Register on 05/16/2023 and available online at federalregister.gov/d/2023-10146, and on govinfo.gov

The Biden administration is solving the border crisis without the help of Congress in a way that's sure to be challenged in court, but in the way that Congress would actually probably solve it if they were inclined to act and reform immigration laws. Biden should get a lot of credit for going ahead without Congress which is a sewer of conflict, stagnation and malfunction. An orderly process for applying for asylum has been created by the Biden administration which should discourage masses of people showing up at the southern border. For this they deserve much credit.

Off the Top of My Head

Why the Republican Congress Will Drive the US into Default

by John Lawrence

Simply put it's in their interests to do so. They themselves will profit politically and financially. They will blame Biden for the default, and they will sell short their stock portfolios so that, when the stock market crashes, they will make money. Default doesn't mean that the US will not pay its debts. It means that going forward seniors on social security will not get their monthly checks. Neither will Federal workers or active duty military. However, since the US Treasury still has some money and money coming in from taxes, it will prioritize paying interest on Treasury bonds. So rich people that hold financial obligations of the US government will be paid while everyday average slobs will be left to suffer. This is exactly the type of solution Republicans have always sought. It fits in nicely with their modus operandi: cater to the rich and starve the poor and working class. Millionaires and billionaores will not suffer. Smart people who sell stocks short will not suffer. They will prosper. Financial wizards and private equity corporations will snap up distressed properties like a shark snapping up a school of fish.

The financial obligations of the US, money that has supposedly already been spent, is a misnomer. They represent money that has already been allocated by the previous Democratic controlled Congress. If Republicans had controlled the previous Congress instead, the money would never have been allocated. So it's not money that's already been spent, it's money that's already been allocated. The spending is in the future. The allocation was in the past. If Democrats controlled the present Congress, there would be no problem. Since it's up to the Congress both to allocate spending and to raise the debt limit, there is a whiplash if one party allocates the money and the other party is supposed to preside over the spending of the money. In a sense the Republican Congress is rebelling over the fact that, although they didn't allocate the money, they are supposed to preside over the spending of it.

Now Joe Biden could preempt the Congressional decision not to raise the debt limit by using unconventional but completely legal means, something that has never been done before. The Federal Reserve Act gives the power to print money to the Fed, However, the Coinage Act grants the Secretary of the Treasury rather broad coin seigniorage authority. The debt ceiling could be side stepped by ordering the West Point Mint to coin a 1 oz. $ 1 trillion coin. Treasury can then present the jumbo coin at the NY Fed to buy back $1 trillion in Fed-held debt (the Fed has to accept it, a creditor can’t refuse legal tender paid in to settle a debt). Or I see no reason why the Treasury couldn't simply deposit it in its account at the Fed thereby giving the US government the wherewithal to pay its bills. Esteemed economist Paul Krugman is all for the minting of the trillion dollar coin: "So go ahead, Democrats, and do whatever it takes to get through this. Gimmickry in the defense of sanity — and, in an important sense, democracy — is no vice."

Republicans would have you believe that spending is out of control. No, undertaxation is out of control especially undertaxing the rich. Economic inequality has soared reaching unprecedented new heights not seen even in the Gilded Age. As Joe Biden has proposed, the budget could easily be balanced and the debt paid down by taxing the rich. Republicans would have you believe that raising taxes is a policy that would have to be enforced on everyone including the poor and the middle class, but that, unfortunately for them, is not the case. It is not written in stone that raising taxes would have to apply to everyone. As Bernie Sanders, Elizabeth Warren, AOC and others have pointed out, raising taxes on the rich could not only balance the budget, but could solve the problem of social security shortfalls. Republicans are in the unenviable position of wanting to screw the working class while catering to the rich while holding on to their MAGA supporters, a large portion of whom are the working class.

So given the fact that Republicans don't care about social security or Medicare recipients, there is a good chance that they will not vote to raise the archaic debt ceiling and force the US into default not on its debt but on its ongoing payments to Federal workers, who they hate anyway, social security recipients, who they will cheerfully throw under the bus and active duty military who as MAGA supporters will cheer them on at their own expense. Meanwhile, Congressional Republicans, private equity corporations and billionaires will short the market and salivate over the cheap assets they will be able to snap up. In other words they will profit from a default.

Off the Top of My Head

The Dystopian American Democracy

by John Lawrence

As set up by the Founding Fathers, the mechanics of the American electoral system inevitably lead to a two party system. This is as opposed to a parliamentary democracy as exists in most other democratic nations. Third parties never make it in American democracy precisely because they take votes away from the party whose views they most closely resemble. Example: the Presidential election of 2000. Since with the American voting system, a voter can vote for one and only one candidate, voters waste their votes voting for a third party candidate who has no chance of winning. Ralph Nader ran as the Green party candidate and won almost 3 million votes, votes which most assuredly would have been cast for Gore if Nader weren't running. As it was, Gore won more popular votes than George W Bush who eked out a victory because of the antiquated electoral college system. If Gore had also won the 3 million votes that Nader received, he may have had enough electoral votes to tip the balance. These voting mechanics have enshrined what is called plurality voting or the first past the post system into law. If the approval voting system had been in effect in 2000, Gore would have won. Approval voting is a system in which a voter can cast votes for all candidates he or she approves of. That means that all those who voted for Nader would also probably have voted for Gore giving Gore 3 million more votes.

Why the two party system, which is the inevitable result of plurality voting, is so toxic is that it leads to a government like we have today in which the two parties are diametrically opposed to each other. Instead of working in the best interests of the American people, the two parties end up fighting each other for power. This produces gridlock and a seesawing back and forth regarding policy depending on which party controls which branch of government. The dystopia that results from this winner take all system is that compromise becomes impossible. All the energy goes into winning and making the other party lose. It is all about the competition between the two parties and not about finding solutions to societal problems that benefit the American people. Another factor is that the plurality system of voting at best leads to majority rule. That means that at best each party represents a majority of the American people and not minorities at all. Certainly neither party needs to seek the votes of the poorest Americans who usually don't vote anyway, and, if they did, their interests need not be served by the winning party.

The American system has become a dystopia precisely because one party is only interested in winning, and, if the other party is in power, in making that party lose the next election. They do this by denying insofar as possible that party from making any constructive changes which might benefit the American people. As the American people get disenchanted with the ruling party because it can't bring about constructive change, they inevitably vote for the other party hoping that they can do what the ruling party wasn't able to based on their campaign promises. In a multi party system such as a parliamentary democracy, a party whose only purpose is to deny the ruling party the ability to bring about constructive change and thereby gain power for itself is less likely to be able to pull this off. A center party is more likely to win. The two party system is more likely to breed two extreme parties diametrically opposed to each other with each party vying for power.

Fortunately, because of his skill and dexterous maneuvering, Joe Biden has been able to bridge a lot of gaps in getting things done for the American people. However, it wasn't without the other party's determinattion to make him fail. Republican leader Mitch McConnell said this about President Obama: "The single most important thing we want to achieve is for President Obama to be a one-term president." How they endeavored to do this was to make Obama fail at everything he promised in his campaign to do for the American people. If Obama wasn't able to accomplish his campaign goals, the American people would become disenchanted with him and put Republicans back in power. This is why Republicans never compromise with Democrats in the best interests of getting good things done for the American people. They only see these things as "wins" for the Democrats and hence "losses" for themselves. On the other hand, Democrats are somewhat more magnanimous in that they will vote with Republicans some times when they are in power. Example: Democrats voted 3 times to raise the debt ceiling when Trump was in power even though they objected to the $7 trillion that Trump added to the national debt by giving tax breaks to the rich. The only reason Biden was able to accomplish anything or any American President is able to accomplish anything is when their party controls all 3 branches of government. Even then the other party can filibuster making a mockery of the idea of democratic government.

Off the Top of My Head

Why Didn't Democrats Raise the Debt Ceiling When They Controlled Both Houses of Congress?

by John Lawrence

What is clear is that Democrats can only get new legislation passed when they control all three branches of government. This legislation usually increases spending on social programs. Likewise, Republicans can only get their legislation composed - usually of tax cuts - when they control all three branches of government. Both cases usually require the government to deficit spend, the former because of increased government spending, the latter because of decreased government revenues from taxes. So whichever party controls Congress and the Presidency and passes a budget requiring increassed deficit spending should also at the same time raise the debt limit. Make sense? So now we're in this dystopian dilemma that, after Democrats passed Biden's budget requiring a huge amount of government spending, Republicans, who now control the House, effectively want to repeal Biden's budget or else they won't agree to raise the debt ceiling. What a conundrum! These problems would never come up if the party that deficit spent also raised the debt ceiling to accommodate the deficit spending.

Congress has raised the debt ceiling twice under Biden, by about $3 trillion. Republicans voted three times to raise the debt ceiling under President Donald Trump, who added nearly $8 trillion to the national debt. "Republicans in Congress raised the debt three times when Donald Trump was president and each time with Democrat support, but now they won’t raise it, even though they're responsible for more than $8 trillion in bills incurred in four years under the previous administration," Biden said. The 115th Congress (2017–2019) featured unified Republican control of the government with GOP majorities in the House and Senate, and Republican President Donald J. Trump in the White House. So Republicans had no problem with raising the debt ceiling during the Trump administration which added $7 trillion to the national debt. Please note that Democrats could have filibustered the debt ceiling increases during the Trump administration because Republicans did not have a filibuster proof Senate, but they didn't

Raising the debt limit is not about new spending; it is about paying for previous choices policymakers legislated. However, if the previous choice were made by a government controlled by the Democratic party in a two party system, there is every reason to get those choices reversed when the Republican party comes into power and vice versa although Democrats have never tried to bring the country to the brink of default, a game of chicken which Republicans have been all to eager to engage in. They were successful in doing this when Obama was President. Having seen that chaos and mess as vice Preesident, Biden is not willing to engage in negotiations this time around hoping that more sensible heads will prevail. It didn't used to be this way. Sometimes called the Gephardt Rule in honor of Representative Dick Gephardt who introduced its first version, the rule used to provide that when the House agrees to a budget resolution, the Clerk shall prepare a joint resolution suspending the debt limit for the fiscal year covered by the budget resolution. In other words the debt ceiling was automatically effectively raised to accommodate the budget. This all changed when Newt Gingrich became Speaker of the House. When Newt Gingrich took over the House in 1995, he nullified the ingenious “Gephardt rule” that deemed the debt limit to be increased whenever a budget passed. This eventually led to the 1995 and 1996 government shutdowns, when Republicans refused to increase the limit because the president was a Democrat. In 2011, a showdown over the debt ceiling during Barack Obama’s presidency led to the Budget Control Act and ten subsequent years of austerity budgets.

So the simple answer to the question posed by the title of this piece is that, although Democrats controlled both Houses of Congress during the first two years of the Biden administration, they did not have a filibuster proof majority in the Senate. Therefore, they could get a budget passed under the budget reconciliation rule which prevents a filibuster, but they could not raise the debt ceiling because that is subject to the filibuster. Oh what tangled webs these politicians weave! Nothing makes clearer the need to end the filibuster than another round of hostage-taking of the full faith and credit of the U.S. government. Add this to the mounting problems of American democracy. Congress has created an arcane jumble of chaotic rules which threatens government of the people, for the people, and by the people. Go figure.

Off the Top of My Head

The Only Way to Create Affordable Housing Is For Government to Set the Price of Rent

by John Lawrence

As long as the market sets the price of rent, rents will become increasingly unaffordable especially in highly desirable areas like San Diego. Remember public housing? Some version of this is necessary or homeless will be relegated to shelters and/or time limited stays in subsidized housing for eternity. Why isn't public housing feasible? It's NIMBYism (not in my back yard) and NMTMFTism (not my tax money for this). What most people don't realize is that the Federal government can build public housing with no tax implications because unlike state governments, the Federal government has a sovereign fiat currency, the US dollar. The only non-artificial restraint on Federal expenditures is inflation so right now is probably not a good time to allocate dollars for public housing. Of course we expect that lessons have been learned so that public housing does not degenerate into the kind of situation like the notorious Cabrini-Green development.

Crime and neglect created hostile living conditions for many residents, and "Cabrini–Green" became a metonym for problems associated with public housing in the United States. In 1995, the Chicago Housing Authority (CHA) began tearing down dilapidated mid- and high-rise buildings, with the last demolished in 2011. Today, only the original two-story rowhouses remain. The area has seen major redevelopment due to its proximity to downtown, resulting in a combination of upscale high-rises and townhouses, with some units being CHA-owned, creating a mixed-income neighborhood. Dispersal of affordable units throughout an area is necessary in my opinion to prevent concentration of crime and gangs in certain areas. There is no need for public housing to be concentrated like the Cabrini-Green development. It can be dispersed so that an area is mixed income, and less likely to attract gang activity which seems to happen in pockets of poverty.

Of course the US Federal government, based on the two party system can hardly rationalize spending money on public housing as long as Republicans have any say about it or as long as they can filibuster it to death. Progressives have been lucky to get a modicum of progressive legislation passed during the Biden administration. Biden has had to tone down much of the progressive legislation he attempted to pass at first. Nevertheless he has accomplished much. Public housing is not even on the table as a solution to the homeless and housing affordability problem. Rents just continue to increase way beyond a family's ability to pay them. State and local governments are throwing millions of dollar at the homeless problem without even putting a dent in it. It will take some radical ideas to solve it of which disbursed public housing is one. It totally goes against prevailing notions of a capitalist based, profit oriented society, not the least of which is that an ample supply of public, affordable housing units would undermine landlord profits by keeping the cost of housing in the for profit market under control. It would put a base line under housing costs.

Off the Top of My Head

Republicans Hate Socialism ... Except When They Need Help Themselves

by John Lawrence

When Superstorm Sandy hit, then Congressman DeSantis voted against giving help to New York state. Now after the Hurricane Ian disaster, Governor DeSantis is asking the Federal government for every dollar he can possibly get. This is typical Republican behavior. After all socialism is about helping people. Republicans want every ounce of help they can get for themselves while denying it to others. All of a sudden DeSantis is Joe Biden's best friend. Joe wants to help people, but he should think twice about helping DeSantis. First of all a hard look should be given to rebuilding on hurricane prone barrier islands. DeSantis, of course, wants the increased economic activity that rebuilding will entail for construction companies especially if the Federal government pays for it. Building Back Better in hurricane prone areas is not good economic sense. And it will cost a fortune in an inflationary era while only adding to inflation as the Federal government injects more money into the economy.

Robert Reich wrote in a recent email:

"No Republican governor has been more vocal in his opposition to what he describes as “socialism” than Florida’s Governor Ron DeSantis. “I stand against socialism,” DeSantis thundered in Florida’s 2018 gubernatorial election. “Socialist policies have failed time and time again.” In June, DeSantis signed an education bill directing Florida’s Department of Education to develop a curriculum educating students on the evils of socialism (as well as communism)."

But now, when his state needs the money, DeSantis is either a full on socialist or a full on opportunist who, once he gets his, will be against anyone else getting theirs. In 2013 DeSantis said: "I sympathize with the victims of Hurricane Sandy and believe that those who purchased flood insurance should have their claims paid. At the same time, allowing the program to increase its debt by another $9.7 billion with no plan to offset the spending with cuts elsewhere is not fiscally responsible." So now after Hurricane Ian, which will run into the tens of billions, is giving the state of Florida the money DeSantis is requesting from the Federal government "fiscally responsible"? Reich poses the question: "So, would DeSantis call any form of government assistance to those in need “socialism?” Obviously, not when it's his ox that's being gored. DeSantis' hypocrisy is immense here, but it will probably work for him. He will take credit for "getting Florida and Floridians back to normal" as he enters the 2024 Presidential contest. Before Biden gives DeSantis all the money he wants, DeSantis should do a mea culpa, stating that he was wrong to vote against disaster relief for New York state after Superstorm Sandy.

DeSantis website headlines: "Governor Ron DeSantis Requests President Biden Approve Major Disaster Declaration and 100 Percent Federal Cost Share for 60 Days for Hurricane Ian" This isn't the first time that DeSantis has used Federal cash to tout his own agenda. Just prior to the fatal hurricane, DeSantis held a press conference in Jacksonville where he gave $1,000 checks to individual firefighters and law-enforcement officers that were being made available through this year’s state budget. Of course he didn't mention that this was cash the state of Florida got from the American Rescue Plan, Federal money which provided more than $8.8 billion to the state of Florida.DeSantis will likely continue to bash President Joe Biden and the Democrats for pushing policies that he says have caused inflation — which includes the massive spending included in the American Rescue Plan. I've got news for Gov. DeSantis: if he cared about inflation, he would take the money to recover from Hurricane Ian out of state taxes instead of letting the American taxpayer foot the bill while all the time giving Joe Biden no credit. He will take all that for himself.

 

Off the Top of My Head

How Liz Cheney Can Defeat Trump in the 2024 Election

by John Lawrence

Run for President as a third party candidate. She will siphon off enough Republican votes to insure Trump's loss. She has the name recognition and chutzpah to run for President. She's already raising money with her super PAC - The Great Task. There are enough disaffected Republicans that will vote for her, and, even though she would probably come in third in a Presidential race, she could guarantee that Trump or a Trump-like candidate would lose. Therefore, a Democrat will win. Cheney obviously has no affection at this point for the Republican Party, a party that oversaw her defeat in a landslide for her incumbent Congressional seat in Wyoming. She is more interested in a win for America and the principles of the Constitution, and, as an American patriot, she is committed to Trump's losing the 2024 Presidential election.

The US has a history of third party candidates handing wins to the party that they are least aligned with. In 1992, Ross Perot ran unsuccessfully as an independent candidate for President of the United States. Perot was a Texas industrialist who had never served as a public official, but he had experience as the head of several successful corporations and had been involved in public affairs for the previous three decades. Although Perot received no votes in the Electoral College, he won several counties, placed second in two states, and ended up far ahead of any other non major party candidate finishing in third place overall, receiving close to 18.97 percent of the popular vote, the most won by a third-party presidential candidate since Theodore Roosevelt in 1912. His presence in the race may have been enough to deny George H W Bush a second term.

Even more salient was the 2000 Presidential election. The 2000 presidential campaign of Ralph Nader, political activist, author, lecturer and attorney, began on February 21, 2000. He cited "a crisis of democracy" as motivation to run. He ran in the 2000 United States presidential election as the nominee of the Green Party. Nader siphoned off enough votes from Al Gore, who was the Democratic candidate, that George W Bush won the election despite the fact that Gore won the popular vote and despite the fact that, at Bush's request, the Supreme Court stopped the recount in Florida which would have nailed the state of Florida for Gore and the Presidential election itself.

Third party candidates can wreak havoc for the party that they're most closely aligned with. In 2000 Nader was more aligned with Democrats than Republicans. Yet he helped cinch the race for the Republican since he siphoned off Democratic votes. The same goes for Perot in the 1992 Presidential election in which he helped defeat the candidate of the party he was most closely aligned with - in this case the Republican party. Liz Cheney knows all this. She's no dummy. She knows she can guarantee a Trump defeat in 2024 if he should run by running for President herself as a third party candidate. No doubt Adam Kinzinger and other influential Republicans will join her in an effort to overthrow the Republican party which has become the party of Trump. Liz is well known enough that she does not suffer from any name recognition deficit. Polling shows that in the neighborhood of 30% of registered Republicans are disenchanted with Trump and Trumpism. They are appalled at the January 6 insurrection by devotees and sycophants of Trump. Liz Cheney can guarantee that the United States of America will be able to turn over a new leaf and start a new day with a new party dedicated to the principles of the rule of law and the American Constitution - sort of what the old Republican party used to be like. She is in a position to relegate Trump to the dustbin of history if he should somehow escape the grip of all the lawsuits he's now entangled with.

Off the Top of My Head

Manchin and Sinema Should Be Kicked Out of the Democratic Party

by John Lawrence

They have blocked Biden's agenda every step of the way. Biden and his team have spent countless hours "negotiating" with them to no avail. They have treated them with kid gloves to no avail. Now they should call them out. They are effectively blocking the codification of Roe v Wade, voting rights legislation, Biden's Build Back Better initiative and every other thing every other Democrat stands for. They are Democrats in name only - DINOs. Instead of being treated with kid gloves, they should be treated like the pariahs they are. Democrats are too nicey nice. Biden got a little testy and said he was open to ending the filibuster in order to codify Roe. Who's standing in the way of ending the filibuster? Manchin and Sinema. Who's standing in the way of every other thing Biden and most Democrats want to get done? Manchin and Sinema. If it weren't for them, Democrats could get rid of the filibuster today and codify everything the Supreme Court is torpedoing plus do a lot more. As it is, Biden is hamstrung by two quasi Democrats who are really Republicans in sheep's clothing.

The filibuster is an anti democratic rule of the Senate that prevents decisions being made by majority rule. There's no good reason for it to exist. Democrats think that, if they get rid of it, Republicans will go wild with their legislation when they control both Houses of Congress and the Presidency. But they are just wrong. When Republicans control both Houses of Congress and the Presidency but don't have 60 votes in the Senate (the number of votes necessary to overcome the filibuster), they can just vote to end or suspend the filibuster to get their legislation passed and signed into law. They don't care whether or not Democrats "observed" the traditions of the Senate by not voting to end the filibuster for their purposes. They will just do it themselves when it suits their interests. That's what the Democrats don't get. Democrats are afraid to end a "rule" when they theoretically have the power now to do so which is anti Democratic in order to get good things passed for the American people. And who are standing in the way of that? Not Republicans but 2 Democrats - Manchin and Sinema. If it weren't for them, abortion rights could be codified. A whole host of other things which the Supreme Court is casting to the wind, could be codified. In fact everything that was considered settled law is not because, if it hasn't been codified, it is under attack by the Supreme Court.

The Supreme Court has pointed out that it's not enough to win a case before the Supreme Court. It must be codified by the Congress and signed into law by the President before it is "settled law." Therefore, the Supreme Court will throw out every so called "Constitutional protection" because nothing is constitutionally protected just because somebody has won a case before the Supreme Court. As sclerotic and underperforming as Congress is, the Supremes know that throwing things back to Congress effectively overturns every decision the Supreme Court has ever made! Forget about Roe v Wade. They are now attacking the EPA so that the US can do nothing about climate change except to sit back and let it happen. The US is fast becoming a backwater among nations and all because Trump had the power to appoint 3 conservative Justices to the Supreme Court. So what will be next on the Republicans' agenda? Getting rid of social security and Medicare? The Supreme Court will help them with that. Their only talent is using arcane language to do the Republicans' dirty work.

Off the Top of My Head

Biden Alternately Fights, Fuels Inflation

by John Lawrence

Normally the government spending money into the economy is a good thing. It promotes economic growth and prosperity. But when the economy overheats causing inflation, the government needs to extract money from the economy. It does that by, among other things, raising taxes. Also the Fed, like it's doing now, raises interest rates. This puts a damper on major purchases because of interest costs. The American Rescue Plan injected a lot of money into the economy that kept the wheels turning during the worst parts of the pandemic. That was a good thing, but too much of a good thing is a bad thing. The traditional way the Fed controls inflation is to squeeze the economy in such a way as to cause higher unemployment. The Phillips curve is a theoretical economic tool that shows the relationship between inflation and unemployment, the higher unemployment, the lower inflation and vice versa. At present, however, businesses are begging for workers, not laying them off. This is good news for workers, bad news for inflation.

Biden is trying to blunt the cost of inflation to low wage workers by getting Congress to pass some of the remnants of his Build Back Better plan. However, some of these items would cause the government to spend more money into the economy causing even more inflation. Biden doesn't want to tell the truth about inflation which is that the traditional solution is to cause even more pain for low wage workers by squeezing the economy to the point that they will lose their jobs thus increasing unemployment as the Phillips curve dictates. So basically there is nothing Biden can do except to decrease government spending. Republicans would cut programs that benefit the poor and raise taxes on the middle class to do just that.

Biden is continuing to spend money into the economy by purchasing billions of dollars worth of weapons which are then sent to Ukraine. This is inflationary in and of itself. As of May 20, 2022, the US has spent $54 billion on Ukraine, and, evidently, even more will be allocated. Ukraine has become a ward of the US with the US taking responsibility not only for supplying weapons but also for keeping the whole economy afloat. All this money spent on Ukraine is money not spent on programs for the American people unless you are an employee of the military-industrial complex for which Ukraine spending has become a bonanza. Of course there are other causes of inflation than too much government spending. The loss of Russian oil is causing gas prices to rise. Chinese COVID lockdowns are exacerbating the supply chain crisis. This is not a traditional inflation, but too much government spending is certainly a part of it. Biden's good intentions of protecting the American people during the COVID pandemic by flooding the economy with money had the concomitant effect of also causing inflation. Biden will never, of course, tell Americans the truth which is that in order to fight inflation the government will have to turn around and cause them more pain especially low wage workers.

Off the Top of My Head

Problems of American Democracy - Part 4: The Easter Bunny Approach to Good Citizenship

by John Lawrence

Voters usually turn against the party in power in the mid term elections. Why? Because the party in power has promised voters all kinds of Easter goodies, and they haven't delivered on all of them. They haven't delivered all of them because the job of the party out of power is to prevent the party in power from doing so. Meanwhile, the party out of power promises voters a different bag of goodies if only they elect them. After all the party in power hasn't delivered all of the goodies promised. The result is the voters vote for the party out of power in the mid term elections. They've gotten all the goodies they're likely to get from the party in power, and their vote is cast in such a way that they are expecting a new bag of Easter goodies that has been promised by the party out of power if only the voters will vote for them which they willingly do. Why? Because voters don't vote for the party most likely to provide the country with good government. They don't vote for the party that is most likely to provide them with intelligent government. They vote for the party that has promised them a new and different bag of Easter goodies than the party in power which hasn't fulfilled all its promised goodies.

So the mid term elections are coming up. Republicans have done their job of obstructing many of Biden's campaign pledges. He did get an infrastructure package passed and got enormous COVID economic relief for citizens, but his hallmark campaign platform pledge, the Build Back Better plan has gone unfulfilled, thanks largely to the Republicans and two Republican wolves in Democratic sheep's clothing. The fickle voters do not assess how Biden has handled the chores of government, whether or not he's handled them in an intelligent and proficient manner. Their fickleness only assesses whether or not they've gotten all the Easter goodies Biden and the Democrats had promised. They have not. Therefore, it has been decreed by pundits, one and all, that Democrats don't have a snowball's chances in Hell of getting reelected in the Halls of Congress come this November.

Voters would rather elect a nincompoop like Trump who knew nothing about government except for the fact that it made him the most powerful man in the Free World, and, therefore, he could do and say most anything he wanted. He also promised voters the Republican bag of goodies - lowered taxes. Thoughtfully, Biden has carefully changed the Democratic meme from raising taxes on everyone to raising taxes only on the rich thus depriving Republicans of their main accusation towards Democrats: "They will raise your taxes." However, Biden doesn't seem to be getting very far in fighting inflation by raising taxes on the rich. Why? Because most Congress persons and Senators are the rich, and they've been lobbied very thoroughly by the rich. Of course this is all very legitimate. It's the American way of doing government unlike the Russian way where a rich businessman just offers cash to a member of parliament if they'll vote a certain way. In America the rich lobby and make generous campaign contributions in order to get Congress persons to vote a certain way. There's also an implied, though not explicit, wink, wink, nod, nod that the Congress person will get a lucrative job on a Fortune 400 Board when they retire from Congress in order to spend more time with their family. Of course this is not considered corruption, but the result is the same. In Russia politicians and government officials do the bidding of the rich; in America politicians and government officials do the bidding of the rich. What else is new?

Off the Top of My Head

Is Democracy Doomed by the Constitution Itself?

by John Lawrence

According to the Constitution, state legislatures have complete control over their state's electors so, even if the popular vote is for a Democrat, a Republican controlled state legislature can choose electors dedicated to the Republican candidate for President. The electoral college was established by Article II, Section 1, Clause 2 of the U.S. Constitution and modified by the 12^th and 23^rd Amendments. Article II, Section 1, Clause 2 of the U.S. Constitution states:

"Each State shall appoint, in such Manner as the Legislature thereof may direct, a Number of Electors, equal to the whole Number of Senators and Representatives to which the State may be entitled in the Congress: but no Senator or Representative, or Person holding an Office of Trust or Profit under the United States, shall be appointed an Elector."

The 12th amendment is irrelevant to our discussion as it has mainly to do with how electors should deliberate and the number of which are chosen by each state. The 23rd amendment gives citizens living in DC the right to vote. The Constitution makes clear that state legislatures have complete control over the selection of electors, and, therefore, that state's control of its votes for President regardless of the popular vote in that state. In fact the following is true:

"Currently, all states select electors through a popular vote (although how that vote works can differ), but that was not always the case throughout American history. In many states, the state legislature selected electors, a practice which was common until the mid-1800s."

Many "battleground states", those where the popular vote is close, have Republican controlled legislatures. When the same party holds both legislative chambers and the governorship, that party has state control. Republicans have state control in the battleground states of Arizona, Georgia, Florida and Ohio as well as 19 other states mostly in the south and midwest. State legislatures that are Democrat controlled are mostly on the west coast and northeast. In the next Presidential election red states that have state control of their legislatures and governorships could change the rules about how they choose electors and decide that they will choose Republican electors regardless of the popular vote. Of course they would be sued and the suit would wind up in the Supreme Court which is majority controlled by Republicans and conservatuves. One of the tenets of conservatism is a strict interpretation of the Constitution. They are called "strict constructionists." There is absolutely no doubt that a strict interpretation of the Constitution gives state legislatures complete control over the selection of electors. If rules need to be changed in those states to allow for the selection of electors not to be made by popular vote, that can easily be accomplished in states in which both the Houses of the legislature and the governorship are in Republican hands such as in the battleground state mentioned above.

So while the US Congress has been concerned over the years with voting rights such as the 15th and 19th amendments to the Constitution which gave voting rights to African Americans and women, respectively, and the Voting Rights act of 1965 which prohibits racial discrimination in voting, the real test for nondiscriminatory election of the President of the U.S. will come up in the 2024 election in which many red states will avail themselves of their rights as states to select electors. In the final analysis expanding voting rights legislation such as the John Lewis Voting Rights Act and the Freedom to Vote Act are irrelevant to the outcome of the election. The John Lewis Voting Rights Advancement Act would make illegal voting rules that discriminate on the basis of race, language, or ethnicity and empower voters’ to challenge discriminatory laws. The Freedom to Vote Act (S. 2747) is currently in the Senate and would solidify comprehensive voter protections, including a minimum of 15 days for early voting, mail-in ballots, and making Election Day a national holiday. It would require eliminating the filibuster to get these laws passed in the Senate.

If states pursue what is their right according to the Constitution to change electoral law to allow them to choose electors not in accordance with popular vote, it will precipitate a Constitutional crisis in 2024. If Trump runs and is elected due to these changes at the state level, the Supreme Court will uphold the election results and Trump will be elected despite the popular vote. This is the scenario that Trump clumsily tried but failed to succeed with in 2020. Next time it could succeed and be perfectly legal. All this goes to show that the U.S. Constitution is fundamentally flawed. Minimal changes that would bring it into the modern world would be elimination of the electoral college so that Presidents are elected by popular vote, the elimination of the filibuster so that the Senate operated as a democratic institution and elimination of the Second Amendment so that every nut case doesn't have the right to own firearms.

Off the Top of My Head

Mancin Wants a Different Version of Family Leave and Child Tax Credit For Him to Support Build Back Better

by John Lawrence

Mancin will not vote for Build Back Better if the child tax credit and family leave are included in their current form. Progressive Dems should just drop their demands, declare victory for the Biden agenda and get on with the rest of the bill. The child tax credit in its proposed form is a good thing, but it's just free money and it could be inflationary. The larger issue is that Dems have been spinning their wheels for months. Joe Mancin has the power, and he is willing to torpedo the whole bill if he can't get his way. The rest of the bill he supports so why not just go along with Mancin, get the bill past with a few tweaks, and revisit the child tax credit on another day. Most Americans don't even understand how the child tax credit works other than paying people to have more children. This interminal, agonizing negotiating process has worn people's patience thin. Let's get on with it and get over it. If we don't spend the money in the bill on climate change, children will have no future at all let alone a child tax credit. Mancin has reasonable arguments and he has the power. There are so many other good provisions in the bill that it is unconscionable that the whole bill be scuttled. Climate change is the paramount concern, and Mancin supports the half a trillion dollars devoted to it.

What is the child tax credit and how does it work? There are various versions that have been enacted over the years. Basically it gives poor people a reduction off their income taxes. If the reduction comes out to be more than the taxes they owe, they have also been able to get at least a portion of that money paid back to them by the government. Mancin isn't totally against the child tax credit. He just wants people to have some taxable income for them to be eligible. On family leave Mancin would support it if there were a different funding mechanism. He favors a payroll tax. His demands aren't completely unreasonable. The Democrats could claim victory if they just went along with them. Mancin doesn't want to eliminate either family leave or the child tax credit. He just wants a less generous version of them in the bill if he's going to support it.

The Washington Post reported:

"Sen. Joe Manchin III last week made the White House a concrete counteroffer for its spending bill, saying he would accept a $1.8 trillion package that included universal prekindergarten for 10 years, an expansion of Obamacare and hundreds of billions of dollars to combat climate change, three people familiar with the matter said.

"But the West Virginia Democrat’s counteroffer excluded an extension of the expanded child tax credit the administration has seen as a cornerstone of President Biden’s economic legacy, the people said, an omission difficult for the White House to accept in the high-stakes negotiations. The people spoke on the condition of anonymity to discuss the closed-door deliberations."

This negotiation process has gone on too long. It's time to just give Joe Mancin what he wants and get on to the next big item on the agenda: voting rights. There too, you almost better let Mancin write the bill.

Off the Top of My Head

Oh No, Joe, Say It Isn't So

by John Lawrence

Despite prior commitments to Joe Biden and House Democrats, Joe Mancin is a "No" on Biden's Build Back Better bill which will provide child care, eldercare, universal Pre-K and more. Dr. No made his position clear yesterday. He's tired of farting around aka negotiating. Democrats need all 50 votes in the Senate to pass the bill. 49 are on board and this gives Mancin extraordinary power. It's his way or the highway. Mancin has said he would support a bill totaling $1.5 trillion, but the house and Senate Democrats have been gingerly "negotiating" with Joe for more. Here's an idea: take what you can get and go home. Cuz you ain't gonna get no mo. Let Mancin write the bill. Throw in voting rights as well, and pass both in the same bill by reconciliation. Mancin has already essentially written a voting rights bill he would support. Again it's not everything progressives want, but it's better than nuttin.

Conservatives have traditionally broken inflation on the backs of the poor. The Phillips curve which is gospel among conservative economists says that you need to increase unemployment in order to rein in inflation. Problem is at this time there is hardly any unemployment. So what else can you do to keep poor people poor? Don't give them any more government benefits. That's the ticket. Of course, progressives say the Phillips curve is hogwash. All you need to do is to extract money from the economy by taxing the rich. But tell that to rich corporation who are spending billions on lobbyists to convince quasi conservative Democrats like Joe Mancin otherwise. And then there is conservative activist Paul Weyrich who famously said, "“I don’t want everybody to vote . . . our leverage in the elections quite candidly goes up as the voting populace goes down.” Translate that into economic terms and you get, "I don't want everyone to be middle class. Who would do the necessary back breaking labor to keep the economy growing if not for the poor."

So conservatives don't want the poor to vote and they also don't want them to work their way into the middle class. They want to keep the poor poor so the economy has a goodly supply of backbreaking and menial labor which it badly needs, especially if you want to buy American. Otherwise, we would have to export the backbreaking labor to other countries where there is a plentiful supply of poor people. Right now conservatives are aghast at how the shortage of labor is fueling demands for higher wages. This is a blow to their very way of life which is predicated on keeping the poor poor. They don't want to be flooded with immigrants to take the menial labor jobs so those who came in 20 years ago can progress to the middle class like Joe Biden wants them to do. The best way to keep them poor is to not give them any more government benefits.

So progressive Democrats in the House and Bernie Sanders in the Senate have been screwed once again. The whole deal was that both the infrastructure bill and the Build Back Better bill were supposed to pass in tandem. Then after farting around (excuse me, "negotiating") for months and months, finally Joe Mancin has put the kibosh on Build Back Better after successfully delinking the two. Screwed again. Lucy with the football. So here's the solution. Stop negotiating. Let Mancin write the bill and then everybody genuflect. And while you're at it, throw  Mancin's voting rights, bill written by him, into the package and pass the whole ungodly stew by reconciliation and be done with it.

Off the Top of My Head

Snake in the Grass Kyrsten Sinema Sells Out to Corporate Lobbyists

by John Lawrence

Corporations, especially the pharmaceutical, can thank Kyrsten Sinema for selling out to them. The least objectionable parts of Biden's Build Back Better plan are the ones Sinema vetoed. Biden's plan would have been much better if corporate lobbyists hadn't gotten to her. But not to worry. She's set for life with probable promises of corporate board positions paying hundreds of thousands of dollars for a few hours "work." With Democrats like her, we don't need Republicans. She's a Republican wolf in Democratic sheep's clothing. But never fear. Biden's Build Back Better Bill will eventually pass within the next couple of weeks, and it's still truly transformational. Too bad that every Democratic Senator had effectively a veto over any provision of it. Joe Mancin was at least up front with the public about his concerns, some of which were at least plausible. Sinema sprung her demands on Biden at the seeming last minute forcing him to renegotiate the whole deal and delaying the whole process. While pundits quibble over Biden's ratings, I don't think he's too concerned about that. He knows he has a BIG DEAL or a BIG FUCKING DEAL as he once whispered to Obama. He'll go down in history as a transformational President.

So what do the Republicans have to offer? Election denialism and insurrection denialism. It wouldn't be so bad except for the fact that they could spring back to life in two or maybe four years. Too bad for the rest of the world's confidence in America. Although the US decries Soviet and Chinese authoritarianism in which one leader can remain in power for a number of years, while the whole US relationship with the rest of the world could change every four, what about Angela Merkel, who remained in power for 16 years, in a putative democracy. Longevity of intent is not a function necessarily of type of government. The US is back? Biden would like to convince others it's so. But Trump has a different perspective which is that Biden's version of the US is back until he, Trump, takes over again in 2024. The US could veer wildly back and forth without any continuity whatsoever. While Democrats are doing their best to help families and bring the US into the modern world, Republicans offer warmed over conspiracy theories aided and abetted by social media. The US needs to get serious about denying Trump a chance of ever running again. In fact he should be in jail for attempting to overthrow a legitimately elected US government which is treason. Yes, the T word applies to him. The S word, sedition, as well. Yet as of now he can run again and possibly win in 2024.

I think that, after the twin Build Back Better bills finally pass, Democrats will turn their attention to voting rights. Will Sinema and Mancin go along with holding the filibuster in abeyance to get voting rights passed? That's the big question. If not, Democrats are sunk in 2022 and 2024. And so is the US as a world leader. The US will become a backwater and a latter day banana republic with an outsize military, corporate lobbyists run amuck and a fast fading US dollar as the world's reserve currency. Runaway global warming will be a given if Trump is elected again in 2024. The US will become a billionaire's paradise with unrestricted limits in economic inequality and a burgeoning homeless population that neither Republicans or Democrats seem to be able to do anything about. Rents will soar out of sight as more people live in their vehicles and on the streets without adequate sanitation. The rest of the developed world will leave the US in its dust, but they alone will not be able to solve the problem of climate change which will eventually make parts, if not all, of the earth uninhabitable. So there is a lot riding on a Federal voting rights bill overriding the Republican state efforts to gerrymander and restrict access to the ballot in order to favor the electability of Republicans.

Off the Top of My Head

Trump Can't Be Allowed to Run Again

by John Lawrence

This man tried to overthrow the Constitution and precipitated an insurrection. If he runs again, it'll be the end of Constitutional democracy in America. What is treason if it is not attempting to overturn the results of an election? Let's start with the fact that he asked the Secretary of State of Georgia to find him 11,000 more votes so he would have one more vote than Biden in that crucial state. But that's only the beginning, folks. It gets worse from there. CNN reported: "A conservative lawyer working with then-President Donald Trump's legal team tried to convince then-Vice President Mike Pence that he could overturn the election results on January 6 when Congress counted the Electoral College votes by throwing out electors from seven states, according to the new book "Peril" from Washington Post journalists Bob Woodward and Robert Costa." An attempt at election fraud is enough not only to disqualify Trump from ever holding public office again. It is also sufficient, in my opinion, for him to be tried for treason. The January 6 Committee is on course to bring out all the sordid facts, but, if they don't also go further and "disbar" Trump from ever running for public office, they will not have gone far enough. After all Clinton was disbarred for having sex in the oval office, a minor offense compared to what Trump has done.

If Trump should run again, he will undoubtedly call the election results another "Big Lie" unless he should happen to win of course which I don't think he would. Trump's base although sizable is dwindling to a certain hard core. Most Democrats and independents will not vote for him, but, if he runs again, there will be trouble. Another civil war is not out of the question. In order to avert one, the January 6 committee needs to run the course of its investigation and then to take action to prevent Trump from ever holding public office again. Better to nip this cancer on the Constitution in the bud than face the consequences of a man running for public office that is fully capable of precipitating another crisis. Trump has not even accepted the fact that he lost the last election. Imagine how he could whip up crowds if he wouldn't accept the results of the next election.

The book, "Peril" pointed out:

"The Eastman memo laid out a six-step plan for Pence to overturn the election for Trump, which included throwing out the results in seven states because they allegedly had competing electors. In fact, no state had actually put forward an alternate slate of electors -- there were merely Trump allies claiming without any authority to be electors.

 

"Under Eastman's scheme, Pence would have declared Trump the winner with more Electoral College votes after the seven states were thrown out, at 232 votes to 222. Anticipating "howls" from Democrats protesting the overturning of the election, the memo proposes, Pence would instead say that no candidate had reached 270 votes in the Electoral College. That would throw the election to the House of Representatives, where each state would get one vote. Since Republicans controlled 26 state delegations, a majority could vote for Trump to win the election."

 

So Democrats should treat the present situation as the preamble to a possible civil war in which they hold most of the cards because they control the government. They should do everything possible to neuter Trump and his cronies lest they should rear their ugly heads again in 2024 at which time they will be a more formidable force. It's not so much about politics as it is about whether or not the US will remain a democracy focused on solving the problems of average Americans and remains a constructive force in solving the problems of planet Earth like global warming. If Clinton could be disbarred for sex, Trump needs to be disbarred from ever running again, sex being the least of his transgressions.

Off the Top of My Head

Biden's Goal of 50% Electric Vehicles by 2030 in Peril Because of American's Freedom of Choice

by John Lawrence

Fast forward to 2029 and we find ourselves in the situation that many Americans are insisting on purchasing gas fueled vehicles because of their freedom of choice. Even though the government has subsidized electric vehicles to the tune of $10,000 per vehicle, and electric vehicles outperform gas powered ones in every category, even though electric vehicles have more bells and whistles than the same identical gas powered one, Americans are insisting that their freedom of choice is more important than helping President Biden reach his goal of 50% electric vehicles on the road by 2030. Wolf Blitzer's son, Chip Blitzer  interviewed Joe Blow of Shrevesport, Louisiana. Blitzer: "Why do you want to purchase a gas powered vehicle when the electric one is cheaper and a better performer?" Blow: "My Daddy drove a Ford F-150 with an internal combustion engine which was the pride of America as did his Daddy before him. The internal combustion engine is what built this country. It's how we won every war we ever fought in. My Daddy was a roustabout in the oil fields and my family has a long history of fossil fuel products. You won't ever catch me in an electric vehicle as long as I have my freedom of choice."

President Biden is considering mandates to get gas powered cars and trucks off the road, but some southern Governors are balking at that. Governor P.T. Abernathy of Texas said this: "The Federal government is overstepping its bounds when it comes to telling us here in the south what kind of vehicles we can drive. I've always preferred a gas powered vehicle myself, and, as long as I'm Governor, I will let our citizens decide for themselves what kind of vehicle they want to drive. It's unAmerican to dictate to American citizens that they have to drive an electric vehicle. We also won't be following Federal government incentives to get people to move out of flood plains." Back in Shrevesport Mr. Blow had this to say. "I ain't moving out of my house even though it is in a flood plain. My Grandpappy built this house. We Blows have lived here for generations, and no Federal government is going to order me to move out of my house." It is notable that 2 years ago, FEMA gave Blow $350 K to rebuild his house after Hurricane Upsilon totally destroyed it. Yet Blow said at the time: "I've never seen anything like it before in my life, but I will rebuild. I'm not going anywhere. This is America."

We note that in blue states people are 90% compliant with Biden's goal. They are buying electric vehicles at a fast rate taking advantage of the generous government incentives in doing so. Red state Governors on the other hand are imploring their residents to support the oil and gas industry by buying gas powered vehicles making it less likely that Biden will reach his goal of 50% electric vehicles on the road by 2030. Despite the cleaner air that has come with more electric vehicles on the road not to mention helping in the effort to forestall and mitigate global warming, many in southern states primarily are insisting on their right to choose as Americans citizens. Ex-President Donald Trump said at a CPAC convention: "Global warming is a hoax. We have so many wonderful oil and gas resources in this country that we'll never have to import another barrel of oil. Yet these socialists like Biden want to cripple that industry destroying the livelihoods of red blooded Americans to feed their families." As a result of American hesitancy to go ahead and buy electric vehicles, Biden will probably not be able to reach his goal. One guy from Alabama said: "Have these electric vehicles even been FHA fully approved. I heard that they were just provisionally approved. When there is full FHA approval, then I might consider buying one. In the meantime I'll just stick with my F-150 with the American internal combustion engine, the engine that made America great. Don't tell anyone, but I take off that godforsaken catalytic converter every time I buy a new pickup. Internal combustion rules, baby! Let 'er rip!"

Off the Top of My Head

Americans Getting Tired of All the Delays

by John Lawrence

Shit or get off the pot. Politicians of both parties are going round and round ad infinitum. A couple of Democrats are helping Republicans with their policy of making Joe Biden spin his wheels until they can take over again. They talk and talk or they don't even do that since they can't even vote in the Senate to debate something. Gridlock, political constipation and never-get-anywhereism. They just are not doing their job. They're letting 2 conservative Democrats control the party's agenda. Republicans are very pleased. They are carrying the Republicans' water. They will be even more pleased if Joe Biden gets nothing done other than what he's already accomplished which is considerable. Mitch McConnell wants to defeat Biden's entire agenda. Republicans are only too happy to sit back and let Manchin and Sinema do their dirty work. Meanwhile, China surges ahead not being restrained by any of these problems. After they delay and delay, they will be going on vacation for the August recess. They don't deserve a recess. They are proceeding at a glacial pace, and then finally they will have a vote which will not have enough Republican support to pass.

C'mon, guys. You're living in the pony express days. This is the age of computers. Expedite. Expedite. Don't spend so much time dialing for dollars. You can work remotely during your recess. These guys are overpaid for what they do, and then what they do doesn't amount to much. Juneteenth is a federal holiday. Clap. Clap. Symbolism is about as far as bipartisanship can go. MSNBC reported:

"Mitch McConnell's come under a lot of criticism for saying, at one point, he wanted to make sure that Barack Obama was a 'one-term president,'" [Wyoming Senator John] Barrasso said last Thursday at an event hosted by the Ripon Society, a centrist Republican think tank, which posted the remarks Tuesday. "I want to make Joe Biden a one-half-term president."

Problem with American Democracy: No sooner has one administration been elected, Republicans are getting ready for the next one in which they hope to regain power. So of necessity they have to do everything they can to make the current administration fail. No thoughts of doing something for the American people. It's all about defeating Democrats who just might do something constructive for the American people. Then when the Republicans get in power, they will reduce taxes on the rich which is about all they can think about doing, and they will do this without any worries or concerns about "pay fors." But anything Democrats want to do has to be covered by "pay fors."

Modern Monetary Theory explains that the US government doesn't need to tax before it can spend. The way the system works is that the Federal Reserve puts enough money into the US Treasury's account to cover any payments the US government has to make whether or not there is tax money to pay for it. The only thing to be concerned about is inflation if too much money in the economy is chasing too few goods and services or if enough human resources aren't available to soak up the spending. Most politicians are still living in the world that the US needs to tax before it can spend. They are totally ignorant in this regard. They don't know how the system actually works. The US has a sovereign currency. Therefore, it can never go bankrupt. It does not have to borrow money in the capital markets and pay the going rate of interest. It sets the interest rate on US debt. If no entity wants to buy US debt it ends up on the Fed's balance sheet where it can remain indefinitely. It never has to be paid off.

Forget about competing with China. The Chinese are running circles around the US because they don't have to deliberate ad nauseum before they act. They don't have to argue with states about states' rights. They don't go on August recess for a month when no work gets done. The US law stipulates that “unless otherwise provided by the Congress,” both Houses must adjourn no later than July 31 each year or the first Friday in August that occurs 30 days before the first Monday in September, until the second day after Labor Day. How many American get the entire month of August off?

Off the Top of My Head

US Is Not a Democracy. It's a Republic if We Can Keep It.

by John Lawrence

Benjamin Franklin said, “It's a republic, if you can keep it.” when asked if we had a monarchy or a republic. We almost didn't keep it when Trump tried to turn it into a monarchy with him as the first monarch. However, the US is not a democracy. A democracy would be a nation governed by a majority of the people. There are a lot of reasons why this is not the case. #1 States' rights: The Federal government is not a national government. It's not a central government with power over the whole nation. Because of states' rights, the US federal government is a weak form of government that shares powers with the states which can veto an administration's agenda if they feel so inclined. States can overrule the central government. A country with a strong central government can set its agenda at the national level and then pursue it without any obstructions from various states or regions or provinces. All things being equal, a nation with a strong central government will surge ahead of one with a weak central government in a competitive enironment.

#2 Representative instead of direct democracy. A representative democracy does not necessarily govern in the same way a direct democracy would. Representatives are subject to lobbying which distorts their votes and makes them represent their donors more than their constituents. Opinion polls show that a majority of Americans want gun control, affordable health care and addressing the issue of climate change among other things. Yet the US government does little if anything regarding these issues because vested interests are funding politicians to vote "No" on these issues.  #3 Gerrymandering or political party control of district boundaries. When a political party controls district boundaries they can draw the districts in such a way as to favor the electability of their party's candidate. They can also practically guarantee that their party's candidate will be elected in perpetuity.

#4 The Electoral College. The electoral college makes it possible for a Presidential candidate to win the popular vote and lose the electoral college vote and hence the Presidency. Again it's minority rule not majority rule.

#5 The winner-take-all two party system eliminates representation for minorities. The way the US districting system is set up, it is impossible for third party candidates to win. They can be spoilers though taking votes away from the party that they're closest to ideologically. A parliamentary system is more amenable to multiple parties being represented.

#6 A Constitution set in stone whose barriers to change are seemingly infinite. The Constitution can be amended but not change except for amendments. The amending process requires a two thirds vote, not a majority vote, and hence is undemocratic. Other countries have procedures whereby the whole Constitution could be changed or updated or rewritten.

#7 Lack of continuity: Elections every 2 years can change the direction of government or the government's agenda or lack thereof. #8 Gridlock: An administration's agenda can't go forward due to the filibuster. In short, while other countries are surging ahead, America has the political equivalent of constipation. Gridlock is the outcome of a divided country controlled by the minority.

Fareed Zakaria wrote in an article in the Washington Post, The decay of American democracy is real:

"One aspect of the United States’ power remains substantially diminished: its role as a beacon of democracy. Among countries surveyed, 57 percent of people said the United States is no longer the model for democracy it used to be. Young people worldwide are even more skeptical about America’s democratic institutions.

"In one fundamental way, things look worse now than in prior periods of crisis. After Watergate, many were surprised that the world looked up to the United States for facing and fixing its democratic failures. It was a sign of the country’s capacity to course-correct. But imagine if after that scandal, the Republican Party, instead of condemning Nixon, had embraced him slavishly, insisted that he did absolutely nothing wrong, settled into denial and obstructionism and proposed new laws to endorse Nixon’s most egregious conduct? Imagine if the only people purged by the party had been those who criticized Nixon?

"The decay of American democracy is real. It’s not a messaging or image problem. Until we can repair that, I’m not sure we can truly say America is back."

 

Off the Top of My Head

Without Majority Rule Is The US Still a Democracy?

by John Lawrence

The US Senate is not ruled by a majority. Arguably that makes the US not a democracy or a democracy in name only. The filibuster is an artificial rule that precludes majority rule in the Senate, and, therefore, in the US since the Senate is a representative body of the people. A majority of the people want gun control, but, because the Senate is not a democratic institution, there is no gun control. A Pew Research Center survey conducted in 2019 found that 60% of Americans say gun laws should be tougher. Conclusion: the US is no longer a democracy. Strong majorities of voters across party lines view access to clean water, a quality public education, adequate food, and housing as basic human rights that should be secured by the federal government. A survey by Harvard University found the following: "The right to clean air and water, for example, was considered important by 93 percent of those surveyed; protection of personal data, by 93 percent; the right to a quality education, by 92 percent; racial equality, by 92 percent; affordable health care, by 89 percent; and the right to a job, by 85 percent."

The filibuster precludes democracy. It is not in the Constitution. Neither is the right to own a gun. The Second Amendment states: "A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed." At the time of the American Revolutionary War, militias were groups of able-bodied men who protected their towns, colonies, and eventually states. They were state based armed groups that later became the National Guard. It was these groups that were allowed by the Constitution to bear arms, not every idiot who came down the pike. Other more mature societies regulate gun ownership the way the US regulates drivers.

NPR reports:

"It's illegal for Russian citizens to own automatic and semi-automatic guns. It's possible to apply for a handgun or shotgun license, though citizens are required to provide reasons such as hunting or target shooting. Applicants face strict background checks, including criminal history, a full psychological evaluation and a medical exam. They must pass a test on firearm laws and safety. Each weapon is then registered by the police during a home visit. Police take bullet patterns, test bullets and cartridges so bullets can be matched if the gun is used in a crime. A license lasts five years, after which applicants must go through the whole process again."

The US is falling apart because groups with lots of money are lobbying Congress to perpetuate their income stream from gun sales regardless of what the majority of US citizens want. Yet the US lectures other countries about human rights. Is it a human right to own a gun? I don't see it listed in the UN Declaration of Human Rights. What is listed is the following:

1. Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care and necessary social services, and the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control.
2. Motherhood and childhood are entitled to special care and assistance. All children, whether born in or out of wedlock, shall enjoy the same social protection.

The controlling interests of US society are not the majority of the people. US society is controlled by wealthy interests which lobby Congress providing them with financial incentives to do their bidding. One of the main reason companies lobby Congress is to preserve their rights not to have to pay for externalities. Externalities are byproducts of the production process that pollute the environment. It would lower their profits if they had to pay for them. William D Nordhaus writes in The Spirit of Green:

"One prominent example is the activities associated with the Koch brothers and their companies. Koch Industries is a privately owned company holding companies with major environmental impacts and with revenues of around $115 billion in 2017. As reported by the Center for Public Integrity, one of Koch's holdings, Georgia-Pacific, is significantly impacted by the US Environmental Protection Agency (EPA) decision on dioxin. They write that Koch has intervened 'in various regulatory proceedings to dilute or halt tighter federal regulation of several toxic by products that could affect its bottom line, including dioxin, asbestos and formaldehyde, all of which have been linked to cancer.' According to Greenpeace, 'Koch Family Foundations have spent $145,555,197 directly financing 90 groups that have attacked climate change science and policy solutions, from 1997 - 2018.'"

So it's understandable why Republicans especially don't want Joe Biden's climate change agenda to pass even though a majority (actually two thirds!) of Americans want the government to do something about climate change according to a Pew poll. "A majority of Americans continue to say they see the effects of climate change in their own communities and believe that the federal government falls short in its efforts to reduce the impacts of climate change." But since the Koch brothers and others like them have the Republican party in their pockets, the filibuster assures them that nothing will get done. And this is happening in a democracy where democracy rule supposedly prevails? The US, sadly to say, is no longer a democracy if it ever was.

Off the Top of My Head

How to Pay For Infrastructure

by John Lawrence

Modern Monetary Theory (MMT) points out that neither social programs nor tax cuts need to be "paid for." A government such as the US with a sovereign currency can issue the money without having to tax first. Taxes are only necessary to control inflation. The biggest amount of inflation in the economy right now is the inflation of billionaires' wealth assets because their increases in wealth are not taxable. The IRS only taxes workers' incomes, not billionaires increasing asset wealth. That's why economic inequality is growing by leaps and bounds, and we need a wealth tax. But as for infrastructure, the Fed can just create the money in the Treasury's account at the Fed with a few keystrokes on a computer like it did when it bailed out Wall Street in 2008.

In The Deficit Myth, Stephanie Kelton writes (circa 2015):

"No one [on Capitol Hill] questioned the significant need for infrastructure investment. A trillion dollars, while ambitious, would have only taken a bite out of the problem. No one blanched at the price tag, but there was considerable debate about whether (and how) to pay for it.

"Before I tell you about that debate, it's important to understand what those words mean to lawmakers and their staffers on Capitol Hill. In truth, there is only one way to pay for anything. All federal spending is carried out in exactly the same way - that is, the Federal Reserve credits the appropriate bank account(s). But in Washington speak, you "pay for" your spending by showing that you can "find" enough money to cover the cost of whatever it is you're proposing to spend. It's all a game, really, and it's rooted in the flawed mental model [that the government needs to tax and/or borrow before it spends] that holds back so much of our potential. To avoid adding to the deficit, lawmakers look for ways to cover the costs of their proposed spending without borrowing. That means they usually go looking for new tax revenue."

As Kelton points out, the US doesn't need to tax before it can spend. Biden's wanting to pay for infrastructure by taxing the rich is not necessary to pay for infrastructure per se, but it is necessary to get unbounded economic inequality under control.

Kelton continues:

"So back to the debate over the trillion-dollar infrastructure ill. The conversation began with staffers being asked whether we thought a so-called pay-for should be attached to the bill. It was my first week on the job, so I was relieved when another staffer spoke up first. "No," this person began, "I think we should just do it as a clean bill." A clean bill meant writing a spending bill that didn't include any language abut how to pay for it. Another staffer agreed, and soon I echoed their sentiments. Our country desperately needed to make these investments. There was clearly enough fiscal space to do it, and infrastructure is one of the things that has traditionally enjoyed bipartisan support. Since the GOP was in control of the Senate, we reasoned, the bill would need at least some support from Republicans to pass. [Ha. Ha] Proposing a tax increase would guarantee defeat. Not everyone agreed. Another staffer objected that the press wouldn't take the legislation seriously unless it specified exactly how it would be paid for. In the end, the bill included a proposal to raise revenue by closing a variety of tax loopholes that overwhelmingly benefit the rich. Needless to say, the legislation did not pass. Meanwhile, the latest ASCE [American Society of Civil Engineers] report card shows how deferred maintenance is catching up with us, as the cost of our needed improvements has climbed to a whopping $4.59 trillion."

Is it deja vu all over again? Is it gridlock or spinning our wheels as infinitum? Is it Republicans thinking it is more important to defeat Obama's and now Biden's agendas than it is to prevent bridge collapses?

Kelton's point is that the US doesn't really need to "pay for" anything by taxing first or finding the money first. "In 2017, a 1215-page bill, known as the National Defense Authorization Act, sailed through the Senate with a vote of 89-9. The White House had requested $700 billion, but the Senate had authorized $737 billion, kicking in another $37 billion without hint of concern about where to "find" the money. They simply voted in an overwhelmingly bipartisan way to increase the Pentagon's discretionary budget."

Yet the Pentagon budget has not protected us from international ransomware attacks nor domestic terrorists. May I submit that the money is misspent and misdirected? Instead of going where the money is really needed it goes to the vested interests in the military-industrial complex who continue to justify war in order to line their own pockets.

Kelton continues: "That might seem like a double standard. As Congresswoman Alexandria Ocasio-Cortez put it, "We write unlimited blank checks for war. We just wrote a $2 trillion check for the GOP tax cut, and nobody asked those folks, 'How are they going to pay for it?' She's right. Somehow, there's always money for war and tax cuts. For just about everything else, however, lawmakers are expected to show that they can "pay for" their spending."

As MMT has shown, the US government does not need to tax or borrow in order to spend. Taxation is necessary to control inflation, to extract money from the economy if there is too much of it out there chasing too few goods or services. Right now there is too much money out there in the hands of billionaires that should be extracted in order to prevent runaway financial inequality. But it is not necessary to tax before money can be spent on infrastructure or anything else. There are limits, and the limits are the material and human resources that are available to soak up that money by providing constructive economic activity like building infrastructure. Hyperinflation like what happened in the Weimar Republic or even Greece cannot happen in the US because the US never has to go to the capital markets to borrow money at prevailng interest rates. The US central bank, the Fed, issues whatever money is necessary to pay US bills and that includes any money appropriated by Congress whether for war, tax cuts or building infrastructure.

https://www.youtube.com/watch?v=a9pAPIUYXxQ

 

Off the Top of My Head

We Need to Change Our Spending Priorities Away From Military Adventurism and Toward Domestic Concerns

by John Lawrence

The military-industrial complex needs to be defunded, and the budgets of Homeland Security, the FBI and cybersecurity need to be augmented. We need to reconsider what "national security" really means especially in an era of climate change and pandemics. If the world's nations can not get along, climate change will end human civilization. The western nations, especially the US, need the cooperation of Russia and China in particular if climate change can even be mitigated to a less disastrous level than is already baked in the cake. Russia is one of the largest exporters of fossil fuel products, and will profit most from the thawing of the Arctic. If they are treated as pariahs, they will not be too concerned if the rest of the world becomes uninhabitable. Scientific American reported in an article entitled It's Time to Rein in Inflated Military Budgets:

"Despite the trillions of dollars Congress and successive administrations have lavished on the Pentagon since the turn of the century, the massive U.S. arsenal and fighting force deployed worldwide are powerless against grave, nonmilitary threats to national security—from a raging pandemic to the fact that tens of millions of Americans breathe foul air, drink tainted water, and struggle to pay for food, housing and health care.

"Such a reassessment is long overdue. No other country’s military outlays come close. In FY 2019, the Pentagon’s budget was nearly three times bigger than China’s defense spending and more than 10 times larger than Russia’s. All told, the U.S. military budget in 2019 exceeded the next 10 countries’ defense budgets combined and singlehandedly accounted for a hefty 38 percent of military spending worldwide."

The truth is that lobbyists for the military-industrial complex will lose money if a sane foreign and domestic policy is adopted. It is a hotbed of self interest which will come up with infinite rationales for continued military spending even when it is obvious to a disinterested observer that the Defense Department is just an unabashed money pit. The article continues;

"There are plenty of reasons to cut the Pentagon’s budget, but its track record of profligate spending is among the most obvious. If the Pentagon were a private corporation, gross mismanagement would have forced it into bankruptcy years ago. Dysfunctional internal controls, aided and abetted by years of lax congressional and administration oversight, have enabled it to waste tens of billions of dollars annually, and the last 20 years are littered with a parade of overpriced, botched and bungled projects.

"In just the first decade of this century, the Pentagon was forced to cancel a dozen ill-conceived, ineffective weapons programs that cost taxpayers $46 billion. They included the Future Combat Systems program, a fleet of networked high-tech vehicles that did not work; the Comanche helicopter, which—after 22 years in development—was never built; and the 40-ton Crusader artillery gun, which never even made it to the prototype stage.

"To put this example of managerial malfeasance in context, these canceled programs collectively cost more than the federal government spent on the Environmental Protection Agency (EPA) over the last five years.

At least the Pentagon killed those projects before they wasted any more money. All too often, it does not know when to pull the plug. The Army’s attempt to replace its outmoded Bradley tank is a case in point. Over the last 17 years, it has blown an estimated $22.9 billion on three flawed prototypes, but in February—just three weeks after rejecting the third failed design—it issued yet another request for proposals from defense contractors."

To put it bluntly many peoples' livelihoods and many corporation's profits are tied up with the continued exorbitant spending by the Federal government in support of the Defense Department, but Defense is a misnomer if the spending priorities are so out of wack compared to the actual threats to the American people. In short we are wasting money on so-called defense and letting the real threats go unfunded and undefended.

 

Off the Top of My Head

Joe Biden's Trillion Dollar Budget Plan

by John Lawrence

Don't worry about how to pay for it. Any nation with a sovereign currency (let alone the world's reserve currency) and a floating exchange rate can never go bankrupt. The Federal Reserve can issue the money. In fact in the real world this is exactly how it works for any budgetary legislation passed by Congress and signed by the President. Let's say, for example, Biden's $2 trillion infrastructure plan is signed by him into law. The US Treasury has an account at the Federal Reserve bank. Let's say there is only a trillion dollars in that account. What happens next is that the Fed just augments the Treasury's account by a trillion dollars by means of a few keystrokes on a computer. Bingo the government now has all the money it needs to spend on infrastructure. It didn't have to receive tax money in advance of the money it needed to spend. At the same time the Treasury Department creates a trillion dollars worth of Treasury bonds and sells them to the primary dealers who are required by law to buy them. These are mainly big Wall Street banks. These banks sell the bonds in the secondary market. If they can't find enough buyers, the Fed "adds liquidity to the market" by taking the Treasuries onto its balance sheet in return for marking up the Wall Street banks accounts at the Fed with the appropriate amounts of cash. Now everybody is happy. The US government has the money it needs in its Treasury's account at the Fed. The Wall Street banks have plenty of liquidity in their reserve accounts at the Fed, and the amazing thing is that it didn't require any money from additional taxes.

Another amazing thing is that most politicians are totally ignorant about how government financing actually works. The Republican Governor of Ohio, Mike DeWine gets on TV and opines about the fact that the US is going into too much debt and how will our grandchildren ever pay it off. "Here in Ohio," I'm paraphrasing," we have to pay our bills and pay down our debts. Every household has to be fiscally responsible and pay their debts." Well households and states are in a different category from the Federal government. They actually do have to pay their debts. So what he is claiming is a half truth. States and households cannot issue a sovereign currency whereas the Federal government can. States and households use the Federal government's currency. The big lie, however, is that the US government has to pay off its debts. It never does, and no entity can force it to do so. The other constraint that Larry Summers and others worry about is inflation or currency devaluation. Inflation could be a problem, and that problem, should it arise, can be dealt with by sucking money out of the economy by means of taxes. Biden's plan to tax the rich will suck some of their superfluous wealth out of the economy thus forestalling inflation while tending to reduce the runaway economic inequality that is now threatening democracy in the US.

The Federal government is not like a household or a state. Households and states actually do have to pay back the money they borrow plus interest. That's why it's so important that the various COVID rescue plans provide the states and municipalities with money. Otherwise, they could become financially insolvent and go bankrupt like Orange County in California did a few years ago. Birmingham, AL also got itself in hot water and went bankrupt. Countries in the Euro zone have the same problem as states in the US. They gave up their sovereign currencies when they joined the EU. So now countries like Greece and Italy have to beg the European Central Bank for relief, relief they could have provided for themselves if they had retained their sovereign currencies like Britain did. Britain will not have any problem with financial shortages because, like the US, its government can issue whatever currency is deemed necessary to weather any storm.

So in addition to the Big Lie that Trump won the election, politicians of both parties are perpetrating another Big Lie that the US actually has to borrow the money to pay for Biden's trillion dollar infrastructure and safety net programs. Some politicians, like Bernie Sanders and AOC, actually know the truth, and, evidently, they have convinced Joe Biden thereof as well although they won't actually come out and say it to the media: the US government can just issue money into the private economy. It doesn't need to borrow it or even tax for it in advance in order to spend. So the real policy of the Biden administration is not tax and spend. It's spend and maybe tax later, but target those taxes on the wealthiest among us. As opposed to the Republican philosophy of giving tax breaks to the wealthy and taking the social safety net away from the poor.

Off the Top of My Head

The Solution to Gun Violence in America

by John Lawrence

The government should simply buy out the gun industry. According to Fortune Business Insights: "The global guns and accessories market size was $6.14 billion in 2019 and is projected to reach $9.33 billion by 2027." So for just $10 billion or so, the US government could buy out the gun industry and shut it down except for those guns that are needed by police and the military. Without lobbying and campaign donations to Republican Congressmen, political support for guns would quickly dry up, and gun sales could be carefully controlled by the government. Throw in another $10 billion to buy back guns that are already on the street, and for a measly $20 billion the government could buy up the gun industry and get guns off the street. Or a billionaire could do it. With the government spending trillions of dollars on an annual basis, $20 billion is peanuts in order to solve the gun violence epidemic in America. It would also be peanuts for a consortium of billionaires. Bill Gates is an advocate for global health and eliminating global disease. He could singlehandedly eliminate this one.

Other countries are capable of controlling the sale, distribution and licensing of guns in rational manners. Only in the US is there a literal fury about the right to own a gun as if it were a sine qua non more precious than food or water. There have been 47 mass murders in the last month, and it will only be getting worse without control of gun distribution. Why not replace the right to gun ownership by the right to health care and the right to adequate housing? We have the world's worst and most expensive health care system with the pharmaceutical industry along with the car industry practically supporting network television with ads. It would be better to eliminate pharmaceutical ads like they used to be disallowed before Republicans made them legal. These ads have been generating a nation of hypochondriacs. Sickness is becoming a booming entrepreneurial industry. Better to encourage the American population to have more healthy lifestyles.

Sad to say but the US is becoming a second rate nation incapable of maintaining public order. Liberty has gotten out of hand. There can be too much of anything, and Republicans have doubled down on the Second Amendment despite mass violence which is draining the life and security out of the American people. No one is safe and secure any more as long as mentally disturbed people have the right to buy guns. Republican demands for liberty are also affecting the pandemic response as they demand that Americans go about their business in any way they freely choose despite the best advice from responsible experts on pandemics. Rights should be balanced with responsibilities but in the US there are no responsibilities expected of citizens. Compulsory voting, also called mandatory voting, is the requirement in some countries that eligible citizens register and vote in elections. Penalties might be imposed on those who fail to do so without a valid reason. According to the CIA World Factbook, 21 countries, including 10 Latin American countries, officially had compulsory voting as of December 2017. Instead the US is doing its best to restrict voting. It is a country getting out of whack with the rest of the world yet pretending it has the right to control the world. Even the vaunted US dollar is losing ground as other countries find workarounds to avoid US sanctions.

Compulsory public service should be required as an alternative to military service. This could be in return for free public education. The US has been turned into an exploiter's dream where everything must be paid for or people have to go into debt or people have to do without the necessities of life if they can't pay. Money talks and shit walks. Instead of a rational public order, we get sold a bill of goods about the need for a bloated military and the right to own guns when the biggest threat to the security of American lives is domestic terrorism and random nuts with guns. In short unless some things are changed, America will lose whatever moral authority it ever had. This is a fast track to second ratedness and moral bankruptcy.

Off the Top of My Head

America to End Forever War in Afghanistan Thanks to Joe Biden

by John Lawrence, April 15, 2021

So far Biden is making all the right moves, and I'm sure he has more up his sleeve. He's playing 3 dimensional chess while the Republicans haven't even learned to play checkers yet. The military-industrial complex is crying, "Oh, no," because they justify the huge expenditures on them by the need for continuance of forever wars. They are aghast at the prospect that their trillion dollar annual budget will be inevitably reduced. It has become obvious that the biggest threat to the US is not international terrorism but domestic terrorism. The FBI and the National Guard will deal with that very nicely; they don't need the Pentagon. The FBI is doing a remarkable job cleaning up the terrorists who took part in the January 6 bungled coup attempt. Over 400 arrests and counting so far. The idiots self videoed their own arrest warrants.

The US spends more on defense than the next 10 countries combined. As an added service they also train the Oath Keepers, Proud Boys and the Three Percenters. The military-industrial complex has done a lot to militarize the consciousnesses of young Americans, especially young non-college bound Americans. College graduates, especially in engineering, often end up, like I did, in the military-industrial complex working for companies like Lockheed Martin, Northrup Grumman and General Dynamics. As a country we have been spending our money in all the wrong places, but the military-industrial complex wants to hang on to its prerogatives. When I was an employee of General Dynamics many years ago, they encouraged you to vote Republican. Otherwise their budgets might be cut and there might be a RIF (Reduction in Force). When the military-industrial complex is cut down to size, right sized as they say, the Republican party will lose its raison d'être, its justification, because that's all in reality that it stands for - large defense budgets and tax cuts for the wealthy.

If we really want to compete with China, then we should cut our defense budget down to the size of China's and spend our money in more constructive ways like China is doing like building infrastructure with its Belt and Road initiative. The only infrastructure the US has been doing in foreign countries has been the building of military bases of which there are approximately 800 in practically every country in the world. Meanwhile, China has one military base in a foreign country - in Djibouti! If the US wants to compete with China, it will take a page out of China's book and build infrastructure not military bases. China and the US need to cooperate on problems facing the whole earth like global warming. It's no consolation to win the competitive war while the home we all live in goes up in flames or drowns as the case may be.

Republicans want Biden to tell them how he's going to pay for all his ambitious social programs? Let's see. Let me count the ways. Taxes on the rich - that's a good one. Reduce the size of the military-industrial complex budget. Even better. Military contractors, among others, provide the campaign donations for the Republican party as long as the guys they are providing the financial jet fuel for are hardliners for a "strong" defense. Well now, maybe they should stand up for transferring the money to the FBI so they can deal with domestic terrorism instead of a useless military engaged in forever wars which are only killing civilians, destroying real estate and creating refugees. The world doesn't need an America which thinks it has the self-appointed job of being the world's policeman or moral arbiter. There is something in the Bible about taking the beam out of our own eye before telling our neighbor to take the mote out of theirs.

The US bloated military is wasting our money while militarizing the consciousness of our young men many of whom think their patriotism justifies invading and laying waste to our Capitol. Lawmakers were shocked, shocked to find out that the invaders of the People's House were present and former members of the military and police forces! Patriots! This is what happens when you define patriotism in military terms. The true patriots are the doctors and nurses, supermarket workers, delivery drivers, meat packers and others who put their lives at risk to help us get through this pandemic. True patriotism consists of reducing our military-industrial complex and defense budget to a reasonable size comparative with other countries and the real threats in the world while building up our infrastructure assets and social safety net programs as every other advanced country has already done. Joe Biden is on the road to doing this. May he prosper and prevail. And God bless our doctors and nurses.

Off the Top of My Head

If Republican Voters Want the Infrastructure Bill, Why Don't Republican Lawmakers?

by John Lawrence, April 12, 2021

Is this a failure of representative democracy? Polls show that a majority of Republican voters support Biden's infrastructure plan including the "care" components thereof. Yet Republican Senators are dead set against it, and the bill will probably not garner one Republican vote. It can still pass the Senate based on budget reconciliation which only requires a majority vote as long as all Democrats vote for it. Other Biden proposals involving voter's rights and gun control would require at least 10 Republican votes in the Senate under the current rules which involve the filibuster for non-budgetary items. In a representative democracy, a party should represent its voters. Otherwise, you don't really have a representative democracy which the US purports itself to be. So at present the US is in the position of being a government swerving back and forth from a representative democracy as long as Democrats control both Houses of Congress and the Presidency and a dictatorship of an elite when Republicans control either party or the Presidency.

The same applies to other issues like gun control, voter's rights and immigration which aren't subject to budgetary reconciliation and must garner 60 votes in the Senate. One of the minimum elements of democracy is majority rule. Because the filibuster is anti-majoritarian, this leaves the American democracy in the position of not really being a democracy at all in terms of non-budgetary items. So the US is on its way to being an authoritarian regime if Republicans control the Presidency and both Houses of Congress. All that would be necessary is a President like Trump with authoritarian tendencies. Then the US government becomes a government that's all about the use of power to get its way internationally and domestically, not about making the world a better place. Unfortunately, this leaves the US in the eyes of other nations as being untrustworthy since there is no consistent policy going forward. Other countries have more consistent leadership and hence are considered more trustworthy.

China, on the other hand, has very consistent policies going far into the future. China isn't perfect but most of the Chinese people and the leadership are on the same wavelength. US leadership likes to make a big deal of the plight of the Uyghurs, a Chinese minority that represents less than 1% of the Chinese population. So it's pretty remarkable that the only problem China seems to have with a minority that resents Chinese leadership  is with a minority that composes 0.31% of the population. The US should be so lucky yet the US harps on the Chinese over this situation of which little is actually know by the western world. China has pilled 800 million people out of poverty since 1990, one of the outstanding feats in human history, yet the US leadership continues to harp about the Uyghurs while giving no credit to China on poverty reduction. During the same time period the wages of US workers has stagnated. Kishore Mahbubani, author of the book, "Has China Won" writes: "In contrast to America's stagnation, China's culture, self-concept, and morale are being transformed at a rapid pace - mostly for the better." Rather than China's recent success being an assessment of the comparative values of Marxist-Leninist doctrines vis a vis American democracy, The Chinese Communist Party could more appropriately be called the Chinese Civilization Party since it reflects the 2000 year history of China more than it does Communist ideology.

So the response of the US to the progress of China in the last 30 years, instead of congratulating them on their remarkable accomplishments, is to be fearful that China is getting ahead of us. Well, duh, if you compare a society that is mostly all on the same wavelength and making remarkable steps forward with one that is divided and experienced a certain segment almost accomplishing a coup d'etat in a recent insurrection which threatened the lives of lawmakers in the seat of democracy itself. However, rather than viewing the world situation as a competition between the US and China, a more fruitful approach would be to cooperate with China with regard to climate change and pandemics, two things that affect the whole world and which require fast action, not a lackadaisical approach in which maybe we'll cooperate down the road, but in the meantime we have to compete. There's no time for that. The planet earth has almost passed an inflection point after which there will be no more time available.

Off the Top of My Head

Joe Manchin Is Living in La La Land

by John Lawrence, April 8, 2021

Joe Manchin is not facing the reality that exists in the US today. He is nostalgic for a day when a bipartisan consensus was possible. Today it's not. The best we can do is to go ahead with Joe Biden's agenda with the slim majority Democrats possess in the Senate, but Manchin is essentially siding with Republicans, the Party of No. Manchin wants stability in American governing, but his vision of stability is one in which Republicans will negate every attempt Biden makes to bring the US into the 21st century and effectively compete with China. Yes, America will swerve back and forth policywise if Federal control switches between parties. But that's the best that American democracy is capable of at this point in time. The alternative that Manchin suggests is a stability of no progress. China has no such problem. Their society is basically all on the same long term wavelength. They will go full steam ahead with progress.

In his recent op-ed in the Washington Post, Manchin states: "The time has come to end these political games, and to usher a new era of bipartisanship where we find common ground on the major policy debates facing our nation." Is he kidding? "usher a new era of bipartisanship where we find common ground" There is no way that is going to happen in the current political environment. There is very little to no common ground. Democrats want to get things done for the American people to improve their lot. Republicans only seek political power because their personal fortunes go up to the extent that they hold political power, and all they care about is their personal power and fortunes. Republicans have determined that their personal power increases to the extent that they make the Democratic agenda fail. Mitch McConnell actually stated this when Obama was President. McConnell was quoted as saying: "The single most important thing we want to achieve is for President Obama to be a one-term president." That's pretty clear. It's not about helping the American people except for the wealthy class of which they themselves are members. It's about making the other party fail.

So Joe Manchin has his head up his ass if he thinks there is going to be a new age of bipartisan consensus. It's wishful thinking. It's not going to happen right now or any time in the near future. Maybe some day, but right now the best hope is for the Democrats to go ahead and make improvements in American society while they hold power. Any other course only dooms the US to fall further behind the rest of the world, doom earth to catastrophic climate change and lets China zoom ahead in making progress. Joe Manchin is incredibly naive or else he wants to be the main power broker in the US Senate. "Generations of senators who came before us put their heads down and their pride aside to solve the complex issues facing our country. We must do the same. The issues facing our democracy today are not insurmountable if we choose to tackle them together." Doesn't he realize that the only issue Republicans want to face is how to make themselves and the rich even richer? Doesn't he realize that the only thing Republicans are interested in is political power? They will lie and cheat, create conspiracy theories and do anything that's even quasi legal to achieve and maintain political power.

Manchin is playing his role as the skunk at the party which is too bad. Biden's job is not trying to form a bipartisan consensus with Republicans. It's trying to appease Joe Manchin in order to get anything done. The only hope for America is to go big when Democrats hold power which they do only by a miracle in the fact that two Democratic Senators were elected in runoffs in the state of Georgia. Somehow Biden will get Manchin to go along with most of his agenda that Republicans will not be able to undo if and when they control the Federal government again. The atmosphere has already set the record this year of 420 parts per million of carbon dioxide making it unlikely that our planet will not face the worst consequences of global warming. Only cooperation with China, not only on this but on future pandemicsand other issues, will give our grandchildren the slightest chance at a decent life. To the extent Republicans control the Federal government this chance will be reduced to zero.

 

 

Off the Top of My Head

The Caring Component of Biden's Infrastructure Plan

by John Lawrence, April 6, 2021

It's about time that the need for a caring infrastructure is addressed. Caring used to be supplied almost entirely by wives when wives didn't work outside the house. However, they did considerable work inside the house caring for children, sick relatives and elders in addition to taking care of their husband's needs. Now that most wives are required by economic necessity to work outside the home, there is a need for child care for young children not old enough to attend school. There is a need for pre-K education plus babysitting services. Older family members have special needs for care giving as well. Who is to provide for this if wives are in the work force? Rich people can pay tuition for pre-K and child care as well as hiring caregivers for older relatives or paying for senior living facilities. For poorer people, wives have to do all this themselves in addition to working to provide income for the family.

That's why Biden's initiatives provides for a caring infrastructure. However, it is insufficient. The Guardian reported:

Just as our physical infrastructure is crumbling and requires substantial reinvestment in a 21st-century economy, our care infrastructure is fundamentally broken. As the only industrialized country in the world without a national paid family and medical leave program, only 17% of our people have paid family leave through their employers. Hundreds of thousands face daunting waitlists for essential home care. Childcare is the highest household expense for families in much of the United States. And the median annual pay of childcare and home care workers is $25,510 and $17,200, respectively, leading to high turnover and reliance on public assistance.

In the past most elderly people on Medicaid that needed care giving were forced into institutional care like nursing homes. There was no comparable funding level that provided care givers for people to stay in their own homes. Biden's care infrastructure corrects this anomaly by providing money for care givers to provide care outside of nursing homes and other institutions. However, the limitation is that people who qualify for either nursing homes or home care must be on Medicaid. Basically, this means that they have no assets. They could stay in their own home only if they don't own it. If they owned it, that would be considered an asset that would disqualify them from being on Medicaid. So older people on Medicare, but not Medicaid would not qualify under Biden's "care infrastructure" initiative. People with assets like home ownership usually want to pass those assets on to their children. It represents the intergenerational transfer of wealth. That's how white people have built wealth over the generations whereas black people, who were by and large prevented from owning their own homes after WW II, are by and large renters.

Elderly renters are mainly poor people who live off of social security which hardly provides for a decent living much less the intergenerational transfer of assets once the person dies. Biden's pre-election agenda called for an uping of social security payments so that people could have a decent existence just based on social security alone. It also called for an increased amount of social security for people who had been on social security for 20 years, in other words, the really old. The Boston Globe reported:

A critical part of Biden’s campaign plan was not only raising funds for Social Security but also expanding the benefits to reduce poverty among elderly Americans. It would, for example, ensure that benefits for workers who were in the labor force for 30 years or more would be at least 125 percent of the federal poverty line. The oldest beneficiaries would also receive a bump to offset dwindling retirement savings, and widows and widowers would receive a 20 percent increase so that their Social Security benefits don’t get cut in half when their partner dies.

The reason that Biden didn't include this in his "caring infrastructure" initiative is that the cap on wages subject to the payroll tax would (in the minds of politicians) have to be raised to "pay for" it, and Biden has promised not raising taxes on anyone making less than $400,000 annually. Right now, payroll taxes that go toward funding Social Security are capped at the first $142,800 of a taxpayer’s income. First of all the social security trust fund is basically a hoax. Money is available for social security in the same way that money is available for COVID relief, infrastructure and even tax cuts. As Modern Monetary Theory points out, the Federal Reserve creates the money without the need of taxes to pay for it. The same is true for social security. But Biden did not want to complicate the discussion around his infrastructure plan so he left his plan for social security increases behind presumably to be brought up at a later date.

There is much talk about enlisting the help of Republicans for Biden's infrastructure initiative, but it is a not a secret that Republicans will help with nothing Democrats want to do. The working across the aisle thing is a loosely held fiction. Democrats know that they must pass all Biden's bills just with the slim Democratic majority. That gives Joe Manchin of West Virginia, the most conservative Democrat, enormous power. You can bet your booty that West Virginia will get more than their fair share of roads and bridges. He wants to not raise the corporate tax rate to 28% as Biden as suggested. Big deal! Again tax money is not required for government spending. The Federal Reserve just issues the money, and then the Treasury Department sells the bonds. What bonds can't be sold to individuals or foreign governments end up on the Fed's balance sheet. The deficit between money spent and tax money collected is irrelevant. Taxes are only relevant to reduce income inequality as long as they are targeted on the rich. The Fed controls the interest rate, and as long as it keeps it at about zero, the Federal government can keep the amount of money it spends on interest under control.

Off the Top of My Head

Unlike Trump, Biden's New Deal Will Actually Make America Great Again

by John Lawrence, April 4, 2021

GDP is the measure of national economic activity and is composed of 4 components: private consumer consumption, business investment, government investment and net of imports and exports. America's economy is 70% consumption compared to about 50% for most of our western allies. Government spending is about 17% compared to 40-50% for most of our allies. In fact for Norway, Belgium, Finland and France it's over 50%. Joe Biden's infrastructure plan will change all that bringing government spending on infrastructure both material and human more in line with the rest of the developed world. While most of our allies spend around 50% on consumption, America is primarily a consumer economy at 70%. That's about to change under Biden's New Deal. Government consumption and employment will increase while private consumption and employment will decrease. This is a good thing, but Republicans and states' rights advocates disagree. American infrastructure is falling to Third World status while Americans entertain themselves to death. Nothing has been invested and everything has been consumed. Biden's attempted change in these dynamics, which Mitch McConnell has vowed to fight "every step of the way" is a bid to preserve first world status for the US which is rapidly diminishing.

The one thing the US has going for itself right now is the fact that the US dollar is the world's reserve currency. As such the US can spend large sums - trillions of dollars in fact - without fear of the dollar losing its value. So it might as well "go big" on spending because the dollar may not always retain that status. China is becoming the world's largest economy with major spending on infrastructure not only in China, but, with its Belt and Road Initiative, around the world. Meanwhile, what the US has to offer in that regard is using its bloated military to police the world. So if you were President of your country, which would you rather have - policing or investment. The answer seems clear to many, even to many US allies. China is consistent and values stability and unanimity of its citizens. The US government is subject to radical change every 2 or 4 years with deep divides among its populace, and more and more can't be counted upon by its allies even to the extent that a sizable number of US citizens invaded its Capitol! Autocratic countries may be brutal towards political dissidents, but they would never tolerate a threat to their very existence.

Some Americans will have to be brought kicking and screaming into the Biden economy. Just as they were cavalier about wearing masks, they could care less about good jobs at good wages. They just want good beer and football games. Cruises, spectator sports and abundant entertainment is what Americans have come to expect, and they prefer that to safer roads and rebuilt bridges. They are viscerally opposed to doing anything to prevent climate change or global warming. They don't want to work hard to make America great again. They want it all given to them on a silver platter preferably by an entertaining and charismatic President rather than a plodder who has their welfare at heart. There is a looming war between states rights Republicans who want the US to remain a private consumption economy and Democratic neo-New Dealers who want government to play a larger role in investing in American infrastructure, both material and human.There will be more and better paying jobs working in government infrastructure projects than there will be working in the entertainment industry. This infuriates some people.

Taxing the rich also brings Republicans out of the woodwork to proclaim that Biden will end up taxing the middle class as well "to pay for it" even though he has said that everyone making under $400,000 a year will not pay one penny more in taxes. Republican lawmakers will chomp at the bit to naysay that bit of profundity by saying over and over on their media outlets that it is not true. The truth is that Biden wants to construct a stronger safety net while rebuilding and extending American infrastructure, and a lot of Trump supporters just don't care about any of those things. They just want to be entertained and to eat out while watching spectator sports.

Off the Top of My Head

The Stock Market is Too Big to Fail

by John Lawrence, April 2, 2021

Just as the big Wall Street banks are too big to fail, so now is the stock market. The stock market will never take another radical dive downward because the Federal Reserve won't let it. The way the economy is shaping up Treasury bonds, which hardly pay any interest, are just a safe place to store your money and also for foreign nations which need the world's reserve currency (the US dollar) to have a savings account because they need dollars to conduct business. There is no worry that the US will have to pay off the trillion dollars in Treasuries that China owns because they need those dollars to do business with the US and other nations. If they did want to dump all their Treasuries for some reason the Fed could just create the money to pay them and effectively take the Treasuries on its own balance sheet.

So the stock market is the only game in town for those who want to actually "invest" their money. There is so much 401(k) money in the stock market that that is reason enough to never let it fail. Instead it will continue on its merry way upward while the Fed keeps interest rates at approximately zero so that not much in the way of interest will have to be paid on US debt. There is no reason to fear that Joe Biden's $2 trillion infrastructure plan will bankrupt the US. Since the US dollar is a sovereign currency, the Fed can print as much money as it wants. If international investors don't want to buy this debt, it ends up on the Fed's balance sheet which is an effective black hole from which it never has to emerge.

Then why is there all this kibuki theater about "how to pay for it," the $2 trillion infrastructure plan I mean. It's just that most Americans including most Congressmen are under the illusion that a country with a sovereign currency like the US faces any constraints in paying for anything. Well, there is one constraint - inflation. This is probably of little concern as long as the money is targeted at the lower middle class an the poor which haven't seen wages rise in 40 years. The real inflation in the economy is the asset inflation that the rich are mostly responsible for. That includes the stock market and real estate. Inflation in the stock market will be carefully controlled by the Fed. We've seen that the stock market moved up even during the pandemic. The real problem is inflation in the real estate market which has made housing unaffordable for many. It continues to get worse as the extra dollars the wealthy have to invest are driving up prices. That's why it makes sense to tax the rich ostensibly to pay for the infrastructure bill. The real reason, however, is that inequality is getting out of hand in the American and the world economy. Taxing the rich is the only effective means to reduce inequality to a reasonable level. It will also help to bring inflation in the real estate market under control.

The real problem that Biden's infrastructure bill will have to deal with is changing the nature of the US economy. When the economy was in full employment under Trump, there were still 4% unemployed. 5% unemployment is considered "full employment," but that still leaves about 15 million people out of work. Biden's infrastructure plan will put those 5% back to work. It had been considered by conservative neoliberal economists that 5% unemployment was necessary to ward off inflation, but that theory has been debunked by Modern Monetary Theory. While inflation will still be a concern with all of Biden's stimulus spending, the main concern is restructuring the US economy from an entertainment economy to a constructive labor economy. Trump's economy was arguably a full employment economy (except for the 4% unemployed), but it was an economy the jobs of which were mainly in the entertainment and military industries. In other words, in my opinion, it was an economy based on false unbeneficial values. An economy based on labor participation rebuilding American infrastructure will be an economy based on necessary and fundamentally beneficial values. This might mean that some of those presently employed in frivolous industries might be incentivized to change jobs. Reducing the entertainment and military sectors while increasing those employed rebuilding infrastructure would be, in my opinion, be a good thing.

 

Off the Top of My Head

Biden's Infrastructure Initiative: Don't Worry About How To Pay For It

by John Lawrence, March 30, 2021

Even Republicans agree that there is a need to upgrade the infrastructure of the US. But they don't want to raise taxes to pay for it. Good news! You don't need to pay for it with tax money. The US dollar is a sovereign currency. That means that the central bank, in this case the Fed, can just create the money. In fact this is how it's always been done. The deficit is just an accounting regime. Money created by the Fed need never be paid back. It just goes on the Fed's balance sheet. This is a fact known and agreed to by most economists but many politicians and the American public are totally ignorant of this basic fact about how the economy works. Modern Monetary Theory has attempted to explain it in books like "The Deficit Myth" by Stephanie Kelton. So why does Biden also propose tax increases on the rich to pay for it? These are really two separate issues. Taxes need to be raised on the rich to try to bring into balance the skyrocketing financial inequality that has been occurring, not to pay for the infrastructure bill. Why do politicians including President Biden continue to perpetuate the myth that appropriations bills need to be "paid for." Why don't they just come out and say the truth - that a nation with a sovereign currency can never run out of money?

When just a few people own most of the wealth, we're back in a neo-feudal society where the rich control the political process, and the rest of the people are merely peons who don't really have a stake in the society at all. The Republican attempts to change the voting laws to suppress the minority vote is a way to cement that fact in American society. That's why it's so important to liberalize the voting laws so that every American citizen is encouraged to vote, not discouraged from it. So the infrastructure initiative is really two or even three pronged: rebuild infrastructure such as roads, bridges, ports, rail lines, airports and broadband thus putting millions back to work in good paying jobs. Secondly, to build back better in the sense that, insofar as possible, address the problem of global warming, and, thirdly, to make a first step in addressing economic inequality. All these things are important.

The only thing to watch out for while spending all this money is inflation, and some economists like Larry Summers are already sounding alarm bells over that. By taxing the rich and corporations money will be sucked out of the economy thus tending to reduce inflation. If sucking money out of the economy reduces inflation, then the sucking must be addressed to those areas where excess money really exists: namely, the rich and corporations who have been getting away with murder for years under both Republic and Democratic administrations. Forbes reported that "The 3 Richest Americans Hold More Wealth Than Bottom 50% Of The Country." Forbes ought to know. Perhaps with Biden's plan to tax the rich, it'll take 10 of the richest to equal the bottom 50%'s share. As for inflation, so much money in so few hands has already produced asset inflation in the form of rising housing and rent prices making it problematic for the young and the poor to support themselves especially at a minimum wage that hasn't increased in 50 years. What Summers doesn't understand is that the inflation that has occurred has been in the money that has been made by the rich which is actually wealth inflation, not in the form of wage inflation of the poor and middle class. Therefore, in turning this process around Biden's infrastructure bill is actually pointing the American economy in the correct direction.

Off the Top of My Head

Biden's Agenda

by John Lawrence, March 27, 2021

Biden has a definite agenda and a time table for putting it forward. His first two massive bills, COVID relief and infrastructure will go forward as planned because they can be passed with only a majority in Congress due to the budget reconciliation process. Other bills like voting rights and immigration are more dicey because they are subject to the filibuster. It's clear that Democrats will not get even one vote in the Senate for any bill subject to the filibuster. Biden will keep alive the meme that he "wants to work across the aisle" even though he knows that is impossible because he wants to at least appear moderate and cooperative. He doesn't want to alarm anyone, but push will come to shove inevitably when it becomes time to get a voting rights bill passed which is absolutely necessary if Democrats ever want to hold power again and accomplish anything. The coming figurative Civil War will be over voting rights. If Republicans are successful in rolling back voting rights for the poor and minorities, they will continue to hold power. If there is a Federal voting rights bill that will not only expand the way people can vote as was put into place because of the pandemic but also eliminate gerrymandering, then Democrats will continue to hold power because of the changing demographics of the American electorate. That's why a voting rights bill is so critical.

Republicans have devised different methods for voter suppression over the years not the least of which is gerrymandering. If they control how the voting districts are drawn on the map, they can insure that a Republican will be elected from each district. So expanding the voting franchise in a fair way is absolutely critical. If that is done, Democrats will hold and gain power for the foreseeable future. If not, Republicans will continue to hold power even as a minority party. So the stakes involved are huge. Biden has his timetable laid out. Do the easy stuff first. Two massive trillion dollar bills are the easy stuff because they can be passed in Congress with just a majority and without any Republican votes. When it comes time to pass a voting rights act, Democrats will have to attack the filibuster, and Mitch McConnell will go apoplectic. Be prepared for all kinds of threats from Republicans because they know that their time in power and the time when white people have controlled American politics is passed. America is becoming a multi-ethnic, multi-religious and very diverse society and American political power will reflect that if democracy and majority rule holds sway. Republicans and white people in general will do everything they can to hold onto power. American history demonstrates that.

However, Democrats, who have the slimmest of majorities in the Senate, have the power in their hands to change the filibuster rule or to eliminate it altogether, and I'm sure they will do whatever is necessary to pass their agenda. Their only problem is with the two conservative Democrats in the Senate, Joe Manchin of West Virginia and Kyrsten Sinema of Arizona. They will have to make sure that these two will come on board with whatever the Democrats decide to do. Biden has two of the best leaders on his side in terms of Nancy Pelosi in the House and Chuck Schumer in the Senate. They will figure out a way to outsmart the Republicans and bring the American people to their side as well. Republicans will be furious, no doubt. Fortunately, they blew their wad with the failed coup attempt popularly known as an insurrection. Now the FBI and the Department of Homeland Security is focused on their case. It won't happen again.

Biden only has two years for certain in which to enact his agenda. The special election in Georgia which elected Warnock and Ossof was critical to the success of the Biden administration. Warnock only has two years to serve until the next state election in Georgia to fill his seat whereas Ossoff was elected to a 6 year term. That's why there is a furious attempt to change the voting laws in Georgia so that a Republican senator will be elected there in 2022 and Democrats will lose their majority in the Senate which will again be controlled by Republicans. It was a happy coincidence for Democrats that Ossoff and Warnock were both elected; it was an anomaly for the state of Georgia, and Republicans are determined that it won't happen again. The success of the Biden administration hangs on his first two years to get his agenda done, and, if he wants to get anything done in the last two years from 2022 to 2024, it is critical that Federal voting rights are established which will roll back the white supremicist Jim Crow voting legislation currently being passed in Georgia and other states.

So the critical issue really is the filibuster. If Democrats don't go all out and eliminate it or at least create carve outs for voting rights legislation, they will lose control of the Federal government in 2022, and Biden's agenda will be defenestrated. It's all about the future of American politics and who will hold power - the Democrats who will serve the American people especially the poor and the middle class or the Republicans who will serve the rich and the white supremicists.

Off the Top of My Head

Ending the Filibuster is Necessary for Voting Reform and Other Crucial Initiatives

by John Lawrence, March 18, 2020

Voting reform at the Federal level is necessary to counter all the state efforts to restrict voting. This is as important as Biden's COVID relief bill which was passed by budget reconciliation and only needed a majority vote. It is important to note how precarious the COVID relief bill was because it got zero Republican votes. If even one of the two Senators from Georgia had not won in the runoffs, there would be no COVID relief bill or Democratic majority in the Senate. The Republican party is the party of NO. Biden's trope of "working across the aisle" is a total fiction and he knows it, but he's trying to keep it alive for appearances sake as it makes him seem more moderate. He knows that he will get no Republican votes for any legislation he wants to get passed, but he will seem less extreme if he at least keeps the idea alive. But when it comes right down to it, Biden will do what he needs to do to get his legislation passed into law. He's  not naive.

So Republican Mitch McConnell has threatened a "scorched earth" policy if Republicans ever regain control of the Senate. He even threatened to defund Planned Parenthood. Golly gee! I'll take that in return for comprehensive national voting reform including eliminating gerrymandering and overruling state efforts to restrict voting. Democrats have a lot on their agenda for helping Americans; Republicans have nothing. Here is McConnell’s complete account of the horrors that await the country were the legislative filibuster to perish:

“As soon as Republicans wound up back in the saddle, we wouldn’t just erase every liberal change that hurt the country. We’d strengthen America with all kinds of conservative policies with zero input from the other side. Nationwide right-to-work for working Americans. Defunding Planned Parenthood and sanctuary cities on day one. A whole new era of domestic energy production. Sweeping new protections for conscience and the right to life of the unborn. Concealed-carry reciprocity in all 50 states and the District of Columbia. Massive hardening of security on our southern border.”

Jeesh, Mitch, I'm totally terrified! I say go ahead and abolish the filibuster. When you weigh all the good Democrats can do for the country against all the bad Republicans can do, the scales are tipped heavily in favor of ending the filibuster which is an archaic Jim Crow rule anyway. Any democracy worthy of the name should at least stand for majority rule. The things that Republicans are against are only manufactured pipe dreams anyway for the most part. If we have to give up Planned parenthood and sanctuary cities in return for solving the problem of global warming, I say go ahead and do it. There is so much important business that has to get done that Democrats are capable of doing. Biden learned his lesson under Obama when for 8 years Republicans slow walked him through a futile Presidency. Biden learned his lesson then although he still wants to seem moderate so he will appear to be just that. After Republican intransigence has been conclusively demonstrated, however, Biden will, as a seeming last resort, abolish the filibuster in order to get the job that he came to do done.

The For the People Act (also known as H.R. 1) is a bill in the United States Congress to expand voting rights, change campaign finance laws to reduce the influence of money in politics, limit partisan gerrymandering, and create new ethics rules for federal officeholders. This is the minimum of what needs to be done that will require ending the filibuster. Much needed and much delayed immigration reform will also require that. The question is will the US be a nation that accomplished big things or one in which nothing gets done. Republicans can threaten all they want. Their agenda is a big nothing burger. If HR 1 is enacted into law, they may never be back in power again. Their access to power is based on restricting voting rights. Democratic access to power is based on expanding them. The real question is is the United States going to stand for a real democracy or is it going to retreat into an autocracy. The rest of the world including primarily China is moving ahead while head in the sand Republicans are challenging and threatening Americans with their damaging policies. Biden and the Democrats should not take that bait, and, having learned their lesson from the Obama years, go ahead and do what's necessary to get America on the move again towards a more equitable and rational nation which makes a positive contribution in world affairs.

Off the Top of My Head

Inflation Probably Not a Problem If Biden Programs Are Carefully Targeted

by John Lawrence, March 14, 2021

Critics have said, "Oh, My your children and grandchildren are going to have to pay back all these trillions of dollars that have been spent by both the Trump and Biden administrations on COVID relief and to get the economy going again." Not True! Modern Monetary Theory has shown that the Federal Reserve can just create the money and the Treasury Department can just spend it without ever worrying about paying it back. Finance is not the problem. The problem is potentially inflation which economist Larry Summers has sounded the alarm about. Most of Biden's relief bill is targeted at the poor which means that that money will be sucked up to pay past due rent and mortgage bills as well as providing a decent lifestyle which should not be inflationary except if you believe the nonsense of the neoliberal Phillips curve which supposedly proves that a certain segment of the population has to live in poverty and penury in order to fight inflation. That has also been debunked by Modern Monetary Theory although most politicians are still on the wavelength of neoliberal economics which has been shown to be fallacious in this and many other regards.

State and local governments likewise will just suck up the money in the relief bill to bail themselves out of debt and provide an adequate level of social services. This also is not inflationary because the money will not be just sloshing around in the economy with nowhere to go. What is inflationary is tax breaks for the rich, but this money can be sucked out of the economy by taxing the rich. What Larry Summers fails to take into account is that the US and much of the rest of the world has a two tier economy. The rich and upper middle class are doing very well, thank you, while the lower middle class and the poor are suffering. The COVID pandemic illustrated this in even starker terms with the so-called K-shaped recovery. The upper classes made money; the lower classes are on the verge of losing whatever financial gains they had made during the Trump economy. Inflation is caused by too much money sloshing around in the economic system. Most of that inflationary money is held by the rich in assets like stocks and real estate. Money injected into the economic system targeted at the poor is immediately sucked out of the system to pay debts and to provide basic necessities. There is enough physical and material capacity in the system to provide basic necessities so this money is not inflationary.

Inflation is caused when there is too much money chasing too few goods. As long as there is the material and human capacity, money directed at those sectors of the economy will not cause inflation. The real problem in future Biden administration bills involving infrastructure and the Green New Deal is that the materials to build out infrastructure, namely, steel, cement and plastics, require fossil fuels to manufacture and the manufacturing processes themselves are inherently carbon dioxide emitting. This comes about from basic chemistry which involves the carbon and oxygen atoms every step of the way. Most basic materials are composed of carbon, oxygen, hydrogen and nitrogen, and the chemistry involved in manufacturing releases large amounts of carbon dioxide. The manufacture of solar panels requires mining high quality quartz and combining it with coal. It's hard to get away from fossil fuels as the Michael Moore movie, Planet of the Humans, pointed out. For this reason spending large amounts of money on infrastructure involving cement, steel, plastics and other materials could actually produce more global warming rather than preventing it. The finances are available; the proper materials are not. The manufacture of wind turbines and solar panels require the release of large amounts of greenhouse gasses.

Because of these fundamental limitations regarding materials, it doesn't make sense to throw trillions of dollars at either infrastructure or global warming mitigation. That would be either inflationary or misguided in the sense that large projects in these areas could produce even more global warming. As Bill Gates has pointed out, money should be invested in promising startups and research that can solve these basic problems and into digital nuclear which is the only renewable energy source that won't result in a lot of greenhouse gasses being created in the first place. Advanced nuclear is the most promising source of clean energy. Gates has invested in a company TerraPower which does research on advanced nuclear reactors. Their mission statement reads:

"TerraPower was founded by Bill Gates and a group of like-minded visionaries that decided the private sector needed to take action in developing advanced nuclear energy to meet growing electricity needs, mitigate climate change and lift billions out of poverty. Advanced reactors and other isotopic applications are now possible with technology and enhanced computing capabilities that were unimaginable a few decades ago. At TerraPower, we are innovating in nuclear to improve the lives of people everywhere and to build the clean energy of tomorrow – today."

So when the Biden administration gets around to their initiatives on infrastructure and global warming, they need to heed Bill Gates' warning about traditional manufacturing methods involving cement, steel and plastic. Energy from solar and wind are inadequate to solve the problem for many reasons. Large scale demonstration and build out of nuclear energy reactors should be the order of the day, They are the only clean energy source that has the potential for diminishing the world's reliance on fossil fuels.

Off the Top of My Head

If Two Democratic Senators Were Not Elected in Georgia Run-offs, There Would Be No COVID Relief Package Under Biden

by John Lawrence, March13, 2021

It was crucial that the two Georgia Democratic Senators were elected. Not one Republican voted for Biden's $1.9 trillion bill. If there were one less Democrat in the Senate, nothing like it would ever have been passed. Republicans are the Party of No. Not one Republican Senator will ever vote Yes on any legislation put forward by a Democrat so that Georgia election was crucial. That's why Republican legislatures not only in Georgia but around the country are scrambling to put restrictive Jim Crow voting regulations in place on the belief that Republican operative Paul Weyrich was right. He said, "So many of our Christians have what I call the goo-goo syndrome: good government. They want everybody to vote. I don't want everybody to vote. Elections are not won by a majority of people, they never have been from the beginning of our country and they are not now. As a matter of fact, our leverage in the elections quite candidly goes up as the voting populace goes down."

So now economist Larry Summers is worried about inflation due to the fact that trillions have been added to the deficit. So far, lawmakers have enacted six major bills, costing about $5.3 trillion, to help manage the pandemic and mitigate the economic burden on families and businesses. Even those economists know that the Federal government doesn't need taxes  in order to spend money. The Federal Reserve can create it with a few keystrokes on a computer just the way they did to bail out Wall Street banks during the Great Financial Recession (GFR) of 2008. Of course the public wasn't suppose to know about this "secret" bailout by the Fed. Authorities wanted you to believe that the $700 billion bill passed by Congress provided the bailout. In reality it was much more. Rolling Stone reported: "Washington Post “Fact-checker” columnist Glenn Kessler disputes the numerous studies showing the real bailout outlay was through the Fed, which the Sanders campaign had said was anywhere from $7.7 trillion (the number Bloomberg used in its coverage of secret Fed lending) to $29 trillion (the number the Levy Institute at Bard College calculated, including guarantees and other forms of aid).

So how is it that  Larry Summers was not so worried about inflation due to the Fed's trillions of dollars created and given to Wall Street? The answer is that that money was given to rich people which has caused no inflation because rich people are not going to spend money in ways that drive up the Consumer Price Index (CPI). They are mainly going to invest their money in ways that aren't included in the CPI. They are going to purchase assets like stocks and real estate. Consequence: no inflation at least as measured by the CPI. Instead the Wall Street bailout during the GFR as well as the $2 trillion tax breaks of the Trump administration produced asset inflation. It's the reason that home prices and rents are becoming increasingly unaffordable. But Summers is worried about inflation as measured by the CPI which is what happens when poor and middle class people get a trillion dollar bailout. They will spend that money at least partly on consumer goods that are included in the CPI and potentially drive up prices. However, much of the bailout money will go to pay off debts like past due rent and mortgage payments. This is not inflationary. So the real moral of the story is that, according to economists like Summers, bailing out rich people is good, bailing out poor people is bad.

So two lessons are to be learned here. 1) The Fed doesn't need taxes to create money and spend it into the economy whether that money is to bail out banks or to bail out the poor and middles class. 2) Democrats need to enact at the Federal level voting laws which encourage as many people to vote as possible and roll back Republican enacted restrictions on voting at the state level. In order to do the latter, Democrats will have to eliminate the filibuster at least for particular types of legislation. The only reason Biden's $1.9 trillion relief bill passed is that it was done by a process known as "budget reconciliation" which only requires a majority vote in the Senate. A national voting rights bill cannot be passed by that process and is subject to the filibuster which requires 60 votes. The Party of No wouldn't hesitate to use the filibuster to doom any voting rights legislation at the Federal level which means essentially that Jim Crow voting rights would again be put in place to discourage black people from voting. And don't worry about your children and grandchildren having to pay off the national debt. The Federal Reserve doesn't need their money.

Off the Top of My Head

Bill Gates Needs to Get Up To Speed on Modern Monetary Theory

by John Lawrence, February, 28, 2021

Bill Gates is a smart guy. He has singlehandedly been the most influential person on pandemics and now on climate change with his book, How to Avoid a Climate Disaster. In this book the most important thing he points out in my opinion is that it is not enough to put electric cars on the road and to use renewables to power electricity generating plants. There is also much carbon dioxide emission coming from manufacturing and agriculture. In particular the manufacture of cement, steel and plastic produce as much or more carbon dioxide ton for ton as those products themselves. In addition beef and dairy cows produce a lot of methane due to the fact that they are ruminants with a certain kind of digestive system. Gates believes that much innovation, research and development is needed to come up with substitute products in all these areas as well as electrifying everything and running it all with renewables including a new digitized nuclear system.

The one thing that this polymath doesn't seem up to speed on is Modern Monetary Theory (MMT) which is important because all this innovation, research and development requires vast amounts of money. He personally can't provide it all although he has used his fortune in very constructive ways in terms of health care around the world and also seeding promising startups. The Gates Foundation is concerned with all these problems on a world wide basis and not only in the US. He is a globalist and not an America First type of guy which is altogether appropriate because pandemics and particularly global warming are universal problems affecting every country and all people on earth, and their solutions require a world wide approach.

Bill Gates like some economists is somewhat concerned about inflation after all these trillions of dollars are spent by the US government first on COVID relief and then on infrastructure and a Green New Deal. If they study MMT they would know that MMT shares that concern, but addresses it in terms of the amount of idle resources there are in the economy. For instance, if there is 5% unemployment (what is considered full employment by conventional economists), there are still over 15 million people available for work. If there are material resources available such as cement, steel and glass, the price of these items is not likely to be bid up causing inflation. However, while some material resources are readily available, their substitutes which don't cause carbon dioxide emissions in the manufacturing process are not. A large infrastructure project which requires huge amounts of concrete with rebar such as is necessary in constructing a bridge, for example, will also cause large amounts of carbon dioxide to be emitted into the atmosphere. As Gates points out, making things which require cement, steel and plastic adds about 31% of the total of greenhouse gasses which are emitted annually. For every ton of steel produced we emit 1.8 tons of carbon dioxide. For every ton of plastic, the figure is 1.3 tons of carbon dioxide, and for every ton of cement, we emit a ton of carbon dioxide.

With figures like that how is the US going to do a $4 trillion (which is the amount our infrastructure is in deficit) infrastructure project without producing even more billions of tons of greenhouse gasses (GHGs)? We need huge R&D projects funded by the government first before we can scale up the production of carbon free products which replace these traditional construction materials. Financing the R&D is not a problem as these human resources are widely considered to be available. This would cause no inflation. Getting the material resources when little or none of them is available would cause inflation. Nevertheless, the US ramped up production of ships and airplanes for World War II without causing much inflation. To deal with global warming or climate change is a thornier problem. If money is just poured into the economy on a non-targeted basis, it will cause inflation so it makes sense at least initially to pour the money into R&D as Bill Gates suggests. Doing a large infrastructure project without using the proper materials could make global warming even worse.