Tag: Ridiculously Bad Ideas

GOP Attacks ESG Investing Rule

The Daily Escape:

Lake Sammamish, Issaquah, WA – February 2023 photo by Everything Washington

Are you following the Republican war on ESG? ESG stands for Environmental, Social, and Governance, key criteria that may impact a company’s market valuation and its business behavior. ESG has become a red line for Conservatives, who argue that companies that follow it are failing to live up to their fiduciary duty to maximize profits for investors.

The jury is still out on whether ESG investing delivers the same, better, or worse returns. But, despite any definitive evidence, Republicans hate ESG investing. From Semafor’s Liz Hoffman:

“Last year, Republican-controlled legislatures began passing laws blacklisting state investment funds from doing business with money managers that pushed what they deemed to be liberal agendas, like boycotting gun manufacturers and mining companies. BlackRock, run by Larry Fink, an outspoken supporter of so-called ESG principles, has taken the brunt of the pressure, with at least 10 states pulling their money from his firm or threatening to.”

For the many Republican state governors, treasurers, and attorneys-general who joined in, it’s turned out that several hadn’t done their financial homework before joining the culture war. Some failed to calculate the financial cost of their ideological stance. Semafor cites a few examples:

  • Indiana’s budget office found that a bill forcing state pension funds to divest from “woke” money managers would cost $6.7 billion over the next decade in lower-than-market returns. That also would force retirees to increase their paycheck contributions.
  • Executives in one of Kentucky’s retirement funds argued with the state’s treasurer that a recent law requiring them to pull money from BlackRock and 10 other firms seen as hostile to the energy industry would violate their duty to get the highest returns for pensioners.
  • A 2021 Texas investment blacklist cost municipalities an additional $303 million to $532 million in bond interest, according to a study by University of Pennsylvania. JPMorgan, Citigroup, and other banks left the state after the law was passed, leaving less competition for bond underwriting. That raised interest rates about 40 basis points.
  • North Dakota voted down, 90-3, a Texas-style bill that would have required the state treasurer to prepare a blacklist of financial firms that have committed to reducing carbon emissions, but would have stopped short of banning state investment funds from doing business with them.

Hoffman concludes that:

“Owning the libs turns out to be expensive.”

There are always trade-offs between principles and profits. Whether Republican politicians decide the political value of the fight offsets the lost profits is another question. This will at some point become a question for voters, who are the taxpayers and pensioners effected by these decisions.

In one way the GOP has already won a battle in the culture war on ESG. BlackRock has changed its marketing to tout its investments in fossil fuels. It also deployed new technology that allows investors to cast their own ballots in corporate elections instead of outsourcing their votes to the firm. Black Rock hopes these moves may blunt criticism that they are pushing a progressive agenda.

But the GOP isn’t giving up on fighting ESG. Politico is reporting that Sen. Mike Braun (R-IN) has offered a joint resolution under the little-known Congressional Review Act  (CRA) to overturn the Department of Labor’s recent rulemaking on ESG investing. The new rule took effect on January 30.

The rule allows fiduciaries to take ESG factors into consideration when choosing retirement investments. It potentially impacts the retirement savings of 152 million American workers whose accounts are governed by the Employee Retirement Income Security Act, or ERISA. From Braun:

“You cannot direct funds…to ESG. You’ve gotta go for whatever is going to give you the best financial return….That doesn’t mean that someone couldn’t choose to tell their broker to invest in ESG.”

Braun has 60 days to gather a majority in the Senate to overturn the rule. His has all 49 Republican Senators and Democrat Sen. Joe Manchin. If Braun can get 51 votes in the Senate, and given that the House is controlled by Republicans, the new rule would go away.

OTOH, a study by Penn State found that 70% of registered Republicans surveyed opposed government interference in ESG investments, higher than Democrats with the same position (57%). From Forbes:

“This exposes an irony at the heart of the ESG culture war: right-wing critics are seeking to actively interfere in decisions made by investment professionals about how to safeguard their clients’ money. In any other context, they’d be up in arms about the very thing they’re doing here.”

How silly to expect consistency from the GOP. We’ll see if Braun can find another Democrat in the Senate to join the Republican culture war on ESG.

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Keep Your Politics Off Of My Economy

The Daily Escape:

Rachel Carson National Wildlife Refuge, Kennebunk, ME – January 2023 photo by Eric Storm Photo

From the WaPo:

“The economy posted another consecutive quarter of steady expansion between October and December, with economic activity increasing at a 2.9% annual rate. Consumer spending contributed to the strong fourth-quarter showing, especially given the slumps in large parts of the economy, including housing and manufacturing.”

The latest GDP figures show we have a resilient but slowing economy. Some of the slowdown is intentional, brought on by the Federal Reserve’s aggressive increases in interest rates as a way to control our high inflation. The Fed raised interest rates seven times last year, expecting that higher borrowing costs would lead businesses and households to cut back enough to slow the economy and curb price increases.

That’s happened in the real estate market, and to a lesser degree, in manufacturing. WaPo quotes Joseph LaVorgna, chief economist at SMBC Nikko Securities America:

“You may see [growth] and think the economy is out of the woods, but that would be entirely the wrong read….There are a lot of variables that are all pointing in the same direction: There’s a housing recession. Manufacturing looks like it’s approaching recession. We’re seeing weakness in temp hiring. And it’s doubtful we’ve felt the full effects of all of the Fed’s rate hikes.”

So Biden can take credit for an excellent recovery so far, but many major banks are still forecasting an economic downturn this year. As Diane Swonk, chief economist at KPMG says: (emphasis by Wrongo)

“Momentum has already begun to slow in response to rate hikes, but the bulk of the slowdown is yet to come….The Fed’s goal is to let growth stall out in 2023.”

So are we in for a bad downturn that will persist through the 2024 elections? It’s a possibility if we keep playing politics with the economy.

We need to let people know that inflation has been easing month after month while the unemployment rate has held steady at about 3.5%. The year-over-year change in the consumer price index peaked at just over 9% in June, and since then it’s fallen to just under 6.5%. Other inflation indicators like the producer price index (PPI) have trended lower from prior highs as well.

And the world’s biggest inflation scold, economist Larry Summers who has been saying for 2+ years that we need a deep recession to drive out high inflation is sounding less hawkish: (brackets by Wrongo)

“I still think it’s going to be hard…[but]…You have to recognize that the figures are better than somebody like me would have expected three months ago. It’s still a very difficult job for the Fed, but the situation does look a bit better.”

From prior experience, Larry knows how to prepare, cook, and eat crow.

Can the Democrats and Republicans get out of the way of our currently good economic growth? From Heather Cox Richardson:

“On Monday the Wall Street Journal reported that median weekly earnings rose 7.4% last year, slightly faster than inflation. For Black Americans employed full time, the median rise was 11.3% over 2021. A median Hispanic or Latino worker’s income saw a 4.8% raise, to $837 a week. Young workers, between 16 and 24, saw their weekly income rise more than 10%. Also seeing close to a 10% weekly rise were those in the bottom tenth of wage earners, those making about $570 a week.”

Overall, the economy seems to be on solid ground at least for now. But the average American probably doesn’t view it that way.

And who will the voter reward or blame in 2024? We’ve seen that the House Republicans want to hamstring Biden and the national economy by holding the debt limit increase hostage to budget cuts, possibly in Social Security and Medicare.

So the Dems countered by asking new Speaker McCarthy for a plan on what would be axed from the social services budget. Now, Roll Call is reporting that the GOP seems to be changing their strategy on the fly:

“House Republicans are mulling an attempt to buy time for further negotiations on federal spending and deficits by passing one or more short-term suspensions of the statutory debt ceiling this summer, including potentially lining up the deadline with the end of the fiscal year Sept. 30.”

They’re trying to time the engineering of a debt default crisis to coincide with the government’s new fiscal year, thinking this creates a “mega crisis” of default/government shutdown that will bring Biden to agree to the egregious spending cuts the MAGAs want.

But this should help Democrats. First, Democrats will be able to point to the MAGA cuts as being far outside the American mainstream. Second, the GOP reckless attempt at hostage-taking will be on display just as the election season ramps up.

Are the wheels of the Republican clown car already coming off?

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Saturday Soother – January 14, 2023

The Daily Escape:

A view from Shenandoah NP near Keezletown, VA – January 1, 2023 photo by One Man’s Outdoor Journey

Wrongo and Ms. Right live far enough out in the country that we have no city water, sewer, or gas lines. But the cooktop in our recently remodeled kitchen runs on propane while our ovens are electric. We have a well and septic. Our hot water is made by propane as well.

So what are we supposed to make of this week’s controversy over the Biden administration’s Consumer Product Safety Commission (CPSC) possibly banning future sales of natural gas stoves and cooktops? The reason for this is that burning gas stoves put their partially burned fuel, including nitrogen dioxide (NO2) in the air, which causes asthma. And older stoves with pilot lights instead of electric igniters also push NO2 into the air.

On Monday, Bloomberg reported that the CPSC was considering new regulations around gas stoves, given growing concerns over indoor pollutants. Commissioner Richard Trumka Jr. said:

“Any option is on the table….Products that can’t be made safe can be banned.”

The proposal by the CPSC followed a December study by scientists finding that gas ranges that burn natural gas account for almost 13% of childhood-asthma cases in the US. Advocates have long argued against gas stoves, saying the pollution they emit makes them inferior to other options, such as electric or induction ranges. But the asthma statistic breathed new life into the debate.

OK, Wrongo knows the difference between propane and natural gas, but when he first heard about the debate, it was unclear whether his gas of choice was also a health problem and had to die.

Bloomberg neglected to say that any CPSC regulations, like other proposed state and local-level bans of gas stoves, only applies to new construction. But that didn’t keep Republicans from evoking visions of a 2023 filled with government agents busting down doors and ripping out stoves. That tentative regulation conversation about how to best mitigate the health hazards of gas stoves morphed into a Right Wing campaign to convince Real Americans that the Government is coming for their gas stoves:

Rep. Ronny Jackson, (R-TX) tweeted:

“If the maniacs in the White House come for my stove, they can pry it from my cold dead hands,”

From Sen. Tom Cotton,(R-AK):

“Democrats are coming for your kitchen appliances,”

From Rep. Byron Donalds, (R-FL):

“Get your hands off our gas stoves!!!!”

From Rep. Jim Jordan,(R-OH):

“God. Guns. Gas stoves.”

God, Guns, and Gas stoves! All because one appointee in the administration discussed it. But this controversy isn’t about facts; like always, it’s about feelings. Over 30 years ago, the Clean Energy Act was easily renewed on a bipartisan basis. Since then, the environment has become part of the culture wars.

The reflex to position gas stoves as the last redoubt of traditional American life threatened by big government, is just stereotypical of the American Right wing. It’s difficult to see the fight about gas stoves as something that will move the needle since gas is far more common in cities and blue states. So, let the Republicans keep on cooking up the outrage du jour. It’s doubtful that the voters will be eating it up.

Remember their past freak-outs, like when former Rep. Michele Bachmann tried to build a political career around preserving incandescent light bulbs? Another useless freak-out.

In retrospect, it’s honestly shocking we were able in 1975 to ban leaded gasoline in America, although there were lots of dissenters at the time. And now, since we’ve gotten all their guns, it only makes sense that Democrats go after their gas stoves.

Let’s leave these partisan debates in the kitchen where they belong and embrace our Saturday Soother, that special time when we stop thinking about Biden’s secret document stash, or why Jim Jordan dresses like a gym teacher, and spend a few minutes contemplating nearly nothing.

Start by brewing up a big mug of Wilton Benitez Orange Bourbon ($19.00/8 oz.) from Wisconsin’s JBC Coffee Roasters. Apparently the coffee cherries for this variant turn orange when they ripen rather than the typical red and tend to be even more fruity than their red counterparts. The roaster says it is super creamy with flavors of candied ginger, pineapple, and cream soda.

Now grab a seat by a south-facing window to watch and listen to “Fandango” from the Guitar Quintet in D-major, G.448 by Boccherini, performed live in 2015 at the Schubertiade in Hohenems, Austria. Boccherini was an Italian composer and cellist who died in 1805. A fandango is a Spanish dance:

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Monday Wake Up Call – August 29, 2022

The Daily Escape:

Sunrise, Estacada, OR with Mt. Hood – August 2022 photo by Mitch Schreiber Photography

The WaPo has a stunning exclusive story about Trump and the top secret files found in Mar-a-Lago. Apparently, he had been keeping them in the White House residence long before they were moved to Florida, and while in office, he took them on foreign trips: (emphasis and brackets by Wrongo)

“The Archives battle to secure records from Trump began while he was still president, according to records reviewed by The Post. Gary M. Stern, the [National Archives] agency’s top lawyer, began asking the former president’s attorneys to return two dozen boxes in the residency of the White House before he left. In an email Stern wrote to others, Trump’s counsel, Pat Cipollone, agreed with him. But Trump did not return them.”

This paints a troubling picture. First, these boxes had been kept in the residence of the White House for some time. The WaPo quotes Stephanie Grisham, Trump’s former director of communications:

“Any documents that made it to the White House residence were these boxes Trump carried around with him….Usually the body man would have brought them upstairs for Trump….They would get handed off to the residence and just disappear.”

Second, Grisham goes on to say that boxes of documents even went with Trump on foreign travel, following him to hotel rooms around the world — including countries  that are considered foreign adversaries. More:

“There was no rhyme or reason — it was classified documents on top of newspapers on top of papers people printed out of things they wanted him to read. The boxes were never organized….He’d want to get work done on long trips so he’d just rummage through the boxes. That was our filing system.”

Wrongo thinks Republicans will say that Trump took the documents when he traveled to satisfy his voracious appetite for reading. There’s not much about Trump that could shock America at this point, except perhaps him going to jail for something related to reading.

And do you think he did his own packing for those trips? Clearly there were staffers who ignored their signed acknowledgment of the criminal penalties for mishandling documents and brought them along because Trump said he wanted them.

It’s clear that many people were aware that Trump liked to keep top secret compartmentalized information nearby. They must have been acutely aware of the danger that might come with that. Has anyone checked to see if there might be more secret documents at his Bedminster, NJ, or New York places?

Sadly, that isn’t the only unbelievable story about Trump’s security breaches today. The Pittsburgh Post-Gazette is reporting about a woman, fluent in several languages who people at Mar-a-Lago knew as Anna de Rothschild, mingled with Trump and his supporters. She also attended a golf outing with Trump and Sen. Lindsey Graham.

She wasn’t a Rothschild; she was a fake. Apparently, she invented this other Anna. From the Post-Gazette:

“But the 33-year-old woman was not a member of the famous banking family and is now a subject of a widening FBI investigation that has delved into her past financial activities and the events that led her to the former president’s home.”

More:

“A year before the FBI’s spectacular raid of the former president’s seaside home, the woman whose real name is Inna Yashchyshyn, a Russian-speaking immigrant from Ukraine, made several trips into the estate posing as a member of the famous [Rothschild] family while making inroads with some of the former president’s key supporters.”

One suspects that if we knew the entire truth, it would reveal another unthinkable security breach. The ability of Ms. Yashchyshyn (who is the daughter of an Illinois truck driver) to bypass Trump’s security should make the National Security establishment very, very nervous, what with all of those secret documents hardly under lock and key.

And Wrongo thought they let only “the best people” into Mar-a-Lago.

Time to wake up America! Read what Wrongo said here about the potential damage done when the US government has to assume that secret operations have been compromised by mishandling of top secret information. Taken together, these two stories demonstrate clearly why the DOJ and the National Archives were so worried about classified documents stored insecurely by Trump.

To help you wake up, watch, and listen to Larkin Poe, a Nashville-based sister group, (featured once before on the Wrongologist) perform a new song “Georgia Off My Mind” from their album, “Blood Harmony” coming out in November:

Good groove, nice wordplay.

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Companies Are Making Inflation Worse

The Daily Escape:

Grand Park, Mt. Rainier, WA – August 2022 photo by Edwin Buske Photography

As discussed yesterday, polls are showing that voters are still concerned about inflation. The good news over the past two days is that producer prices (prices at the wholesale level) and consumer prices both fell from June to July.

But these inflation concerns won’t be going away, and the Republicans hope to make the November midterms a  “gas and groceries” election, saying Biden is the cause of rising prices. In July’s Consumer Price Index, the price of groceries was a particular pain point, rising 1.3% for the month. Wolfstreet reports that the year-over-year rise in the “food at home” part of the CPI (food bought in stores and at markets) is now at 13.1%, the worst spike since 1979.

Food is a category where inflation hits consumers right in the face on a daily basis. And it hits people on the lower end of the income spectrum much harder because they spend a relatively larger portion of their income on food.

But the fall in gasoline prices over the last couple of months is also meaningful. After peaking in June at $5.03 per gallon, the average national price of gas fell below $4 this week, according to GasBuddy.

The Hill reports that Biden will go on offense against the Republicans’ drumbeat about inflation by traveling the country to tout job creation and the Inflation Reduction Act, once it is passed by the House on Friday. Biden plans to make the point that Congressional Republicans sided with the special interests every step of the way on delivering lower costs for working people.

That won’t hurt Dems chances in November, but will it be enough to offset what’s happening with retail prices? Here’s another striking set of facts from Bloomberg:

“The first sign that this wasn’t going to be a typical corporate earnings season came early on the morning of July 12, when PepsiCo Inc. unveiled an odd set of results. Growth in unit sales, it said, was essentially zero in North America. Revenue rose though, driven by the double-digit price increases Pepsi slapped on its snacks.”

They weren’t the only consumer product company to raise prices as sales fell: The purple dots show how unit sales fell (as much as 10% for Clorox) while prices (green dots) rose in most cases, more than 10%. And revenue (yellow dots) rose for all firms:

This is bad for the economy on many levels: Price-driven sales growth isn’t healthy; and it isn’t good for consumers who have lost purchasing power (and are angry about it). It isn’t good for our overall economy, or for the Federal Reserve that’s trying to bring down inflation.

Many CEOs are willing to raise prices because it’s no longer the taboo it has been for the past two decades, when annual inflation averaged a little more than 2%. Their thinking is that if volumes slip a little as a result of the price hikes, their share prices won’t take a beating. So no worries, just raise prices.

The bet that these consumer products CEOs are making is that once things settle down in the economy, people will come back. Bloomberg quotes  Neil Saunders, an analyst at GlobalData Plc, a consulting company:

“If they keep losing share next year, they’ll take more notice. It’s very hard at the moment to tell what’s temporary and what’s permanent.”

Starbucks, Coca-Cola, Kimberly-Clark, and Church & Dwight, the maker of Arm & Hammer baking soda and OxiClean, all reported quarterly numbers that fall into the weak-volumes-and-big-price-hikes category. More from Bloomberg: (emphasis by Wrongo)

“One of the best examples is Conagra Brands Inc., the…Chicago-based food conglomerate, which reported results on July 14. A core measure of its revenue jumped 6.8%, in the three months that ended on May 29, thanks to an increase of 13% in the average price it charged….The amount of goods it sold, though, fell 6.4%.”

We know that inflation is very high, among the highest rates in the past 40 years. It now seems clear that consumer products companies are a prime contributor to these price increases.

We know that unemployment is as low as it’s been in 50 years. The labor market is strong. We know that the growth rate of GDP was really high in 2021, and that it’s slowing in 2022.

What we don’t know is how voters are going to act in November.

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Monday Wake Up Call – March 28, 2022

The Daily Escape:

Soaptree Yucca at sunset, White Sands, NP – March 2022 photo by SkyVista Photography by Steve Luther

Biden ended his four days in Europe with a speech. It was designed as a call to democratic countries to stay unified even as Putin’s forces trash Ukraine. But with nine ad-libbed words at the end of a 27-minute speech, Biden created a furor by calling for Russia’s President Vladimir Putin to be pushed out of office. Biden said:

“For God’s sake, this man cannot remain in power,”

That last line was a logical conclusion to Biden’s argument in the speech about the struggle between democracy and autocracy. But it prompted many pundits to treat what Biden said as a gaffe, since it changed his long-standing insistence that the US is not engaging in regime change but is supporting Ukraine’s right to exist.

From Charlie Sykes:

“The moment was electrifying — a sort of “Mr. Gorbachev, tear down this wall” moment — until the White House hastily walked it back, insisting that what the president really meant to say was that the butcher of Ukraine should not be allowed to exercise power over his neighbors.“

Sykes says: “Biden had it right the first time.” David Rothkopf hit the nail on the head with his reaction:

“There is within Biden’s comment a kernel of truth….Vladimir Putin can’t lay waste to a country, kill tens of thousands of civilians, commit serial war crimes, and expect to be welcomed back into the community of nations. If Russia wants to be part of the community of nations, then they are going to have to produce change.”

Support for Biden’s idea also came from former Russian Chess champion Gary Kasparov, who said what the world is thinking:

This is precisely correct. Many pundits are critical of Biden for saying something provocative. But there shouldn’t be a resumption of the status quo ante, even once there’s an agreement between Russia and Ukraine. By attacking Ukraine, Russia has become a pariah state. It will remain so as long as it threatens its neighbors and as long as Putin is in power.

There can be no lifting of sanctions or concessions of territory (unless Ukraine insists on conceding it), and no reward or face-saving after the fact for Putin’s War.

Biden’s goal isn’t to negotiate an end to the war. If Ukraine wants to make concessions to Putin which allow him to keep huge chunks of their country, pay no price for the damage he’s done, do nothing to rebuild Ukraine’s flattened cities, and wait a minute until the sanctions are lifted, they can make that call themselves. Neither Biden nor our allies should press that kind of decision on them.

But let Wrongo be the first to say that Russia must be made to pay reparations for the destruction of infrastructure in Ukraine. And keeping sanctions in place until Russia pays up is the right thing to do. You don’t just get grounded for a week when you invade another country.

Russia must leave Ukraine and pay reparations. Russia must work to rejoin the community of nations. That means reestablishment of normal diplomatic and economic relationships. That won’t be possible with Putin in charge.

Russia’s military leadership certainly understands this. And they’re the ones who will have to remove Putin from power and negotiate the peace. So Biden’s frank talk makes transparent what was sub-rosa: The West is using Putin’s War as a way to weaken him to the point where he is ousted from power.

So, when pundits and foreign policy experts get upset with Biden, saying that he gave Putin less reason to negotiate, you have to ask what is there to negotiate? And who, other than Zelensky, should be negotiating with him?

Putin will leave office one way or another, and what Biden said didn’t change that.

It’s time for the pundits and foreign policy wonks to wake up! While it’s true that words matter and can sometimes express risky things that cannot be taken back, what Biden said was worth saying. Biden wasn’t talking to Putin; he was speaking to Russians with the power to remove Putin. And that’s the right strategy.

To help them wake up, listen to Sting reprise his song “Russians” originally from his 1985 debut album titled “The Dream of the Blue Turtles”. The tune was based on the Cold War. Here is his March 2022 version for guitar and cello:

Sting says:

”I’ve only rarely sung this song in the many years since it was written, because I never thought it would be relevant again. But, in the light of one man’s bloody and woefully misguided decision to invade a peaceful, unthreatening neighbor, the song is, once again, a plea for our common humanity.”

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Monday Wake Up Call – May 18, 2020

The Daily Escape:

Colorado River, from South Kaibab trail, Grand Canyon NP, AZ  – photo by DJ Memering. The bridge is called the Black Suspension Bridge. It is 5,260 ft below the canyon rim.

The CARES Act was sold as emergency funding for individuals and small businesses. In all, Congress has authorized $3.3 trillion in coronavirus relief in four separate acts over the last two months. The stated intent of those bills was to protect the American economy from long-term harm caused by the overall impact of the virus.

Alas, Congress also took care of their true constituents, Big Oil and other fossil fuel companies. Those companies got CARES Act tax breaks. The subsidies were supposed to help bail out small businesses pounded by the pandemic, but at least $1.9 billion of it was sent to fossil fuel companies and their executives.

Bloomberg News reports:

“$1.9 billion in CARES Act tax benefits are being claimed by at least 37 oil companies, service firms, and contractors”

Bloomberg used the example of Diamond Offshore Drilling Inc. who manipulated the bailout: (emphasis by Wrongo)

“As it headed toward bankruptcy, Diamond Offshore Drilling Inc. took advantage of a little-noticed provision in the stimulus bill Congress passed in March to get a $9.7 million tax refund. Then, it asked a bankruptcy judge to authorize the same amount as bonuses to nine executives.”

But, Diamond’s refund wasn’t all. Some went to their larger competitors. More from Bloomberg:

“…$55 million for Denver-based Antero Midstream Corp., $41.2 million for supplier Oil States International Inc. and $96 million for Oklahoma-based producer Devon Energy Corp.”

In addition, Kevin Crowley reports that Marathon Oil got $411m, Occidental $195m, and Valero $110m.

Hats off to all of our Senators, Congresscritters and the Trump administration! They all continue pursuing a pro-fossil fuel agenda, even as the economic disaster of the pandemic unfolds. Bernie Sanders tweeted:

“Good thing President Trump is looking out for the real victims of the coronavirus: fossil fuel executives,”

But, Bernie apparently voted for the bill, which passed the Senate in a unanimous vote. Hypocrisy much, Bernie?

These loopholes in the Act were deliberately written in so that corporations could feed at the trough along with small businesses, and we the people. Moreover, the initial bill was written in the House, although presumably in consultation with Trump and the Republicans. So, you can view this as either the cost of doing business for Democrats, or as just another day at the office listening to the lobbyists. Subsidy legislation has been a bipartisan objective.

Its always been this way. Here’s a cartoon from 1920 that could be drawn today:

Let’s remember that a big issue was the requirement for oversight, particularly after Trump said he wasn’t interested in having any. A compromise was struck so that an oversight commission could be empaneled to keep track of how the money was spent.

Today, it remains without a leader. Four of the five members of the Congressional Oversight Commission have been appointed, but Speaker Nancy Pelosi, (D-CA) and Senate Majority Leader Mitch McConnell, (R-KY) have not agreed on a chair.

While the current members of the panel can perform some oversight, without a leader, it can’t hire staff or set up office space. In addition, the four members have not met as a group since the economic rescue law was passed. The PBS NewsHour quotes John Coates, a professor of law and economics at Harvard Law School:

“If the commission is not functioning — which it is not — then there is no oversight on a huge part of the economic rescue law…”

We seem to be able to bail out the rich every few decades, and we always seem to do it on the backs of the poor. It will probably happen again in another 10 years or so. Between these bailouts, politicians and pundits appear on all of the news shows, and write very serious articles proclaiming the need to resist socialism and to preserve “the free market” for the sake of “wealth creation and innovation”.

Time to wake up America! This great con has been going on for all of Wrongo’s lifetime and by looking at the cartoon above, for a few lifetimes before. Yet voters seem to be oblivious to this insidious form of corruption each and every time they go to the polls.

To help America wake up, let’s listen to Drive by Truckers, and their tune “Armageddon’s Back in Town” from their 2020 album, “The Unraveling”

Sample Lyric:

There’ll be no healing
From the art of double-dealing
Armageddon’s back in town again

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

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Saturday Soother – Back to Work Edition, April 11, 2020

The Daily Escape:

Great Sand Dunes NP, CO – photo by AddisonTract

Welcome to the 85th Saturday in April, fellow disease vectors! Here are the updated COVID numbers (as of 4/9):

  • There’s good news today. New infections are down dramatically as is the rate of new deaths.
  • The percentage of deaths to total cases has stabilized, at least for the moment.
  • Daily testing increased by 159,130. That’s helpful, but the growth in new tests still lags the growth in new infections.

America and the world are fighting a two-front war, one with the COIVID-19 pandemic, and another with our self-imposed, slow-rolling financial meltdown. Many think, like Trump, that the damage to the economy is worse than the loss of 50,000-100,000 American lives.

The irony is that it is the US governors that have precipitated the economic crisis while trying to moderate the public health crisis. And it has been the Trump administration that is trying to moderate the economic crisis by attempting to prematurely end the Coronavirus crisis.

A tenth of the work force has applied for unemployment benefits, while millions more are not working. In addition, small businesses are going under. So the GOP is pressuring Trump to declare victory and re-open the economy, and he’s looking for a plan to get people back to work.

But it isn’t just a plan. Attorney General Barr strongly suggested in a FOX TV interview that states don’t have the right to shut down businesses and schools during a public health emergency, and hints that the Trump administration could take action against states that don’t rescind shelter-at-home orders next month:

“When this period of time, at the end of April, expires, I think we have to allow people to adapt more than we have, and not just tell people to go home and hide under their bed, but allow them to use other ways — social distancing and other means — to protect themselves,”

Apparently, Barr is focused on what happens after the CDC’s guidelines on social distancing expire at the end of April. This is a clear sign that, while Barr is willing to allow states to do what they are doing now, his and the administration’s patience will expire when the CDC’s guidelines expire.

The WaPo reports that Trump is about to announce the creation of a second Coronavirus task force aimed at combating the economic consequences of the virus:

“The task force is expected to be led by Mark Meadows, the White House chief of staff, and include Larry Kudlow, the president’s chief economic adviser, and Mnuchin, the treasury secretary, along with outside business leaders. Others expected to play a role are Kevin Hassett…and the president’s son-in-law, Jared Kushner…”

One of the lynchpins of reopening the economy is supposed to be universal testing for the virus. But NPR reports the government is ending its funding for testing:

“…the federal government will end funding for coronavirus testing sites this Friday. In a few places those sites will close as a result.”

Reopening the economy without adequate testing is just like walking blindly in a minefield. And we know that testing remains generally unavailable.

The job of the administration should be to make the “5-minute” test kits cheap enough that every urgent care, every pharmacy, every clinic, can have two or three, and be running tests. Not just the current 10 -15 per state, but tens of thousands, so that widespread testing can be easily available.

Trump gave his game away yesterday when CNN’s Jim Acosta asked him:

“How can the administration discuss the possibility of reopening the country when the administration does not have an adequate nationwide testing system for this virus? Don’t you need a nationwide testing system for the virus before you reopen?”

TRUMP: “No.” pic.twitter.com/JokZYfy97T

What could go wrong? Plenty of things could go badly wrong.

If/when they do, Trump will blame the states, especially those with Democratic governors. Believe it or not, he will then campaign as the man who stopped the epidemic, and at least 40% of voters will say he accomplished it.

Let’s focus on relaxing for a few minutes with a new Saturday Soother. Wrongo hopes that you are staying healthy, productive, and in good spirits. If your income stream has been disrupted by the pandemic, Wrongo hopes you use the time constructively: Do something you’ve wanted to do for a long time.

Today we continue in the English pastoral idiom that we started last week.

Here is British composer Gerald Finzi’s “Introit for Solo Violin & Small Orchestra Op. 6”.  Played by the Northern Sinfonia with Lesley Hatfield on solo violin. It is conducted by Howard Griffiths. This is music that leads to private thoughts, something we all need right now:

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

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