Democrats tend to forget economics is a social science with ever-changing human behavior as the X-factor. So, they keep funding their good ideas in spite of folks gaming the system or bad un-intended consequences. I’m a Republican because, when it comes to policy, Democrats are all about WHY and rarely about HOW. This is true, and Coronomics (free money and huge deficits) was described by top-Democrat Nancy Pelosi as “a most exciting time for us.” Why is she so excited?
Modern Monetary Theory (MMT). The poster gal for MMT is Alexandria Ocasio-Cortez, who thinks massive deficit spending has no downside. In exchange for we the people being shut down and laid off, our government’s monetary policy is zero-interest and its fiscal policy is corporate welfare and universal basic income. How else can one describe the PPP loans or weekly $600 stipend to the un-employed? Personally, my company’s enjoying the current sugar high, but fixed-income (bonds) will be no-go after I retire in November.
The US has crossed the Rubicon: business owners, consumers, employees, and investors have met the Subsidy Devil. This is an un-sustainable habit that Democrats (if they sweep in November) will make permanent. Zero interest only works, if all central banks stay at zero. However, if Europe or China raises rates, the US must follow – party over, especially for investors and corporations, with Pelosi’s Robin Hood tax policy.
Personal Property De-Valued. COVID-19 lay-offs fueled the anti-property riots this summer, and some Democrats espoused de-funding police protection in spite of fire-bombers and looters. Their mad-liberal argument is that no property is worth a (criminal) human life. Perhaps, but try getting an insurance company to ensure your Porsche in LA or your business in Minneapolis. Assets, such as buildings, equipment and inventory, become liabilities once they become un-insurable.
Property rights are opposed by Antifa (evil corporations) and Black Lives Matter (evil white majority): both want Marxist re-distribution. Because property rights (along with scientific rationalism, efficient transportation and communication, and capital markets) are essential to prosperous nations, Coronomics will turn America into Venezuela. Real property mustn’t be devalued, because the pursuit of happiness is Jefferson-speak for acquiring and holding property.
Black Ownership Matters. George Floyd’s death and subsequent riots have shown us black America’s problem is ownership. Simplistic explanation: if Floyd owned a coffee shop, he would be known to local police, been at work, not needed to pass a fake $20, and still alive. The real systemic bias in America is pro-owner and not anti-race, because the American Dream turns on acquisition and ownership.
If race were THE problem, why has Michael Jordan not been subject to oppression, why do Jews support the police, and why are Asians rarely killed or harassed by white cops? Probably because Jordan owns his brand, Jews have super-succeeded in ownership, and the Asian stereotype is good student (future doctor) and small-business owner – and probably because they aren’t imprisoned in poor neighborhoods with high crime rates.
Broader and deeper ownership by black Americans would bestow pride and prestige. Answers these questions:
- If the FICA withholdings of Back Lives Matter members bought equity stakes in retail and restaurant chains, would they still burn and loot the local Target and McDonalds?
- If black-housing entitlements were chits toward ownership rather than rent subsidies, would more black men strengthen households and neighborhoods?
- If Wal-Mart’s urban model were black-franchised specialty shops – as opposed to scorched earth super centers – would that (and like corporate investment) inject prestige into black communities?
This approach beats reparations hands down – because black communities need the widespread dignity of a job and pride of ownership.
America can be easily divided into money makers (conservatives) and money takers (progressives). Coronomics is a wake-up call: is the New Math here to stay? The federal 12-month deficit was $3 trillion through June. Biden has pledged to divert police funding. Black-owned businesses fell from 1.1 million in February to 640,000 in April (source: NBER). The Biden Sweep is shaping up to create the decade of our discontent.