2016 Election – Page 81 – The Wrongologist

Sunday Cartoon Blogging – August 21, 2016

Although the Wrongologist cannot get newspapers, and only has occasional wifi, the news does not seem to have changed much in the past week. So, here are a few cartoons curated from the wilderness:

Aetna pulled out of Obamacare. Why are you surprised?

COW Aetna

Trump accused Democrats of exploiting Blacks at Minnesota Rally:

Clay Bennett, Chattanooga Times Free Press

Trump told CBS News:

I have seen them marching down the street essentially calling death to the police and I think we’re going to have to look into that…When you see something like that taking place – that’s really a threat, if you think about it. And when you see something like that taking place, we are going to have to perhaps talk with the Attorney General about it or do something.

He also painted the entire African American community as living in poverty with no jobs. Doesn’t that show he’s completely out of touch?

The Clinton Foundation’s practices continue to puzzle Clinton supporters:

COW Zip Line

Ryan Lochte and teammates entered the wrong event:

COW Lochte

Bonus cartoonage from Australia. They cover Trumpology:

Trumpology

Trump’s Same ‘Ol GOP Tax Plan

Neil Irwin at the NYT compared the Clinton and Trump tax plans. Hillary’s raises taxes on the rich, and adds ~$1.1 Trillion to federal tax revenues over the next 10 years. The Pant Load’s plan is under revision (again), but, his old plan reduced revenues by ~$9.5 Trillion over the same period, and while his new plan will probably cost less, it will still create red ink.

Jared Bernstein had a few points which you might not have picked up on:

…the plan is pure, old-fashioned, supply-side, trickle-down orthodoxy. How that squares with Trump’s play for disaffected working class voters hurt by globalization is left as an exercise for the reader.

Bernstein’s best point is about the “pass-through” income loophole Trump creates. His new plan sets the top income tax rate at 33% but creates “a much lower rate than 33% for a substantial number of very-high-income households by allowing people to pay a new low rate of 15 percent on “pass-through” income (business income claimed on individual tax returns). According to the Tax Foundation, pass-through businesses now earn more net income than traditional “C” corporations (like GE or Ford). So of course, Republicans want to lower their tax rates. More from Bernstein:

More than two-thirds of all pass-through business income flows to the top 1 percent of tax filers.

And it will probably get worse: When you can pay a lower rate on a particular type of income, you will visit with a tax lawyer and set up a Limited Liability Corporation (LLC). Then off you go to the boss and say, as Bernstein points out:

“I’m no longer Joe Paycheck, I’m Joe Paycheck, LLC. Pay me the same salary but call it a consultant’s fee for services provided by my limited liability corporation”. Joe then passes that income through from the business to the personal side of the tax code and pays 15% on it.

Where Joe might have formerly paid as much as 39.5%. This will allow the hedge fund and private equity guys to move from paying a mere 24% that they pay on earnings today to 15%, if Trump gets the GOP-led Congress to go along.

Trump also wants to repeal the estate tax. Like the prior “improvement”, this one will benefit the Donald personally. The estate size that must pay estate taxes today is $10.9 million. So if a couple has an estate smaller than that, they pay no estate tax. How many are paying it? Only 0.2% of estates (that’s 2 in a 1,000) pay it today.

So none of these are the “small family businesses” and “family farms” that Republicans whine about. If you have the better part of $11 million in assets, you ain’t that small.

A minute more on the LLC: LLCs were created by Congress to give owners of businesses the ability to avoid “double taxation” on taxable income they receive from their businesses. The theory is, business income from a C corporation is taxed twice: once at the corporate level and again at the personal level when dividends are paid to owners. Businessmen could have avoided double taxation by simply operating their businesses as proprietorships or general partnerships. But then they would lose the limited liability protection from creditors that C corporations and limited partnerships provide.

So Congress created the LLC hybrid to enable businessmen to have their limited liability cake and eat it too. But you don’t get the same deal: Wrongo and Ms. Right have paid into Social Security for over a combined one hundred years. Along the way, we could not deduct our yearly SS contributions, which means we paid income taxes on the income that we used to make our contributions. Now that we are receiving Social Security payments, we pay federal and state income taxes again on the payments we receive.

If we use some of our Social Security income to buy gas, we are taxed again in federal and state motor fuel taxes. Same when we buy goods and services, and pay state sales taxes.

Double, triple and quadruple taxation are pervasive throughout our economy, but it’s only the average Joes that pay them. So no tears for Mr. Trump, the Kochs and “job creators” who say they need a break from double taxation.

Or maybe ask your Congressperson for a similar break for you.

Trump is cutting taxes for the rich. If you think he is gonna help the middle class, he is hoodwinking you. You may see a few pennies in tax cuts while the rich take in extra millions to buy bigger, better penthouse apartments.

Meanwhile, the roads and bridges that you use to get to work will crumble even further, because he’s planning to give away the store. Paying your taxes is extremely important and new rules will mean a new way of getting this done, so before you worry, take a look at a tax planning Winnipeg lawyer or one in your state to discuss on how you can plan out your taxes better and keep up to date with any changes.

Where Republicans Are Coming From – Monday Wake Up Edition

(There will be limited blogging until 8/25, as Wrongo and Ms. Right visit Glacier National Park. Keep your tray tables in the upright and locked position while we are away.)

One of Wrongo’s earliest memories, a fragment, was riding in the car with my parents. When I asked where we were going, my mother said: “To elect Mr. Dewey president.” That was 1948. And here is a graphic example of what civic-minded Republicans were doing in Pittsburgh in 1949:

Vote Republican

The photo was taken by Charles “Teenie” Harris, and is in the archives of the Carnegie Museum of Art. It is part of a show of his work that opened on Aug. 13. Pittsburgh was Harris’s home town.

Note the predator’s clutching fingers. Note the long nails that Americans imagined that their Japanese enemies had in WWII. Note the blackface doll carried by the little white girl. While many Blacks in the north still voted for the Party of Lincoln in 1949, this billboard was in many ways a “dog whistle” for the white community of Pittsburgh.

The billboard was part of the Republican Party’s “informed debate” in Pittsburgh’s mayoral election in 1949. Their message was that the streets were not safe for women and children. This, at a moment in American history when we were not suffering lots of crime. In fact, there was a drop in homicides in the immediate post-war period.

There was pushback against the billboard, even among Republicans, in fact, the Pittsburgh Outdoor Advertising Co. refused to honor their contract to put up 100 copies of the image once they saw it. They had to be forced to do so by a local judge, who called the picture “a shocking example of bad taste.” Within a week of the billboard’s appearance, however, the Republicans themselves decided to replace it with a less offensive image. From Blake Gopnick at Artnet:

Back then, at least, a Republican candidate could realize he’d crossed a line and decide to step back from it.

That’s much too much to ask in 2016. Of course today, the Republicans would say the way to make that child safe would be to give her a gun and tell her to lock and load.

So another Monday morning wake-up for the GOP. To help them join the rest of us in the real world, here are Belle and Sebastian with “Olympic Village, 6am”. As we start the second week of the Olympics, the focus shifts to track and field, and so does this video:

For those who read the Wrongologist in email, you can view the video here.

(H/T: LGM)

Sunday Cartoon Blogging – August 14, 2016

Apparently, President Obama makes a playlist every year for his summer fun time on Martha’s Vineyard. Playlists by politicians are common, and usually are big nothingburgers. Obama has a “Day” playlist and a “Night” list. This year, The Atlantic approves of Mr. Obama’s night playlist, and thinks the day list is a snooze. Guess critics gotta criticize.

Make up your own mind: here is the Obama “Night” playlist.

It was a big week in manufactured news. Trump dominates, but Politico speaks about the Trump campaign thusly: (emphasis by the Wrongologist)

What’s bothering people on the [Trump] campaign is that they feel like they’re doing all the right things, but they’re losing every news cycle to Hillary and there’s nothing they can do about it.

It’s doubtful that Clinton has won a news cycle since the convention, but what the Trump campaign is trying to say is that Clinton doesn’t need to win a news cycle as long as Trump “misspeaks” every day. From Karoli Kuns at C&L: (brackets by the Wrongologist)

I think that’s precious, don’t you? Considering that Trump dominates the news for every cycle with his intentional demonization of President Barack Obama and [his] opponent, Hillary Clinton, it’s hard to imagine Republicans wringing their tiny little hands over losing news cycles to her.

Ok, the GOP should keep explaining Trump’s gaffes until America is tired of all the winning.

On to cartoons. Simone Biles gave us a feel-good moment:

COW Americas Great Again

This is the one Burka that Trump likes:

COW Tax Returns

With all of the “resets” and “mansplaining”, the GOP could lose its balance:

COW Balance Beam

This is as understandable as any other explanation by Monsieur big mouth:

COW Trump Backs Up

Trump’s new tax policy is same old, same old. It’s a reconstitution of the standard Republican trickle-down economics that benefits big corporations and a wealthy few:

COW Trump Tax Plan

Words Have Meaning

This captures where we are:

COW Hill's Threats

People are debating whether Donald Trump suggested violence against Hillary with his comment about how “the Second Amendment People” might be the only group capable of stopping Hillary Clinton from appointing liberal judges if she is elected president.

The Trump comment was in the context of what happens after Hillary is elected, and that there was nothing anyone could do about Hillary appointing Justices, except for…Second Amendment people.

He said, “If [Hillary Clinton] gets to pick her judges, nothing you can do, folks.” There’s “nothing you can do” in this situation because Trump is talking about a time after the 2016 election is over, and Clinton is president.

If he wasn’t talking about after the election, why would he say there was “nothing you can do?” During the election, there’s something pretty obvious you can do: Get out the vote and prevent her from becoming president in the first place.

Then Trump immediately follows it up by saying, “But I tell you what, that’ll be a horrible day.” Again, this suggests the time frame he’s talking about is when she’s already in the White House. Otherwise, both the “horrible day” comment and the “nothing you can do” comment that bookend his Second Amendment remark are total non-sequiturs.

So no, this isn’t about the NRA organizing their members to get out the vote. His comments were about doing something AFTER the election. Why would it be a “horrible day” if all he was talking about was getting out the vote, his vote? It is totally illogical.

There is no ambiguity here.

This seemed to Wrongo to be another effort at a joke by the Pant Load. The WaPo reported that Paul Ryan said:

It sounds like just a joke gone bad. I hope he clears it up very quickly. You should never joke about something like that.

It’s highly unusual for the Wrongologist to agree with Paul Ryan, but that’s probably the best defense for Trump’s words. But when faced with an outcry after his controversial comments, Trump never admits error and never backs down — no matter how strained the defense.

Why should this time be any different?

Trump knew exactly what he was doing, and he did so in the same manner he has been using throughout the campaign. A suggestion, an inference, a little birdie told him, it is what people are saying. The dog whistle, the wink, the nod. Some ambiguity to the comment, delivered in a veil of coyness.

Maybe we should remember the very bright line that Sarah Palin crossed a few years ago when she took out an ad that deliberately placed Gabby Giffords in crosshairs, just before Giffords was shot and critically wounded by a gunman. This is different, but really, how different is it?

On ABC’s Good Morning America, Rudy Giuliani gave Trump’s words the real test: How did they play with Trump’s audience? Getting Hillary couldn’t be what Trump meant, Rudy observed, because if Trump had actually called for Hillary to be killed, the crowd would have gone wild.

Imagine being Giuliani: So invested in Trump’s campaign that you’re contorting yourself into a pretzel to translate the candidate’s Wingbat-ese into English.

And once again, defending the indefensible.

Words matter, especially when delivered by someone who aspires to be POTUS.

What Can Vietnam’s Success Teach Us?

Wrongo was against the Vietnam War. He was drafted right after college into the US Army while America was fighting the Viet Cong. Once in the military, he was twice on orders to go to Vietnam, but luckily, ended up serving his time in Germany, running a nuclear missile unit.

He has several army buddies whose names are inscribed on the Wall in Washington, but that was 50 years ago, and he holds no grudge against Vietnam, or its people. So, the remarkable recovery that Vietnam has made from the war, their now friendly ties with the US, and their success in becoming a middle income country ought to be instructive to our foreign policy establishment.

From the Economist:

Foreign direct investment in Vietnam hit a record in 2015 and has surged again this year. Deals reached $11.3 billion in the first half of 2016, up by 105% from the same period last year, despite a sluggish global economy. Big free-trade agreements explain some of the appeal. But something deeper is happening. Like South Korea, Taiwan and China before it, Vietnam is piecing together the right mix of ingredients for rapid, sustained growth.

Since 1990, Vietnam has averaged GDP growth of nearly 6% a year per person, lifting it from among the world’s poorest countries to middle-income status. This is similar to India’s or China’s growth, but China then went on to average double-digit growth for years. Check out this photo of today’s Ho Chi Minh City, what GI’s once called Saigon:

Stark Tower 2

The tall building is 68 floors high. It is the Bitexco Financial Tower, but locals call it “Stark Tower” because it looks like Tony Stark’s headquarters in the Iron Man films. While it is the city’s tallest building now, next year it’ll only be the fourth tallest.

So, how did this communist country do it? By moving from state ownership of the means of production to a mixed model. Vietnam’s Doi Moi policy opened up Vietnam to the rest of the world. They revamped much of the legal system to create a transparent and attractive place for foreign investment. This has given foreign companies the confidence to build factories. Foreign investors are now responsible for a quarter of annual capital spending. Trade accounts for about 150% of national output, more than any other country at its level of per-person GDP.

They established the Ho Chi Minh Stock Exchange in 2000, and de-nationalized many state-owned companies, opening doors for foreign investment. Equity was sold to both foreign and domestic investors, and in some cases, foreign ownership can now be 100%. In 2015, total Foreign Direct Investment (FDI) was $13 billion.

Vietnam shares a border with China. As Chinese wages rise, some firms can easily move to Vietnam for lower-cost production, while maintaining their links to China’s supply chain for parts.

Vietnam has a relatively young population. China’s median age is 36, while Vietnam’s is 30.7. Seven in ten Vietnamese still live in the countryside, about the same as in India, compared with only 44% in China. This reservoir of rural workers should help hold down wage pressure, allowing Vietnam to build up labor-intensive industries, a necessity for a nation of nearly 100 million people.

Public spending on education is about 6.3% of GDP, two percentage points more than the average for low- and middle-income countries. In global rankings, 15-year-olds in Vietnam beat those in America and Britain in math and science.

Although Vietnam has benefited from foreign investment, only 36% of its firms are integrated into its export industries, compared with nearly 60% in Malaysia and Thailand. While Samsung plans to invest $3 billion in consumer electronics production in Vietnam, there will be very little domestic content, except for packaging. More local value-added must be found to keep GDP growth high.

There are big problems: The fiscal deficit in 2016 will be more than 6% of GDP for the fifth straight year. As mentioned, domestic content in exports is low, and imports of consumer goods purchased by newly prosperous workers fuels a trade deficit.

Vietnam is now classified as a middle-income country; so it is about to lose access to preferential financing from the multilateral development banks. In 2017, the World Bank will start to phase out concessional lending.

Vietnam is successful, despite our dropping 3.5 times the number of bombs on it that we dropped in WWII, while killing more than a million Vietnamese.

For America, Vietnam’s success, despite our past efforts to devastate it, should cause us to reflect on how and why we are a guns-first country when we deal with the third world.

Pentagon Can’t Account for $6.5 Trillion

Let’s take another break from the cacophony of the presidential campaign to provide some insight into a Pentagon report that the mainstream media barely covered.

The Inspector General (IG) of the US Department of Defense (DoD) issued an audit report on July 26, stating that the DoD cannot account for $6.5 trillion in total funds, of which, $2.8 trillion is “missing” from the last fiscal quarter. According to the IG’s report: (brackets by the Wrongologist)

Army and Defense Finance and Accounting Service [DFAS] Indianapolis personnel did not adequately support $2.8 trillion in third quarter adjustments and $6.5 trillion in year-end adjustments made to Army General Fund [AGF] data during FY 2015 financial statement compilation…We conducted this audit in accordance with generally accepted government auditing standards.

The IG also said that the DoD agrees they received these funds, agrees the funds are gone, and claims not to have records of where the money went. This doesn’t mean that the money (or equipment and supplies) was embezzled, but without accounting records, the Pentagon just doesn’t know what happened to it.

This isn’t a new problem. On September 10, 2001, then Sec Def Donald Rumsfeld reported that the DoD could not find $2.3 trillion of our tax dollars. After the next day’s al Qaeda attack, the Pentagon and the Congress lost focus on this problem. From the Fiscal Times:

Starting in 1996, federal agencies were mandated by law to conduct regular financial audits. However, the Pentagon has NEVER complied with that federal law. In 20 years, it has never been able to account for the trillions of dollars in taxpayer funds it has spent. An increasingly impatient Congress has demanded that the Army achieve “audit readiness” for the first time by Sept. 30, 2017, so that lawmakers can get a better handle on military spending.

But the IG report says (pg. 21), that they are not likely to comply:

Until the Army and DFAS Indianapolis correct these control deficiencies, there is considerable risk that the AGF financial statements will be materially misstated and the Army will not achieve audit readiness by the congressionally mandated September 30, 2017, deadline.

If this was your bank, and they agreed that they had received a large deposit from you, agreed that they had no idea where it was, and had no plans to refund it, you would sue and move to another bank.

Since this is the Pentagon, you can’t do either. Congress has been allowing the Pentagon to get away with this travesty for decades. Heads should roll at the Pentagon, but where is the Congressional oversight?

Sorry, this is gross negligence, and it isn’t excused because it is done by our “warrior” class who are only trying to keep us safe.

Think about it, $6.5 trillion lost is the equivalent of embezzling $1 billion a day for 18 years. Another way to look at the issue, is that the Pentagon can’t account for around $86 million in our tax dollars per hour. That means the Pentagon misplaces enough of your tax dollars every day to deliver every American free health care.

Now, they almost certainly didn’t lose or steal that much, but they shouldn’t have so much dough to play with until they learn how to account for what they get.

The people deserve whatever regime they endure.

This should be unendurable.

Sunday Cartoon Blogging – August 7, 2016

At a rally in Virginia, Trump said:

The [economic] numbers are getting worse and worse all the time.

He was saying that he thinks the economy is going to tank, and that he hopes he will benefit politically. It’s clear that if his assertion were true it would help him, but, it’s not:

The BLS reported Friday that nonfarm payrolls rose by a seasonally adjusted 255,000 in July. Revisions showed US employers added 18,000 more jobs in May and June than previously estimated. The unemployment rate was unchanged at 4.9% in July.

In any case, it’s good to know that the Pant Load is rooting for an economic downturn to happen in the next 90 days, so he can personally benefit. Seems like his normal mode of operation.

Sorry Donny, the American economy has now experienced 77 months of consecutive private sector job growth. He’s wrong, but OTOH, it is a very uneven recovery.

On to cartoons. The Rio Olympics dominated Trump’s efforts to command the news cycle this week.

Brazil put its Christ on the Hill statue in an appropriate garb for the Games:

COW Haz Mat

Concerns about Rio’s water reminds us that Congress didn’t appropriate any money for Flint:

COW Olympics Water

Many athletes pulled out due to the Zika virus when the solution was Trump-simple:

COW Citronella

Being in Rio gives athletes a respite from the news at home:

COW Making the Olympics

The ceremonial dumpster lighting kicked off our presidential Olympics:

COW Donnie Dumpster

In other news, voting rights won a few fights:

COW Vote Supression roll back

Election Myths and Realities – Pant Load Edition

Ian Welsh lays out a probable narrative that the Pant Load will use if he loses:

Republican leaders and billionaires turned on him when he could have won, flocking to Clinton, and there was voter fraud.

Trump Channels George Costanza

The underlying personality trait of George Costanza is that he’s a liar. He doesn’t try to hide it, he wears it as a badge of honor, and he takes great pride in his dishonesty. Here, in George’s own words:

Those who read the Wrongologist in email can view the video here.

The Donald is the second coming of George Costanza. With all his lying, Prima Donald didn’t have a great Monday. From the Daily Beast:

Monday was an incredible day of falsehoods for the GOP nominee.

The DB goes on to list and rebut a series of lies that Trumpy put out at a few campaign stops and on a pre-recorded piece for Sean Hannity of Fox News. Read the whole list here. In addition, Prima Donald:

Continued to attack against Khizr Khan.
For the second time in two days, Trump attacked a fire marshal at a press conference for having the temerity to not allow him to violate maximum occupancy regulations.
Reacted to the NYT’s investigation of his draft-dodging.
Preemptively declared that the presidential election is rigged.
Announced unimpressive funds raising numbers. (He’s raised $35 million, which he said is “unheard of for Republicans, $35.8 million”. Actually, Mitt raised $101 million in July 2012.)
Declared that if women, even his daughter, were victims of sexual harassment, they should just quit (perhaps overlooking that not every woman can just get another job within their father’s empire)
Praised Paul Ryan’s primary challenger, while Paul Ryan is (1) basically the leader of his party and (2) standing by his endorsement of Trump.

These are just a few of his recent whoppers. Why is he like this? He’s a man whose mentality is completely focused on closing deals. He, like many senior business leaders, sees everything as a transaction.

Wrongo has a lifetime of big business experience with dozens of people like Trump, people who identify with the deal. The deal validates who they are. They wine, dine, flatter, intimidate, abuse psychologically; the closer does whatever it takes to get the signature on the bottom line.

Then the closer walks away, and is on to the next deal, repeating the process. If shit happens after the close, there are designated handlers who are tasked with fixing it, it’s not the closer’s job. Whatever was said or done to close the last deal is irrelevant to the next one. The closer is walled off from the last deal, and the sole focus is validating his/her worth by closing the next one. There is no feeling of remorse for prior actions, no blow-back penetrates the wall.

For Trump, the idea that people would hold his bullying and insults against him must be surprising. That is why he fights back so angrily when caught up short.

Turning his personality to the political arena, Trump above all thrives on winning. He needs to be able to point to victories and yell: I WON! I WON! I WON!

Between the end of the Conventions and Election Day, it’s beginning to look like there aren’t going to be a lot of well-defined victory moments for Prima Donald.

Three months is a long time for a thin-skinned addict to go without his fix.

This is his temperament. It should disqualify him.

The Wrongologist

Geopolitics, Power and Political Economy

Category: 2016 Election