John Oliver on the Texas freeze fiasco

He roundly criticizes all those responsible for what was a foreseen and avoidable disaster.

Meanwhile, Alexandria Ocasio-Cortez shames Ted Cruz by raising $5 million to help Texans while he was gallivanting off to Cancun.

We should also recall that Cruz was one of those people who objected to aiding people in other states who got hit with natural disasters. I am sure that he is opposing all federal aid to Texas now because he is a person who stands on principle, right?

Going big on stimulus is a no-lose proposition for Biden and the Democrats

Republicans are fighting to reduce the $1.9 trillion stimulus plan put forward by Joe Biden. I hope the Democrats do not agree. As I see it, there is nothing to lose by going big.

If they go big and the pandemic is curbed and the economy bounces back in a year or two, they will be praised for their actions. If the economy does not recover as much as expected, the stimulus cannot be blamed for being too big and instead it could be argued that it was not big enough. On the other hand, if the stimulus is trimmed back by a lot and the economy does not recover, Biden and tee Democrats will be blamed for going too small.

Republicans are saying that the large stimulus will add to the deficit and ‘overheat’ the economy and cause inflation. But we know that Republican concerns over the deficit are bogus and are always, always, just a way to oppose spending that does not benefit the wealthy. Furthermore both Fed chair Jerome Powell and treasury secretary Janet Yellen (who was Powell’s predecessor as Fed chair) have discounted the danger of inflation and said they have the tools to curb it if it does occur.

So Biden and the Democrats should go big and ignore the ‘sky is falling’ bad faith arguments of the Republicans.

The myth of the Chinese debt trap

The US and China are now locked in a competition for global leadership. There is a prevailing narrative that the Chinese government is using its Belt and Road initiative to gain power over developing countries as it seeks to expand its geopolitical influence. Their alleged strategy is to offer countries low-interest loans for big infrastructure projects that it knows that the countries cannot pay back but will likely accept because of those countries’ leaders’ grandiose ambitions. When the countries later find it hard to service those loans and are on the brink of default, China steps in and takes control of the asset it financed, in the process making those countries subservient to them.
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Will Biden avoid the Obama trap?

Ryan Grim recalls how Obama, even though he came into office in 2009 in the wake of the 2008 financial crisis with much bigger Democratic majorities in both houses of congress than Joe Biden just obtained, got slow-walked by the Republicans who dangled the carrot of bipartisanship in front of him and managed to water down all his proposals. His weak response is blamed for the massive losses the party suffered in the 2010 and 2014 mid-term elections which resulted in Republicans winning the majorities in both chambers.
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Why I do not invest in art or the stock market

While the GameStop controversy has faded from the news headlines, the issue is still roiling the markets. I was listening to an analyst who was saying that the people who are driving up the price of the stock may themselves end up losing a bundle. Some analysts are calling it yet another bubble that will burst at some point and then the stock price will revert to a more realistic value. But what is a realistic price of that stock? It seems to me that the price of a company’s stock is not based on anything tangible.
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Rise in minimum wage in 2021

2020 has been terrible for people working in the service sector and other low-wage jobs due to the effects of the pandemic. Thanks to various measures that have been passed in states and cities because of pressure by activists and labor unions, minimum wages are due to rise in some areas of the country providing at least some relief.

2020 was a devastating year for underpaid frontline workers.

But even in the face of public health and economic crises triggered by Covid-19, the Fight for $15 movement persisted, and now 24 states and 50 municipalities throughout the U.S. are set to raise minimum wages in 2021.

On New Year’s Day, 20 states and 32 cities will increase their minimum wage, with the wage floor in 27 of those jurisdictions reaching or exceeding $15 per hour. The January 1 raises will be followed by another round of wage floor hikes later in 2021, when four additional states and 18 localities will increase their minimum wage, 13 of them to at least $15 per hour.

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Can America afford democracy?

In an article The Silenced Majority: Can America still afford democracy? in the December 2020 issue of Harper’s Magazine, Rana Dasgupta argues that democracy is a luxury whose existence depends on inequality between nations that enables the rich in the wealthy societies to accommodate the democratic aspirations of its own citizens.

In the past, power was in the hands of those who had property. With the rise of organized labor as a force in the rich nations, that power was reduced but as long as the people of the poorer nations could be used to subsidize the elevated living standards of those in the richer ones, then democracy could be tolerated. But when that difference between nations begins to disappear, as is happening currently, then so does democracy. He argues that the ultimate death of democracy in the US will come at the hands of the big tech companies.


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Trump emerges from hiding to talk about the stock market

After constantly needling Joe Biden during the campaign about hiding in his basement while he was holding his rallies, the roles have suddenly switched with Trump avoiding public events while Biden has been all over the news holding press conferences to discuss his new administration and policies.

Except for very brief appearances to play golf or to make a short statement to reporters in the White House press room and not take questions, Trump has largely been in hiding. He did come out yesterday to talk about the only thing he cares about other than himself and that is the stock market which broke the 30,000 barrier for the first time. It shows how much he cares about this topic that he was able to recite from memory some statistics when on almost any other topic he has to read them off a teleprompter. (Click on the blue bird at the top right to listen to the comments without having to get the White House app.)

It is also curious that he seems to be taking credit for the market high when during the campaign he warned that if Biden were elected the markets would crash and people’s retirement savings would be wiped out.

The increasing isolation of the US in the world

Under Donald Trump, the US has become increasingly alone on the international stage.

One example is the new Asian trade agreement that excludes the US and includes China. After initially gushing over what a great leader China’s Xi Jinping was and praising their response to the covid-19 epidemic, when the pandemic got bad in the US he seemed to realize that he needed a scapegoat to escape blame and started attacking China. But his conflict with China predated that as part of his dislike of multilateral agreements that led to him declaring war on the trade agreements that his predecessors had agreed on with groups of other nations, and his strong criticisms of the NAFTA, WHO, NATO, and the Paris Climate Accord.

One of the thing he withdrew from was the Trans-Pacific Partnership, a deal that was being negotiated by the Obama administration that was designed to exclude China and increase trade links of Asian nations with the US. Trump pulled out of that deal and now those Asian nations have signed a huge trade pact that includes China and excludes the US.
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