Fox News reported that the rapper Tiny Jag (who’s real name is Gillian Graham) has reportedly withdrawn from a Michigan musical festival after it was disclosed that white people would be charged twice the entrance fee, as people of color. This story is of interest to me for two reasons: The first is that this young woman obviously is standing up for principal, and secondarily, that Fox News did not praise her, but rather in an unusual bit of reporting was neutral and emphasized White v. People of Color. In my view, this young woman displayed real courage taking the stance that she did which deserves significant public acknowledgement.
There have been numerous reports about the impact of the economic recovery, but one recent report finds that 40% of Americans say they still struggle to pay bills. This is consistent with the long-reported lag of wages of lower-class and middle-class families. If one were to do a comparison between the impact of tax reform legislation and the gains of the stock market, as compared to wages, the former would vastly outstrip percentage increases that low and middle-class families are experiencing in this economy. This may well be why Mr. Trump is only able to reach a recent high of 45% favorability rating within a strong economy.
Speaker Pelosi was recently quoted with regard to the four progressive members of Congress who voted against the border funding bill, which was a hard-fought negotiation. The Speaker stated, “By voting against our bill”, which she felt was the strongest one she could get, “all these people have their public whatever, and their twitter world” she said, “but they didn’t have any following. They are 4 people and that is how many votes they got.” One has to understand that in the Speaker’s world, votes are what counts, and it is only with votes that you can determine the support that you have.” Congresswoman, Ocasio-Cortez, of course, fired off a rejoinder , but it lacked any punch, at least with the vast majority of the public.
POTUS continues to apply pressure to Chairman Powell and the Fed, in general, as he seeks to urge lowering of rates. The Wall Street Journal’s Report on this debate focuses primarily on Republican reaction, which appears to support the independence of the Fed and its current handling of interest rates. Several Republican Senators were quoted as saying that they view the economy as at a minimum being in a healthy place with strong job growth, strong stock market and low inflation among a number of factors they enumerated in stating their support for the Fed’s current approach to interest rates. There seems little reason for the Fed to reduce interest rates at this juncture other than succumbing to political pressure which, in and of itself, would send an extremely bad signal to banks and the stock market that would put greater uncertainty into the process which is never a good thing for the economy.
On the flip side of the Fed discussion, of course, is declining manufacturing strength and the weakening dollar, as well as the continuing trade tensions with China and the failure to move the USMCA across the goal line. The impact of the selection of a Prime Minister in England on Brexit is also dangling out there as a potential counterpunch to the world economy. Locally, it is interesting to note that unemployment in Clinton County is several tenths of a percentage below 4, and in surrounding counties, a bit over 4. This is significant only in the fact that I continue to hear from friends and clients that they struggle to hire competent and reliable employees. Late this week the Fed signaled it will lower rates, Mr. Powell has capitulated.
On the southern border the number of arrests are down significantly, although experts warn that is a one month phenomena and could be effected by things such as weather, and other factors unrelated to the efforts of the Trump administration and the Mexican government to decrease the number of individuals coming to the border. I would also remind listeners that there are 7 million jobs unfilled in the US, and with the unemployment rates so low it is unlikely that we are going to find reliable and competent employees in our midst. We need to develop a workable solution, and that may mean modifying the asylum law to provide a mechanism for seeking asylum, but maybe not something as automatic as simply touching US soil. Whether or not that would discourage asylum seekers from approaching the border is a more complex question, but I am simply urging all sides to at least gather data and attempt to apply some rational analysis.
Excerpts of Paul Ryan’s book were leaked and they don’t sound positive. POTUS responded as expected with name calling and other derisive comments. This will be an interesting book at worst. My guess is Ryan doesn’t go to far if he has any political ambition left.
POTUS struck out twice this week on healthcare reform. A Federal Judge threw out an attempt by the administration to create transparency in drug sales. The second setback was the administration having to pull back its drug rebate proposal (a complex plan at best) that was attempting to reduce prices. POTUS is having trouble finding the magic elixir to reduce healthcare cost. What are POTUS’s next steps? I forgot, he’ll tweet the problem away.
The President changed his mind again on the census citizenship question. Actually, I believe he got solid legal advice he listened to. You don’t end run SCOTUS and keep friends.
Mr. Owens is a former member of Congress representing the New York 21st, a partner in Stafford Owens in Plattsburgh, NY and a Senior Advisor to Dentons to Washington, DC.
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