The Daily Parker

Politics, Weather, Photography, and the Dog

The Laffer-stock of real economists

In a move one can bet the President Trump himself doesn't really understand, he will later today confer the Presidential Medal of Freedom—our nation's highest civilian honor—on fraud economist Art Laffer:

Laffer's journey to this moment began 45 years ago with a round of drinks in a Washington cocktail lounge. At the time, Laffer was a young economist at the University of Chicago, trying to persuade President Ford's deputy chief of staff — a guy named Dick Cheney — that lowering taxes could actually boost government revenue.

"Art was trying to explain to Cheney how the Laffer Curve works," recalls Grace-Marie Turner, a journalist who later went to work on Ford's reelection campaign.

Cheney was struggling with the idea, so Laffer resorted to a visual aid.

"He sketched out this Laffer Curve on a paper cocktail napkin at the Hotel Washington, just across the street from the White House," Turner said.

Nobel laureate economist Paul Krugman has had a lot to say about Laffer over the years. For example:

Back in 1980 George H. W. Bush famously described supply-side economics — the claim that cutting taxes on rich people will conjure up an economic miracle, so much so that revenues will actually rise — as “voodoo economic policy.” Yet it soon became the official doctrine of the Republican Party, and still is. That shows an impressive level of commitment. But what makes this commitment even more impressive is that it’s a doctrine that has been tested again and again — and has failed every time.

Yes, the U.S. economy rebounded quickly from the slump of 1979-82. But was that the result of the Reagan tax cuts, or was it, as most economists think, the result of interest rate cuts by the Federal Reserve? Bill Clinton provided a clear test, by raising taxes on the rich. Republicans predicted disaster, but instead the economy boomed, creating more jobs than under Reagan.

Then George W. Bush cut taxes again, with the usual suspects predicting a “Bush boom”; what we actually got was lackluster growth followed by a severe financial crisis. Barack Obama reversed many of the Bush tax cuts and added new taxes to pay for Obamacare — and oversaw a far better jobs record, at least in the private sector, than his predecessor.

So history offers not a shred of support for faith in the pro-growth effects of tax cuts.

The recent history of Kansas also provides just the evidence you need to conclude the Laffer curve is laughable.

Essentially, then, the president is handing out a medal to a party stalwart, much as previous authoritarian rulers would have handed out the Order of Lenin. We can no doubt expect more of this over the next two years.

Between Iraq and a hard place

The Daily Parker will have a bit of activity today, so let me get the two political stories out of the way immediately.

First, Josh Marshall points out a yuge consequence of President Trump's constant lying: people have a hard time believing the administration's claim that Iran had anything to do with the attacks on oil tankers in the Gulf of Oman. He connects the dots:

[Y]ou don’t need to assume irrationality or perfidy on the part of the Iranians for them to be behind this. We had a deal with the Iranians backed by all the global powers. We broke the agreement and are now trying to strangle the Iranian economy with new sanctions. By historical standards those actions are reasonably understood to be acts of war. Low level attacks on commercial shipping just under the level that might trigger direct US retaliation has a clear logic to it.

On the other hand, pretty much every regional adversary has a strong incentive to mount some kind of false flag operation, or rush to blame the Iranians. At least a couple have recent histories of reckless, high-risk gambits to advance their perceived goals. The obvious player here is Saudi Arabia and its de facto ruler Mohammad bin Salman. Others seem possible as well.

US claims are further undermined by statements from the owner of the Japanese tanker. The President of the company didn’t dispute or validate the US accusations about who was at fault but contradicted how the US claims the attack happened. The US says it was a mine. The tanker owner said it was a flying object (presumably a missile or projectile of some sort) which had an impact entirely above the ship’s waterline. That doesn’t inspire a lot of confidence in the US version of events.

The truth is all the players involved have huge incentives to lie. And a few of them have very recent histories of the most flagrant falsehoods and dirty tricks on an international scale.

Second, the Atlantic's Adam Serwer bemoans the right wing trend to abandon democracy when they lose their arguments:

The tide of illiberalism sweeping over Western countries and the election of Donald Trump have since renewed hope among some on the religious right that it might revive its cultural control through the power of the state. Inspired by Viktor Orbán in Hungary and Vladimir Putin in Russia, a faction of the religious right now looks to sectarian ethno-nationalism to restore its beliefs to their rightful primacy, and to rescue a degraded and degenerate culture. All that stands in their way is democracy, and the fact that most Americans reject what they have to offer.

The past few weeks have witnessed a nasty internecine fight among religious conservatives about whether liberal democracy’s time has passed. Sohrab Ahmari, writing at First Things, attacked National Review’s David French for adhering to a traditional commitment to liberal democracy while “the overall balance of forces has tilted inexorably away from us.” Would the left have stood by liberal democracy in the face of such circumstances? In fact, the balance of forces tilted away from the left’s cultural priorities for most of my lifetime, and the left’s response was to win arguments—slowly, painfully, and at incalculable personal cost.

We've always known the right were crybabies. And we've always known that they are on the losing side of history. But they're not going quietly into the night; nor are they trying to convince anyone through logic. Same as always.

Epic trolling, or actually that dumb?

Tucker Carlson last night spent a full 90 seconds ranting against the "yoke of tyranny" called the "metric system:"

Fox News host Tucker Carlson railed against the metric system of measurement in his show on Wednesday night, describing it as "inelegant" and "creepy." James Panero, a cultural critic and executive editor of The New Criterion, joined Carlson for the segment.

Panero recently wrote an article for The Wall Street Journal attacking the metric system with its meters and kilograms and urging America to stick to its customary system of measurement, which resembles the old British Imperial system.

"Almost every nation on Earth has fallen under the yoke of tyranny—the metric system," Carlson said. "From Beijing to Buenos Aires, from Lusaka to London, the people of the world have been forced to measure their environment in millimeters and kilograms. "The United States is the only major country that has resisted, but we have no reason to be ashamed for using feet and pounds."

Panero called the metric system "the original system of global revolution and new world orders."

Carlson replied: "God bless you, and that's exactly what it is. Esperanto died, but the metric system continues, this weird, utopian, inelegant, creepy system that we alone have resisted."

They went on to laud the "ancient wisdom" of 12s and 60s that divide more easily into thirds, as opposed to the international system that's "totally made up."

I really wish I had made this up.

Knowing a bit about Carlson, I really can't tell if he's trolling. He may actually believe all of this. But knowing a bit about Fox News, it seems more likely that this rant fits more in the us-vs-them dynamic Fox encourages in its viewers. Anti-intellectualism separates "real muricans" from the kilogram-loving "coastal elites," I suppose.

I wonder if anyone told his viewers that most of our economy outside agriculture, and all of our defense spending, uses SI units?

Whatever. As Media Matters says, this is all part of Carlson's "absurd, ongoing caricature of 'the left'."

Who we honor

In a move that surprised no one but disappointed millions anyway, Treasury Secretary Steve Mnuchin told Congress yesterday that the Treasury has put on hold plans to replace Andrew Jackson with Harriet Tubman on the $20 note until President Trump leaves office:

Plans to unveil the Tubman bill in 2020, an Obama administration initiative, would be postponed until at least 2026, Mr. Mnuchin said, and the bill itself would not likely be in circulation until 2028.

Until then, bills with former President Andrew Jackson’s face will continue to pour out of A.T.M.s and fill Americans’ wallets.

Mr. Mnuchin, concerned that the president might create an uproar by canceling the new bill altogether, was eager to delay its redesign until Mr. Trump was out of office, some senior Treasury Department officials have said. As a presidential candidate in 2016, Mr. Trump criticized the Obama administration’s plans for the bill.

When Republicans and other propagandists say that the "media" frame perfectly innocuous behavior such that it makes President Trump look like a racist asshole when in fact he isn't, things like this remind us that the facts have an anti-Trump bias.

So, to recap, the administration won't go through with plans to change the portrait on the $20 note from a slave-holding, genocidal, ignorant hick who cheated his way into public office, to a former slave who led hundreds of other slaves to freedom and helped drive slavery off the continent. And the best reason Mnuchin can give for the decision is that Treasury "was now focused on enhancing the anti-counterfeiting security features of the currency."

Let's all do what we can to make sure the President and Mnuchin all leave office in January 2021.

Stupid anti-union tricks

Delta Airlines' management showed this week that they have no clue how their greed comes across:

Two posters made by Delta as part of an effort to dissuade thousands of its workers from joining a union drew a torrent of criticism after they were posted on social media Thursday.

The posters included messages targeting the price of the dues that company workers would be paying if the union formed.

“Union dues cost around $700 a year,” one noted. “A new video game system with the latest hits sounds like fun. Put your money towards that instead of paying dues to the union.”

The other, with a picture of a football, was framed similarly.

“What does $700 mean to you?” it said. “Nothing’s more enjoyable than a night out watching football with your buddies. All those union dues you pay every year could buy a few rounds.”

Delta made $5.2 billion in pre-tax income in 2018 and gave away about $1.3 billion to its employees in bonuses, according to the Atlanta Journal-Constitution.

Union supporters were quick to point to the company’s financial success in recent years — it made $10.5 billion in revenue the first quarter of the year and saw its profits increase 31 percent to $730 million. Its chief executive, Ed Bastian, reportedly received $13.2 million in compensation in 2017.

Nice work, Delta. Yet another reason I fly American.

The fart of the deal

Everyone knew that Donald Trump lost millions on bad business deals and bad management in the 1980s and 1990s. But we never knew how badly he dealt and managed until now. The New York Times obtained official IRS data on Trump's tax returns from the years 1985 to 1994, showing he lost a staggering $1.17 billion during that period—equivalent to more than $2 billion today:

Mr. Trump appears to have lost more money than nearly any other individual American taxpayer, The Times found when it compared his results with detailed information the I.R.S. compiles on an annual sampling of high-income earners. His core business losses in 1990 and 1991 — more than $250 million each year — were more than double those of the nearest taxpayers in the I.R.S. information for those years.

Over all, Mr. Trump lost so much money that he was able to avoid paying income taxes for eight of the 10 years. It is not known whether the I.R.S. later required changes after audits.

The new information also suggests that Mr. Trump’s 1990 collapse might have struck several years earlier if not for his brief side career posing as a corporate raider. From 1986 through 1988, while his core businesses languished under increasingly unsupportable debt, Mr. Trump made millions of dollars in the stock market by suggesting that he was about to take over companies. But the figures show that he lost most, if not all, of those gains after investors stopped taking his takeover talk seriously.

Jennifer Rubin finds five takeaways from the report, and Trump's non-denial of it. Her final point is spot-on:

Finally, do not expect the revelations to dim the Trump cult’s reverence for its leader. If he isn’t really as rich as he said, they will commend him for pulling a fast one (even on voters). If the story is false, it’s one more bit of evidence for their media paranoia. Sadly, the Fox News and talk-radio crowd long ago jettisoned any concerns that they’ve invested their hopes in a con man, someone who has lied and finagled his way through life and into the White House. To admit that would be to recognize they were dupes, victims of another Trump scam. That, they will never do.

The Trump cultists have gone this far and they will go farther. As Matt Ford says, we have not even begun to approach "peak Trump." It's going to be a very long 18 months until the next election.

Well, yes, and he still might be

So far, 657 former Federal prosecutors, appointed by presidents from both parties, have signed a letter pointing out the obvious conclusions of the Mueller Report:

Each of us believes that the conduct of President Trump described in Special Counsel Robert Mueller’s report would, in the case of any other person not covered by the Office of Legal Counsel policy against indicting a sitting President, result in multiple felony charges for obstruction of justice.

The Mueller report describes several acts that satisfy all of the elements for an obstruction charge: conduct that obstructed or attempted to obstruct the truth-finding process, as to which the evidence of corrupt intent and connection to pending proceedings is overwhelming. These include:

· The President’s efforts to fire Mueller and to falsify evidence about that effort;

· The President’s efforts to limit the scope of Mueller’s investigation to exclude his conduct; and

· The President’s efforts to prevent witnesses from cooperating with investigators probing him and his campaign.

As former federal prosecutors, we recognize that prosecuting obstruction of justice cases is critical because unchecked obstruction — which allows intentional interference with criminal investigations to go unpunished — puts our whole system of justice at risk. We believe strongly that, but for the OLC memo, the overwhelming weight of professional judgment would come down in favor of prosecution for the conduct outlined in the Mueller Report.

At some point, the president will leave office. Could the DOJ indict him at that point? The statute of limitations on obstruction is 5 years.

Each of the Republicans in the Senate who continue to cover for the president are complicit in this obstruction. So are the cabinet officials, including Attorney General Barr, who continue to obfuscate or outright lie about it.

The election is in 546 days.

Republicans don't want POCs to vote

In Florida yesterday, despite a constitutional amendment giving felons the right to vote after they've completed their sentences, the Republican-controlled legislature passed a law effectively preventing thousands of them from voting:

In a move that critics say undermines the spirit of what voters intended, thousands of people with serious criminal histories will be required to fully pay back fines and fees to the courts before they could vote. The new limits would require potential new voters to settle what may be tens of thousands of dollars in financial obligations to the courts, effectively pricing some people out of the ballot box.

The new restrictions have been attacked by civil rights groups and some of the initiative’s backers as an exercise in Republican power politics, driven by fears that people with felony convictions are mostly liberals who could reshape the electorate ahead of presidential elections in 2020 and beyond. Republicans have dominated Florida’s state government for more than two decades, but elections are often decided by a fraction of a percentage point.

Civil rights organizations [say] that legislators went too far, and that the more than five million Floridians who voted for the ballot measure did not intend for court debts to become an exception to the right to vote. The text of Amendment 4 said voting rights would be automatically restored for felons “after they complete all terms of their sentence including parole or probation.”

Republicans in power will do anything they can to stay in power. They don't want to govern; they want to rule. And letting people vote gets in the way of ruling.

Busy news day

A large number of articles bubbled up in my inbox (and RSS feeds) this morning. Some were just open tabs from the weekend. From the Post:

In other news:

And now, to work, perchance to write...

Barr's press conference, re-imagined

The always-incisive Alexandra Petri provides a more honest view of AG William Barr's press conference yesterday:

Hello, everyone. I am here to repeat the words “no collusion” as many times as I can without sounding suspicious, but first, I would like to thank Rod Rosenstein. He is here standing behind me. He had plans to step back from public service before I came along and asked him to assist me. Then again, some would argue that by assisting me, he did not perform a public service. Anyway, he is here.

I would also like to thank Robert Mueller for making this report for me to redact. I feel like it is a joint creation between the two of us. He is not standing here with me today. Instead, there is a bearded man who, no doubt, is familiar to you all. I will certainly not introduce him at any point. I will leave his identity to your imagination! Worst-case scenario, this will just accustom you to seeing strange facts without context, something that will help you as you consume the report!

The good news is that, although the Russian government did interfere in the 2016 election with hacking and disinformation campaigns, it did not do so literally at the behest of the Trump campaign, in my opinion. Was that the opinion of the Mueller team? Who can say? But if it wasn’t, it should have been, I think. Make no mistake, Russia did interfere to help him, but this effort was just sort of a fun lagniappe. Nobody asked for it.

The Post has the full (redacted) Mueller report online. I'll be reading it on a plane today.