Podcast 595-Money

Money and Controlling the Media Battle Space

Money. Money. Money! Everything the new President says and does is controversial. The latest eruption concerns Trump’s executive order regarding immigrants from several war-torn countries in the middle east region. A handful of court rulings challenging the order are centered on whether due process can be denied people allowed into the United States legally. The court rulings do not suggest the President cannot use executive orders to control departments in the executive branch but whether if the executive orders deny legal rights without due process.

This is just another in a series of actions and comments by President Trump and his administration that have received wide comment and coverage in the media. While protesters protest and media outlets gas-bag about the latest affront to society, Trump and his people throw another rock into the lake creating new ripples that have to be protested against and reacted to by the already too reactive media. This is a tactic or strategy known as an OODA Loop. Trump is forcing the media and his opponents to react to him. When they react his team observes their reaction, decides on a new initiative and then acts, restarting the loop. In this way the administration controls the media battle space.

About the Money

In Podcast 595-Money: When it comes to Money, once the initial spate of executive orders and stunts at press conferences passes, Congress and the President will get down to work on legislative initiatives to address the moribund economy of the United States. Podcast 595-Money wonders whether what has been talked about by this president on the campaign trail and in the media will indeed, make America Great Again.

No Growth

The United States has grown less than 3 percent a year roughly for the last eight years. Those old enough to remember the early 80’s know that the experience of robust economic growth in that era was real. People didn’t worry so much about getting jobs. As inflation came under control and interest rates came down and as unemployment started to come down, optimism took hold. We have not had that kind of feeling in the United States for a long time.

The question is whether the things Trump wants to do will actually produce economic growth. Middle Class taxes are already historically low. Cutting corporate taxes may result in higher profits which is good for Wall Street but may not translate to jobs. Some parts of clearing out the thicket of Federal Regulations can be done by executive order but most of it will require congressional action. Will a Trillion Dollar Stimulus package to build roads and bridges spur economic growth?

A Republican Stimulus?

President Obama’s Trillion Dollar stimulus was supposed to stimulate economic growth and didn’t. Part of the problem with big federal stimulus efforts is the money has to be block granted to states and the spending becomes political. Another issue is the fact that most people in the United States are employed in services rather than construction trade. Aside from the fact that government spending doesn’t ‘create’ jobs, putting people to work in a small swath of the population usually doesn’t result in a high multiple. This is why the Obama Stimulus produced dubious results.

Another problem is Trump’s Trade Protectionist sentiments. While the trade unions love the idea generally the United States has been a free trade nation. Trade agreements are negotiated because most of our trading partners are trade protectionists. The agreements generally break down borders to our trade. The fact certain kinds of manufacturing is cheaper in Latin America and Asia has actually benefited Americans in the form of cheaper goods. Putting up barriers to manufacturing overseas also means goods in the US will become more expensive.

Most of the jobs lost in the last decade or so have been lost due to information technology, robotics and automation. New manufacturing plants are much more automated these days which means they will not produce the manufacturing jobs expected. When one considers completely automated warehouses like Amazon’s and robotic manufacturing like Elon Musk’s showplace plant, don’t expect ‘bringing manufacturing back to the United States’ means jobs at the factory for Uncle Mike.

If you believe the economy is the sum total of individual’s transactions then an economy can be considered a force of nature. This is the first time in recent memory a ‘conservative’ president has endorsed trade protection and big government spending. Two of the biggest problems economically in the United States are the ongoing budget deficits and the total public debt. One wonders how the cornerstones of the Trump economic policy will produce enough growth to reduce the deficits and public debt.

Finally in Podcast 595-Money, the proof will be in the pudding. With all the other controversies swirling around this president after just two weeks if his policies fail to produce the promised economic growth republicans will have real problems in the 2018 and perhaps the 2020 cycles, especially for the politicians that endorsed Trump. Be careful what you pray for.

Sponsored by X Government Cars and Ryan Plumbing and Heating of Saint Paul.

Podcast: Play in new window | Download (Duration: 35:49 — 82.0MB) | Embed

Subscribe: Apple Podcasts | RSS

 

Podcast 321

Updating The Big Stories. Live from the wood stove at the broadcast bunker. On the heels of Podcast 320, concentrating on the Islamic State issue in US foreign policy, some updates on this and other stories. Jeb Bush gives a major foreign policy speech in Chicago, with little more than rhetoric featured except for the announcement that a number of old Reagan and Bush 1 and 2 hands will be assisting ‘The Future President’, Jeb Bush. Is old Cold War and Neo Conservative/Interventionist policy what the United States needs? Or do we need something a little more updated? For Bush this is the safe (and smart) bet for Republicans, but he still did not map out a plan. Meanwhile in Brownsville, Texas a District Court judge has put a hold on President Obama’s plans to ‘reform’ immigration with executive orders. Some people think the lower court ruling is the Supreme Court. The suit was brought by a score of states that claim they are irreparably harmed by the President’s orders, and the President plans to appeal. Some believe the White House has a better chance in higher courts. Others believe this will go all the way to the Supreme Court. In the meantime, chances are the ruling will hold while the states continue with their suit. The scolds are at it again, this time saying the technology revolution had produced no productivity change. Scolds say the tech comparison to the invention of the Light Bulb, or the automobile and their impact on society is poppycock. Why is it Scolds always cite Facebook and Hacking, or the NSA and Ed Snowden as examples of ‘tech’ when they want to suggest ‘tech’ hasn’t really amounted to much? It depends on how you measure productivity, and what years you compare. Moreover, the technology revolution is just getting started. The smart phone is really only a few years old. Flexibility offered in almost every industry with IT has changed how we do business, where we do business, and where workers are when they work. Still greater developments are only starting to be researched. For example, drug companies and silicon valley are teaming up to research reverse aging. If people can live substantially longer lives, without aging, or reverse aging, that will probably have a pretty big impact on how productive our economy is. Would you volunteer to take a trip to Mars? Before you respond, there’s one catch. It’s a one way trip. 100 people have already volunteered for the Mars 1 mission, 24 will be chosen. They will spend the rest of their lives on the angry red planet. If you have issues with so called millennials, you might want to hear what some of the volunteers – in their twenties – said about why they want to take a trip, from which they will never return. Their commitment to the bigger picture is sobering. Sponsored by X Government Cars. 

Podcast: Play in new window | Download (Duration: 32:00 — ) | Embed

Subscribe: Apple Podcasts | RSS

Podcast 316

Midweek Updates. Live from the newsroom at the Bob Davis Podcasts. Bruce Jenner allegedly kills someone and everyone is talking about Brian Williams. Go figure. NBC News still doesn’t know what to do with the news anchor who embellished stories about Iraq, and now apparently Katrina, and whether he saved puppies or not when he ‘was a fireman’. If Williams is forced to leave, NBC will have to write him a check for fifty million dollars. Williams just signed a five year contract with the network for ten million dollars a year, so he might NOT be singing ‘Don’t Cry For Me Argentina’. Alas, the news media IS crying for Williams. The New York Times says Williams is a victim of ‘false memory’, which apparently a lot of us have. The Minneapolis Star Tribune suggests this is a time for forgiveness. Why are they apologizing for Williams when real reporters – not to mention American servicemen and women – are actually dying when they cover the news, or being beheaded, or something like that. Even more sad news than the fall of a ‘hero’ television presenter is the sad story of Whitney Houston’s daughter Bobbi Kristina Brown. The Brown family says they’ll remove Bobby from life support today, February 11th, the same day her mother passed. Bobby always said when Whitney died, she lost more than her mom, she lost her best friend. Yet more sad? IRS head John Koskinen says ILLEGAL aliens will be able to receive back earned income tax credit payments for as long as they have been in the US. Millions of illegals could receive millions of dollars in payouts, financed by American Taxpayers. It seems President Obama executive memoranda which amnestied these people neglected to exempt them from such payments, so Koskinen wants to be on the ‘safe side’. Enough to make us want to remove ourselves from life support. A town in Pennsylvania is placing signs at the edge of town that say, “This is NOT a Gun free Zone”, which is driving the gun control zealots into a frenzy. One of them says the signs will mean criminals will shoot first, and that Conoy Township ‘will be like the wild west’. The town says they’ll take that bet. Minnesota Governor Dayton’s struggle with the House over huge pay raises for his commissioners has descended into a battle over whether the Governor will testify. He says he’ll meet with legislators but won’t testify. He also offered to do what he can to increase the pay of legislators! Meanwhile it appears the Republican House has a little  ‘splainin’ to do as well, since GOP operative and House employee Ben Golnick was also given a huge raise and makes over six figures. Sigh. In Michigan legislators are considering a bill which would outlaw subsidies to businesses. It seems Michigan is on the hook for 6 billion dollars in subsidies to auto companies. And you wonder why Detroit is a wasteland. Great idea, by the way. And eggs are good for you! Sponsored by Depotstar. 

Podcast: Play in new window | Download (Duration: 33:17 — ) | Embed

Subscribe: Apple Podcasts | RSS