The Wrongologist – Page 56 – Geopolitics, Power and Political Economy

War With Russia? Over What?

The Daily Escape:

Bailey’s Island, ME – January 7, 2022 photo by Eric Storm Photo

Russia has decided the time is right to challenge the balance of power in Europe. The talks between Moscow and the US, and between the EU, NATO and Russia were motivated by two reasons. First, Russia’s long time concerns about NATO encroaching on their Western border. Second, the view in the West that Russia, after massing troops on the Ukraine border, is going to invade Ukraine and absorb it.

Putin told Biden in early December that he was looking for European security guarantees. They were later presented by Moscow in the form of two draft treaties, one a Russian-US security treaty, the other a security agreement between Russia and NATO. That led to the recent talks that seemingly went nowhere.

The pawn in this diplomatic game is Ukraine. The basic options for Ukraine are the same as were discussed in 2014: Alignment with Russia, alignment with the EU/NATO or balancing between the two.

But to Moscow, Ukraine isn’t the problem. Putin thinks it’s Washington.

We should remember that Putin laid out his position to not accept any further eastward expansion of NATO in his speech to the Munich Security Conference in February, 2007. He hasn’t changed his thinking.

Both sides know that Ukraine is an impoverished, de-industrialized, divided, and corrupt mess. Ukraine ranks 117 out of 180 countries on Transparency International’s corruption index. Why would either side want to take over responsibility for Ukraine?

Also, Russia understands that the NATO expansion hadn’t been on the table for years until Putin brought it up. Suddenly, he has the West debating an issue that wasn’t an issue for a long time. Ukraine hardly qualifies as a potential NATO member – it doesn’t have the resources to defend itself. There’s no way it could really contribute to defending other countries in Europe, even though they did send a few troops to Iraq and Afghanistan.

So why would Russia attack Ukraine? Moscow is fully aware that while its troops would be welcomed in Eastern parts of Ukraine they wouldn’t be in others. Yet, we learned yesterday that Russia withdrew its diplomats and their families from Kyiv:

“According to one senior Ukrainian security official, 18 people — mostly the children and wives of Russian diplomats boarded buses from Kyiv back to Moscow. About 30 more Russians left within the ensuing days, from the Kyiv embassy and a Russian consulate in Lviv. The Ukrainian security official said Diplomats at two other Russian consulates have been told to prepare to leave Ukraine.”

Anatol Lieven, writing in Responsible Statecraft, wonders what the US, NATO and the Europeans are thinking. They’ve rejected Russia’s conditions for an agreement since they were not willing to rule out expansion to Ukraine, Georgia, and other former Soviet republics: (emphasis by Wrongo)

“…NATO has no real intention of admitting Ukraine, nor of fighting Russia in Ukraine. Both Washington and Brussels have openly ruled this out. Indeed, NATO could not do so even if it wanted to. US forces in Europe are wholly inadequate to the purpose, as are what is left of the British and French armies.”

It’s possible that Russia is attempting to split Germany from the rest of Europe. Germany is reliant on Russia’s natural gas to a greater extent than other European countries. Assuming that Lieven is correct about NATO military weakness, it’s also possible that Russia is trying to intimidate NATO. According to Adam Tooze, Russia accounts for about 40% of Europe’s gas imports. And a rupture of relations will result in the complete embargoing of Russian gas and oil to European customers.

While the US, NATO, and the EU have all promised “unprecedented sanctions,” against Russia if they invade Ukraine, sanctions only matter if the other side cares. If Russia decides to rupture relations with the West, it will have calculated that it would survive more economic sanctions. The primary Western threat is to block Russia from using the SWIFT electronic payments system. But it’s possible that Russia could survive being blocked from SWIFT for longer than Europe can survive without Russian energy.

Despite that threat, Western allies are sending dangerously contradictory messages about their willingness to impose anything on Russia beyond a financial slap on the wrist. One variable that sums up Russia’s commanding position in a sanctions environment is Russia’s foreign exchange reserves:

With north of $600 billion in reserves, Russia is just behind China, Japan, and Switzerland. This gives Putin the capacity to withstand sanctions on the rest of the Russian economy.

Putin has a timeline. In 2024 he faces a choice as to whether to continue in power or to begin to prepare for his final exit. At that point, he will be 72. We have to assume that by then, he would like to have drawn a line on Western expansion.

Also, 2024 overlaps with the end of Biden’s first (only?) term as president. So, setting the terms of Russia-US relations on the expansion issue must be a priority for the Kremlin. Biden has clearly signaled that his priority is China and that he is willing to pay a political price for retrenching its strategic position (Afghanistan). Perhaps that opens the door for a Russian deal in Europe.

Lost in this discussion is the possibility that directly confronting Russia could drive them to sign a joint defense treaty with China. That would be a world-changing diplomatic move, assuming it included a mutual defense provision.

It would be a balance of power earthquake, a real-life demonstration Mackinder’s Heartland theory, which states that:

Who rules Eastern Europe commands the Heartland
Who rules the Heartland commands the World Island
Who rules the World Island commands the world

Mackinder thought of the heartland as the core of Eurasia, and he considered all of Europe and Asia as the World Island. Think of such an alliance controlling much of the world’s natural resources, having global leadership in manufacturing, and the best of STEM education. Imagine their combined military and naval might joined in a military pact.

There is still a chance that US flexibility in two areas may avert a diplomatic meltdown with Russia. The first would be a NATO commitment to deploy no new forces in NATO countries close to Russia’s borders, in return for Russian limits on new deployments and the stand-down of the troops now deployed on Ukraine’s borders.

The second would be genuine US support for the failed Minsk II agreement which focused on autonomy for a demilitarized Donbas region within Ukraine. Donbas autonomy within Ukraine would be a serious barrier both to Ukraine seeking NATO membership and would therefore indirectly meet Russia’s key concerns.

NATO, the US, and the EU need to come to a more modest view of themselves and their role in the world. We should abandon the empty and hypocritical false promise of further NATO expansion and seek a reasonably cooperative relationship with Russia.

Otherwise, we can go on living in our world of make-believe, a world that may easily be shattered by harsh realities.

Democrats Must Go on Offense

The Daily Escape:

Oregon City Bridge, OR with Willamette Falls in background – January 2022 photo by Sanman Photography

Gallup says that the Dems are losing the battle for hearts and minds. Their most recent poll shows a dramatic shift over the course of 2021, from a nine-percentage-point Democratic advantage in the first quarter to a five-point Republican edge in the fourth quarter. Here’s a chart showing the bad news:

Monday Wake Up Call – Remembering MLK, Jr.

The Daily Escape:

After an ice storm, Taos NM – January 2022 photo by Bob Benson

“Freedom without consequences is a myth. Our actions always have consequences. The question is: who will bear them?” – Seth Godin

The year 1968 was pivotal. In addition to the assassination of Martin Luther King, Jr., it brought the Tet Offensive, student protests across the country, the assassination of Robert F. Kennedy, the student and police riots at the Chicago Democratic Convention, Black Power salutes at the Olympics, and the triumph of Richard Nixon’s Southern strategy.

MLK, along with others in our churches and a few courageous politicians, came together to support the Big Idea that Separate was not Equal. MLK gave a voice to that Big Idea. His presence, power and persuasiveness drove our political process to an outcome in the Civil Rights Act of 1964 that was completely unthinkable in 1954 when Brown vs. Board of Education was decided by the Supreme Court.

Wrongo participated in the Civil Rights movement from 1958 to 1962. He left active participation in the movement believing good ideas and a morally sound position would change our politics. He was wrong.

Legislation has recently passed in eight states that will restrict what students can be taught about our past. This is an effort to segregate certain subjects from our common history. These Republican states want to diminish or exclude the stories that speak to slavery, to Jim Crow, and to other moments in which America’s deepest shortcomings around the subject of race in America are told.

Wrongo wishes that this represented a minority of the Republican Party. But when Biden spoke in Atlanta, he said:

“I ask every elected official in America: How do you want to be remembered? Do you want to be on the side of Dr. King or George Wallace? Do you want to be on the side of John Lewis or Bull Connor? Do you want to be on the side of Abraham Lincoln or Jefferson Davis?”

Dr. King had said that stripping the right to vote from Black southerners laid the groundwork for laws that further disadvantaged poor people, even across racial lines. Then as now, Southern legislatures justified limiting the franchise to vote with specious claims about electoral shenanigans.

Biden’s words set Republican teeth on edge. Sen. Mitch McConnell (R-KY) said that Biden:

“…called millions of Americans his domestic enemies…and that if you disagree with him, you’re George Wallace….If you don’t pass the laws he wants, you’re Bull Connor, and if you oppose giving Democrats untrammeled, one-party control of the country, well you’re Jefferson Davis.”

Fox News contributor Ari Fleischer tweeted:

“Now he says disagreeing w/him on voting laws means you’re a segregationist, like George Wallace or Bull Connor. How low can he go?”

The linkage between trying not to teach America’s true history with the censorious outrage shown by Republicans over Biden’s comments is clear. Biden said America needed to be on the side of voting rights.

That was Dr. King’s great struggle, and his great success.

But Republicans want to whitewash that history. They also condemn Biden’s efforts to tie today back to our undemocratic past. As Jelani Cobb says this week in the New Yorker:

“This holiday honoring Martin Luther King, Jr., sees a nation embroiled in conflicts that would have looked numbingly familiar to him. As school curricula and online discourse threaten to narrow our understanding of both past and future, it’s more important than ever to take stock of our history and its consequences….

Time to wake up America! We are docile sheep heading back to the barn, the place where we will be shorn of our democracy, just as surely as wool is shorn from the sheep. The smoking guns are all around us, and yet, we seem hopelessly divided about what we should do to change course.

To help you wake up, let’s listen to Wrongo’s favorite MLK song, “Southern” by OMD from their 1986 album “The Pacific Age“. On April 3, 1968, in Memphis, King delivered his last speech, which we remember as his “I’ve been to the mountaintop” speech. He was assassinated the next day. OMD samples some of the content of that speech in “Southern”:

Although everyone knows the “I’ve been to the mountaintop” part of the speech, Wrongo thinks our focus should be on the following:

I want young men and young women, who are not alive today
But who will come into this world, with new privileges
And new opportunities
I want them to know and see that these new privileges and opportunities
Did not come without somebody suffering and sacrificing
For freedom is never given to anybody

Why focus on that part of the speech? One day down the road, and it will not be long, young people will have forgotten what MLK meant to America, or how whatever remains of their civil rights, came to be.

Or, how the 13th Amendment ending slavery came about, and why, 100 years later in 1965, the Voting Rights Act was passed, or how 48 years later, in June, 2013, the Roberts Court eviscerated it.

So, take the time to teach a child about why MLK is so important.

Sunday Cartoon Blogging – January 16, 2022

A new Quinnipiac University Poll, conducted between January 7 – 10 of a nationwide sample of 1,313 adults shows that Americans are confused about which Party is protecting voting rights:

(hat tip: Jobsanger)

This is another example of poor messaging by Democrats. Republicans have been trying to suppress voting in many states, and the Republicans in Congress have prevented Democrats from passing legislation to protect the right to vote for all citizens. But only 45% say Democrats are protecting the right to vote and 43% say it’s the Republicans. That’s within the poll’s margin of error of 2.7%, meaning it’s a virtual tie.

There are only three cohorts with more than 50% saying that one Party is better. Women (52%) and Blacks (86%) say it’s the Democrats, while Whites (51%) say it’s the Republicans. It’s also interesting that 12% apparently have no opinion about which Party is better for voting rights. Whatever the reason why this poll is so close, it isn’t good for the country. On to cartoons.

Let’s vote our way out:

More GOP inflation:

Sen. Sinema is just not that into him

Are Sen. Manchin’s priorities misplaced?

Supremes reject federal government’s right to set rules for public safety:

(The mandate would have covered about 84.2 million Americans. OSHA estimated (before Omicron) that the rule would save 6,500 lives and prevent 250,000 hospitalizations over a six-month period.)

Supremes can’t rule on Djokovic:

Saturday Soother – January 15, 2022

The Daily Escape:

Mount Pierce, with Mt. Washington in background, NH – photo by Eric Duma

On Tuesday, Democrat Sheila Cherfilus-McCormick won an election to fill the seat in Florida’s vacant 20th Congressional District. She will replace the late Rep. Alcee L. Hastings (D) who died last April after losing his fight with pancreatic cancer.

Cherfilus-McCormick, a 42-year old health-care company CEO, easily defeated Republican nominee Jason Mariner. The WaPo reports that Mariner had talked openly during the campaign about his past convictions for theft and cocaine possession and his time in jail. Bless his heart!

It wasn’t expected to be a competitive contest since Democrats heavily outnumber Republicans in the district. Biden won Florida’s 20th in 2020 with 77% of the vote, while Cherfilus-McCormick won the special election with 79%.

The CBS affiliate in Miami reports that Mariner is now refusing to concede his 60-point loss and is demanding an investigation into “election fraud”:

“Now they called the race, I did not win, so they say, but that does not mean…that we lost,”

He had filed a lawsuit before the polls even closed alleging there were problems with the ballots in Palm Beach and Broward Counties.

While we know that winning candidates can take office even without a concession, Republicans are turning into the Party of sore losers. When the 2022 mid-terms roll around, it is abundantly clear that few Republicans will concede in their races.

This makes a lie of what some Democrats (and a few Republicans) have said about the looming problems with vote counting; that if the winning margins are big enough, elections can’t be stolen. Margins are rarely as large as Cherfilus-McCormick’s, and her opponent isn’t conceding.

The entire point of the GOP’s continuing election lies is to undermine the legitimacy of wins by Democratic candidates. We’ll soon see whether contested mid-term elections won by Democrats will be judged as fraudulent in the many Republican-controlled states.

The broader Republican Party understands that there’s no such thing as a bad Conservative. Until they aren’t. At which point they call them liberals. As Rick Perlstein famously observed, in Conservative circles, “Conservatism never fails. It is only failed.”

When Congresswoman Cherfilus-McCormick takes office, Democrats will again hold 10 more House seats than Republicans. There is currently one vacancy in the House, the empty California seat formerly held by Congressman Devin Nunes (R).

Let’s move on from this week’s sad news that we will not see Democrats break the filibuster to pass either the For the People Act or the somewhat more modest Freedom to Vote Act. it’s time for our Saturday Soother!

Here in the Northeast, we’re expecting snow on Martin Luther King Jr. day, although we still have a respectable amount of snow on the Fields of Wrong. Today we’re hosting another gathering of family who were unable to visit when Wrongo inconveniently got Covid on Christmas Eve.

So the time is right to have a Saturday Soother before the house fills up. Let’s start by brewing up a vente cup of Panama Washed Process Gesha ($50/6 oz. That tells you inflation is really out of control!) from Jersey City, NJ’s own Modcup roasters.

Now grab a seat by the fireplace and remember Ronnie Spector, who died this week. Spector and the Ronettes were (along with the Shirelles) the essential 1960s girl groups. In 1963, the Ronettes joined forces with Wall of Sound producer, the odious Phil Spector, by cold-calling him.

The Ronettes went on to have nine top-ten hits working with Spector. Ronnie and Phil married in 1968. During the marriage, Spector was violent and abusive, subjecting her to physical and emotional threats, and locking her up in their home. She finally managed to escape, barefoot and with just the clothes on her back.

Now, listen to a 1987 cover of the Ronette’s original “Be My Baby” this time featuring Ronnie Spector alongside The E Street Band’s Clarence Clemons, with backing vocals by Belinda Carlisle, originally of the Go-Go’s, and Grace Slick from the Jefferson Airplane. The song was written by Ellie Greenwich, and was a genuine teen anthem in 1963, it was recorded live at The Latin Quarter, NYC, in February, 1987:

RIP Ronnie!

How Bad Is Inflation?

The Daily Escape:

Chaco Canyon’s Chetro Ketl Great House – January 2022 photo by James C. Wilson

Every media outlet is talking about the latest inflation numbers. The NYT reported that the Consumer Price Index climbed to 7% for the year through December, and 5.5% after volatile prices such as food and fuel were stripped out. Sounds terrible, right?

Nobody likes higher prices. But remember that 12 month inflation rates (called year over year rates) are a look backward in time. And consumer prices increased 0.5% in December, lower than in the past several months. Month-to-month measures are more reflective of current conditions, although they bounce around more than year/year numbers. A half of one percent rise in December annualizes to a 6% inflation rate, less than the headline rate, if it remains at that level going forward.

Also, wholesale prices rose just 0.2% in December, the smallest increase in 13 months. So maybe inflation is starting to level off.

So, maybe this is a case of beware the headlines. Eric Boehlert says that US media can’t (or won’t) give people context for the current inflationary trend:

“Convinced that rising prices are the defining economic issue of the day — not huge job gains, record-setting GDP predictions, or boosted wages — the press continues to portray inflation as a uniquely American problem that’s hounding Democrats.”

Boehlert says that what’s missing from our inflation coverage is information that inflation is a global phenomenon, fueled by the pandemic. He cites the following articles:

Republicans claim that Biden’s agenda is responsible for inflation. The average person can be forgiven if they believe that Biden’s policies are the cause, but Biden didn’t cause inflation to jump in all of these other countries.

The Economist reports that since the pandemic, there has been a total of $10.8 trillion in worldwide fiscal stimulus, equivalent to 10% of global GDP. The result was that developed countries finally moved the needle on inflation, after they added money to their economies for nearly 15 years since the Great Recession.

So, while each item of the Consumer Price Index — cars, homes, energy and so on — has unique factors driving its prices, there’s an overall reality: The economy is recovering far more quickly than it normally does following a severe recession. But that recovery is uneven, showing up in some sectors as high prices. From The Grid’s Matthew Zeitlin:

“What really worries economists is not just inflation per se, but a situation, as in the 1970s, where prices are rising and the economy is otherwise stagnant, with little job growth or overall growth. This condition is called, naturally enough, ‘stagflation’.”

Zeitlin goes on to say:

“There’s clear evidence that stagflation is not the direction in which the economy is headed. The unemployment rate is down to 3.9%, and overall output is easily above its pre-Covid level…..it’s simply not the situation that the labor market is trending in the wrong direction.”

And the Conference Board is forecasting that 2022 GDP growth will be 3.5% and it will be 2.9% in 2023, so no worries about stagflation in our future.

Zeitlin points out that the supply chain is also a culprit. Over the course of the pandemic, Americans shifted their consumption from services to goods, especially durable goods like furniture and cars. While services still amount for the bulk of US consumer spending, shifting the balance between goods and services can have large effects:

These changes in consumer spending have caused major stress at ports, and throughout the logistics system that moves goods around. This has raised the costs of everything that needs to be shipped.

China’s Zero Covid policy is creating severe lockdowns to keep the variant from spreading ahead of the Beijing Olympics next month. This raises the prospect of more disruptions for supply chains that are based there. China remains the largest supplier of goods to the US.

The Zero Covid policy has economic consequences: Delivery times for ocean shipments from China to the US stretched to a record 80 days in December, up 85% from 2019. This also impacts the cost of shipping a 40-foot container from Asia to the US West coast: It currently costs $14,572 this week, down from a peak of more than $20,000 in September. But that’s about a tenfold increase from two years ago.

The major question facing the Federal Reserve, as well as Biden, businesses and everyday consumers who have to make decisions, is how likely is increased inflation to persist? If the inflation problem is largely being driven by how consumers and businesses have had to adjust to Covid, then while it’s severe, it may be temporary.

Nobody likes or wants higher prices. Pent-up demand and abundant cash savings are part of what’s causing inflation. The other part of the problem is labor shortages, which are resulting in large wage increases for certain occupations.

The only way to stop prices from rising is for the Fed to reduce the money supply, raising rates until demand comes down far enough to match supply. The balancing act for the Fed is to tamp down price increases, while not causing a recession.

Whether the Fed can do that remains to be seen.

Biden’s Speeches Are Better, but the Dem’s Messaging Isn’t

The Daily Escape:

Sea Smoke, Willard Beach, Portland, ME – January 2022 photo by Rick Berk Photography

Tom Friedman had a column in the NYT proposing that in 2024, Biden should drop Harris and run instead with Liz Cheney. When Wrongo read that, he poured a big glass of Bushmills 21 single malt.

The thrust of this, and other musings about 2024, is that Biden is a weak candidate who is further dragged down by Harris. That may be true. But assuming Biden is up against Trump again, who are the additional voters who will vote Democrat because of Cheney, and who otherwise would not do so?

We’ve learned in the past weeks that Biden can give good (and tough) speeches, as he did in calling out Trump in the Capitol Rotunda on the anniversary of Jan. 6. And in Atlanta on Tuesday for voting rights, where he said:

“I ask every elected official in America: How do you want to be remembered? Do you want to be on the side of Dr. King or George Wallace? Do you want to be on the side of John Lewis or Bull Connor? Do you want to be on the side of Abraham Lincoln or Jefferson Davis?”

Those words set a great example for how Democrats need to message in order to win.

It’s a good message, but what happens next on voting rights is crucial: Democrats can stick with Senate Majority Leader Schumer’s plan and lose on a vote to consider suspending the filibuster rules to pass voting rights. Everybody knows that Schumer’s plan will produce nothing meaningful. Can they instead find a compromise with Republicans (and Manchin and Sinema) to get some form of a voting bill passed? Wrongo favors getting something done, even if the Party’s left wing isn’t happy with the outcome.

Biden and the Democrats also need to message better on several other dangerous political issues.

First, schools are going to be a big problem for Democrats in the mid-terms and beyond. Politico has an article: “How School Closures Made Me Question My Progressive Politics” where the author says her son’s school was closed when Trump was President. It’s open now under Biden, but she’s still mad at the Dems.

Chicago mayor Lori Lightfoot fought with the Chicago teacher’s union about keeping schools open. This exposed divisions between traditional Democratic constituencies, the union, and a majority-Black populace. Keeping schools open has become a nationalized issue. As the NYT noted, it’s a problem for Democrats everywhere:

“Because they have close ties to the unions, Democrats are concerned that additional closures like those in Chicago could lead to a possible replay of the party’s recent loss in Virginia’s governor race.”

The Democrats messaging on schools should echo what CDC Director Rochelle Walensky said: “Schools should be the first places to open and the last places to close.” Biden also needs to side with parents and students. If reopening schools is a top priority, testing needs to be available and free to schools. And he needs to call out the teachers unions: “No one should be keeping schoolhouse doors closed, especially not our friends in the unions.”

Second, crime is also going to be an issue in Biden’s re-election campaign as well as for the Democrats in the mid-terms. We all know that the call to “defund the police” was a political disaster. Democrats need to change the conversation, particularly since they didn’t deliver on a long-promised bipartisan police reform bill last fall.

Dems need to be completely clear that they oppose defunding the police. Biden can lead by saying: “Some folks think that we shouldn’t put criminals in jail or they downplay the dangers of violent crime. They are wrong. We have to protect our families and our neighborhoods.”

The messaging should include: “Continuing the fight for social justice shouldn’t come at the cost of public safety.” Dems could also point to the hypocrisy of Republicans who claim to “Back the Blue,” but then turned a blind eye to the attacks on Capitol police officers on January 6.

Third, immigration isn’t going away as an issue. The Dems should be saying that America benefits from the presence of immigrants. But border security is important, along with an enforceable system that decides fairly who can enter the country, and who should stay.

NYC’s new mayor Eric Adams has announced he supports the idea of letting non-citizens vote in local elections. This would add something like 800,000 voters to the rolls only for city-wide elections. Today, just 15 US cities allow noncitizens to vote in local elections. Eleven are in Maryland, two are in Vermont, plus NYC, and San Francisco.

This will be a huge 2022 talking point for Republicans. They will say it’s proof that Democrats want immigration solely to increase the number of Democratic voters. Biden and Dem mid-term candidates should be saying: “Only American citizens should be allowed to vote.”

It isn’t the media’s job to fight the Dems’ partisan battles, despite Dems wishing that were so. Democrats need to ramp up their messaging game. The Democratic Party doesn’t have a true coordinated effort to counter the right-wing disinformation ecosystem, and are suffering because of that.

As Ron Filipkowski says:

“If the Democratic party had relentless, full-time people working as a team to fight the right-wing disinformation war, it would be more effective than all the traditional media outlets combined.”

Democrats have to get better at politics if they expect to hold the House and Senate in 2022.

Why Isn’t Good Economic News Covered?

The Daily Escape:

Crater Lake, OR – winter 2020 photo by Austin James Jackson photography.

We need to talk about the economy. The underlying economic news is very good, but both the press and the Republicans say it’s bad, while Democrats say very little.

There are three things being discussed. First, inflation is terrible. This is a key Republican talking point about how Biden is failing the country. Second, jobs are going begging in what journalists have dubbed “The Great Resignation”. This is supposedly the fault of giving too much in unemployment benefits, allowing people to stay home rather than work. Third, if the economy is so great, why isn’t employment growing faster?

Starting with the last point, take a look at this graph showing jobs growth since 2008. The blue bars are when a Democrat was president, and the red bars are when a Republican was president:

That last blue bar is the strongest jobs growth in history. During 2021, the US created more than 6 million jobs, the most since records began in 1939.

That means Biden has just managed a year of stunning jobs growth, but consumers were constantly fed headlines about “disappointing” jobs reports, because the initial reports rarely align with skewed “expectations” by economists and pundits. Explaining this should be fairly easy, but the press can’t seem to get it across to the American people.

In addition, wages have been moving up across the board:

In December, average hourly earnings for Production and Non-supervisory Personnel rose $0.12 to $26.61, which is a 5.8% year over year gain. This shows that American workers are finally building some economic power. People have choices right now. After years of worker insecurity in the wake of the financial crisis followed by the pandemic, they have options. Jobs are going unfilled, while virtually no one is getting laid off.

The unemployment rate has now fallen close to a 50 year low, at a level exceeded only by one month in 2000, and during 2018-19. The economic result of this is visible on the graph above.

While employment is continuing to be strong, we’re still lagging in terms of filling job openings created by pandemic losses. America must gain an additional 3.6 million jobs in order to equal the number of employees in February 2020, just before the pandemic hit. At the current average jobs growth rate for the past 6 months, that should take about 7 more months to reach the pre-pandemic employment level.

Economists are tying themselves in knots trying to figure out why more Americans aren’t going back to work. Some of those reasons are understandable: Fears about health, caring for someone who’s sick, and lack of childcare. But there’s a big reason that isn’t talked about. Employment has declined in the last year among workers who were 55 or older at the start of the pandemic. A WaPo analysis found that over 1.5 million more people were retired in November 2021 than would have been expected based on pre-pandemic trends. That would help explain the employment story if the mainstream media would look at the big picture instead of dutifully following Right-wing propaganda.

Turning to inflation, the WaPo says:

“The US economic recovery from the Covid pandemic was the strongest of any of the big Western economies…The Biden stimulus pushed the bank accounts of even the lowest-income Americans to unexpected heights. On average, they had more than twice as much in their savings accounts as they did when the pandemic began.

The Federal Reserve…helped, too. It held rates near zero and pumped hundreds of billions of dollars into the economy. The twin fire hoses of cash — one from Congress, one from the Fed — sent Americans’ spending roaring back.”

Bloomberg reports that manufacturing companies are saying their supply chains are performing a little better. Their message seems to be that things aren’t worsening.

While oil prices get the most attention, the ISM surveys show manufacturers say the cost of more commodities are falling. In December, there were eight commodities that were identified as falling in price. In November, it was four. In October, just one (wood).

Finally, the NY Fed is out with its 2022 inflation expectations survey. It shows that In December, US consumers expected inflation to average 6.0% over the next 12 months and 4.0% over the next three years. Those expectations were unchanged from November 2021.

It also showed that Respondents were more optimistic about their future wage and income growth, as well as their ability to hold a job or find a new one.

One big question for Republicans is what will they pivot to if inflation actually slows down?

A larger question is why the Democrats and the press can’t explain good news when it happens?

Monday Wake Up Call – January 10, 2022

The Daily Escape:

Kohler-Andrae State Park, Sheboygan, WI – January 2022 photo by Nick Schroeter Photography

Wrongo rarely delves into religion, but since Pope Francis had comments on the slowing global population growth, Wrongo has thoughts. From the Guardian:

“In a move likely to raise the hackles of millions of cats, dogs and their human cohabitees, Pope Francis has suggested that couples who prefer pets to children are selfish.”

The Pope said that owning a pet instead of having kids meant that:

“…civilization grows old without humanity because we lose the richness of fatherhood and motherhood, and it is the country that suffers”.

Ouch. As someone who has had both children and dogs, Wrongo knows that taking care of a pet is far from selfish. As Bloomberg’s Lara Williams said:

“…the Pope could do better than to rhetorically kick puppies. There are solid economic reasons for the decline of birthrates across the world, and they need addressing.”

This isn’t a new trend. Despite optimistic predictions for a post-pandemic baby boom, last year, the US recorded the lowest rate of population growth since we began gathering data. In the year from July 2020 to July 2021, only 392,665 people were added to the US population. That’s about a tenth of one percent growth. It’s also the first time since 1937 that the population grew by fewer than 1 million people.

Here’s Bloomberg’s graph of our reproductive performance:

Meanwhile, pet ownership has been increasing, especially among younger generations. The American Pet Products Association’s annual survey revealed that millennials are now the biggest cohort of American pet owners. A 2021 AlphaWise survey revealed that 65% of 18-to-34 year-old Americans plan to acquire or add another pet in the next five years, driving a predicted 14% increase in US pet ownership by 2030.

But the falling birth rate is concerning. According to the US Census Bureau the proportion of married couple households with children fell from 40% in 1970 to 20% in 2012. While seven in 10 households included a pet.

So why are people delaying having children? A Morning Consult survey revealed that, no surprise, money is the top reason for millennials being childless, followed by the other key ingredient to starting a family: a willing and appropriate partner. The poll showed that 38% of millennials say that children are too expensive, while 33% of millennials said they hadn’t found a suitable partner.

Millennials face more economic hurdles than the older generations: high levels of student debt, stratospheric real estate prices and career instability all have been exacerbated by the pandemic. The recent rise in inflation also makes the cost of living, and thus the costs of raising a child, more expensive.

Here’s the comparison of the average cost of raising a child versus owning a dog. Pets are way cheaper:

This shows that pets aren’t cheap, but they’re far less expensive than having a child. The lifetime cost of a dog is just 15.6% of the cost of a baby. Cats are cheaper, but that isn’t necessarily a reason to choose to have one in your life.

The cost differential makes it clear why millennials might not feel financially secure enough to bring a child into the world, while the financial costs of adopting a pet is much more achievable. A few things to remember:

Pope Francis took the name of the patron saint of animals
Having children is a choice, it shouldn’t be an obligation
Catholic opposition to birth control and abortion rights hasn’t led to “loving families”

The Pope shouldn’t weigh in on the intensely personal decision about whether to have a child, any more than parents, or family friends should. And the Pope shouldn’t be condemning the childless pet owners of the world as selfish when people are simply struggling to make good life choices.

He, along with politicians, should be committed to doing more to tackle the underlying reasons why the people who might want children feel that they have to delay it.

Time to wake up, Pope Francis! How many times does the Roman Catholic Church need to hear that they should stay out of people’s bedrooms?

To help him wake up, let’s all listen to Billy Bragg perform “Ten Mysterious Photos That Can’t Be Explained‘ from his 2021 album, “The Million Things That Never Happened”. In the 1980’s, Bragg was described by Rolling Stone as “a contemporary, urban British folksinger”. Still true today:

Sample Lyric:

The conspiracy acts
The cyberchondriacs
Gripped by their fevered imagination
They switched the filters off
Too much is not enough
You know that you can overdose on information

But you know that you can’t overdose on The Wrongologist!

Saturday Soother – January 8, 2022

The Daily Escape

Hopi Buttes, AZ – January 2022 photo by Jon Ray Doc

January 6 should have been a national day of mourning. The president spoke in the very place that symbolized the attempted coup, the Rotunda of the Capitol. From Biden: (parenthesis by Wrongo)

“We saw with our own eyes: rioters menaced these halls, threatening the life of the Speaker of the House, directing to hang the Vice President of the United States of America. What did we not see? We did not see a former president, (Trump) who had just rallied the mob to attack, sitting in a private dining room off the Oval Office in the White House, watching it all on television and doing nothing for hours as police were assaulted, lives at risk, the national Capitol under siege.”

You can watch his speech here.

But except for a very few, Republicans boycotted Thursday’s 1/6 events. We have to accept that means they support the insurrection and the candidate who mobilized it:

“Top Republicans were nowhere to be found at the Capitol on Thursday as President Biden and members of Congress commemorated the deadliest attack on the building in centuries, reflecting the party’s reluctance to acknowledge the Jan. 6 riot or confront its own role in stoking it.”

Trump won the argument within the Party over his efforts to nullify the election results. McConnell, McCarthy, and their allies abandoned the thought of considering impeaching Trump over January 6. That instead became a rallying cry for Democrats. When the second impeachment went forward, the Republicans closed ranks behind Trump.

Wrongo argued for the second impeachment. With hindsight, that effort has ended any bipartisan effort to get to the truth about who and what caused Jan. 6. Republicans initially supported a commission to investigate it, but soon abandoned even that.

A bit of history: When Hitler attempted his putsch in 1923, he got off with a slap on the wrist thanks to a sympathetic right-wing judge. A decade later he was chancellor. That’s a stark history lesson for AG Merrick Garland.

The attempted putschists who stormed the US Capitol on Jan. 6 are being prosecuted, but it’s the principal organizers who should now be getting the primary attention of law enforcement. Republicans are hoping that Garland will sweep the potential crimes committed by Trump and his organizers, like Bannon, Meadows, and Navarro, under the rug.

We now find ourselves in a place where whatever the Democrats say Republicans did on Jan. 6 is mirrored: Republicans are saying that it’s the Democrats who are doing those exact things. The Republican Party is trying to end anything resembling democracy in America by relying on the claim that the Democratic Party is trying to end anything resembling democracy in America.

This is the ultimate expression of the rule that every accusation made by the Republicans is in fact a confession. From the AP:

“….since that day, separate versions — one factual, one fanciful — have taken hold. The Capitol riot — the violent culmination of a bid to delegitimize the 2020 election and block its certification — has morphed into a partisan ‘Rashomon,’ the classic Japanese film about a slaying told from varying and conflicting points of view.”

Instead of receding into the past, the story of the Capitol riot is yet to be fully written. America needs the DOJ and the House Select Committee to tell the story by criminal referrals.

Leave the history of the event to historians.

We need to take at least a momentary break from thinking and talking about January 6. It’s Saturday and time for our Saturday Soother, and boy, we need one today. It snowed quite a bit in New England on Friday morning, with totals between 3” and 15” depending on location. Once again, Wrongo’s repaired snowblower served as an insurance policy against a heavy snowfall. We got a mere 5”, so Wrongo got to exercise his snow shovel instead.

We’re having a belated Christmas party today. Between Covid and suspected Covid, this is the first time that some of us can occupy the same space. So, before the family descends on the Mansion of Wrong, let’s brew up a strong cup of Conquistador coffee ($18/12 oz.) from San Francisco’s Henry’s House of Coffee.

Now grab a comfy seat by a window, look out on the winter wonderland and listen to the “To Kill A Mockingbird Suite” written by Elmer Bernstein for the 1962 movie. Bernstein was one of the most prolific composers to emerge in Hollywood in the 1950s. It’s played here by the Beethoven Academy Orchestra, in Krakow Poland, with Sara Andon on solo flute: