Posts Tagged ‘Economics’

Tucker Carlson on The Threat From China

Tuesday, March 10th, 2020

Some bracing observations on the threat the Wuhan coronavirus poses, and the even bigger threat outsourcing our manufacturing to China poses to the United States:

“While the rest of us were arguing about sexism and transgendered bathrooms, China took control of the healthcare system.”

“As of tonight, more than 95% of the antibiotics in America are manufactured in communist China.”

Parts of this are slightly overstated. There are manufacturing industries that America still dominates (semiconductor manufacturing equipment among them), but Carson is correct in that China’s control of large portions of our essential supply chain represents a serious strategic threat.

(Hat tip: Charles Glasser on Instapundit.)

Coronavirus Update: China’s Economy Burns

Saturday, February 15th, 2020

Some interesting news on the coronavirus front.

First the official infection figures everyone believes are understated:

Total confirmed cases: 67,097
Total deaths: 1,527
Total recovered: 8,578

Behind the official figures, how badly is coronavirus and the resulting quarantine hurting China’s economy? By some measures, it’s all but ground to a halt:

However, it is the far more important – for China’s GDP – construction steel sector where apparent demand has literally hit the bottom of the chart, down an unprecedented 88% Y/Y or as Goldman puts it, “construction steel demand is approaching zero.”

Snip.

And while we already noted the plunge in coal consumption in power plants as Chinese electricity use has cratered…what is perhaps most striking, is the devastation facing the Chinese real estate sector where property sales across 30 major cities have basically frozen.

Finally, and most ominously perhaps, as the economy craters and internal supply chains fray, prices for everyday staples such as food are soaring as China faces not only economic collapse, but also surging prices for critical goods, such as food.

  • China says that 1,716 health workers have been infected by coronavirus. I can understand a few hundred contracting it at the beginning of the epidemic before much was known about it (and the government was suppressing the news), but such a large number suggest a staggering lack of basic hygiene and quarantine procedures among Chinese medical personal. Which wouldn’t surprise me at all.
  • Indonesia’s government still claims their nation is coronavirus free. People aren’t buying it.
  • Next to China, it appears that one of the most likely places to contract coronavirus is on a cruise ship.
  • CDC Director Dr. Robert Redfield says that coronavirus is probably going to be a concern in the U.S. all year.
  • Here’s a Twitter thread that suggests that China is literally burning, with numerous fires breaking out in the quarantine area. Confirmation bias? Maybe. In a country as densely populated as China, I’m sure fires break out on a regular basis, just like here. But it could also suggest a breakdown in basic government services.
  • Japanese man traveling back from Hawaii comes down with the virus. “News of the man’s case comes a day after Hawaii officials announced that the Center for Disease Control (CDC) sent flawed coronavirus testing kits to Hawaii.” Oops!
  • Closer to home, there’s finally been a confirmed case in Texas, but it’s from someone returning from China to and already quarantined at Lackland Air Force. Chances of additional infections from this patient would seem to be very small.
  • In fact, almost 800 U.S. citizens have been have been in quarantine on U.S. military bases after evacuation from China. 195 were just discharged. (Hat tip: Instapundit.)
  • Paul Volcker, Inflation Slayer, RIP

    Tuesday, December 10th, 2019

    July 1979.

    Disco still rules, with Donna Summer’s “Hot Stuff” topping the singles chart. The Ayatollah Ruhollah Khomeini has declared an Islamic Republic in Iran, but the Iranian hostage crisis remains months in the future, as does the Soviet invasion of Afghanistan. Hotly contested presidential races are getting underway among both Democrats (incumbent Jimmy Carter, Senator Edward Kennedy, and Governor Jerry Brown) and Republicans (Ronald Reagan, George H. W. Bush, Bob Dole, John Connally, and Phil Crane). John Wayne just died of cancer at age 72. Horror films are big, with Alien and The Amityville Horror ruling summer box offices.

    Know what else was big in July of 1979? Inflation. It was running over 11%, up from 9% to start the year, and would reach nearly 15% in 1980. Indeed, the 70s saw the birth of a new word, stagflation, indicating both high unemployment and high inflation, something believed to be impossible under Keynesian economics.

    It’s hard for people who didn’t live through it to imagine just how pervasive the idea was that this was the New Normal, that we’d just have to live with high levels of inflation for the rest of our lives. In 1970 gold went for under $40 an ounce; by 1980, after Nixon had severed the last Bretton Woods ties to the dollar and inflation was raging, it peaked around $600. Inflation was a dark, all-encompassing force that ate away family budgets and destroyed life savings.

    On July 25, Carter nominated Paul Volcker to be chairman of the Federal Reserve. Once in office, Volcker oversaw a series of federal fund interest rate hikes, peaking at 20% in 1981. This tough but necessary medicine sent the economy into a recession (two, technically), but managed to kill inflation dead. That, and the Kemp-Roth tax cuts signed into law by Newly elected President Ronald Reagan, primed the American economy for long-term growth. Reagan gave Volcker political cover, refusing calls for his head, despite the short term pain of high interest rates and a serious recession, then renominated Volcker to a second term as Fed chair in 1983.

    Volcker was 6’7″, smoked cheap cigars, and died yesterday at age 92. He was the right man for the right job at the right time, and that made all the difference in the world.

    Is Your Minimum Wage $15 An Hour? Behold Your Future!

    Wednesday, October 2nd, 2019

    If you live in San Francisco, Los Angeles, Seattle, or anyplace else the minimum wage is $15 an hour, and work in kitchen prep, behold your future:

    After three years of quietly toiling away on a robotic food system, Seattle startup Picnic has emerged from stealth mode with a system that assembles custom pizzas with little human intervention.

    Picnic — previously known as Otto Robotics and Vivid Robotics — is the latest entrant in a cohort of startups and industry giants trying to find ways to automate restaurant kitchens in the face of slim margins and labor shortages.

    Snip.

    Picnic’s platform assembles up to 300 12-inch pizzas per hour, far faster than most restaurants would be able to make the dough, bake and serve the pizzas. That speed comes in handy in places where large numbers of orders come in during a rush, such as at a stadium or in large cafeterias. It’s also compact enough that it could theoretically be installed in a food truck.

    Machines have been making frozen pizzas for years, but Picnic’s robot differs in a few respects. It’s small enough to fit in most restaurant kitchens, the recipes can be easily tweaked to suit the whims of the restaurants, and — most importantly — the ingredients are fresh….The robot is also highly customizable, comprised of a series of modules that dole out what

    There is a catch: “The dough preparation, sauce making and baking — the real art of pizza — is left in the capable, five-fingered hands of people.” How long do you think it will take before that part is automated as well?

    I don’t think it’s any accident this startup hails from Seattle.

    I don’t know how it tastes, but I’d certainly be willing to give it a try.

    As always, the true minimum wage is “Zero.”

    LinkSwarm for July 12, 2019

    Friday, July 12th, 2019

    The Jeffrey Epstein child sex trafficking scandal dominates today’s LinkSwarm, as does other people getting arrested for the same offense. Some kind of crackdown going on? We can only hope so.

    Also, if you live in Austin, traffic on I-35 is going to be screwed up again this weekend.

  • The Jeffery Epstein scandal may be even worse than we thought:

    Even by the standards of stomach-turning celebrity criminal scandals, the bits of information about multi-millionare Jeffrey Epstein and allegations of an underage sex-trafficking ring are utterly bizarre, pointing to something perhaps even bigger and worse going on. Just the reports out this morning prompt at least ten big questions.

    One: How did Jeffrey Epstein make his fortune in the first place? One claim is a massive Ponzi scheme.

    Two: Could Epstein really have been connected to some sort of intelligence service? In yesterday’s press conference, labor secretary Alex Acosta offered a weird, vague, contradictory, meandering answer when asked about this. If Epstein was working for some sort of spy agency, which one? What was the aim, to collect blackmail on prominent figures? Who was being blackmailed, and what did they do?

    Three: Why did the office Manhattan district attorney Cyrus Vance try to keep Epstein from being registered as a top-level sex offender? “A seasoned sex-crimes prosecutor from Mr. Vance’s office argued forcefully in court that Mr. Epstein, who had been convicted in Florida of soliciting an underage prostitute, should not be registered as a top-level sex offender in New York.” The judge denied the request and declared, “I have to tell you, I’m a little overwhelmed because I have never seen a prosecutor’s office do anything like this.”

    Four: After Epstein was labeled a “Level 3 sex offender” — meaning the worst — Epstein was required by law to check in with the NYPD every 90 days. He never checked in at all over an eight-year span. How did that not generate any consequences?

  • And speaking of Epstein, why is nobody talking about former Palm Beach County State Attorney Barry Krischer.

    The former Palm Beach County State Attorney had made national news three times during his career. Once when he went after Rush Limbaugh, then after Ann Coulter, two Republicans, and when, after being handed the case of Epstein, a co-founder of the Clinton Global Initiative, he gave him a pass.

    Barry Krischer is a Democrat. Jeffrey Epstein is a billionaire donor to Democrats.

    As Chief Prosecutor, Krischer had made his reputation with a zero-tolerance policy of prosecuting juveniles as adults. But after Epstein had abused underage girls, Krischer, according to the detective on the case, ignored police efforts to charge him with four counts of unlawful sexual activity with a minor and instead the billionaire abuser was indicted only on a minor charge of solicitation of prostitution.

    Interviews with over a dozen girls and witnesses were ignored.

    The victims were not notified of when they needed to appear before Krischer’s Grand Jury. Calls by the police to issue warrants for the arrest of Epstein and his associates were ignored by Kirscher’s subordinates. Eventually, Kirscher’s people stopped taking phone calls from the police.

    The Palm Beach police chief claimed that information was being leaked to Epstein’s lawyers and wrote a public letter attacking Krischer and urging him to disqualify himself from the case. Instead the travesty went on. State prosecutors allowed Epstein to skip sex offender counselling, and hire a private shrink.

    When the judge asked assistant state prosecutor Lanna Belohlavek if all the victims had signed off on the deal, she claimed that they had. The lawyer for the victims has said that was not the truth.

  • “Secretary of Labor Alexander Acosta on Friday resigned from his post amid scrutiny over a plea agreement he cut with wealthy investor Jeffrey Epstein for sex abuse charges over a decade ago.”
  • Over on Althouse’s blog, many commenters are suggesting that Scott Walker replace him. To which I say: Bring it!
  • Even after pleading guilty and registering as a Level 3 sex-offender, Jeffrey Epstein is still mingled with the Hollywood elite.
  • Speaking of child sex offenders, singer R. Kelly has been arrested on 13 federal sex trafficking charges, including “child pornography, enticement of a minor to engage to engage in criminal sexual activity and obstruction of justice.” The only question is, after all the similar crap Kelly has pulled over the years, how is he not already in jail for the rest of his life?
  • “Epstein, Bean & Buck: The Democratic Donors’ Sex-Creep Club.”

    While serving as the highest-ranking elected woman in America for decades, San Fran Nan has chronically downplayed, whitewashed or excused the sleazy habits and alleged sexual improprieties of a long parade of Dem pervs — from former San Diego Mayor Bob Filner to former New York Reps. Eric Massa and Anthony Wiener to former Oregon Rep. David Wu to former Michigan Rep. John Conyers and current presidential candidate Joe Biden.

    Since the woke-ty woke Democrats are now gung-ho on undoing special treatment of wealthy liberal sex creeps, perhaps they will soon be revisiting the matter of two of their other “faves,” Oregon real estate mogul and deep-pocketed left-wing White House donor Terry Bean and West Hollywood Clinton pal Ed Buck.

    Here, let me help.

    Terry Bean is the prominent gay rights activist who co-founded the influential Human Rights Campaign organization. He is also a veteran member of the board of the HRC Foundation, which disseminates Common Core-aligned “anti-bullying” material to children’s schools nationwide.

    Like Epstein, Bean had a penchant for rubbing elbows and riding on planes with the powerful. Upon doling out more than $500,000 for President Barack Obama and the Democrats in 2012, he was rewarded with a much-publicized exclusive Air Force One ride with Obama. His Flickr account boasted glitzy pics with Michelle Obama and Bill Clinton.

    Buck, of course, is the Democratic donor who had two dead overdosed black men in his apartment on different occasions. (Hat tip: Director Blue.)

  • Speaking of our supposed betters raping children, “Ex-U.N. Worker Jailed for 9 Years in Nepal for Raping Two Boys in ‘Alarm Bell for the Humanitarian Community.'” Oh, now there are alarm bells over Canadian Peter John Dalglish raping children? But not so much when various UN peacekeepers did the same thing in Africa in past decades.
  • Dow-Jones Industrial Average hits record high of 27,000.
  • Meet the anti-woke left. The usual quotient of socialist claptrap, but also a fierce critique of victimhood identity politics and the dysfunction of the Democratic Party.

    Just as significant as Trump’s victory was Hillary Clinton’s loss, they tell me, in that it represented a rejection of an era of neoliberalism. ‘I’m from Indiana’, Frost tells me. ‘Bill signs NAFTA. That obliterated the towns where I’m from. People are extremely bitter about Bill Clinton for very good reasons. And she is married to that, literally and figuratively – she defends that legacy. How did we not see Trump coming?’

    What’s more, Trump represented a repudiation of the entire establishment – Democrats and Republicans. ‘There is a severe crisis of legitimacy in our institutions’, says Frost: ‘The Republicans did not want Trump to win either… He was nobody’s first choice, except the American people’s, apparently.’

    Snip.

    Three years on from the 2016 presidential election, Democrats are still largely in denial or in despair about Trump’s victory. The now-discredited Russia-collusion narrative provided an excuse to avoid any soul-searching. ‘The whole Rachel Maddow and the NBC crowd have infected the minds of boomers with this dystopian narrative’, Khachiyan tells me. ‘Even my mom, who’s from Russia, buys the collusion narrative.’

    ‘The narrative isn’t itself so interesting’, she argues, but it shows ‘the willful failure of the Democratic Party. Again and again, they fall on their face. There’s some kind of Freudian, masochistic thing they have where they get off on publicly humiliating themselves.’

  • E-Verify will do more to deter illegal aliens than the wall.
  • “Democratic lawmaker unloads on Ocasio-Cortez, chief of staff for ‘using the race card.'” The AOC-Pelosi tiff reminds us, yet again, that the primary purpose of “social justice” is to force in-group ideological conformity on the left. But when it comes to actually threatening a politician’s ability to get their beak into the trough, Rep. Clay and others still know which side their bread is buttered on. (Hat tip: Stephen Green at Instapundit.)
  • Democrats have tapped former fighter pilot Amy McGrath to lose to Mitch McConnell in the Kentucky senate race. In one day, she raised $2.5 million…and flip-flopped on whether she would have confirmed Brett Kavanaugh to the Supreme Court. She lost her last race by 10,000 votes, and expect her to do much, much worse against Cocaine Mitch.
  • “The Data Shows Socialists — Not Sanctions — Destroyed Venezuela’s Economy.”
  • John O’Sullivan wonders if anyone can beat Boris Johnson for Tory leadership and the PM spot. Probably not, but it provides a light romp through Borismania…
  • David Scheller of Ammo To Go wrote to point out his deep, detailed look at suppressors. I was happy to see that Texas has more silencers owned than the next three states combined.
  • How bad is the cartel violence in Mexico? Would you believe a 30 minute shootout at Kindergarten graduation?
  • Greek conservatives win in a landslide over leftist Prime Minister Alexis Tsipras’ Syriza’s party. Kyriakos Mitsotakis took over as Prime Minister on July 8.
  • Did the Russians who died aboard the A-12 Losharik submarine prevent a “planetary catastrophe?” Color me skeptical. Short of a Red Tide nuke launch scenario, it’s hard to conceive of any sort of accident, up to complete meltdown or even nuclear warhead detonation, that would result in “planetary catastrophe” on the Russian arctic seafloor. Assuming they were actually in the Barents Sea when the fire broke out, I don’t see how they’d be tapping undersea cables (as widely speculated), as the only one there is the Norway-to-Svarbald cable, which is hardly of crushing information importance. But the Russians have been known to lie before, and the fact that no less than seven first rank captains died aboard the ship (all but unheard of on a submarine) only fuels the speculation. And the arctic is way too far north for discovering either Cthulhu or Godzilla…
  • Seattle City Council candidate Brendan Kolding wants to clean up the homeless drug user problem.

    “It’s gotten worse under this entire current council,” he said. “Because we’ve practiced the policy — and I give Chris Rufo credit for this — the policy of false compassion where we’re not holding people accountable, where we’re not investing in adequate services, where we’re not allowing our law enforcement professionals to do their job.”

    “We just need a sea change at City Hall. We need to reverse the culture because it’s only getting worse … We can offer them treatment and shelter and then insist that if they don’t accept services, we will enforce the law unless they choose to move along. We need both carrot and stick.”

  • “I-95 proves that the government cannot provide services that don’t suck.”

    For those readers who blessedly have not had to drive I-95, it is a national disgrace. It has been congested for as long as I can recall (over 30 years of personal experience with the stretch shown, and what we drove yesterday). It has been congested in exactly the same locations for those 30 years.

    The same exact locations. 30 years. Offered for your consideration, the 20 miles on each side of Fredericksburg, VA. It was a parking lot in the 1980s; it was a parking lot yesterday. The reason then was that the highway lost a lane (more lanes in Richmond to the south and Washington to the north). The reason now is the same.

    So riddle me this, Big Government Man: how in 30 years is it not possible to widen 40 miles of Interstate to remove what everybody in the Northeast Corridor knows is a notorious choke point? And please don’t be so dim and predictable as to say “there isn’t enough funding” – we spent a cool trillion dollars on a “stimulus” that the President swore would be “shovel ready” projects. You don’t get more shovel-ready than widening I-95.

    So we see that it’s not possible for the government to provide services that don’t suck.

  • Prenda Law copyright troll John Steele sentenced to five years in prison.
  • “A traffic stop turns up whiskey, a gun and a rattlesnake, police say — and that was before they found the uranium.” The big surprise here is that it’s from Oklahoma rather than Florida… (Hat tip: Ace of Spades HQ.)
  • Tankfest 2019. I visited the Bovington Tank Museum in 2014, and if you’re interested in tanks and in the UK for an extended period of time, I highly recommend it.

  • Tales from the Lunar Module Simulator.
  • Aviation Week and Space technology profile of the SR-71 from 1981.
  • Dwight celebrates the fortieth anniversary of Disco Demolition Night.
  • And speaking of unlikely events of mass hysteria: 300,000 people on Facebook swear to storm Area 51. Great, they’re going to kill off Alex Jones’ entire audience…
  • “Fun New Teen Vogue Quiz Helps Girls Find Out What Kind Of Hooker They Should Be.”
  • Pentagon China Expert Gen. Robert Spalding on China’s Strategy Against Trump and America

    Tuesday, June 11th, 2019

    Here’s an interesting interview with Gen. Robert Spalding, chief China analyst for the Joint Chiefs of Staff, who analyzes the pressures the trade war puts on China, and how they respond to Trump’s challenge.

    “When you look at the full scope of everything China does, it mixes in its own brand of expansive influence into its economics.”

    Also a bit on Huawei and 5G, and how China intends to use technological leadership to extend its own censorship regime.

    Trump Wins Mexico Border Deal

    Friday, June 7th, 2019

    His tweets would seem to indicate so:

    Mexican sources evidently confirm it, as Mexico will evidently deploy its National Guard along its southern border and elsewhere:

    Optimistic reactions:

    Cautious optimism seems the order of the day. Hopefully the State Department will release the actual agreement soon.

    (Hat tip: Zero Hedge.)

    Grappling With Modi’s India

    Wednesday, June 5th, 2019

    A few bits of news about India have crossed my path this week, enough to do a little mini-roundup. India is a vast topic, and a vastly important one for the 21st Century, but the news we get about it light on insight and heavy on disasters and politics.

    So naturally this post is about disaster and politics.

  • Disaster: India is suffering from an epic heat wave, hitting 123°F.
  • Politics: How the media missed Narendra Modi’s landslide victory:

    We didn’t see it coming. The tsunami of support that propelled Prime Minister Narendra Modi and his Hindu nationalist Bharatiya Janata Party (BJP) into a second five-year term was a surprise to many of us reporting on the mammoth Indian general election.

    Getting an accurate reading on how 900 million people will vote is extremely difficult and almost impossible to gauge from big cities like Delhi or Mumbai. Far in advance of the April-May voting, Reuters made a series of sorties into the farms and small towns where most of India’s people live to get a sense of what was being talked about, what was at stake.

    Snip.

    Despite the rural anger, at no time did we get a feeling that Modi was going to lose the general election. The assessment by Reuters’ correspondents was that he was going to win with reduced support from voters and might need partners to stay in power.

    But instead, the BJP increased its seats tally to 303 against 282 in the 2014 election. And including its partners, Modi’s National Democratic Alliance has more than 350 MPs in the lower house, close to the two-thirds majority it would require to make transformative changes to the Indian constitution.

    Snip.

    But after a suicide bomber killed 40 Indian paramilitary policemen in Kashmir in February, and a Pakistan-based Islamist militant group claimed responsibility, the election focus immediately swung to national security from economic issues.

    We decided to check back in the rural core of the country – and found that the attack and a strong response from Modi – including sending warplanes into Pakistan – had changed some minds and Modi was benefiting.

  • Is Modi an economic reformer, streamlining India’s economy? This piece argues yes, but in a way that distinctly tempers my enthusiasm:

    First, he’s ensured that the government has more revenue to spend. Thanks to the Goods and Services Tax enacted in 2017, Modi has streamlined an enormously complex system of state and federal tax collection, broadening the tax base and sharply reducing the amount of money lost to fraud. That’s a historic accomplishment in a country with so many development needs.

    Modi has directed unprecedented amounts of money toward the country’s seemingly endless need for new infrastructure. Construction of roads, highways, public transport and airports have sharply increased the country’s long-term economic potential. Although the process remains unfinished, the government has also brought electricity to remote villages that have never had it, a boon for economic potential, public safety and basic quality of life.

    The BJP-led government has also expanded a biometric identification system, begun under the previous Congress Party–led government, that has already taken iris scans and fingerprints from well over a billion people to help citizens prove who they are so they can receive services. It has provided bank accounts for 300 million people who have never had them, creating new opportunities for these people to access credit and state subsidies. It also brings them into the formal economy to potentially make the government more responsive to their needs. The government says these measures have cut sharply into waste and fraud within India’s welfare system, allowing the state to provide more and better services at a much lower cost.

    Health care reform could help half a billion poor people afford treatment for cancer and heart disease. A program known as Ujjwala Yojana has helped women in the countryside gain access to cooking gas for the first time. The Swachh Bharat program has built tens of millions of toilets for hundreds of millions of people. Modi’s commitment to renewable energy is part of his plan to make India a leader on climate change. None of these projects are complete, but all of them will help the vast majority of India’s people lead safer, healthier, more productive and more prosperous lives.

    Some of that is good. Some of the infrastructure spending is probably necessary, on the order of the rural electrification and infrastructure projects the U.S. undertook in the 1930s. I would not want to live in a country that makes biometric ID mandatory for free citizens (also, it’s hardly immune to errors, fraud or hacking). And the “climate change” rathole just increases living costs for ordinary people to no demonstrable benefit.

  • And here’s an Indian businessman who says he’s not a real reformer:

    When I was an idealistic 20-something in the late 1990s, my hope was that India would one day elect a free-market reformer like Ronald Reagan, who would begin to shrink the dysfunctional bureaucracy and free the economy to grow faster. Looking back, I see how clueless I was.

    In Delhi every politician is wedded to big government, and there is no constituency for free-market reform. I kept hoping for Reagan, and India kept electing Bernie Sanders.

    Prime Minister Narendra Modi is no exception. Five years ago he led the Hindu nationalist Bharatiya Janata Party, known as B.J.P., to power on a Reaganesque promise of “minimum government,” and now he seeks a second term in the general election that ends on Thursday. But in office, Modi has wielded the tools of state control at least as aggressively as his predecessors. In this campaign, he went toe to toe with rivals, vying to see who could offer the most generous welfare programs, and it appears to have worked.

    Snip.

    Hopes for a big-bang Indian reformer revived years later with the rise of Mr. Modi, who in 2002 had been elected as chief minister in the western state of Gujarat. By courting multinational companies, building roads and streamlining the state bureaucracy, Mr. Modi oversaw a stunning boom. The state economy grew at a pace close to 12 percent annually in his first term. In 2014, Mr. Modi’s record in Gujarat helped lift him into the prime minister’s office.

    Like many India watchers, I heard in Mr. Modi’s call for “minimum government, maximum governance” the voice of a red-tape and regulation-busting reformer in the Reagan mold. In retrospect this reading ignored how Mr. Modi had delivered “maximum governance” in Gujarat: by force of personality, cutting foreign investment deals himself and intimidating bureaucrats into building roads on time without demanding bribes.

    This was economic development by executive order, not economic reform by systematically expanding freedom. Mr. Modi has tried to govern India the same way, but the top-down commands that rallied tens of millions of his fellow Gujaratis haven’t worked nearly as well on the sprawling Indian population of 1.4 billion. He centralized power in the prime minister’s office, and many private business people now say he treats them much as his socialist predecessors did, often suspicious of their motives and contribution to society.

    One November evening in 2016, he ordered the withdrawal of large rupee bills — 86 percent of the currency in circulation — at midnight. The aim was to flush cash out from under the mattresses of rich tax dodgers. One of his cabinet ministers said Mr. Modi was delivering on a “Marxist agenda” to reduce inequality. Today, however, the aftershocks are still rippling through the economy, and have been especially painful for the poor.

    In some ways Mr. Modi has proved more statist than the Gandhis. Before he took power he criticized Congress welfare programs as insulting to the poor, who “do not want things for free” and really want “to work and earn a living.” As prime minister, Mr. Modi doubled down on the same programs, expanding the landmark 2006 act that guaranteed 100 days of pay to all rural workers, whether they worked or not.

    On the economic front, then, every Indian party is on the left, by Western standards. The Congress traces its economic ideology to socialist thinkers, but the B.J.P.’s thinking is grounded in Swadeshi, a left-wing economic nationalism.

    The consensus from all this seems to be that Modi has indeed run a cleaner government than his Congress Party predecessors, has some real economic reforms under his belt, but isn’t what anyone in America would consider a real free market reformer.

  • LinkSwarm for March 15, 2019

    Friday, March 15th, 2019

    In one of the more important but confusing stories this week, UK’s Parliament rejected PM Theresa May’s Brexit deal, rejected a no-deal Brexit, and rejected a second referendum, but voted to delay Brexit until June. Whether the EU will consent to this delay or not remains to be seen. Borepatch thinks not, mainly due to EU elections coming up.

    Enjoy a complimentary LinkSwarm:

  • Democrats have a race problem:

    In the Trump era, Democrats are so intent on appealing to immigrants and minority voters they will tolerate insults to Jews, a constituency that voted for Clinton by better than a 3-to-1 margin in 2016. This is not inconsequential, as Jewish conservative Jeff Dunetz pointed out last week: “According to the FBI, almost 60% of the hate crimes in 2017 based on religion were against Jews.” Liberals would like us to believe that Trump supporters are responsible for this, but who is to blame when, for example, Somali immigrant Mohamed Mohamed Abdi is charged with attempted murder for allegedly trying to run over two men outside a Los Angeles synagogue? How can liberals claim Trump is responsible for three black men attacking Jews in Brooklyn? Police are alarmed by increasing anti-Semitic violence in New York City, which probably has a lot more to do with the “progressive” politics of that Democrat-run fiefdom than it does with who’s occupying the White House. Meanwhile, 11 white people were attacked in New York over the weekend, and a black transgender suspect has been arrested in what police say was an apparent hate-crime spree. Such is the toxic racial climate in the city that sends to Congress such Democrats as Rep. Alexandria Ocasio-Cortez, who spent her weekend trashing Ronald Reagan for a capacity crowd of liberals in Austin, Texas.

    Democrats and their media allies have spent years building this bonfire of racial resentment. CNN devoted hour upon hour of coverage to the “Black Lives Matter” movement that provoked riots in Ferguson, Missouri, and by the time of the 2016 Republican convention in Cleveland, anti-Trump protesters were marching with Communist posters advocating revolution. Barely six weeks before Election Day 2016, a “Black Lives Matter” riot erupted in downtown Charlotte, N.C., and does anyone still wonder why Hillary lost North Carolina, a state that Obama had carried twice? Trump got 63 percent of the white vote in North Carolina, carrying the state by a margin of more than 170,000 votes. Is it likely that Democrats can reverse that verdict by doubling-down on identity politics? Yet liberals continue intensifying their incendiary rhetoric that has sparked incidents like the smearing of the Covington Catholic boys, the Jussie Smollett hoax, and a spree of attacks on Trump supporters across the country. Democrats and their media allies have done everything in their power to demonize the nearly 63 million Americans who voted for Trump in 2016, and what does that foreshadow for November 2020?

    Certainly by now, working-class white voters must be tired of deranged Trump-haters getting in their faces and shouting, “RAAAAACIST!” Perhaps that’s why the latest Iowa poll shows Democrat primary voters favoring two old white guys, Joe Biden and Bernie Sanders. However, the crowded field of Democrats contending for the 2020 presidential nomination, cheered on by their Greek chorus of left-wing journalists, will probably make it easier for Trump to get re-elected. The more white voters become alienated from the Democrats, the more extreme the Democrats become, and the media are so out of touch with voters in places like Iowa that Democrats are caught in a sort of feedback loop of extremism.

  • The left-wing crackup:

    The constituent elements of the American left have radicalized and they are tearing the Democratic Party apart. Meanwhile Donald Trump has delivered on a growing economy, deregulation, strong borders, the rule of law, and he is apparently going to leave the cows and their diapers for later.

    The radicalized Democrats are now running as socialists. In the middle of a growing economy they are casting their lot with Venezuela. They expect to win in 2020. Call it the left-wing crack-up.

    (Hat tip: Director Blue.)

  • Is Corbynism coming to America?

    Less than four years ago, Jeremy Corbyn was an obscure backbencher in the British Parliament. In his 30 years as a member of the Labour Party, his greatest legislative accomplishment was paradoxically the lack of any: From 1997 to 2010, when Labour was last in government, Corbyn was the MP who voted against his own party more than any other. Despite his perpetual insubordinations, successive Labour Prime Ministers Tony Blair and Gordon Brown declined to expel Corbyn from their party. “There was no threat,” a deputy Labour chief whip told the Financial Times about Corbyn and his small band of hard-left rebels in 2016. “These people were tolerated because no one had ever heard of them.”

    Today, everyone in British politics has heard of Jeremy Corbyn, who, as leader of Her Majesty’s Most Loyal Opposition, has utterly transformed the Labour Party. Once a broad-based movement that could command large parliamentary majorities, today it is a sectarian personality cult, offering meager resistance to a shambolic Conservative government. Once the party whose leaders created NATO and stood stalwart against the threat of international communism, today Labour is led by people who sing the praises of anti-Western despots and terrorists. And once the natural political home of British Jewry, Labour today is mired in an anti-Semitic morass, to the point where 40 percent of Jews say they would “seriously consider” leaving the country were Corbyn to become prime minister. Indeed, Labour has become so toxic that, last month, nine MPs quit the party, calling it “sickeningly, institutionally racist,” “a threat to national security” and “a danger to the cohesion of our society, the safety of our citizens, and the health of our democracy.”

    How Labour reached this deplorable condition is one that should seriously concern liberals in the United States, where a similar dynamic is playing out in the Democratic Party. An insurgent progressivism favorably disposed to socialism, hostile to Jews and openly admiring of Jeremy Corbyn and all that he represents is steadily making inroads against an aging, centrist Democratic establishment. Here, a constellation of elected officials, media personalities, and activists are mimicking the tactics of their ideological comrades in Britain to take over and transform the Democratic Party into a vehicle for their extreme agenda.

  • Related: Jexodus.
  • “Migrants Use Almost Twice The Welfare Benefits As Native-Born Americans.”

    According to a report by Breitbart, in recently released research by the Center for Immigration Studies (CIS), analysts discovered that about 63 percent of non-citizen households, those who live legally and illegally in the U.S., use some form of public welfare while only about 35 percent of native-born American households are on welfare.

  • “Five adults arrested at compound in Taos County indicted on terrorism charges.”
  • “Twice-Deported Illegal Alien Charged With Raping 12-Year-Old Girl.”
  • Illegal alien arrested for murder of 59-year old woman. “U.S. Immigration and Customs Enforcement said agents tried to deport Carranza nine times before, but their detainer requests were not honored in Los Angeles and Santa Clara counties, both so-called ‘sanctuary cities.’ In every occasion, local authorities declined to cooperate with a federal request to hold Carranza in jail due to his immigration status — as is often the policy with “sanctuary cities” and counties — and he was released back on the street.”
  • “At a 10-year high, wage growth for American workers likely to keep accelerating.” (Hat tip: Stephen Green at Instapundit.)
  • Meanwhile, some manufacturers can’t fill open jobs. (Hat tip: TPPF’s Cannon.)
  • Never Trump Bulwark writer attempts to take down Victor Davis Hanson. The attempt goes very, very badly for him.

    [Gabriel] Schoenfeld only fuels the popular perception of The Bulwark Never Trumpers as an angry, coastal elite who are anguished that their warnings about Trump were ignored by both hoi polloi and their conservative “grifters and trolls.” In careerist fury, he now damns others for his own self-immolation — as if the country must suffer for the sins of not listening to his own genius, which would probably have given the country a 16-year Obama-Clinton regnum.

    That Never Trumpers at The Bulwark were wrong about the Trump nomination, the general election, and the first two years of the Trump administration seems only to have fueled their spitefulness. If Schoenfeld is representative of this rump movement, then they are engaging in projection.

    Read the whole thing for a detailed, comprehensive takedown.

  • Another big money Democratic donor caught up in the college admissions scandal.
  • The CDC’s “gun violence” numbers are useless, says that well-known pro-gun outlet, 538.
  • How China is screwing Vietnam out of energy opportunities.
  • Another week, another UK Muslim rape gang.
  • SPLC founder Morris Dees fired, though evidently for sexual harassment rather than smearing innocent conservatives.
  • “California Veterans Home Threatens to Eject 84-Year-Old Widow for Bible Study Group.”
  • Some of the power has been restored, but Venezuela’s water runs black.
  • Venezuela’s premier university destroyed by socialism. A sad photo essay. (Hat tip: Wretchardthecat on Twitter.)
  • Related tweet:

  • “Son defends parents caught in college admissions scandal while smoking blunt.” Can’t imagine why such a fine specimen of academic scholarship would need a leg up in their college admissions. (Had tip: IowaHawk via Andrew Wimsatt.)
  • “Media Matters President Wrote Blog Posts About ‘Japs,’ ‘Jewry’ And ‘Trannies.’” Political correctness for thee, but not for me. (Hat tip: Stephen Green at Instapundit.)
  • Democratic Governor of overtaxed New Jersey wants to hike taxes even more.
  • What if Ayn Rand was right?
  • “The Army’s Next-Generation Combat Helmet Has Arrived.”
  • “To Avoid Confusing Words, Ilhan Omar Will Now Respond To All Questions With ‘I Am Groot.'”
  • You know, Hayek’s Nobel Prize would look good on my mantle.
  • Random tweet:

  • Two Essays: Workers Vs Elites

    Thursday, January 17th, 2019

    Here are two pretty interesting essays on the “revolt of the masses” currently roiling world politics.

    The first is from Christopher Caldwell about France from two years ago, and which prefigures the “yellow vest” riots:

    In France, a real-estate expert has done something almost as improbable. Christophe Guilluy calls himself a geographer. But he has spent decades as a housing consultant in various rapidly changing neighborhoods north of Paris, studying gentrification, among other things. And he has crafted a convincing narrative tying together France’s various social problems—immigration tensions, inequality, deindustrialization, economic decline, ethnic conflict, and the rise of populist parties.

    Snip.

    A process that Guilluy calls métropolisation has cut French society in two. In 16 dynamic urban areas (Paris, Lyon, Marseille, Aix-en-Provence, Toulouse, Lille, Bordeaux, Nice, Nantes, Strasbourg, Grenoble, Rennes, Rouen, Toulon, Douai-Lens, and Montpellier), the world’s resources have proved a profitable complement to those found in France. These urban areas are home to all the country’s educational and financial institutions, as well as almost all its corporations and the many well-paying jobs that go with them. Here, too, are the individuals—the entrepreneurs and engineers and CEOs, the fashion designers and models, the film directors and chefs and other “symbolic analysts,” as Robert Reich once called them—who shape the country’s tastes, form its opinions, and renew its prestige. Cheap labor, tariff-free consumer goods, and new markets of billions of people have made globalization a windfall for such prosperous places. But globalization has had no such galvanizing effect on the rest of France. Cities that were lively for hundreds of years—Tarbes, Agen, Albi, Béziers—are now, to use Guilluy’s word, “desertified,” haunted by the empty storefronts and blighted downtowns that Rust Belt Americans know well.

    Guilluy doubts that anyplace exists in France’s new economy for working people as we’ve traditionally understood them. Paris offers the most striking case. As it has prospered, the City of Light has stratified, resembling, in this regard, London or American cities such as New York and San Francisco. It’s a place for millionaires, immigrants, tourists, and the young, with no room for the median Frenchman. Paris now drives out the people once thought of as synonymous with the city.

    Yet economic opportunities for those unable to prosper in Paris are lacking elsewhere in France. Journalists and politicians assume that the stratification of France’s flourishing metropoles results from a glitch in the workings of globalization. Somehow, the rich parts of France have failed to impart their magical formula to the poor ones. Fixing the problem, at least for certain politicians and policy experts, involves coming up with a clever shortcut: perhaps, say, if Romorantin had free wireless, its citizens would soon find themselves wealthy, too. Guilluy disagrees. For him, there’s no reason to expect that Paris (and France’s other dynamic spots) will generate a new middle class or to assume that broad-based prosperity will develop elsewhere in the country (which happens to be where the majority of the population live). If he is right, we can understand why every major Western country has seen the rise of political movements taking aim at the present system.

    Snip.

    After the mid-twentieth century, the French state built a vast stock—about 5 million units—of public housing, which now accounts for a sixth of the country’s households. Much of it is hideous-looking, but it’s all more or less affordable. Its purpose has changed, however. It is now used primarily for billeting not native French workers, as once was the case, but immigrants and their descendants, millions of whom arrived from North Africa starting in the 1960s, with yet another wave of newcomers from sub-Saharan Africa and the Middle East arriving today. In the rough northern suburb of Aubervilliers, for instance, three-quarters of the young people are of immigrant background. Again, Paris’s future seems visible in contemporary London. Between 2001 and 2011, the population of white Londoners fell by 600,000, even as the city grew by 1 million people: from 58 percent white British at the turn of the century, London is currently 45 percent white.

    While rich Parisians may not miss the presence of the middle class, they do need people to bus tables, trim shrubbery, watch babies, and change bedpans. Immigrants—not native French workers—do most of these jobs. Why this should be so is an economic controversy. Perhaps migrants will do certain tasks that French people will not—at least not at the prevailing wage. Perhaps employers don’t relish paying €10 an hour to a native Frenchman who, ten years earlier, was making €20 in his old position and has resentments to match. Perhaps the current situation is an example of the economic law named after the eighteenth-century French economist Jean-Baptiste Say: a huge supply of menial labor from the developing world has created its own demand.

    Snip.

    Guilluy has written much about how little contact the abstract doctrines of “diversity” and “multiculturalism” make with this morally complex world. In the neighborhoods, well-meaning people of all backgrounds “need to manage, day in, day out, a thousand and one ethno-cultural questions while trying not to get caught up in hatred and violence.” Last winter, he told the magazine Causeur:

    Unlike our parents in the 1960s, we live in a multicultural society, a society in which “the other” doesn’t become “somebody like yourself.” And when “the other” doesn’t become “somebody like yourself,” you constantly need to ask yourself how many of the other there are—whether in your neighborhood or your apartment building. Because nobody wants to be a minority.

    Thus, when 70 percent of Frenchmen tell pollsters, as they have for years now, that “too many foreigners” live in France, they’re not necessarily being racist; but they’re not necessarily not being racist, either. It’s a complicated sentiment, and identifying “good” and “bad” strands of it—the better to draw them apart—is getting harder to do.

    France’s most dangerous political battles play out against this backdrop. The central fact is the 70 percent that we just spoke of: they oppose immigration and are worried, we can safely assume, about the prospects for a multiethnic society. Their wishes are consistent, their passions high; and a democracy is supposed to translate the wishes and passions of the people into government action. Yet that hasn’t happened in France.

    Guilluy breaks down public opinion on immigration by class. Top executives (at 54 percent) are content with the current number of migrants in France. But only 38 percent of mid-level professionals, 27 percent of laborers, and 23 percent of clerical workers feel similarly. As for the migrants themselves (whose views are seldom taken into account in French immigration discussions), living in Paris instead of Bamako is a windfall even under the worst of circumstances. In certain respects, migrants actually have it better than natives, Guilluy stresses. He is not referring to affirmative action. Inhabitants of government-designated “sensitive urban zones” (ZUS) do receive special benefits these days. But since the French cherish equality of citizenship as a political ideal, racial preferences in hiring and education took much longer to be imposed than in other countries. They’ve been operational for little more than a decade. A more important advantage, as geographer Guilluy sees it, is that immigrants living in the urban slums, despite appearances, remain “in the arena.” They are near public transportation, schools, and a real job market that might have hundreds of thousands of vacancies. At a time when rural France is getting more sedentary, the ZUS are the places in France that enjoy the most residential mobility: it’s better in the banlieues.

    Read the whole thing.

    There are also some related thoughts on the elite/worker divide from Instapundit Glenn Reynolds:

    In the old Soviet Union, the Marxists assured us that once true communism was established under a “dictatorship of the proletariat,” the state would wither away and everyone would be free. In fact, however, the dictatorship of the proletariat turned into a dictatorship of the party hacks, who had no interest whatsoever in seeing their positions or power wither.

    Yugoslav dissident Milovan Djilas called these party hacks the “New Class,” noting that instead of workers and peasants against capitalists, it was now a case of workers and peasants being ruled by a managerial new class of technocrats who, while purporting to act for the benefit of the workers and peasants, somehow wound up with the lion’s share of the goodies. Workers and peasants stood in long lines for bread and shoddy household goods, while party leaders and government managers bought imported delicacies in special, secret stores. (In a famous Soviet joke, then-leader Leonid Brezhnev shows his mother his luxury apartment, his limousine, his fancy country house and his helicopter only to have her object: “But what if the communists come back?”)

    Djilas’ work was explosive — he was jailed — because it made clear that the workers and peasants had simply replaced one class of exploiters with another. It set the stage for the Soviet Union’s implosion, and for the discrediting of communism among everyone with any sense.

    But the New Class isn’t limited to communist countries, really. Around the world in the postwar era, power was taken up by unelected professional and managerial elites. To understand what’s going on with President Donald Trump and his opposition, and in other countries as diverse as France, Hungary, Italy and Brazil, it’s important to realize that the post-World War II institutional arrangements of the Western democracies are being renegotiated, and that those democracies’ professional and managerial elites don’t like that very much, because they have done very well under those arrangements. And, like all elites who are doing very well, they don’t want that to change.

    Snip.

    But after the turn of the millennium, other Americans, much like the workers and peasants in the old Soviet Union, started to notice that while the New Class was doing quite well (America’s richest counties now surround Washington, D.C.), things weren’t going so well for them. And what made it more upsetting was that — while the Soviet Union’s apparatchiks at least pretended to like the workers and peasants — members of America’s ruling class seemed to view ordinary Americans with something like contempt, using terms such as “bitter clingers,” “deplorables” and flyover people.

    Suddenly, to a lot of voters, those postwar institutional arrangements stopped looking so good. But, of course, the beneficiaries showed no sign of giving them up. This has led to a lot of political discord, and a lot of culture war, since in America class warfare is usually disguised as cultural warfare. But underneath the surface, talk is a battle between the New Class and what used to be the middle class.

    Both essays are well worth your attention.