51. Be Thankful: Blessed Despite Bad Policies
In this newsletter, I discuss what's going on with inflation, bad policies, the labor market, and more, along with what can be done to improve the situation to let people prosper.
Hello Friend,
Happy Thanksgiving! I hope you have a blessed one with family and friends.
In the season of thanksgiving, I am thankful for you as you continue to read and share this Let People Prosper newsletter with others, as there are now nearly 500 subscribers. My views are based on the fact that free-market capitalism best lets people prosper, supporting self-sufficiency, hope, and community that helps reduce dependence on government. If you’re new to this newsletter, welcome! Please subscribe here:
Personal take: I recently turned the big 4-0! WOAH!
I’m on vacation this week, though that doesn’t mean I rest much because the fight for liberty never rests! However, I am trying to get some rest in and had a great time at the Southern Economic Association meetings in Houston, Texas (my hometown) where we also visited family.
My employer, the Texas Public Policy Foundation, is a nonprofit, nonpartisan free-market think tank. We are more than a think tank though as we consider ourselves more of a “do tank” because we turn papers into policy by building relationships, walking the floors of the Texas Capitol, and working diligently for the betterment of people by removing government obstacles in the way to let people prosper. We’re the largest state think tank in the nation. I was the 33rd employee on staff when hired in Sept. 2013. We now have more than 100. We get funding primarily from people like us. I joined TPPF’s Come and Take It Society a while back and enjoy getting the benefits of updates and the Veritas magazine. That’s a reason I was thrilled to see the latest magazine with a write-up on a day in my life. Check out the great write-up at the pics below, and the Come and Take It Society. I’m blessed in living my dream and calling to let people prosper. It’s been an interesting road since the days of being a rockstar, but I’m thankful for my colleagues, network, failures, challenges, accomplishments, and more. Here’s to many more of each of these along the way!
I’m holding a virtual workshop on Tuesday, Nov. 30, at 10 am CT on the benefits of the Conservative Budget approach that I’ve been working on for years. This workshop will include four others who are already using this approach and discuss the costs and benefits of it in their states. Contact me if you’d like to join us.
I’ll be in San Diego next week for the ALEC meetings. I hope to see you there.
Hot take: Have a blessed Thanksgiving even as we are paying a lot more for it.
Now for the latest on Texas, D.C., and COVID-19 in Texas.
TEXAS ECONOMIC AND FISCAL SITUATION
The Fraser Institute’s latest Economic Freedom of North America report notes Texas stays as the 4th most economically free, but there’s work to do!
Another great #EFNA report by @FraserInstitute! #Texas remains in 4th place for economic freedom. Policies promoted by @TPPF to effectively limit spending, end property tax burden, & remove labor market barriers would make us to #1! And let people prosper! @deanstansel #txlegeThe @FraserInstitute’s 2021 #EconomicFreedom of North America report is out; our @DeanStansel is primary author. Of 4 largest states #Florida is 3rd & #Texas is 4th #NewYork & #California: 50th & 49th. Find where your state ranks in Fig. 1.2b on p. 7 here: https://t.co/AlDMKt3UdS https://t.co/ufIkgVAlKw
Bridwell Institute for Economic Freedom @SMUCoxBridwell
Instead of using surplus taxpayer dollars in Texas to cut excessively high property taxes across the state, large corporations like Samsung are receiving huge tax breaks! I’m for more businesses moving to Texas and most, if not all, would without these tax breaks, so stop picking winners and losers with taxpayer dollars because the better solution is to improve the institutional framework for everyone. Fortunately, one of the property tax abatements in Chapter 313 by school districts expires in Dec. 2022, but others should also be killed. See this thread for more.
Here’s more on the nonsense of these corporate handouts.
Another good piece by @HoustonChron that highlights huge costs of property tax abatement a I’m #Texas that pick winners and losers through large corporate handouts that shifts tax burdens on all others. #endcorporatewelfare #txlege @TPPF @EveryTxn @TeamBettencourt @MorganMeyerTX“Whether it’s abatements or grants, it’s public money that is supposed to be used for economic development,” @TeamBettencourt said. “But ever-increasingly there is a view in the Legislature that it’s not going well — and it is a bipartisan view.” https://t.co/O0WgNBTjbg #txlege https://t.co/6IG0zy8Cl0
Dick Lavine @dlavineComparison of labor market data in the latest state-level jobs report.
Watch my discussion with Ron Shultis of Beacon Center in TN as we discuss the Conservative TN Budget based on my Conservative Budget approach.
My Conservative Budget approach is making more headway in Iowa as the Iowans for Tax Reform Foundation released their second one after being successful in their first iteration.
I'm thrilled to coauthor the 2023 Conservative Iowa Budget by @ITRFoundation & @TPPF It sets a maximum threshold for the 2023 budget that @IAGovernor & #ialege will construct This approach supports many opportunities for Iowans to prosper: itrfoundation.org/the-2023-conse… #txlege @TPPF
Hendrickson & Ginn: The Road to Tax Reform Starts with Conservative Spending via @IowaTorch iowatorch.com/2021/11/17/hen… @ITRFoundation @TPPF #txlege #congress @KimReynoldsIA @dlacalle_IA @iowahawkblog @patrickmgleason @MLucci731 @Heritage @StatePolicy @ALEC_states
U.S. ECONOMIC AND FISCAL SITUATION
Don’t miss my latest Ginn Brief on the U.S. economic and fiscal situation.
Facts matter! Biden was misguided in his recent claims…that’s a trend.
Facts matter Since Feb 2020 -Private jobs down 3.3M -Labor force down 3M -Unemployment rate artificially low Since Oct 2020 -Real earnings down 1.2% -Housing unaffordability up -Savings rate down -Inflation historic highs @TPPF @Heritage @Comm4Prosperity @StatesTrust @A1Policy
Jobs are up, wages are up, home values are up, personal debt is down, and unemployment is down. We have more work to do, but there is no question that the economy continues to recover and is in much better shape today than it was a year ago.
President Biden @POTUSBad policies out of Washington are causing lower consumer confidence…
Result of bad policies out of Washington "Consumers expressed less optimism in Nov. 2021 survey than any time in the past decade about prospects for their own finances as well as for the overall economy," said University of Michigan Surveys chief economist Richard Curtin. @TPPF https://t.co/rG6M5Sxuk6US consumer optimism hits decade low https://t.co/NcC6hCtWdg
FOX Business @FoxBusinessU.S. House recently passed the $5 trillion Build Back Better Act that would crush Americans. The CBO score shows it will increase the debt over a decade which should not allow it to be passed in the Senate due to reconciliation rules that it must be paid for over that time, so changes will be made but the bill should die regardless because of terrible policies.
See 🧵 for why #Congress must stop the #BuildBackBetterAct that Americans don’t want and can’t afford. @TPPF @Heritage @Comm4Prosperity @amrenewctr @A1Policy @ALEC_states @StatesTrust @StatePolicy @FreedomWorks @CatoInstitute @AEI @taxreformer @Sen_JoeManchin @SenatorSinemaGiven #Democrats want a partisan #BuildBackBetterAct through reconciliation, bill must be deficit-neutral over a decade. @USCBO shows a rosy $367B deficit, so won't fly in Senate. Excluding budget gimmicks, deficit would increase by more than $3T! #KILLTHEBILL @TPPF #congress https://t.co/s7PMxbVbjg
Vance Ginn @VanceGinnTPPF joined the Texas Association of Business and others against BBB.
Here’s more on the nonsense going on in Washington!
My latest with E.J. Antoni @TPPF: Judge Policies by Their Results—Progressive Policies Are Crushing Low-Income Americans thecannononline.com/judge-policies… #BuildBackBetterAct #Inflation #economy @FreedomWorks @Heritage @RepublicanStudy @Comm4Prosperity #txlege #congress @Sen_JoeManchin
And this really tells the story…ugh!
But Congress’ excessive spending doesn’t directly cause inflation, the Fed does.
Agreed, BBB is bad policy. For clarity, #Fed causes inflation. Increasing budget deficit through excessive spending is poor fiscal policy that can fuel Fed’s bad policies. Be cautious to not assume Keynesian deficit spending boosts demand & inflation, as it just redistributes. https://t.co/MimDGwOtumPresident Biden’s Build Back Better agenda would make our already troubling inflation problem worse. My latest, in @nytopinion: https://t.co/CQtleOH1zI https://t.co/7akUGpwD3J
Michael R. Strain @MichaelRStrainDemocrats want tax cuts for the rich! Thought they were against this?
The second-biggest program in the Democrats’ $5T spending plan gives billions to the rich. #Democrats want "tax cuts for the rich! Where's the outrage from progressives? washingtonpost.com/business/2021/… @TPPF @Heritage @TaxPolicyCenter @BrookingsInst @CenterOnBudget @AOC @DanCrenshawTXNeed a spending limit like the Responsible American Budget (& monetary rule)
👏👏👏 We need a Responsible American Budget and nothing more along with reining in excess SPR ding, regs, and taxes to #letpeopleprosper by satisfying their desires from the bottom up rather than #Biden’s top-down approach. https://t.co/uAsxRcCikiKudlow: Maximizing growth in America means minimizing government https://t.co/a1KsgyvaQFFOX Business @FoxBusiness
Make Work Great Again!
Thank goodness y’all at the #Biden administration and #Democrats in #Congress stopped paying people so much not to work. Now do this for all of your other safety net programs that don’t require work, education, or training. Make work great again! @TPPFWorth stepping back and taking stock: A year ago, there were 21.1 million unemployment insurance claims the week of the Thanksgiving holiday. This week, 2.4 million.
Brian Deese @BrianDeeseNEC
Real earnings continue to fall.
Real avg weekly earning, meaning adjusted for inflation, have been negative for 7 straight months. Talk about hurting people when they’re down with bad policies out of Washington. Stop the madness. #killthebill #BuildBackBetter thecannononline.com/judge-policies… @TPPF #txlege #congress https://t.co/eH7vkfhGQZReal average weekly earnings decreased 1.6 percent over the 12 months ending October 2021 https://t.co/xs3KjW3VoR #BLSData https://t.co/SJGU5Tw5rk
BLS-Labor Statistics @BLS_govBBB will make childcare more expensive with lower quality.
The latest GDP update indicates things aren’t improving much.
Three-fourths of the 8.1% in nominal GDP growth in Q3 was from inflation, increasing distortions in the economy. Real private GDP was up 2.36% in Q3. Economic growth is hurt by bad policy out of Washington including reducing purchasing power, especially for the poor. @TPPF https://t.co/uslGr9Pqw8
The U.S. economy grew at a 2.1% annualized rate in Q3, up from a 2.0% pace initially estimated a month ago. https://t.co/dZQYed7p8x
BEA News @BEA_News
Politics is rearing its ugly head in the oil market.
SPR release=Political stunt by @POTUS. Oil is traded globally. Adding 50M barrels of oil from US SPR + maybe 20M barrels from other countries’ reserves to global supply is only a fraction of 100M barrels per day consumed globally, per @EIAgov. eia.gov/outlooks/steo/… @TPPF https://t.co/RbDUjwKVT2Release of SPR is a bad move that could only temporarily reduce oil & gas prices, but ending bad policies that stop oil pipeline construction, impose more regs, threaten higher taxes, & use political ESG decisions would help longer term. @TPPF https://t.co/uTKg7RSYfkVance Ginn @VanceGinn
Solve supply chain issues by removing government obstacles.
Deregulation helped unleash the entrepreneurial spirit in the private sector when governors weren’t shutting them down. Deregulation would help to unleash them again to solve the supply chain problems caused by government actions. #txlege @TPPF @GregAbbott_TX @GovRonDeSantisJoining 14 Governors in launching Operation Open Roads & calling on @POTUS to roll back federal regulations to address the American supply-chain crisis. Texas will reinforce America's economic comeback & keep our trucking industry doing what it does best: move. https://t.co/7nINRvMZh9
Gov. Greg Abbott @GovAbbott
COVID-19 IN TEXAS AND BEYOND
Latest: TX DSHS Covid-related data here. The first 2 major waves had restrictions in place and hospital data aren’t always best. Gov. Greg Abbott lifted state restrictions on Mar. 10, 2021, and blocked local restrictions on May 21, 2021. Wave #3 is over without government-mandated masks, vaccines, or shutdowns. Good evidence to avoid these in future waves.
More on the cost of shutdowns.
Closing Thoughts
President Biden recently talked about how the era of Milton Friedman is over, but we need Friedman’s lessons now more than ever!
Good quote by economist Thomas Sowell that reminds us to be humble.
My prayers this week are focused on this Bible verse as I’m praying for rest because He is the one who strengthens me no matter the situation.
Thank you for reading and sharing this newsletter. I pray that we continue to fulfill our God-given purpose. Many blessings to you and yours!
Vance Ginn, Ph.D. | www.vanceginn.com | #LetPeopleProsper