Monday, October 4, 2021

Break Through News - Joe Manchin is the most evil man in U.S. politics.

Joe Manchin [has] single-handedly stalling a $3.5 trillion social safety net expansion on behalf of his corporate donors.

BT’s Kei Pritsker breaks down the bill and Manchin’s special interests making him oppose it.

Break Through News - Joe Manchin is the most evil man in U.S. politics.


Matt Franko said...

I thought it was 3.5T for infrastructure?

Peter Pan said...

Alexandria Ocasio Cortez is the most evil woman in U.S. politics.

AOC (and her Squad) has single-handedly stalled a $3.5 trillion military infrastructure expansion on behalf of her working class donors.

- full report by The Onion

lastgreek said...

K, don't forget Manchin's evil spawn, the EpiPen bitch:

Workers Beg Joe Manchin to Save West Virginia Pharma Plant as His Daughter Walks Away with $31M

Ahmed Fares said...

This post has it exactly backwards.

Irrespective of Manchin's intentions, he's actually helping the poor. It all depends on whether this spending will be inflationary or not. And given the recent supply chain problems, we'd get inflation even without the spending. Think Zimbabwe here.

Meanwhile, the Fed is waiting in the wings to raise interest rates, which will hurt the poor who will struggle to pay the interest on their mortgages, etc. Given the increasing wealth inequality, most of that interest will end up in the hands of the rich.

The purpose of taxation is to release resources, which you do by taxing the middle tax. All you get from taxing the rich is money, which the government has no need of. You should still tax the rich anyway to reduce their power, and then throw that money away.

What fiscal policy giveth, monetary policy taketh away.

Mainstream economics argues that higher interest rates reduce spending, given the differing marginal propensities to consume between the rich and the poor. MMT makes the argument that monetary policy, besides being a blunt instrument, has distributional effects, which might even be a wash. For example, someone paying more interest on their mortgage might mean a senior somewhere has more money to spend, leaving spending unchanged. But given the increasing inequality of wealth that I mentioned, I'm moving more in line with the mainstream view on that one. Which brings us to Scott Sumner, he of the "the Fed moves last" fame:

For the 247th time, the fiscal multiplier is roughly zero

Keynesian economists have never been able to accept my assertion that the fiscal multiplier is roughly zero because the Fed steers the (nominal) economy. There’s a mental block on their part (or on my part from their perspective) that prevents us from seeing eye to eye on the issue, even if we agree on the need for monetary stimulus.

lastgreek said...

For the love of Greek honey and beautiful women everywhere, this paltry sum is for over 10 freakin' years! What freakin' inflation?!

Ahmed Fares said...

Modern manufacturing is a logistical marvel that taps hundreds of facilities in dozens of countries, but that system is based on frictionless international trade. Break just a few links and the entire network collapses. A modern car has about 2000 parts. If you are missing ten, you’ve got a large paperweight. —Peter Zeihan

Why Shortages of a $1 Chip Sparked Crisis in Global Economy

The situation is likely to get worse before it gets better. A rare winter storm in Texas knocked out swaths of U.S. production. A fire at a key Japan factory will shut the facility for a month. Samsung Electronics Co. warned of a “serious imbalance” in the industry, while Taiwan Semiconductor Manufacturing Co. said it can’t keep up with demand despite running factories at more than 100% of capacity.

“I have never seen anything like this in the past 20 years since our company’s founding,” said Jordan Wu, co-founder and chief executive officer of Himax Technologies Co., a leading supplier of display drivers. “Every application is short of chips.”

Cargo ships anchored off LA face 4-WEEK wait to berth and trains in Chicago are backed up 25 miles with global supply chain on the brink of collapse: Americans face shortages of cars, shoes and exercise gear as holiday season looms

U.S. Inflation Is Highest in 13 Years as Prices Surge 5% —The Wall Street Journal

Inflation is already here. The question is whether it's transitory or not.

Did I say inflation? Sorry, I meant stagflation. Laid off workers due to parts shortages will keep spending. It's called autonomous consumption, i.e., consumption independent of income.

Autonomous consumption is defined as the expenditures that consumers must make even when they have no disposable income. Certain goods need to be purchased, regardless of how much income or money a consumer has in their possession at any given time. When a consumer is low on resources, paying for these necessities can force them to borrow or access money that they had previously been saving.