Economics – The Wrongologist

Resist, No Matter What

The Daily Escape:

We’ve got to stop awfulizing. That is, reacting to every Trump move as if it is the worst thing he’s come up with yet and then jumping on social media to scream about it. We need to take a step back and remind ourselves that it has only been 12 days since the election, even though it feels like a lifetime. People have zero patience: their reserves are running low and it’s easy to lash out at the latest Trump outrage. We need to continue to take some time to process what’s happened.

We need to plan our resistance carefully. Not all battles are winnable or even worth the many calories it takes to pursue the fight.

America is different now than it was in 2015 at the dawn of the Trump era. Trump didn’t just win politically; he’s won culturally. We need to reckon with that. There’s no way around it: the results of this presidential election sucked. But when you look at some the other races and questions that were on voters’ ballots, the picture looks at least a little brighter. There were some good things that Democrats scored on Election Day:

Voters protected abortion access via ballot measures in seven states. And in Florida, it won a majority of the vote but just fell short of the 60% needed for passage.
Alaska and Missouri raised the minimum wage via ballot measure, while Missouri also implemented paid sick leave. Pro-worker policies are popular across the country, and Democrats who run on them can win even in red areas.
Swing state Democrats performed well. In North Carolina, Democrats won five statewide races and broke the GOP’s supermajority in the legislature. In Pennsylvania, Democrats retained their majorities.

But we should also take note of the apathy of the American public. Approximately 245 million people were eligible to vote this year; approximately 90 million of them didn’t. That is a plurality of Americans who didn’t vote.

In five of the last seven presidential elections, the change candidate has won. At least one Congressional chamber has flipped in the last four elections. We need to think deeply about what went wrong in the last election:

Democrats rarely talked about a vision for improving family life. Instead we ceded that to Republicans.
We rarely talked about how poor the economy was for the average person.
We couldn’t make inroads into the male voting population. In fact, we lost ground with Black and Hispanic men.

According to the AP, Harris had an advantage among women, winning 53% to Trump’s 46%, but that margin was narrower than Biden’s in 2020. In 2020, Biden won 55% of women, while 43% went for Trump. Women under 30 voted for Harris over Trump, but it was a somewhat smaller majority supporting her, at 58%, than Biden in 2020, at 65%. About 9 in 10 Black women and 6 in 10 Latina women backed Harris.

Just under half of white women supported the vice president.

Wrongo’s having a hard time figuring out why women voters did not turn out in bigger numbers in this election for Harris. That women’s rights were part of the stakes this year made it seem obvious that women voters would drive this election. And yet, 46% of women cast a vote for Trump.

We elect women governors, for both Parties, currently the ratio is 8 Dem to 4 GOP. But why not elect them to the presidency, when in many other western countries it’s considered completely routine to elect both women or men to the top spot? What is different about the US?

We’ve tried twice to elect a woman without success. There’s no one reason why Harris did not win. But inflation, which was as big a problem of this magnitude when Jimmy Carter was President, had a lot to do with it. Along with deeply ingrained racism and the framing of our elections as just another form of consumerism, i.e. who you would rather have a beer with.

Republicans now control all three branches of government. They’ve become responsible for everything people hate about politics. Our top political priority is to try to become credible change agents. It’s the first step to winning back the voters we’ve lost.

Wrongo’s late brother Kevin always signed off his emails with “Resist, no matter what”. He was a libertarian, but it works for liberals as well.

David Remnick in the New Yorker spoke about Vaclav Havel and how he resisted:

“During the long Soviet domination of his country, Havel fought valiantly for liberal democracy, inspiring in others acts of resilience and protest. He was imprisoned for that. Then came a time when things changed, when Havel was elected President….Together with a people challenged by years of autocracy, he helped lead his country out of a long, dark time. Our time is now dark, but that, too, can change. It happened elsewhere. It can happen here.

The key question is can we resist like Havel?

Trump

The Daily Escape:

Bobbing for Cranberries? Or just beaks under water? Wellfleet, MA – October 2024 photo by Greg Anderson

Like it or not, Trump is set to become one of the US’s most consequential leaders. Wrongo understands that for many Americans, including he and Ms. Right, the guy is repulsive beyond any need to speak about it. But unfortunately, that isn’t the case for most of our countrymen, who find him acceptable and preferable to a Democrat, despite all the criminality and the coarseness.

How did Wrongo and the Democrats get it so wrong? What about Trump’s skill set and capabilities did he and the Dems miss that 51+% of the voters clearly perceived as strengths? As important, how will Democrats get through the next four years? That’s hard to say. What have Democrats learned that they can carry forward to a better day down the road?

In a way, time will pass quickly. It surprised Wrongo that Trump’s first term passed by as quickly as it did. That was in part because of Covid and the myriad other problems that kept us distracted, from debating the next outrage that Trump laid on the table.

That is how the next four years will go by too. But the question is, does the country survive as a unified entity? Wrongo isn’t optimistic about the next four years. In fact, he’s filled with sadness about what might have been. Sitting here today, he’s unable to see a way forward.

But we have to start by admitting that the Dems have a huge marketing problem. Our ideas were rejected, our view of the future was rejected and our candidates were rejected as well. It’s a bit like the board of directors of the now mostly defunct Howard Johnson restaurant chain, looking out of the board room window across the street at a new McDonald’s and saying, “those golden arches will never replace our orange roofs.”

But they did. Quickly.

We have to admit that whatever Trump is, that’s what the American people want; even if it comes with his personal dominance of whatever the issue, the specific person, or the rest of us.

So Dems have a marketing problem. Too few people want what we have on offer. Here’s an illustration of how bad it really is: This chart from the Financial Times shows how Trump improved his margin from 2020 to 2024 in all US states but 2:

The data are preliminary, but unlikely to change. Yes, you are reading that right: Trump improved on his 2020 showing in 48 of the 50 states. And in many strongly Democratic states: In California, New York, and Illinois, Trump improved by very large numbers.

New Jersey is the most shocking: In 2020, Trump lost the Garden State by 16 points (57%-41%) to Joe Biden. On Tuesday Trump came within 5 points of beating Harris (51.5%-46.5%). An 11-point improvement in four years!

The hot takes about the election including mine, aren’t worth much today. This election seems so inexplicable that maybe there’s something bigger behind this than normal politics.

It remains to be seen whether or not reports of this country’s demise are greatly exaggerated. On the demise side, a majority of Americans on Tuesday chose Trump. They handed unchecked power to a narcissistic criminal demagogue because the price of bacon and milk increased.

They may also, in fact, have surrendered their sovereignty without firing a shot.

Democrats need time to make sense of what happened and to try to figure out what it will take to offer people what they need in four years. And 2024 was going to be a very difficult election to win no matter what. And in 2024 so far, nobody across the ideological spectrum has been able to crack the “voters hate inflation” code. At least, that’s one sure takeaway from the election results. No matter what policies and promises were made, lies told, or insults and threats, people couldn’t get over paying $7.00 for a gallon of milk when it cost $3.50 five years ago.

It didn’t matter that wages kept pace with inflation. It didn’t matter…And what will matter over the next four years?

This is a difficult time, and many may not want to hear about the future. Stop for a breath and take your time in returning to the fight.

Political Advertising: How Effective Is It?

The Daily Escape:

Wrongo’s calendar says there’s just 29 days to go until Election Day. The campaigns are in high gear, but what are they saying? And is what they’re saying getting through to both their base voters as well as to those who are “persuadable” enough for them to get out to the polls and vote? Time is running out.

Timing is a point raised in this NBC story, which describes that, after having taken the last 76 days to introduce the Vice President to voters, the campaign now plans to ratchet up negative advertising about how unfit Trump is to be President (emphasis by Wrongo).

“Leaning more heavily into negative campaigning is a strategic shift for Harris. While she has routinely been critical of Trump since becoming a candidate in July….Harris campaign officials said they intend to continue laying out her policy positions, background and plans…But emphasizing what Harris campaign officials view as Trump’s major vulnerabilities is seen as possibly one of the only ways to finally win over some voters who haven’t made up their mind in a static race that Democrats want to push in their direction.”

A recent poll by the Associated Press-NORC Center for Public Affairs suggests that Harris’ attacks on Trump’s brand of hyper-masculinity appear to be working. As the Daily Beast summarized the findings, respondents:

“…chose Harris 59% over Trump’s 57% when it came to which candidate they felt was tough enough to be president…and favored Harris 55 to 46 % on “which candidate would change the country for the better,” and by 54 to 43% on who “was more likely to fight for them.”

Harris also is micro targeting the message of Trump’s weakness. From the WaPo:

“For the millions of football fans who tuned in from home for Saturday night’s much anticipated matchup between the University of Georgia and the University of Alabama, she also ran a new ad nationally on ABC that hammers home her point.”

The ad says:

“’Winners never back down from a challenge. Champions know it’s anytime, anyplace. But losers, they whine and waffle and take their ball home,’ the narrator says at the start of the spot, over images of a football game and washed-out footage of Trump missing a golf putt. The 30-second ad ends with footage of Harris challenging him to another debate, with the words “When we fight, we win” hanging on a sign in the background.”

The money quote:

“Well, Donald, I do hope you’ll reconsider to meet me on the debate stage. If you’ve got something to say, say it to my face,…

Harris also posted the ad on Trump’s Truth Social media platform.

Marcy Wheeler quotes CNN’s David Wright who tracks political spending by the candidates about where the money is headed in this final month as the ad wars intensify:

“You can see how each side is placing bets on their best path to 270 electoral votes. In the first week of October, the Harris campaign is spending the most in the critical trio of “Blue Wall” states – they’ve got more than $5 million booked in Pennsylvania, about $4 million booked in Michigan, plus about $2.7 million booked in Wisconsin. And that makes sense – if Harris wins all three of those states, plus Nebraska’s up-for-grabs electoral vote in the swingy second congressional district (where the campaign also has more than $300,000 in ad time this week), she’s the next president.”

Turning to Trump:

“…he’ s looking to the Sun Belt. This week, Trump’s campaign is spending the most on ads in Pennsylvania, $3.8 million – it’s really the linchpin to both sides’ strategies. But in addition to that, the campaign is also spending $3.4 million in North Carolina and nearly $3 million in Georgia, its other top targets, and if he wins those two states plus Pennsylvania, he’s heading back to the White House.”

The Electoral College will come down to which of the two campaigns potential voters consider more trustable, probably mostly on their personal economic situation and where that’s heading with each potential president. From the WaPo:

“Americans are finally starting to feel better about the economy, invigorating Vice President Kamala Harris’s pitch for the presidency as she narrows her Republican opponent’s longtime lead on an issue that is foremost on voters’ minds.”

“Although voters still favor former president Trump over Harris on handling the economy, his advantage has dropped dramatically in recent weeks. Trump now averages a six-percentage-point edge on the economy…”

But Trump’s only answers for the economy are lower taxes on the rich and more tariffs. Yet, like everything else, Trump has no idea what tariffs actually do.

However, a new survey by Data For Progress’s top line finds Harris leading Trump by 3 points among likely voters nationwide. Nearly half of voters (49%), including a plurality of Independents (46%), choose Harris, while 46% choose Trump.

On the all-important economy, Harris has a trust advantage on most of the economic measures tested, including: supporting small businesses (+10 points), taxes on middle class Americans (+9), increasing wages (+5), lowering housing costs (+5), handling labor union policy (5%), improving our infrastructure (+3), lowering grocery costs (+2), creating jobs (+1), and protecting domestic manufacturing jobs (+1).

That says her campaign messaging is getting through.

Also the survey finds Trump with just a +1-point trust advantage over Harris on “reducing inflation,” an issue that voters have consistently ranked as their most important when deciding whom to vote for. Here’s their chart:

They also surveyed candidate favorability, which now tilts towards Harris. Harris’ rating is +2, while Trump’s is -12:

Is this poll on the money? Difficult to tell. A shorter election season makes it harder for campaigns to assess where to place their bets. And which of their cohorts in the electorate demand the most attention. We’ve focused on Gen Z and younger voters as being primarily swayed by economics. Messaging to women is another important element. Harris can run ads attacking Trump’s hyper-masculinity, (which will help with women).

From The Economist: (emphasis by Wrongo)

“And Harris needs to focus there. In the Obama years the gap between young men and women identifying as liberals was just five percentage points, during the Trump-Biden years this has tripled to 15 points, according to Gallup. This change has been caused almost entirely by young women moving to the left, rather than young men tacking to the right. The fact that this generation’s formative years were during the #MeToo movement, the Trump years and the decision to overturn Roe v Wade helps explain it.”

In 2020 a majority of white women voted for Trump. He will be in the minority in 2024. Leading among women is a real advantage. Since the 1980s a greater share of women than men has turned out to vote. In 2020 women made up 54% of the electorate. A final indicator that Democrats might be winning this battle of the sexes: in battleground states, according to Target Smart, a data firm, between July and September, twice as many young Democratic women registered to vote than young Republican men.

Trump’s bet is that Harris is the one with the turnout problem. They think their base is more committed to their candidate than is Harris’s. But Marcy Wheeler points to Harris’s investment in the Dem ground game:

“The Harris campaign claimed in late September to have 330 offices and more than 2,400 staff. They completed 25,000 weekend volunteer shifts on the final weekend of last month, contacting over 1 million voters over three days and completed the 100,000th event of the campaign.”

BTW: Ms. Oh So Right got a postcard from Harris to vote early this week.

Harris Needs To Speak To Gen Z’s Reality

The Daily Escape:

Before tackling the major subject for today, Wrongo wants to briefly cover something you probably missed. There was an abortion ruling in Georgia that overturned the state’s anti-abortion law. The judge plowed new ground with his reasoning: (emphasis by Wrongo)

“While the State’s interest in protecting ‘unborn’ life is compelling, until that life can be sustained by the State — and not solely by the woman compelled by the Act to do the State’s work — the balance of rights favors the woman….Women are not some piece of collectively owned community property the disposition of which is decided by majority vote. Forcing a woman to carry an unwanted, not-yet-viable fetus to term violates her constitutional rights to liberty and privacy, even taking into consideration whatever bundle of rights the not-yet-viable fetus may have….It is not for a legislator, a judge, or a Commander from The Handmaid’s Tale to tell these women what to do with their bodies during this period when the fetus cannot survive outside the womb any more so than society could — or should — force them to serve as a human tissue bank or to give up a kidney for the benefit of another….When someone other than the pregnant woman is able to sustain the fetus, then — and only then — should those other voices have a say in the discussion about the decisions the pregnant woman makes concerning her body and what is growing within it.”

The ruling is unlikely to be the final word on abortion access in Georgia, since the case will ultimately be decided by the Georgia Supreme Court.

The judge has a solid argument: Why does society have an interest in a viable fetus when we know society won’t lift a finger to financially and medically support the newborn? Why allow the government to intervene at a time when the costs involved for the mother to continue with the pregnancy increase substantially?

Let’s move to a powerful idea that emerged in the VP debate. Wrongo thinks the key to winning the election will be how Harris reaches out to Gen Z (those born between 1997 and 2012). PBS Newshour interviewed Kyla Scanlon, who reminds us that Gen Z now has more people in the workforce than the Boomer generation, but they aren’t faring as well. Scanlon says that Gen Z has had a tough go of it, being essentially born into the tech bubble, growing up during the Great Recession and then graduating or being in college during the pandemic.

From Scanlon: (brackets by Wrongo)

“…I think for a lot of Gen Z’ers, rent is definitely not as affordable as it used to be. Real wages have increased, so [have] wages adjusted for inflation, but rent has increased much more. And that’s sort of the foundation of how everyone experiences the economy. It’s where you live and how you have to pay for where you live….people look at the price of rent, they look at the price of gas, they look at the price of food, they just look at the inflation that we have experienced over the past few years, and it’s sometimes just not enough to even make those real wage gains worth it.”

“It’s also the cost of childcare, eldercare, these things that are economically quite painful, but don’t necessarily show up in traditional economic measurements like GDP….They’re things that are… hidden costs that people experience.”

Scanlon also talked about the negative bias in the media that’s driving how people feel about their economic circumstances. Media sentiment on the economy has trended either skeptical or negative for a very long time, so people are reading negative headlines despite the economists and pundits saying the economy is OK. This is a big disconnect for the younger generations who get most of their news from social media.

In the debate, Vance said a few things that certainly resonate with Gen Z and others. He noted three things in particular:

People are struggling to pay the bills. Times are tough.
The American Dream is fading, and feels unattainable.
We should stop shipping jobs offshore.

It’s hard to disagree with any of that, and Harris shouldn’t cede any of this ground to Trump. How hard is it to build this into your stump speech? She could easily acknowledge that we’re in the midst of a global cost of living crisis. The biggest one in half a century.

But it was left to Vance and Scanlon to say the things that most Americans feel.

Gen Z and their younger cohorts mistakenly think that the economy is a zero sum game, meaning that if China is doing well or immigrants are coming here and finding work, that regular Americans must be doing worse, even though the economic statistics say otherwise.

Harris needs to deliver an economic message that’s grounded in the reality that Gen Z and others are experiencing. It can be as simple as acknowledging what Vance or Scanlon called out as problems for many younger Americans.

All she needs to do is “Just Say It”.

Many of Wrongo’s 12 grandchildren (17-32 years-old) largely feel that the American Dream is beyond their reach. They’re certain Social Security won’t be there for them. Most think that they’ll never own a home.

Why can’t Harris speak to this? Harris and the Dems talk vaguely about “the opportunity economy” but a more emotional and empathetic call out is required. People with economic problems need to trust the head of the ticket, and that trust starts with acknowledging their reality: That things aren’t as good for the younger generations as the economic statistics say they are.

The Dems have an actual track record: Investing in infrastructure and encouraging domestic production of strategic goods. Investment in manufacturing is at an all time high. We’re starting to produce advanced chips in Arizona. Unions are stronger than in recent years.

Harris needs to show empathy for those in Gen Z (and younger) who are not fully participating in the opportunity economy.

It will help her win in November.

Democrats Are Better For The Economy

The Daily Escape:

Sunset at Fonts Point, Anza-Borrego Desert SP, CA – March 2024 photo by Paulette Donnellon

“If you want to live like a Republican, vote for a Democrat.” – Harry S. Truman

Republicans always claim that they are the Party of prosperity. They pretend that their policies lift everyday workers and their families, what with tax cuts and all, and the public seems to buy it. In polls, the Republicans usually get better marks on the economy than Democrats, often by hefty margins.

But as John E. Schwarz notes in the Washington Monthly:

“What is truly startling is the astonishing degree to which American workers have fared better under Democratic than Republican presidents….Today, the economic data are unambiguous: Whether it’s real wage gains or job creation, average Americans have fared far better under Democratic than Republican presidents.”

From the economist Jeffery Frankel, Professor of Capital Formation and Growth at Harvard University, and formerly a member of the White House Council of Economic Advisers:

“Since World War II, Democrats have seen job creation average 1.7 % per year when in office, versus 1.0 % under the GOP. US GDP has averaged a rate of growth of 4.23% during Democratic administrations, versus 2.36% under Republicans, a remarkable difference of 1.87 percentage points. This is postwar data, covering 19 presidential terms—from Truman through Biden. If one goes back further, to the Great Depression, to include Herbert Hoover and Franklin Roosevelt, the difference in growth rates is even larger.”

Frankel says that the results are similar whether one assigns responsibility for the first quarter of a president’s term to him or to his predecessor. He also makes the point that the average Democratic presidential term has been in recession for 1 of its 16 quarters, whereas the average for the Republican terms has been 5 quarters, a startlingly big difference.

Frankel asks whether these stark differences in outcomes are simply the result of random chance? But he concludes they aren’t:

“The last five recessions all started while a Republican was in the White House (Reagan, G.H.W. Bush, G.W. Bush twice, and Trump)….The odds of getting that outcome by chance, if the true probability of a recession starting during a Democrat’s presidency were equal to that during a Republican’s presidency, would be (1/2)(1/2)(1/2)(1/2)(1/2), i.e., one out of 32 = 3.1%. Very unlikely.”

I know, nobody said there’d be math in the column. Frankel says that the result is the same as the odds of getting “heads” on five out of five consecutive coin-flips. And it gets worse if we look back further in time:

“A remarkable 9 of the last 10 recessions have started when a Republican was president. The odds that this outcome would have occurred just by chance are even more remote: one out of 100. [That is, 10/2¹⁰ = 0.0098.]”

More math, but you get the idea. If you look at job growth, the results are similar. More from John Schwarz:

“The significant contrast between each party’s record on wage and job growth has held true from the election of Ronald Reagan in 1980 through to the onset of the pandemic, just after 2019 ended, and after that, starting once again under Joe Biden.”

Here’s a chart from The Economist:

The Republican and Democratic Parties were in the White House for roughly equal amounts of time, 24 years each. During the Republican presidencies they created about 17 million jobs, whereas Democrats presided over the creation of about 60 million. That’s such a big gap that Americans can safely reject claims of stronger economic performance under Republicans.

Schwarz closes with this:

“Democrats have an amazing story to tell in 2024. They should tell it loud and clear.”

Absolutely!

Enough of the hard math. It’s time for our Saturday Soother, when we try to disconnect from Trump’s Bible sales and from the plan by Senate Republicans to introduce articles of impeachment of the Secretary of Homeland Security when there’s so much truly pressing business for them to consider.

Here on the Fields of Wrong, we’re attending to some spring yardwork in the precious time between passing rain and snow showers. We will also find the time this weekend to watch college basketball’s March Madness.

To help you focus on anything but politics on this Easter weekend, grab a seat by a south-facing window and listen to Gregorio Allegri’s “Miserere mei, Deus” (Have mercy on me, O God), performed here in 2018 by the Tenebrae Choir conducted by Nigel Short at St. Bartholomew the Great Church, in London.

Allegri composed this in the 1630s, during the papacy of Pope Urban VIII. The piece was written for use in the Tenebrae service on Holy Wednesday and Good Friday of Holy Week. Pope Urban loved the piece so much, that he forbid it to be performed elsewhere outside of the Sistine Chapel.

We all could use a little mercy now, and this is beautiful:

Cartoons Of The Week

From Paul Thornton of the LA Times: (emphasis by Wrongo)

“I know the story of Trump’s march to a third GOP nomination barely registered among those who’ve closely followed political news since 2015 — but still, please let it surprise you. Please let the fact that a man who tried to topple American democracy on Jan. 6, 2021, is now the second-most likely person to lead it after noon on Jan. 20, 2025, shake you to your core. German democracy held out for nine years after Hitler’s Beer Hall Putsch in 1923; Trump’s likely nomination puts us on course to halve the time it took Germany to empower (or in our case, re-empower) its fascist leader of a failed coup.”

It was a bad week for Trump and a good week for Biden. Trump’s week was bad enough that he may soon be renting Mar-a-Lago from E. Jean Carroll. Also, it shows us that Trump can lose to an 80-year-old. On to cartoons.

Biden’s “bad” economy continues to set records:

Elephant reacts badly to December’s GDP numbers:

When it comes to Trump, the Elephant is all talk and no tusk:

House Republicans say immigration deal is dead on arrival:

Why isn’t the media covering Abbott’s insurrection?

Trump loses:

The Alabama execution:

Boeing’s Max Jet Fails Again

The Daily Escape:

Desert sunflowers at dawn in Anza-Borrego SP, CA looking west to the San Ysidro Mountains – January 2024 photo by Paulette Donnellon

Wrongo didn’t expect to again be writing about Boeing’s problems with its MAX aircraft, but here we are. From CNBC:

“The Federal Aviation Administration on Saturday ordered a temporary grounding of dozens of Boeing 737 Max 9 aircraft for inspections, a day after a piece of the aircraft blew out in the middle of an Alaska Airlines flight.”

“…video of Alaska Airlines Flight 1282 that were shared on social media showed a gaping hole on the side of the plane and passengers using oxygen masks before it returned to Portland shortly after taking off for Ontario, California, on Friday afternoon.”

What blew off of the plane is a “door plug”, not a door. The configuration used by Alaska Airlines didn’t require an emergency exit door in that location so Boeing installed a door plug, which is attached to the plane’s skin and covered on the inside so that it appears to be a windowless wall.

Seats adjacent to the blowout were by chance, unoccupied. The accident depressurized the cabin and headrests were detached from two nearby passenger seats, the back of one seat was gone. Here’s a picture taken after the plane landed safely:

Boeing and the Alaska Airlines passengers were very lucky in two respects: First, that no one was sitting in the seats where it happened, and Second, that it didn’t occur at cruising altitude. The sudden depressurization at altitude would have been a disaster with many lives lost.

This happened on a plane that had been in service for just 10 weeks! And it happened a few days after Boeing asked every airline to check their Max-9’s for missing rudder bolts:

“Last month, the company urged airlines to inspect the more than 1,300 delivered Max planes for a possible loose bolt in the rudder-control system. Over the summer, Boeing said a key supplier had improperly drilled holes in a component that helps to maintain cabin pressure.”

And that was only a couple weeks after Boeing asked the FAA to give them a pass on a design flaw in the plane’s engine de-icer.

You remember that this is the plane that Boeing famously mis-programmed to nosedive into the ground. You may have forgotten that Boeing paid a big price:

“In 2021, Boeing agreed to pay more than $2.5 billion to settle a criminal charge related to the crashes. Under the deal, Boeing was ordered to pay a criminal penalty of $243.6 million while $500 million went toward a fund for the families whose loved ones were killed in the crashes. Much of the rest of the settlement was marked off for airlines that had purchased the troubled 737 Max planes.”

These are huge issues with quality and quality control. There are also problems with suppliers. The WSJ reported:

“Fuselage maker Spirit AeroSystems is responsible for installing the emergency-door configuration involved in Friday’s incident. Spirit AeroSystems was working with Boeing on Saturday to determine what went wrong….Spirit AeroSystems was also responsible for the misdrilled holes on the fuselages that disrupted production in 2023.”

Spirit changed CEOs in October 2023, hiring Patrick Shanahan, a 30-year Boeing veteran. Since then, Boeing has invested in and worked more closely with Spirit to address “production” problems.

The Max is the best-selling plane in Boeing’s history. The more than 4,500 outstanding orders for the plane account for more than 76% of Boeing’s order book. Of the nearly three million flights scheduled globally this month, about 5% are planned to be made using a Max, mostly the Max 8.

Wrongo has written about Boeing before and how it lost its culture of engineering prowess and expertise. It began valuing financial engineering over aerospace engineering in 2009-2017 by engaging in $30 billion in stock buybacks, an amount that exceeded its earnings. Then in 2018, buybacks of $9 billion constituted 86% of annual earnings and late in 2018, they approved $20 billion more in buybacks.

Rank capitalism is a big element in this story. Passenger safety has been sacrificed to Wall Street profit-taking and bonuses for Boeing’s shareholders and executives. Until the culture changes back to one focused on engineering, the company will continue to be a hot mess.

Boeing needs a senior management change, and fast, before more people die on their airplanes. Wrongo will certainly avoid flying a 737 Max in the future.

Time to wake up, Boeing! You’re using euphemisms like “production problems” or “supplier problems” to describe improperly drilled holes. There should be no circumstance where a section of the fuselage falls off an airplane in flight. This is systemic, an organization-wide failure.

To help you wake up, watch and listen to Larkin Poe, who Wrongo has featured before, doing a cover of Son House’s “Preachin’ Blues”:

Sample Lyric:

I’m gonna get me some religion
I’m gonna join the Baptist church
Gonna be a preacher
So I don’t have to work

Happy New Year!

The Daily Escape:

Dory with lights, Ogunquit, ME – December 2023 photo by Eric Storm Photo

This is the last Wrongologist column of the year because tomorrow is the first day of 2024. Cartoon lovers shouldn’t worry, there are a few cartoons at the end of this post. We will spend tomorrow attending a New Year’s Day concert of Baroque music at the auditorium of a local prep school.

You will see plenty of year-end reviews of what happened in 2023, most of which will concern what went wrong. So no need to recapitulate the bad news here. Despite all that, 2023 also was a year with significant positive developments:

We engineered a soft landing for the economy, meaning that we didn’t have a recession and the widespread unemployment that would have come with it.
The US will end 2023 with one of the largest annual drops in homicides on record (-12.8%), according to AH Datalytics
In 2022, the insured share of the US population reached 92% (a historic high). Private health insurance enrollment increased by 9 million individuals and Medicaid enrollment increased by 6.1 million individuals.
US healthcare spending as a percentage of the GDP was lower last year than it was 6 years earlier. Health care spending grew by 4.1%, and the share of GDP devoted to health care fell to 17.3%, lower than the 18.2% share in 2021.
The WHO approved a new and affordable malaria vaccine. More than 600,000 people died of malaria in 2021, with children under 5 years representing 80% of malaria deaths in Africa. The US still reports about 2,000 malaria cases each year. The majority of them are contracted abroad.
Two sickle cell disease treatments gained FDA approval. Sickle cell is a debilitating condition that affects around 100,000 Americans, most of them Black. One is the first medical treatment to be based on the gene-editing tool CRISPR.
Sweden and Finland joined NATO. Germany is no longer dependent on Russian oil and natural gas.
The Webb Telescope made huge advancements in human understanding of the Cosmos.
And finally, as Wrongo has written elsewhere, today, despite his best efforts, he turns 80!

The Christmas season brought our family one piece of arguably bad news. On both sides, we are a blended family. That means the holiday season can bring quality time with extended family members who do not share your political and/or cultural sensibilities. But no worries, it’s just one day, except when it isn’t.

One of our kids while participating in a “Yankee Swap” of gifts, wound up with an autographed copy of Ted Cruz’s book, “Unwoke: How to Defeat Cultural Marxism in America”. Imagine having to act excited with this as your New Year’s read. As expected, there are many 5-star reviews on Amazon, but Wrongo wants to quote this one:

“A most difficult book to read. Almost never do I feel inclined to post a book review on a public site, yet I am compelled to do so here. Practically everything Cruz expresses outrage over are previously debunked, decades old tropes.”

Your mileage may vary. Wrongo OTOH, participated in a different Yankee Swap, receiving a grandson’s “75 songs that changed my life” along with a written description of each. A fantastic gift!

Here are the cartoons of the week. Gov. Haley can’t figure out the word puzzle:

The Elephant resolves to begin this year like last year:

The new baby doesn’t look so cuddly:

Enjoy the peace and quiet of this New Year’s holiday. There’s plenty of time to be nervous about the other 364 days.

America’s Confusing Opinion Polling

The Daily Escape:

Oak Creek, Sedona AZ – November 2023 photo by Jim Lupton

Over single malt and martinis, our Thanksgiving guests talked about what a confusing time we’re living in. Americans are angry and anxious, and the polls continue to show problems for Biden across the board, despite that overall, the economy is fine.

Inflation has slowed significantly. Wages are increasing. Unemployment is near a half-century low. Job satisfaction is up. Yet Americans don’t necessarily see it that way From the NYT:

“In the recent New York Times/Siena College poll of voters in six swing states, eight in 10 said the economy was fair or poor. Just 2% said it was excellent. Majorities of every group of Americans — across gender, race, age, education, geography, income and party — had an unfavorable view.

To make the disconnect even more confusing, people are not acting the way they do when they believe the economy is bad. They are spending, vacationing and job-switching the way they do when they believe it’s good.”

Continuing with the confusion, the new WSJ/NORC survey of the American dream—the proposition that anyone who works hard can get ahead regardless of their background, has moved out of reach for many Americans. Only 36% of voters in the survey (conducted between Oct. 19-23 with a margin of error of ± 4%) says that the American dream still holds true: (emphasis by Wrongo)

“The American dream seemed most remote to young adults and women in the survey…..46% of men but only 28% of women said the ideal of advancement for hard work still holds true, as did 48% of voters aged 65 or older but only about 28% of those under age 50 agreed.”

And people think the dream is growing more remote. When last year’s WSJ poll asked whether people who work hard were likely to get ahead, 68% said yes—nearly twice as many as in this year’s poll (36%). More from the NYT:

“Economic difficulties are greater for those without a college degree, who are the majority of Americans. They earn less, receive fewer benefits from employers and have more physically demanding jobs.”

Voters without a college degree are Trump’s strongest cohort.

Adding to the cloudy forecast, the Economist/YouGov weekly tracking poll of registered voters says most people are happy with their jobs:

Overall, how satisfied or dissatisfied are you with the way things are going in your life today? Satisfied 64%, Dissatisfied 35%
How happy would you say you are with your current job? Great deal/somewhat 80%, A little/not at all 19%.
Do you consider yourself paid fairly or underpaid in your job? Paid fairly 56%, Underpaid 38%.
Do you think your family income will increase or decrease in 2024? Increase 45%, stay the same 41%, decrease 15%.

But the same Economist/YouGov poll gives a different impression when you ask about the American economy more broadly:

Do you think the economy is shrinking or growing? Growing 22%, staying the same 25%, shrinking 37%. That’s 47% thinking its growing or staying the same. (The reality: The economy has grown at 3% on average under Biden, the highest for any President since Clinton.)
Are the number of jobs in the US increasing (42%), staying the same (36%) or decreasing (22%)? (The reality: 14 million new jobs have been created under Biden.)
How would you describe the current state of the American economy? Excellent/good 30%, fair/poor 64%. (The reality: We’ve had the fastest job growth perhaps ever, very strong GDP growth, inflation is way down, wage growth is very strong, and the annual deficit is way down from Trump’s presidency.)

What’s going on here? These data suggest something tragic – either the American people have no idea what is happening in the country, or what they do know is deeply wrong.

A final nail in this conundrum. Ed Kilgore in NY Magazine says that the youth vote is swinging against Biden:

“Until recently, Democrats’ biggest concern about the 2024 youth vote was that millennial and Gen-Z voters …might not turn out in great enough numbers to reelect Joe Biden. Young voters were…the largest and most rapidly growing segment of the Democratic base in the last election. But now public-opinion surveys are beginning to unveil a far more terrifying possibility: Trump could carry the youth vote next year.”

The latest national NBC News poll finds President Joe Biden trailing Trump among young voters ages 18 to 34 — with Trump getting support from 46% of these young voters and Biden getting 42%, while:

“CNN’s recent national poll had Trump ahead of Biden by 1 point among voters ages 18 to 34.

Quinnipiac University had Biden ahead by 9 points in that subgroup.

The national Fox News poll had Biden up 7 points among that age group.”

Hard to know what to believe from those surveys. More from Kilgore:

“According to Pew’s validated voters analysis (which is a lot more precise than exit polls), Biden won under-30 voters by a 59% to 35% margin in 2020. Biden actually won the next age cohort, voters 30 to 49 years old, by a 55% to 43% margin.”

So, what’s wrong? It’s important to note that yesterday’s younger voters aren’t today’s. From Nate Silver:

“Fully a third of voters in the age 18-29 bracket in the 2020 election (everyone aged 26 or older) will have aged out of it by 2024, as will two-thirds of the age 18-to-29 voters from the 2016 election and all of them from 2012.”

Silver says, So if you’re thinking “did all those young voters who backed Obama in 2012 really just turn on Biden?” Those voters have aged into the 30-to-41 age bracket.

We need to remember that today’s young voters share the national unhappiness with the performance of the economy, and many are particularly affected by high cost of living and higher interest rates that make buying a home or a car difficult. Some are angry at Biden for his inability (thanks to the Supreme Court) to cancel student-loan debts. And most notoriously, young voters don’t share Biden’s strong identification with Israel in its ongoing war with Hamas (a new NBC poll shows 70% of 18-to-34-year-old voters disapprove of Biden’s handling of the war).

And there’s this tidbit from the NYT:

“Younger people…had concerns specific to their phase of life. In the poll, 93% of them rated the economy unfavorably, more than any other age group.”

What exactly are kids in their 20’s supposed to be feeling at this stage of life? Unless you come from money, your 20’s are a financial struggle. Wrongo’s certainly were, and that’s decades ago when the economy was great. This isn’t to dismiss today’s very real economic uncertainties. Wrongo’s own grandchildren run the gamut of (relative) struggle financially.

The single most persuasive way to convince young people that Trump isn’t the right answer is to show them what he’ll do in his own words. Many of them are too young to know much about Trump. Some of today’s college freshmen were just 14 or 15 when he was in office.

It’s Monday, and it’s time to wake up America! People need to pay attention. Once again, it will come down to effective messaging for the Dems. They must help voters understand who will serve their interests and who will literally crush their interests.

To help you wake up watch and listen to William Devaughn’s “Be Thankful For What You’ve Got”. It sold nearly two million copies in 1974. It takes us back to a time when there was more optimism in America. If you lived or worked in NYC in the1970s, the video will also take you back to a difficult period in the city’s history. In its own way, it’s a great Thanksgiving song:

Why People Say The Economy Is Terrible When It Isn’t

The Daily Escape:

Sunset, Thumpertown Beach, Eastham, MA – November 2023 iPhone photo by friend of the blog, KO.

We keep looking for good news that will buoy Biden’s polling numbers, and on Tuesday we learned that the Consumer Price Index (CPI) was flat in October. From Axios:

“Overall prices rose 3.2% in the 12 months through October, slowing from the 3.7% in September and well-below the peak levels reached last year. Core CPI rose 4%, compared to 4.1% the prior month.”

Among the good news was that last month, prices for gasoline and used cars and trucks fell outright, helping cool over inflation. Meanwhile, shelter costs rose at a much slower pace last month, possibly signaling that inflation could be ending in the next few months.

That gave investors reason to pile back into the stock market, since it may be a sign that the Fed won’t continue to raise interest rates.

But as always, analysis of the economic news could show why Biden polls so badly on the economy, and in particular why he hasn’t consolidated support among younger voters. Let’s take a different look at how some important economic indicators have performed under Biden.

From the Bonddad Blog:

“Below is a graph in which I compare average hourly earnings (nominal, not real) for non-supervisory workers (in red) vs. house prices (dark blue) and mortgage payments (light blue).”

It is important to note that Bonddad has set all of the values to 100 as of January 2021 so that we’re looking only at what has happened during Biden’s Administration. Bonddad compares the changes in average hourly earnings to the rate of fixed price mortgages and the price of homes. These are nominal rates:

Average wages have increased 16% since Biden took office, but existing house prices have increased by 32%, and monthly mortgage payments for new buyers have increased 279% (!), from roughly 3% to roughly 8%. Housing is close to unaffordable for many in America.

Turning to cars, new car prices have increased by 20%, and used car prices by 23%, compared to that 16% for wages. And new car loan payments (dotted line below) have increased almost 70% (from about 5% to 8.3%):

Houses and cars are the two biggest purchases that most average people make. And sorry to say, affording them has gotten much harder since Biden took office.

Finally, let’s look at the cost of two things people see every day: groceries and gas. First, grocery prices are up 29% since Biden took office in January 2021 (again, vs. 16% for average wages):

And gas prices, although they have come back down recently, are still up 55% since January 2021:

Looking at the economic data this way, would you be more likely to vote for or against Biden? This is a big Biden problem with voters who live paycheck to paycheck.

It’s hard to overstate the importance of viewing the Biden economic performance like Bonddad does above. Much of the blame for these specific price increases belongs to corporations who took advantage of the breakdown in the global supply chain to raise their prices. Some belongs to the Biden administration’s pumping money into the economy.

Bonddad provides a ton of perspective regarding how the Democrats shouldn’t be talking to voters about how fantastic the economy has become under Biden. Dems can’t simply talk about the aggregate economic numbers, since many will not fully believe them.

At the risk of piling on, Wrongo recently saw this October Experian survey which asked:

“I suffer or have suffered from financial trauma”

A staggering 68% of US adults replied that they had. You can view the survey here. The stress was felt more strongly by younger generations, namely Gen Z adults and millennials, with 73% of Gen Z’ers and 77% of millennials experiencing negative thoughts and/or anxiety about money.

The idea of “financial trauma” goes beyond mere stress. America’s seeing multiple social crises afflict it. Friendships are cratering, loneliness is soaring, deaths of despair are skyrocketing. Half of American young people say they feel “persistently hopeless.”

Now tie this to how the majority of voters are saying that America is on the wrong track. The prevailing attitude in America is that our systems are rigged against working people. If you work hard, play by the rules, try to be an honest, decent and productive person, but the reward is that you get financially, socially, emotionally traumatized, well, maybe you’d be pessimistic, too.

The result is that most Americans feel they are living precarious lives. When asked, they say they need north of $230K to feel “comfortable” while the average yearly income for a full-time worker is about $75,000 today. That means feeling stable and secure is completely out of reach for the vast majority of Americans.

Most of this happened over time and surely wasn’t caused by Biden, or the Democrats. And little of it can be fixed by him.

There’s some good news in the fact that history shows us that voters generally focus on how the economy has performed during the last 6 to 9 months before the election. In 2012, the economy improved a lot, and when the unemployment rate finally fell below 8% one month before the election, it helped Obama to get reelected.

On the flip side, the economy was weakening as we closed in on the presidential election in 2016. GDP growth and wage and job gains were weak. Strong stock market gains were a positive. Adding the pluses and minuses suggested that the economy was weak, and the insurgent Trump won the election.

Better news on inflation in 2024, particularly for groceries and gas, will mean Biden’s polling on the economy will be much better.

The Wrongologist

Geopolitics, Power and Political Economy

Category: Economics

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Happy New Year!

Why People Say The Economy Is Terrible When It Isn’t