(What’s Left of) Our Economy: The Case for Confidence in the Consumer Confidence Surveys May be Weakening

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Barack Obama, confidence, consumers, Democrats, George H.W. Bush, George W. Bush, independents, Republicans, Ronald Reagan, Trump, University of Michigan Surveys of Consumers, {What's Left of) Our Economy

Since psychology and emotions can affect how much individuals and companies spend and invest, and since U.S. economic growth does show signs of slowing from a solid but less-than-torrid pace, surveys purporting to track levels of consumer and business confidence understandably have attracted much more attention than usual.

One big possible problem, though: This era’s white hot political partisanship may be undercutting the usefulness of these soundings. The evidence comes from the widely followed University of Michigan survey of consumer sentiment, and it indicates both that such partisanship has greatly increased and influenced the results since the 1980s administration of President Ronald Reagan, and that most recently, more of this bias has been demonstrated by Democrats than Republicans.

The Michigan findings – which break out results according to whether respondent “usually think” of themselves as Republicans, Democrats, Independents, “or what?” – don’t permit conclusions on longer term trends to be drawn with great confidence. That’s mainly because the university’s Survey Research Center presents only five months worth of results for the Reagan administration, which lasted for eight years, and only twelve months worth for George W. Bush’s similar two-term presidency. Nonetheless, the data for those two periods do contrast significantly with those for the Obama and Trump administrations, which are complete (and bring the story up through this month).

My measure of partisanship compares the degree to which the results for Republican and Democratic identifiers (for the headline Michigan number) diverge from the results for Independent identifiers – which I use as a proxy for non-partisanship, based on the assumption that such Americans don’t permit politics to impact their views on the economy. For example, if during a given month, Independents’ assessment of the economy registers as a 50, Democrats’ as a 20, and Republicans as a 60, the Democrats’ views would be judged to be more partisan. In order to produce figures for each presidency, I calculated the average monthly totals for each of the three political groups for the duration of that President’s administration.

This method shows, not surprisingly, that partisanship has always influenced assessments of confidence. That is, when Democratic Presidents hold office, Democrats’ confidence levels are invariably higher than Republicans’, and vice versa. But during the Reagan years, the average monthly ratings for the economy found by the Michigan researchers were Democrats, 87.66; Independents, 98.14; and Republicans, 108.12.

So the partisan effect clearly was present, but the Democrats’ and Republicans’ perceptions diverged from those of the Independents by about the same degree.

No results are presented for either George H.W. Bush’s nor Bill Clinton’s administrations, but the results for George W. Bush’s presidency were Democrats, 63.48; Independents, 66.04; and Republicans, 78.38. That is, Democrats were only slightly more downbeat. More specifically, their ratings of the economy were 96.12 percent as good as the Independents’, while the Republicans’ was 118.69 percent of the Independents’.

During the Obama years, these results were almost exactly reversed: The average confidence level recorded for Democrats was 84.61; for Independents, 72.67; and for Republicans, 69.63. In this case, the Republican ratings were 95.12 percent as good as the Independents’, while the Democrats’ were 116.43 percent of the Independent’ score. But the partisanship showed by the Democrats under President Obama was still almost exactly as great as that showed by the Republicans when George W. Bush served in the Oval Office.

This pattern has continued through Donald Trump’s presidency so far, but Democratic partisanship looks somewhat stronger compared with the results for the Obama years. During the 32 Trump months, the average Democrat’s rating for the economy has been 76.61, the average Independent’s was 96.37, and the average Republican’s was 120.14. As a result, the Democrats’ judgments on the economy have been only 79.50 percent as positive as the Independents,’ but the Republicans’ has been 124.67 percent the size of the Independent score.

Put differently, during the Obama years, the Republicans’ judgments about the economy nearly matched the Independents’ (being 96.12 percent of the Independents’ average), but during the Trump years, the Democrats’ judgments came to only 79.50 percent of the Independents’ average. Both Democrats and Republicans were much more bullish on the economy under their respective Presidents than were Independents, but the Republicans’ “over-optimism” under Mr. Trump hasn’t been dramatically greater than the Democrats’ “over-optimism” under Mr. Obama.

Another sign of relatively great Democratic partisanship:  According to the Michigan research, Democrats’ optimism about the economy so far this year has weakened much faster than Republicans’.  And Independents’ confidence is actually up slightly so far. 

One cause for optimism about assessing consumer confidence stems from the divergence between the results for the Trump presidency and those for his predecessors recorded by the Michigan researchers. They could suggest that the Trump years are outliers, and that if he’s defeated in 2020, partisanship will remain significant, but will return to normal levels – at least for recent decades. Pessimists, however, can just as reasonably argue that the Trump years might represent a decisive break from the recent past. If the latter group is right, assessing the economy’s prospects by using consumer sentiment surveys – already a challenging task –will become more difficult than ever.

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(What’s Left of) Our Economy: Weak Real Wage Increases Under Trump Now Look Only a Little Less Weak

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Bureau of Labor Statistics, Democrats, election 2020, inflation adjusted wages, manufacturing, private sector, real wages, Trump, wages, {What's Left of) Our Economy

Those same new official U.S. inflation statistics that reveal how President Trump’s tariffs have or haven’t affected consumer prices can also show whether American workers’ paychecks have been keeping up with the (slowly) rising cost of living. And the latest Bureau of Labor Statistics (BLS) data contains some good news for the nation’s employees, for its manufacturing workers in particular, and as a result for President Trump – although mainly in comparison to inflation-adjusted wages’ lackluster previous performance during his administration.

According to the new real wage figures (which bring the story up to June), price-adjusted pay for workers in the private sector overall rose by 0.18 percent sequentially last month – about in line with the results for the last few months. The year-on-year numbers, though, were much better. Price-adjusted wages improved by 1.49 percent between June, 2018 and June, 2018 – compared with their bare 0.09 percent increase between the previous Junes. (The BLS doesn’t look at government workers’ pay because that’s largely the result of politicians’ decisions, and thus says little about the state of the national labor market.)

The only fly in this ointment: This year so far, annual advances in private sector wages have lost some momentum. The June year-on-year rise was somewhat lower than its January counterpart (1.68 percent).

Real wages in manufacturing lately have made better progress, reversing a trend that’s held until very recently. On a monthly basis, they were up 0.19 percent in June, slightly better than the increase for the private sector generally. The June annual rise of 0.64 percent was less than half the overall private sector figure, but was much better than the change between June, 2017 and June, 2018. Yet that’s only because during that period, real manufacturing wages actually fell by 1.10 percent.

And over longer time periods, the manufacturing results have been similarly mixed compared with the trends for private sector wages generally. For instance, during this calendar year so far, the advance in real manufacturing wages has been more than twice as fast as that for all private sector workers – 0.37 percent to 0.18 percent. Alternatively put, whereas the annual gains in real private sector wages have slowed since January of this year, the 0.64 percent June figure for manufacturing represents a major acceleration from January’s 0.09 percent rate.

Constant dollar manufacturing wages have even closed the immense gap that opened earlier during the current economic recovery with overall private wages.

From the mid-2009 beginning of the ongoing economic expansion (American history’s longest ever) to this June, after-inflation manufacturing pay is up only 1.03 percent in toto versus the 6.01 percent increase for the overall private sector. In other words, the real private sector wage improvement, however modest in and of itself, has been 5.83 times faster.

As of the previous June, however, the gap was 12.05 to one – more than twice as great.

Nevertheless, when it comes to real wages, President Trump still faces a big political problem: Under his administration so far, they’ve risen much more slowly than during the most comparable Obama administration period, both for the private sector overall and especially for manufacturing.

Specifically, during the first 28 months of President Trump’s tenure, after-inflation private sector wages have increased by only 2.25 percent in all, and real manufacturing wages have inched up only 0.09 percent. During the last 28 months of the Obama administration, these numbers were 3.09 percent and 3.52 percent, respectively. If the real wage increases and the private sector-manufacturing gap don’t start getting considerably better soon, expect to hear a lot about such numbers from smart Democrats as the 2020 election approaches.

Im-Politic: Muddled Iran Deal Messages from the Democrats

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allies, Amy Klobuchar, Cory Booker, Democratic Party, Democrats, election 2020, foreign policy, Im-Politic, Iran, Iran deal, Iran nuclear deal, JCPOA, Joint Comprehensive Plan of Action, Kamala Harris, McClatchy News Service, Obama, oil, Persian Gulf, sanctions, Trump

The usual gang of political observers and commentators (apologies to the soon-to-be-departed Mad magazine) seem to agree that this year’s Democratic candidates for President haven’t been paying much attention yet to foreign policy. Here’s my explanation: The more many of them say about the subject, the clearer their ignorance and incoherence will become, and the last few weeks have just provided a splendid example – public positions stake out on whether to rejoin the 2015 international deal aimed at curbing and slowing Iran’s nuclear weapons development.

You’ll recall that the Iran deal (officially known as the Joint Comprehensive Plan of Action, or JCPOA) was signed by the Islamic Republic on the one hand, and China, France, Germany, Russia, the United Kingdom, and the United States on the other. Under its terms, Iran agreed to certain restrictions on its nuclear program in return for substantial relief from various, mainly economic, sanctions imposed by some of these individual countries, along with the United Nations as a whole, in retaliation both for Iran’s nuclear and some other activities deemed unacceptable threats to international security.

Even the deal’s backers conceded some serious flaws, but insisted that its terms were the best possible given divisions among the United States, its allies, and Russia and China about how hard to press Iran (generally due to differences over the value of resuming commerce as usual with Iran). I initially bought this line, too. But as I recently wrote, ensuing developments – mainly the devastating impact on Iran’s economy of unilateral U.S. sanctions reimposed by Washington once President Trump withdrew from the agreement in May, 2018 – makes clear that Iran’s interlocutors had much more leverage than they (including then President Obama) claimed, and that a better deal was always possible.

Enter the 2020 Democrats. Understandably, they’re seeking to criticize the Trump foreign policy record whenever they can, and many have attacked his decision to pull out of the JCPOA. But most of these attackers have implicitly expressed agreement with the Trump view that the deal can and must be improved.

Take Flavor of the Month Kamala Harris. According to the first-term California Senator, Mr. Trump deserved the blame for the recent rise in tensions in the Persian Gulf that culminated in alleged Iranian attacks on oil tankers and an American drone because he “put in place a series of events that led to” those moves. By this she of course meant Iran’s apparent decision to follow through on its threats to defend legitimate interests it sees as threatened by (a) the United States’ overall economic “maximum pressure” campaign aimed at ending Tehran’s alleged regional aggression, and (b) more specifically by the Trump administration’s cancellation of sanctions waivers that had permitted other countries to buy some of the oil Iran desperately needs to sell in order to stay afloat economically.

As the Islamic Republic stated, it would seek to press the other signatories to convince the United States to back off the sanctions by pulling out of several provisions of the nuclear deal (chiefly, those limiting its ability to create bomb-grade uranium) and by preventing any other countries from importing any Persian Gulf oil themselves.

How would Harris respond? She told a CBS News reporter, “Well frankly, I believe that we need to get back into the Iran nuclear deal.” That’s certainly logical, since respecting the deal’s terms would require that Washington drop its sanctions, presumably granting Iran the economic support it’s seeking and eliminating any reason for attacking Gulf shipping.

But she then (unwittingly, it seems) endorsed the position of the President and other critics that deal improvements are urgently needed – and possible: “I would strengthen it. I would include ballistic- ballistic missile testing. I think that we can strengthen what we do in terms of monitoring and verification, of progress.” Never mind, of course, that there’s no sign to date that any of the other signatories agree.

And to compound the confusion, Harris proceeded to pivot back to praise for the agreement as-is: “But there’s no question that a lot of negotiation with a great deal of depth took place over a long period of time to reach that agreement, and it was it was an agreement that was being complied with by all parties.”

My head is spinning, and yours should be, too.

But evidently Senators Cory Booker of New Jersey and Amy Klobuchar of Minnesota understand Harris’ message perfectly. Because it’s their message, too.

In their initial presidential debate appearances, both these supporters of the original deal attacked the Trump pull-out but their support for reentry seemed linked to implementing changes.

Said Booker ““It was a mistake to pull out of that deal. Donald Trump is marching us to a far more difficult situation.” But he then promised, “If I have an opportunity to leverage a better deal, I’m going to do it.”

Klobuchar charged that the Trump pullout “made us less safe” because although the agreement “was imperfect…it was a good deal for that moment.” But apparently she now worries that – just a few years later – the moment has passed. For she suggested that (according to the McClatchy News Service summary cited above) “the agreement’s ‘sunset periods’ – caps on Iran’s enrichment and stockpiling of fissile material set to expire five to 10 years from the next inauguration– [are] a potential point of renegotiation.” Of course, the short duration of these caps was cited by deal critics as a major weakness.

A common aphorism holds that it’s “Better to remain silent and be thought a fool than to speak and to remove all doubt.” If these Iran deal stances are any indication, most Democratic candidates are demonstrating major political smarts, at least, by avoiding foreign policy issues.

(What’s Left of) Our Economy: Are Soaring Prescription Drug Prices Really a Thing?

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2020 elections, Bureau of Labor Statistics, core inflation, Democrats, healthcare, inflation, prescription drugs, Trump, {What's Left of) Our Economy

Prescription drug prices keep skyrocketing outrageously – at least, that’s what’s constantly reported.  And much of the evidence looks especially impressive:  Politicians who normally agree on nothing have vowed to rein them in – including President Trump and Democrats of all stripes, including many of the party’s presidential candidates.

So imagine my surprise when I checked into these claims by examining the consumer price data issued by the U.S. Bureau of Labor Statistics each month. They show that these prices have actually fallen on net since December, 2017 (by 0.43 percent).

Moreover, these figures also show that prescription drug prices have fallen during the past year (through May, by 0.99 percent), and that they’re dropping even though the rate of overall inflation and core inflation (which strips out volatile food and energy prices) has been rising (year-on-year by 1.80 percent and two percent, respectively).

Nor has there been a notable increase in prescription drug prices during this calendar year. From January through May, they’ve risen by 0.16 percent. But that’s still considerably less than the overall inflation rate (0.98 percent) and the core rate (0.51 percent).

That’s not to say that there hasn’t been a prescription drug price problem. For example, from May, 2017 to May, 2018, their prices rose by 3.71 percent – much faster than the overall inflation rate (2.74 percent) and the core (2.22 percent).

Moreover, during the last 27 months of the Obama administration, prescription drug prices increased by 11.14 percent, versus 2.67 percent for overall inflation, and 4.78 percent for core inflation. During the first 27 months of the Trump administration, however, these numbers are 2.07 percent, 4.59 percent, and 4.37 percent.

Americans still pay lofty prices for prescription drugs, and especially compared with consumers in other wealthy countries. It’s also important to point out that drug pricing is complicated. (Here are some of the reasons.) And I confess to having no idea why this pricing has been weak lately, and whether the decline will continue.

But when one of the country’s leading measures of inflation is saying that prescription drug prices have been going down, that should be pretty newsy. Even if “everyone knows” they’re soaring.

Im-Politic: On the Democrats’ Debates

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African Americans, Amy Klobuchar, Barack Obama, Bernie Sanders, Beto O'Rourke, China, Cory Booker, debates, Democratic Party, Democrats, Democrats debates, economy, election 2020, Elizabeth Warren, Im-Politic, Joe Biden, Kamala Harris, Michael Bennet, Pete Buttigieg, race relations, tariffs, Trade, Trump

So thanks to last week’s two debates, we’ve now seen most of the Democratic presidential candidates in, as sportscasters like to say, “limited action,” and have had some time to ruminate about the results. Here’s my sense of some of the biggest takeaways.

>The Democrats generally are in denial about the health of the economy. This problem became clear immediately, as the first question on Night One, posed to Massachusetts U.S. Senator Elizabeth Warren, noted that her “many plans” for the economy come “at a time when 71 percent of Americans say the economy is doing well, including 60 percent of Democrats. What do you say to those who worry this kind of significant change could be risky to the economy?”

Warren’s response? Ignore the cited polling data and claim – presenting no evidence – that “Who is this economy really working for? It’s doing great for a thinner and thinner slice at the top.” For good measure, sharing her fact-free perspective at the outset were her Minnesota Senate colleague Amy Klobuchar, and former Texas Congressman Beto O’Rourke. And don’t forget former Vice President Joe Biden’s charge on Night Two that “Donald Trump has put us in a horrible situation” economically. Or California Senator Kamala Harris’ view that the economy is great only for those who own stocks.

No one is saying that too many Americans aren’t still being left behind in an economy that’s unmistakably shifted into a somewhat higher gear under President Trump. No one is saying that the economy hasn’t shown some signs of slowing. (See, e.g., this recent post.) No one is saying that the economy is going to be a decisively winning Trump issue in 2020. (This new poll throws lots of cold water on that proposition.) And no one is saying that because the economy is so far performing pretty well, Americans are especially happy about the overall state of the union. (Survey results like these make clear that they’re not.)

But no one should be feeling too great about so many politicians remaining so deeply in denial (or at least pontificating as if they are) about a state of affairs that is so easy to document.

>Kamala Harris is simply race-baiting. Let’s assume that all of the California U.S. Senator’s allegations about former Vice President Joe Biden’s record on school busing decades ago are completely accurate. How can the conclusion be avoided that she’s trying to portray Biden as remaining deficient as racial issues today, and in the process, stir up the worst kinds of national divisions? After all, he served as the second-in-command to the nation’s first African-American president. Black politicians, and especially long-serving black politicians, have publicly praised him as a long-time trusted ally.

In other words, whatever Biden’s past shortcomings on race, nothing could be more obvious than that they’ve vanished in every meaningful way, and in every way relevant to policymaking. It’s no longer possible accurately and responsibly to depict him as a problem for the African-American community. Harris’ indictment also indicates a refusal to acknowledge that individuals can learn, evolve, and grow, and to give them any credit when they do.

I recently spoke about this privately with an African-American friend who argued that the real Biden race problem that’s emerged recently stemmed from his indignant response to similar allegations and insinuations by New Jersey Senator Cory Booker, another 2020 African-American Democratic hopeful. In other words, Biden’s refusal to apologize for comments about racist southern Senators signaled an insensitivity to racial slurs (like describing African-American men as “boys”) that could well prompt younger blacks to stay at home in the fall of 2020, and boost Mr. Trump’s odds of reelection.

I don’t disagree with that political analysis at all (though I don’t consider it a foregone conclusion, either). But politics aside, that would point to the same type of intolerance, censoriousness, and sanctimony being displayed by Harris. More of this, America these days clearly doesn’t need.

>Biden performed better than I expected. The former Vice President and still 2020 Democratic front-runner has widely been declared a major loser in his debate exchange with Harris, and poll results reinforce that conclusion. I agree that Biden was poorly prepared for attacks on racial issues that he must have known would come that evening from someone. In particular, his substantive defense of his busing record – that he only opposed a sweeping federal mandate – did indeed (as Harris charged) ignore the decisive role that the Federal government has regularly needed to play in advancing civil rights when state government were either hostile or indifferent to the cause.

Nevertheless, Biden certainly didn’t act like the “Sleepy Joe” he’s been labeled as by President Trump, and that seemed like an apt description for some of his more disjoint moments in these early phases of the 2020 election (for example, this rambling discussion of the China challenge). He flashed temper (or at least indignation), he sounded articulate, he stood tall, his energy level didn’t notably flag. In fact, assuming that his health holds up (he turns 77 in November), Biden looked like a candidate who could mix it up with Trump on a debate stage. As demonstrated by the race relations storm he’s kicked up, however, he’s as gaffe-prone as ever.

>The Democrats have no grip on China issues. Sure, they generally acknowledge that China poses problems for the United States (but there’s some disagreement as to what they are). But few so far have offered realistic solutions to these problems.

For example, Senator Michael Bennet of Colorado, “I think the president’s been right to push back on China but he’s done it in completely the wrong way. We should mobilize the entire rest of the world who all have a shared interest in pushing back on China’s mercantilist trade policies and I think we can do that.”

What a shame that he was never asked why countries like Germany, Japan, and South Korea, which profit enormously from selling sophisticated industrial machinery to China, would want to see any slowing in U.S.-China trade when so many of those machines are used in factories that supply the American market?

Mayor Pete Buttigieg of South Bend, Indiana agrees that the China challenge “is a really serious one,” but seemed most concerned that the Chinese are “using technology for the perfection of dictatorship.” He endorsed the stale and misleading “tariffs are taxes” trope, and insisted that “the biggest thing we’ve got to do is invest in our own domestic competitiveness.” He never explained if he’s OK with the infrastructure the nation unmistakably needs being manufactured in China and elsewhere abroad, or why “education” is so critical when children in China and everywhere else have the same capacity to capitalize on their learning as children in America – even though population considerations will long ensure that their wages stay orders of magnitude lower no matter how advanced the work they do.

Interestingly, Sanders is the only Democratic hopeful with a lengthy record of voting in Congress on China trade and related economic issues – always correctly (in my view) opposing reckless expansion. That explains CNBC’s ironic but on-target recent observation that “Sanders in particular has targeted Trump because his trade views overlap with the president’s.” And hence mushy Sanders statements like “I think we do need new trade policies that are fair to the working people of this country not just to the CEOs, but as usual, I think Trump gets it wrong in terms of implementation,”

Warren seems equally conflicted, agreeing with Mr. Trump that “tariffs are one part of reworking our trade policy overall” but lamely chiding him for engaging in “tariff negotiation by tweet” instead of “fighting back” with “strength and a coherent plan, not with chaos.”

Indeed, Warren has a detailed-looking plan for implementing a strategy of “economic patriotism.” It contains some good features, like what seem to be industrial policy proposals (with no real specifics), tightening up Buy American government procurement policies, and requirements that production that results from (amped up) taxpayer-funded research and development programs take place in the United States. But it’s unclear whether she realizes that tariffs are going to be central to their success. In addition, she appears quite enamored with devaluing the dollar as a trade policy panacea. And she puts considerable stock in government-run training and reeducation programs that, to date, have been proven failures and that have long (as noted above) evidently assume that Americans are the most educable and train-able people on earth.

If you’re a Democrat, or any American who wants to see elections held between the most qualified candidates possible, the good news is that the party’s hopefuls will have eleven more debate chances to up their games. Unfortunately, it might also turn out that the nation will simply witness eleven more events marked by hollow, and too often angry, grandstanding.

Im-Politic: Signs of Hopeless Division or Potential Unity?

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Affordable Care Act, Democrats, election 2020, Gallup, healthcare, Im-Politic, Immigration, independents, Obamacare, Republicans, Trump

Polls like today’s Gallup survey that try to assess what national issues and problems are foremost in American’s minds are terrifically valuable, especially as big elections like the 2020 presidential race approach. Trouble is, Democrats and Republicans and independents of all kinds will struggle to find clear trends marked out in this morning’s survey, much less derive strong comfort from it.

The difficulties start with Gallup’s overall findings about how high various major issues rank on the public’s priority scale. Competing fiercely for the top spot, and mentioned more than twice as often as the next concerns, are “The government/poor leadership” (cited by 23 percent of respondents – in this case, “US adults”) and “Immigration” (cited by 21 percent). And to be more specific, the government/leadership option offered by Gallup included “Congress” and “politicians,” not simply the President. “Immigration” wasn’t further elaborated on.

In principle, some more light might be shed on who could benefit most from this poor government finding by examining the trends over time. But as the chart below shows, although the importance of the overall government issue began rising notably right after the last presidential election (indicating that President Trump is causing most of the anxiety), the ranking became unusually volatile in the middle of last year, and has stayed that way – including through 2019. This year, of course, has seen an unpopular partial federal government shutdown most often blamed on Mr. Trump, rising levels of partisan rancor, and the climax (for now) of the Russia scandals investigation. On the whole, though, it seems reasonable to conclude that this issue is cutting somewhat against the President.

Some evidence to the contrary, however, comes from the current separate figures for Democrats, Republicans, and independents. Democrats express the most concern about the quality of government and leadership, with 32 percent pegging it as the country’s top problem. But although only 21 percent of Republicans chose this option, that result was much closer to that of independents (19 percent) than the Democrats figure. Both independents and especially Republicans are much likelier than the Democrats to blame government failings on the Democrats who now control the House of Representatives, and therefore wield much more power in Washington than during Mr. Trump’s first two years in office.

Using these criteria, the Gallup immigration findings look even more promising for Mr. Trump. It’s true that using that single noun to describe the issue masks the distinction between respondents who consider current U.S. policy too restrictive or not restrictive enough.

But assuming – not too controversially – that Republicans favor more immigration curbs, Democrats fewer, and independents as a group coming down somewhere in the middle, it seems apparent that immigration-motivated Americans are likelier to be Republican and Trump voters. Indeed, only five percent of Democrats view immigration as the country’s biggest problem today, versus 18 percent of independents and 41 percent of Republicans.

As for the rest of the issues mentioned in the Gallup survey, the responses seem to offer hope for both parties. Relatively little concern is expressed about matters such as the economy in general, unemployment and jobs, poverty, and inequality – which looks like good news for Republicans and for the President, since these results clearly signal satisfaction with the so-called pocketbook issues. Ditto for the measly three percent figure recorded for climate change and other environmental issues combined, and the failure of gun violence even to make it into the rankings.

At the same time, Democrats should feel pretty pleased that “Ethics/Moral/Religious/Family decline” alarmed only three percent of respondents, and “Crime/Violence” topped the list for only two percent.

The most puzzling message sent by the Gallup results concerns healthcare – which, it’s widely agreed, helped the Democrats greatly during last year’s midterm elections, and could be a winner for them again in 2020, especially if Mr. Trump continues his war on Obamacare.

The seven percent of the public naming healthcare as the country’s biggest problem resulted in the third highest such score (behind “The government/Poor leadership” and immigration). But especially given its enormous importance for so many families’ finances no matter how the Obamacare fight turns out – and potentially into the future if the White House and both houses of Congress are won by Democrats seeking to expand coverage dramatically – seven percent is hardly astronomical.

But how should this number be interpreted? If it signals overwhelming satisfaction with the status quo, however uncertain its durability is Republicans could benefit – but probably only if they make clear that they won’t go for major change, either. Since Obamacare (officially known as the Affordable Care Act) has shaped the status quo, Democrats in principle could take heart – particularly if their most ambitious ideas on this front fall by the wayside.

And here’s the partisan split (which I don’t think undermines the above analysis): Healthcare is seen as America’s leading problem by three percent of Republicans, seven percent of independents, and 14 percent of Democrats.

This Gallup poll’s findings that so many different and even clashing concerns are troubling Americans these days – and in so many possibly different ways – could understandably be seen as evidence that Americans are hopelessly far from agreeing on national priorities. I prefer a more optimistic take: There’s a new winning consensus and lasting political realignment in the making if only the nation’s political leaders could break out of their ideological straitjackets and build it.

Im-Politic: “Mayor Pete’s” Fuzzy Turnaround Record

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Census Bureau, Democrats, election 2020, Im-Politic, Indiana, Mayor Pete, Mike Pence, Mishawaka, Notre Dame, Pete Buttigieg, South Bend

“Mayor Pete” Buttigieg’s now officially running for the Democratic nomination for President, and before long we’ll see if he can make the transformation from precocious (37-year old) “flavor of the moment” and all-purpose vessel for so many anti-Trump hopes to durable candidate. I’m hesitant to say, because I was among the vast majority of skeptics that Mr. Trump’s own 2016 run had a prayer of success.

What I do feel confident in saying is that anyone will find their work cut out for them if they try (as they should) to assess his record as Mayor of South Bend, Indiana, and especially his claim to have been a “turnaround” expert whose experience qualifies him to steer the American economy effectively.

The first problem they’ll encounter is finding South Bend-specific data during Buttigieg’s tenure (2012-2017). Not that statistics on U.S. cities’ economic performance are the slightest bit scarce. The Census Bureau collects and post oceans of it. But when it comes to South Bend, these figures tend to be lumped in with those for neighboring Mishawaka – which is wealthier. (See here and here for the evidence supporting that assertion and much of the following city-specific numbers.). Indeed, its median household income and property values are significantly higher, and its poverty rate much lower. So it’s tough to find many of these numbers and identify where whatever progress is shown during the whole of the Buttigieg years (and progress is definitely shown on indicators like economic and employment growth, and improvement in income per head) has taken place in which city.

Those that are available, however, aren’t especially flattering to South Bend. For example, between 2013 and 2016, South Bend’s median income advanced by 3.64 percent. Mishawaka’s (higher) median income rose by 4.35 percent. During that time, South Bend’s poverty rate fell by 3.92 percent (to 26.73 percent). But Mishawaka’s plummeted by 19.66 percent (to 17.41 percent).

It’s important to note that these data say nothing about the situation beforehand – so there’s no way to tell whether Buttigieg’s South Bend performed worse still before 2013, and therefore to know about at least some of the context of the 2013-2016 figures. But such numbers can be found for overall population – which matters because Buttigieg has emphasized that South Bend finally arrested a long population decline while he was in charge.

He’s right. From 2012 to 2017, the number of city inhabitants rose by 1.25 percent after decreasing by 3.21 percent during the previous five years. Mishawaka’s population (which is only about half of South Bend’s) loss between 2007 and 2012 was comparable – 3.12 percent. Yet during the 2012-2017 period was a more impressive 2.29 percent.  (See here and here for the data.)

Even accepting as useful the combined South Bend-Mishawaka statistics raises problems, though. Chiefly, it’s tough to find meaningful comparisons that can shed light on the area’s performance versus similar regions throughout the rest of the country. It’s pointless to compare South Bend-Mishawaka’s economic or employment growth with that of U.S. urban areas as a whole (which U.S. Commerce Department figures permit) because the latter is such a diverse group. After all, no one can reasonably hope to learn much meaningful by examining South Bend-Mishawaka side-by-side with New York or Los Angeles.

But the obstacles to finding metropolitan areas similar to South Bend-Mishawaka are formidable because of one of its major features – large and wealthy Notre Dame University. The school is a major contributor to the region’s economy, but the resulting situation is unique in Indiana because it’s a private, not state institution. In fact, it’s hard to come up with any South Bend-sized American cities hosting a single major private university. The only one that’s occurred to me is way out in Washington State, where Spokane (with a population roughly twice as big as South Bend proper) is home to Gonzaga University (whose enrollment is somewhat smaller than Notre Dame’s).

In fact, not only has Notre Dame given Buttigieg a major advantage not enjoyed by many, if any, of his genuine mayor peers. As early as the 1990s, it began to change its practice of standing aside from the city economically and using its resources to promote the economic and specifically technology-oriented business development that’s been a big Buttigieg rhetorical theme. Moreover, the city’s centerpiece economic revitalization project – the $200 million Eddy Street Commons – mainly resulted from a partnership between the university and a realty group.

Further, as is the case with state and local level leaders generally, their control over their jurisdictions’ economies is usually far from absolute – and the more local they are, typically the less control. In this vein, it’s especially interesting that South Bend economic development efforts under Buttigieg were major were major beneficiaries of a municipal grant program put into effect by Vice President Mike Pence when he was Indiana governor. This year, the openly gay Buttigieg has spent considerable time attacking Pence for his allegedly bigoted views about homosexuality.

Perhaps even more important, Buttigieg had the good fortune to enter office in South Bend just as ecovery from the worst national economic slump since the Great Depression was finally gaining some momentum.

Not that Buttigieg doesn’t deserve credit for helping to attract considerable investment to South Bend. Revealingly, among those who make this case most convincingly are Indiana journalists. And at least as revealingly, South Bend voters have emphatically agreed on his effectiveness. Fully 80 percent of them voted to reelect Buttigieg in 2015 – even more than the 74 percent who supported him in his first mayoral run. (See this link for the numbers.) Will voters outside his hometown give this record rave reviews, too? The answer is likely to go far toward determining whether Buttigieg has a prayer of becoming “Nominee Pete,” much less “President Pete.”

Making News: Quoted in the Washington Post Magazine — & More!

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Crain's Cleveland Business, Democrats, Jewish World Review, John Judis, Making News, Sherrod Brown, TechStockStandard.com, The Washington Times, Trade, Trade Deficits, Trump, Washington Post Magazine

I’m pleased to report a nice little spate of media appearances over the last few days.

Most were generated by journalist John B. Judis’ piece in the Washington Post Magazine on how Ohio Senator Sherrod Brown’s decision to skip the 2020 presidential race might have cost the Democrats their best chance to win back the White House.

The backstory of this March 19 article is kind of interesting – John intended it as an article on how Brown’s candidacy actually represented the Democrats’ best chance of 2020 success.  But just before it was scheduled to run, Brown decided to sit the presidential campaign out.  So kudos to John and his editors for turning the article into a retrospective that retains nearly all of its newsworthiness.

Somewhat confusingly, however, if you subscribe to the Post in print, you won’t see the article in your hard copy of the magazine this week.  So you need to access it via the link above.

In turn, John’s article and the point about Brown I made were covered in Crain’s Cleveland Business on March 20 and in Jewish World Review the following day.

Finally, on March 7, the TechStockStandard.com website re-posted my recent Washington Times article on accurately interpreting the latest annual trade figures – and President Trump’s performance on his front.

And keep checking in with RealityChek for news of upcoming media appearances and other developments.

 

Following Up: Sign the Deal – then Seize the Border Security Initiative

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border security, border wall, Congress, crime, criminal aliens, Defense Department, Democrats, detention, Following Up, government shutdown, ICE, illegal aliens, Immigration, Immigration and Customs Enforcement, national emergency, shutdown, Trump

From what’s known of it, I’m as angry about the border security deal reached last night by Congressional negotiators to avert a new partial federal government shutdown as much as any immigration realist and/or supporter of President Trump. Even so, I would urge the President to sign it. (If he can win a few small improvements over the next day or two, as he’s just suggested he’ll seek, fine – but nothing achievable is worth sinking the agreement.) Then I’d recommend that he move to keep his promise that “we’ll be building the wall anyway” by using statutory authority to use Defense Department and other federal assets and resources to engage in barrier construction and secure the border in various other ways. In addition, the Trump administration should redouble efforts to keep his opponents on the defensive politically by shining the spotlight even more brightly on border security gaps left wide open by deal provisions they’ve insisted on.

I know that in yesterday’s post I argued that the Congressional Democrats, who have increasingly made clear their desire to gut meaningful border security completely, would both own a new shutdown morally (in terms of responsibility for government workers and contractors temporarily denied paychecks) and possibly pay a heavy price politically. The trouble is, that contention assumed that the Democrats’ latest cynical gambit, a new, goalpost-moving demand to shrivel (further) the federal government’s ability to detain apprehended illegal aliens – including surging numbers of border crossers – until their status hearings are held, would prevent the negotiators from reaching any agreement.

Consequently, any number of such aliens, including convicted criminals, would be released into American society, with little reason to believe many of them would risk a deportation decision (which would not be first for many). The result, as I wrote yesterday, would be a big victory for the Democrats’ principal goal of maximizing the number of migrants who can set foot on American soil to begin with, who consequently could avail themselves of the full range of legal due process protections to which everyone within U.S. territory is entitled, who would be released before their status hearings, and who would be scot-free to live and work in the United States until the Open Borders crowd could implement yet another amnesty.

Instead, the negotiators came to a conclusion that they, at least – if not necessarily many in their respective parties – could accept. There’s no denying that its threadbare reported barrier appropriation figure ($1.375 billion) would leave the current border security situation just about as unacceptable as it is today. So would the reported new quota on detention beds, which represent a big part of Washington’s ability to ensure that individuals arrested for immigration-law and related transgressions show up for hearings.

Final judgment should be withheld until the official text of the deal is released – especially on the beds issue. But some of the worst possible outcomes – from an immigration realist perspective – appear to have been avoided. In particular, although previous votes by Democrats so far haven’t been enough to prevent closet Open Borders supporters like House Speaker Nancy Pelosi from declaring walls to be “immoral,” the new agreement will make this childish position more difficult than ever to take. In addition, the current number of border detention beds is being cut, but not, it seems, by nearly as much as the Democrats recently sought, and the Immigration and Custom Enforcement (ICE) agency apparently will retain flexibility in their location.

Further, as its spokespeople have insisted, there’s a strong argument that President has ample legal authority to build and strengthen more in the way of barriers than the deal approves – even without taking the highly controversial step of declaring a national emergency. For example, as noted by one of my Twitter followers (“TruthHunterMan”), in a variety of circumstances, federal law states that “The Secretary of Defense may provide support for the counterdrug activities or activities to counter transnational organized crime of any other department or agency of the Federal Government or of any State, local, tribal, or foreign law enforcement agency.”

Moreover, this statute specifies that one of the purposes for which this assistance may be provided include “the transportation of supplies and equipment, for the purpose of facilitating counterdrug activities or activities to counter transnational organized crime within or outside the United States” and, more specifically, “Construction of roads and fences and installation of lighting to block drug smuggling corridors across international boundaries of the United States.”

In addition, as stated by White House Acting Chief of Staff Mick Mulvaney, “We will take as much money as you can give us and then we will go find money someplace else legally in order to secure that southern barrier.” So let the search intensify.

Finally, the Trump administration has done a fair job of publicizing the dangers to public safety posed by inadequate border security, but much more is possible. For instance, couldn’t the administration vividly illustrate how limits on detention are forcing the release of dangerous aliens by publishing on a regular basis the names of these individuals and the charges against them? And maybe some mass releases could be conducted regularly, too – with officials reading this information to broadcast news audiences as the migrants in question are set free? That would sure be Must-See TV. 

This strategy would have the added virtues of freeing federal workers – especially low-wage workers employed both directly and indirectly through contractors – of the threat of real economic hardship; of avoiding the forced labor situation that results from requiring essential workers to report to their jobs even if their departments aren’t funded; and of ensuring that the quality of vital services like air traffic control and Department of Homeland Security missions including Coast Guard patrols isn’t dangerously degraded.

Even passage of the latest full Trump proposal wouldn’t have strengthened border security much in the near future. So signing the Congressional compromise clearly wouldn’t produce a fatal setback. The main challenge now before the President is to flip as much of the script as he can, and capitalize on all the opportunities before him to secure as much of the border as America can ASAP.

Im-Politic: Why Democrats Will Own a Second Shutdown

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barriers, border security, border wall, Congress, crime, Democrats, detention, government shutdown, ICE, illegal aliens, Im-Politic, Immigration, Immigration and Customs Enforcement, Lucille Roybal-Allard, Open Borders, Trump

With Congressional negotiators still racing to reach a deal, it’s unclear whether or not they’ll be able to reach the immigration and border security policy compromise needed to avoid the second partial federal government shutdown in two months. What’s completely clear, however, is that although President Trump declared that he “owned” the first shutdown, Congressional Democrats will deserve the blame this time.

The reason? In recent days, they’ve removed any doubt that their position has nothing to do with their stated belief that border walls are “immoral,” or even that President Trump’s focus on new barriers of any kind is hopelessly out of date. Instead, these Democrats – or at least their leaders – have now disclosed that their real price is a big step toward gutting any meaningful enforcement of immigration law.

Skeptics obviously haven’t paid attention to the course of Congressional negotiations since Friday. At that point, both Republicans and Democrats were expressing guarded optimism that a deal was in sight that involved keeping the entire federal government open in exchange for including actual funding (i.e., appropriations), for more barriers in the Department or Homeland Security (DHS) budget for the current fiscal year – not the kind of unenforceable promise to authorize certain levels of spending over the course of man years that marked previous recent efforts to keep the whole government open.

Hopes for a deal aren’t dead yet, but over the weekend, the Democrats dealt them a major setback by moving the goalposts. Their major new demand was for an unrealistically low (given the great recent increase in would-be border crossers of all kinds) limit in the number of beds maintained by the U.S. Immigration and Customs Enforcement (ICE) agency to detain individuals arrested for violations of immigration law.

Congressional Democrats described their stance as an effort to impose sanity on the Trump administration’s immigration enforcement priorities. In the words of California Rep. Lucille Roybal-Allard, “A cap on ICE detention beds will force the Trump administration to prioritize deportation for criminals and people who pose real security threats, not law-abiding immigrants who are contributing to our country.”

But no one can seriously doubt that crippling immigration enforcement is the real objective. In the first place, although it’s tempting – at least for argument’s sake – the critics’ charges that the Trump enforcement dragnet is too broad, let’s not forget that a key demand of many Democrats in recent months has not been to reform ICE practices, but to abolish the agency.

Second, there’s every reason to view the Democrats’ definition of “criminals” and “real security threats” as far too narrow. For example, many U.S. illegal aliens who hold a job are committing identity fraud in one form or another – including theft of Social Security cards. Critics of strict enforcement of immigration law tend to belittle these violations, and if you agree, that’s your right – but please spare me your complaints the next time you’re victimized by identity theft, or  become upset that constantly rising Social Security outlays are fueling the national debt.

Moreover, closet Open Borders supporters have a long record of defining down below the “serious” level many crimes that physically harm or endanger individuals – including assault, battery, sex offenses, drunk driving, and gun-related crimes.

And these coddlers of illegal alien crimes aren’t restricted to the Mainstream Media. In Montgomery County, Maryland – a suburb of Washington, D.C. – lawmakers introduced a measure to provide taxpayer-funded legal aid to illegal aliens that originally would have extended such assistance to illegals convicted of offenses such as “fraud, distribution of heroin, second- and third-degree burglary and obstruction of justice….” And let’s not forget the indulgent attitudes and practice of the nation’s many sanctuary jurisdictions.

What the Democrats pushing for fewer beds really want is a de facto (at least at first) U.S. immigration policy that prioritizes maximizing the numbers of foreign migrants able to set foot on U.S. soil, to thereby avail themselves of the wide range of due process protections afforded to anyone within this country’s territorial limits, and to then be released shortly after their initial apprehension.

As a result, these migrants – including declared asylum seekers and would-be refugees – will be completely free to skip their scheduled status hearings, and to become eligible for whatever future amnesties the Open Borders crowd has in mind once it regains enough power in Washington.

Of course, it’s one thing to make the case on the merits that the Democrats will own this shutdown. It’s another entirely for Mr. Trump to convince the public. Making this sale could represent his biggest challenge yet as President.