We Can Always Use Some Bitter, Cynical, Gallows Humor, So Here’s A Kudlow Post

Larry Kudlow is the pure distilled essence of a Trump appointment, the type specimen of the breed, and the perfect expression of the state of Republican “thinking” on not just economics, but any matter in which actual knowledge and a respect for empiricism might help.

Via Wikipedia, we find he is barely educated, at best, in the fields in which he now works:

Kudlow graduated from University of Rochester in Rochester, New York with a degree in history in 1969. Known as “Kuddles” to friends, he was a star on the tennis team and a member of the left-wing Students for a Democratic Society at Rochester.

In 1971, Kudlow attended Princeton University’s Woodrow Wilson School of Public and International Affairs, where he studied politics and economics. He left before completing his master’s degree.

I’ll admit that Kuddles is kinda cute, but an unfinished masters degree in a policy school is not one you’d usually associate with economics acumen.

He went on to a stellar business career, managing to get fired repeatedly for substance abuse on the job, including a claimed $10,000/month cocaine habit that got him canned from Bear Stearns in 1994. (It’s interesting to note that a frantic effort is underway today to diminish such inconvenient truths on Kudlow’s Wikipedia page.)

Fortunately for Kuddles, he cleans up well, dresses nicely, and can tok gud. So he was able to revive his career as a TV gasbag, with a series of appearances and then shows on CNBC, the network that figured out the markets could be covered like sports teams.

Unfortunately — for the rest of us, if not for the ever-failing-up Kudlow — he’s been wrong about almost every key economic call since Methuselah was in diapers.  He is a Laffer disciple, a supply-sider whose faith that there is no tax that is too low, no plutocrat whose needs must not be served, is impervious to any test of reality.

Consider this:

In 1993, when Bill Clinton proposed an increase in the top tax rate from 31 percent to 39.6 percent, Kudlow wrote, “There is no question that President Clinton’s across-the-board tax increases … will throw a wet blanket over the recovery and depress the economy’s long-run potential to grow.” This was wrong. Instead, a boom ensued. Rather than question his analysis, Kudlow switched to crediting the results to the great tax-cutter, Ronald Reagan. “The politician most responsible for laying the groundwork for this prosperous era is not Bill Clinton, but Ronald Reagan,” he argued in February, 2000.

And this:

Kudlow firmly denied that the United States would enter a recession in 2007, or that it was in the midst of a recession in early to mid-2008. In December 2007, he wrote: “The recession debate is over. It’s not gonna happen. Time to move on. At a bare minimum, we are looking at Goldilocks 2.0. (And that’s a minimum). The Bush boom is alive and well. It’s finishing up its sixth splendid year with many more years to come”. In May 2008 he wrote: “President George W. Bush may turn out to be the top economic forecaster in the country” in his “‘R’ is for ‘Right'”.

And this:

When Obama took office, Kudlow was detecting an “inflationary bubble.” That was wrong. He warned in 2009 that the administration “is waging war on investors. He’s waging war against businesses. He’s waging war against bondholders. These are very bad things.” That was also wrong, and when the recovery proceeded, by 2011, he credited the Bush tax cuts for the recovery. (Kudlow, April 2011: “March unemployment rate drop proof lower taxes work.”) By 2012, Kudlow found new grounds to test out his theories: Kansas, where he advisedRepublican governor Sam Brownback to implement a sweeping tax-cut plan that would produce faster growth. This was wrong. Alas, Brownback’s program has proven a comprehensive failure, falling short of all its promises and leaving the state in fiscal turmoil.

The reviews are coming in. Via the BBC:

David Stockman, Mr Kudlow’s former boss during the Reagan administration, told the Washington Post in 2016 that Mr Kudlow’s prediction that tax cuts would lead to growth was “dead wrong”. Instead, he said the cuts led to budget deficits.

More recently, he has warned that Mr Kudlow would not be able to rein in the president.

“As much as I love him … Larry’s voice is exactly the wrong voice that Donald Trump ought to be hearing as we go forward,” he told CNBC.

Liberal economist and New York Times columnist Paul Krugman has been sharply critical, noting that Mr Kudlow missed signs of the housing bubble and recession.

“At least he’s reliable — that is, he’s reliably wrong about everything,” Mr Krugman tweeted.

Indeed in December 2007 – just as the recession was beginning – Mr Kudlow wrote in the National Review: “There’s no recession coming. The pessimistas were wrong. It’s not going to happen.”

It is interesting that Kudlow himself doesn’t seem to disagree with his predecessor on the issue that got Cohn out. From a quick take bylined by him, Laffer and Stephen Moore (another stellar, always-wrong econ public intellectual) here he is on Trump’s tariff announcement:

Tariffs are really tax hikes. Since so many of the things American consumers buy today are made of steel or aluminum, a 25 percent tariff on these commodities may get passed on to consumers at the cash register. This is a regressive tax on low-income families.

I wonder how that squares with the new job. ETA: I know how it squares. It’s already been forgotten. We’ve always been at war with Eastasia.

But that’s just SOP in the circles in which Kudlow travels:  intellectual rigor doesn’t actually matter.  He’s under no obligation to be consistent in any of his pronouncements, and he certainly doesn’t have to be right about anything as long as he provides cover for the true Republican (n.b.: not just Trumpian) policy goal: the transfer of more and more of our society’s wealth to those who are already wealthy — and hence, in the GOP/Rand/Sociopath view of the world, those who are virtuous enough to deserve such riches.

For all of you who’ve wondered why the US can’t be more like Kansas — we may now we get to find out.

Image: Thomas Shields Clarke, A Fool’s Fool,  c. 1887.



Apropos Of Not Much

So I read the latest over at Talking Points Memo on the slow-rolling Republican “moderate” cave on the tax bill to Trump and the GOP’s I Got Mine/Tongue-Bath-A-Billionaire Caucus.  That led me to a Twitter rant born of despair and rage.

The TL:DR is that dominant-power decline has happened before, will happen to whoever comes next, and is well underway now.  None of this is new; none original.  It just bubbled up, and as misery loves company, I give you a slightly edited version of the rant below.

As the GOP prepares to transfer wealth up and gut national finances in the process, it’s worth reflecting a little on national power. US predominance is no law of nature. It emerged in specific historical circumstances, & it will erode (is eroding) within its historical moment.

Trump and GOP actions are powering that decline, from gutting US diplomacy to abandoning soft power/trade alliances to an over reliance on the trappings of military power on the international security side to an attack on the US’s domestic capacity to solve problems, propel economic growth, and secure good lives for the great mass of its people.

The attack on universities that is both part of GOP rhetoric and built into the tax bill, for example is an attack both on civic life (in the form of engaged and critical-thinking citizens) and on the dollars and sense of economic life. Universities are where research happens, ideas turn into companies and all that. Whack them and we become not just dumber, but poorer too.

More decline follows as the basic sequence of life gets made harder for more people. CHIP follies are making pregnancy and childhood more wretched and even deadly. Ongoing assaults on the ACA, Medicaid and Medicare do the same for all of us and if/when the GOP passes its tax bill, most Americans will see taxes and deficits go up, threatening Social Security and everyone’s old age.

This kneecapping of American well-being and power extends across the policy spectrum.  Crapping on the environment isn’t just a matter of not hugging trees.  Just ask the citizens of Flint, MI if bad water is just an aesthetic loss. Recall the LA of my childhood and consider whether air pollution is just a matter of obscured views and great sunsets, etc.

All of these (and many more) domestic policy choices actually make us poorer, as individuals and as a nation. One more example: we already have crappier infrastructure than many of our national competitors. Among much else, that means it can take us longer to get to work — which is both an individual cost and and a net weakening of the US economy as a whole.

These are hidden taxes, charges we pay not in cash, but in our ability to choose how to spend our lives. That cuts US productivity as a matter of GDP, and our contentment as a matter of GHQ (Gross Happiness Quotient) (I made that up. I think.)

None of this means American will (necessarily) collapse entirely. It just means we will be less well off and, in the context of national power, less able to act in the world as a whole. We won’t be able to afford as much (see Britain, post 1918), and…we will — we already — find ourselves with less moral capital, less ability to persuade and encourage fidelity and emulation abroad. (Again, see Britain, post 1918).

There’s real danger ins such decline.  See Putin’s post Soviet Russia for one approach to the loss of economic, military and ideological/moral power.

In that context, it wouldn’t surprise me in the least to see Trump, backed by the GOP, launch into a second war of choice in an as many decades, with similarly awful consequences.

But, that said, even though nations find it hard enough just to muddle through a relative decline in international stature, the world goes on, in somewhat different order. That’s happening now. We can’t really stop it.

We do have a choice though — we can accept a relative decline that still has the US eagerly pursuing a rich and just future…

Or we can dive further the implications of the current GOP program, and watch as our politics become yet more of a zero sum game in which those with the most grab all the crumbs they can, leaving the rest of us to our own devices, while US power dwindles.

And that, by way of the long road home, leads me here: Trump’s GOP* is a fundamentally anti-American party. It is working as hard as it can to deliver wealth and power to a small constituency to the detriment of our national interest. That’s how an organized crime ring acts, not a party of government.

And with that….this thread.  It is open.

*And it is his party, or, if you prefer, he’s the predictable face of what that party has long been becoming.

Images: J. W. M. Turner, The Fighting Temeraire tugged to her last Berth to be broken up1839.

after Hieronymous Bosch, The Hay Wain (central panel of a tryptich), between 1510-1520.



Grifters All The Way Down

Here’s what I don’t get.  Trump’s Treasury Secretary, Steve Mnuchin, is a rich guy. Seriously rich: on the order of a half a billion in net worth, w. a cool $70 million in 2016 earnings.  If he wants to check out a cool event — a total eclipse, say, a desire I wholly understnd — he can afford to do so at any level of comfort he chooses, and never miss the lucre.

Instead, he scams:

Last week, Treasury Secretary Steve Mnuchin took Mitch McConnell, some other Republican lawmakers, and his wife, Louise Linton, to Kentucky, ostensibly to touch large piles of gold at Fort Knox. Coincidentally, Kentucky also happened to be one of the best places to watch the total solar eclipse, which happened to occur on the day of their trip.

This trip had already attracted a bit of unwanted attention (back in those halcyon days before Melania’s stiletto adventures) after Linton instagramed the following:

“Great #daytrip to #Kentucky! #nicest #people #countryside,” Linton wrote, according to a screenshot of the now-private post, before tagging the labels she was wearing “#rolandmouret pants, #tomford sunnies, #hermesscarf #valentinorockstudheels #valentino #usa.”

Nothing says populist like that kind of fashion profile, eh?

Now, however, it turns out that drawing eyes to the family outing might have been more than a mere PR flub:

The U.S. Treasury’s Office of Inspector General is reviewing the flight taken by Treasury Secretary Steven Mnuchin and his wife, Louise Linton, last week to Louisville and Fort Knox, Ky., following criticism of their use of a government plane on a trip that involved viewing the solar eclipse.

“We are reviewing the circumstances of the Secretary’s August 21 flight . . . to determine whether all applicable travel, ethics, and appropriation laws and policies were observed,” counsel Rich Delmar wrote in a statement to The Washington Post late Thursday.

“When our review is complete, we will advise the appropriate officials, in accordance with the Inspector General Act and established procedures,” Delmar added.

Yo! Mnuchin! Pay attention here.  The Air Force is not your personal air taxi service. You want to take a day off? Fine. You’re the boss. You can play hooky to join millions jazzing on the sun’s waltz with the moon.  And you can pay for it your own damn self, just like I did, my brothers, and everyone I know.

More seriously:  someone who actually takes public service as service knows not to give even the appearance of putting one’s hand in the cookie jar.  And it’s not as if this puts Mnuchin through any hardship.  As noted above, he is far and away rich enough to pay for all his pleasures; there’s no meaningful gain to him to sleaze a little grift off the top.  But apparently, he can’t help himself.

These guys!

Scum floats — but how can you tell when it’s scum all the way down?

Image: Elihu Vedder, Corrupt Legislation (detail), mural in the Library of Congress, 1896.



The Price of Everything and the Value of Nothing

While we focus on the various obvious bathetic catastrophes (from blowing secrets to the Russians to the big man’s collapsing in a heap after a mere one day on the road) committed by the shitgibbon and his band of merry (but never gay — oh no! not that) men, it’s important to keep at least some attention on the rolling, very real damage the Trump administration wreaks on a daily basis.

I’m so far behind on a book project that I can’t really keep up, and I certainly can’t blog with anything remotely resembling depth and insight, so I’m going to try instead to throw up quick posts as various bits of policy news cross my magpie’s field of vision.

This morning’s treat comes via a Saturday story in FTFNYT.*  Under Scott Pruitt, it seems, the EPA has become the Captain Renault of environmental regulators: everything has its price, and the Captain is always eager to make a deal:

Devon Energy, which runs the windswept site, had been prepared to install a sophisticated system to detect and reduce leaks of dangerous gases. It had also discussed paying a six-figure penalty to settle claims by the Obama administration that it was illegally emitting 80 tons each year of hazardous chemicals, like benzene, a known carcinogen.

But something changed in February just five days after Scott Pruitt, the former Oklahoma attorney general with close ties to Devon, was sworn in as the head of the Environmental Protection Agency.

Devon, in a letter dated Feb. 22 and obtained by The New York Times, said it was “re-evaluating its settlement posture.” It no longer intended to move ahead with the extensive emissions-control system, second-guessing the E.P.A.’s estimates on the size of the violation, and it was now willing to pay closer to $25,000 to end the three-year-old federal investigation.

The administration’s response?

The E.P.A. has not yet made a public response to Devon’s new posture, and Mr. Pruitt declined to comment for this article.

Want to bet on how it will turn out?

In just the last three months, with Mr. Pruitt in charge, the E.P.A. postponed a long-planned rule requiring companies like Devon to retrofit drilling equipment to prevent leaks of methane gas — a major contributor to climate change — and to collect more data on how much of the gas is spewing into the air.

The Interior Department, meanwhile, announced this month that it would reconsider a separate rule limiting the burning of unwanted methane gas from wells drilled on federal and Indian lands, a process called flaring. That announcement came the same day the Senate narrowly rejected industry calls to repeal the same rule.

Interior officials have also announced their intention to repeal or revise a contentious rule requiring companies like Devon to take extra steps to prevent groundwater contamination caused by hydraulic fracturing, also known as fracking, a drilling technique in which chemicals and water are forced into rock formations.

You get the idea. Pruitt has a history of working with Devon Energy; the administration has both a pro-extractive industry bias and powerful faction and the always reliable motive of f**king with anything that Obama accomplished.  Some of what the shitgibbon’s people aim to do can, no doubt, be delayed, obstructed, tied up.  Much, perhaps most will go through, at least over the next year or so, up until the pressures of the next election begin to bite.

So:  constant vigilance and trust no Republican. They’ll load up anything they can on anything they can, transferring public goods (clean air, clean water, anything not nailed down) to private hands.

Over to y’all.

*Publication of such stories  is why I continue to subscribe. Their political desk is…dodgy…but they still field more fine reporters than just about anywhere else I can think of. YM, as always, MV.

Image: Elihu Vedder, Corrupt Legislation, mural in the Library of Congress, 1896.



If You Don’t Know Who The Patsy At The Table Is, Dear Trumpkins…

...it’s you:

Again and again, President-elect Donald Trump presented himself as the coal miners’ candidate. During the campaign, he promised to bring coal back into the economy, and jobs back into struggling Appalachian towns.

But now some in coal country are worried that instead of helping, Trump’s first actions will deprive miners — and their widows and children — of the compensation they can receive if they are disabled by respiratory problems linked to breathing coal mine dust.

That’s because buried in the Affordable Care Act are three sentences that made it much easier to access these benefits. If Trump repeals Obamacare — as he vowed to do before the election — and does not keep that section on the books, the miners will be back to where they were in 2009, when it was exceedingly difficult to be awarded compensation for “black lung” disease.

coal_mining_18th_c

This is by no means a done deal, given that at least some coal-country legislators (Joe Manchin, for one) have declared their support for retaining this in whatever comes out of the health care catastrophe the GOP is determined to commit.  But McConnell is, as usual, mum on the matter, and if I were a coal mining family depending on the pittance they do get (top payment for a miner with three dependents: $1,289/month), I’d be getting ready not for hard times — they’re already here — but worse.

[update: obligatory post soundtrack]

The key change the ACA implemented in black lung cases was to shift the burden of proof: instead of a miner having to prove that the work caused the disease, under the new rules,

If a miner has spent 15 years or more underground and can prove respiratory disability, then it is presumed to be black lung related to mine work, unless the company can prove otherwise.

This wasn’t a case of free money all around. As reporter Eric Boodman writes,  “In 2009, 19 percent of claims for black lung benefits were successful; in 2015, that percentage had jumped to 28.” That’s a big jump — but hardly evidence that the black lung compensation process is a wild government grab of beleaguered coal company assets.

Those companies hate the rule, with a spokesman telling Boodman that it’s created “a supplemental pension program” rather than the compensation for occupational disease, which is as fine a bit of high priced turd polishing as I’ve seen in a while.

TL:DR?  Think of this as Mencken’s rule in action:

Democracy is the theory that the common people know what they want, and deserve to get it good and hard.

Trump voters in coal country — West Virginia, Pennsylvania, Ohio, Kentucky — were promised their country back.

What will they receive?

The shaft, deeper and darker than any hole miners have dug in the hunt for what will continue to kill them where they stand.

Image: Léonard Defrance, Coal Mining, before 1805.



Trump Knuckles Under

Damn it, Trump! Per CNN’s breaking news headline:

Donald Trump signs GOP loyalty pledge, he says after meeting with RNC leader.

Reince Priebus isn’t butch enough to shake down a five-year-old for her lunch money, so what’s Trump’s angle here? I was almost starting to believe he was giving us a masterwork performance in civic trolling, but caving to Rinses Repeatus doesn’t jibe with that scenario…



Soundtrack for the GOP Debate

Couldn’t find a better choice than this:

 

I think they should cue up the change at about 1:20 for everytime the Donald or his tame scalp tribble commits an utterance.
BTW — in case you’re wondering, those are theramins inside the matryoshas.  And yes, the world is not only stranger than we thought, it is stranger than it is possible to imagine.  See also Florida.
 –
Alternative GOP appropriate musical suggestions, anyone?