Evidently the new word to describe the current economic policy climate is “chaotic.” We think that this is due most immediately to President Trump’s policies, although in the greater scheme of things it’s due to Keynesian economics. In general, the solution is to adopt the Economic Democracy Act, but a little common sense wouldn’t hurt:
• Inflation Confusion. The standard Keynesian line is that there is an inevitable tradeoff between inflation and employment. As the theory goes, if you want to have high employment, you must accept inflation, at least up to a point. On the other hand, if you want to have low inflation, you must be prepared to accept low or at least lower employment. We do not agree with that theory, but that is the idea behind why politicians and central banks agonize over how much inflation they can accept before it puts too great a burden on consumers. There is also the problem that cost-push inflation (a rise in the price level due to an increase in the cost of production unrelated to an increase in the money supply — or at least not directly related; in a sense, all inflation is a monetary phenomenon, which can make analysis difficult) acts differently than demand-pull inflation: an increase in the money supply not accompanied by a commensurate increase in the production of marketable goods and services. That is why the baffling, even incoherent tax and economic policies of the Trump Administration are so devastating and causing such wide-sweeping confusion. The obvious solution is to get off the Keynesian treadmill by adopting the Economic Democracy Act, but at the very least the implementation of Keynesian theory should be internally consistent and not incomprehensible in pursuit of some ephemeral “greatness” for America.
• Tariffs a “Market Catalyst”? Gamblers and speculators are gushing with enthusiasm over the effect President Trump’s incoherent and incomprehensible tariff policies are having on the stock market. Evidently the thinking is that economic uncertainty caused by Trump’s bizarre tariff policy is a catalyst driving extreme swings in stock prices and increasing market volatility beyond all reasonable bounds. And this is a good thing? Absolutely . . . if you’re a gambler or speculator and manage to out-guess which way the market is going. For true investment, a stable stock market is essential, for by its very nature investment — as opposed to speculation or gambling — is long-term. True investment looks to how much income and control the investment will yield over the long haul. Speculation and gambling look to the short-term or immediate gain, usually based on a change in the value of the investment, not what the investment conveys. Speculation and gambling, therefore, rely on instability and chaos. True investment is “win-win,” where speculation and gambling are at best win-lose, and most often are lose-lose. People need to stop thinking that a volatile market and inflated stock prices are a sign of economic health and become involved in genuinely productive activity. The best way to do that is to adopt the Economic Democracy Act.
• U.S. Debt Default. According to a new forecast from the Bipartisan Policy Center, the federal government could default on its debt as soon as July of this year. Putting aside all the analysis, there is a way to avoid the possibility. You guessed it: adopt the Economic Democracy Act.
• Economic Expectations on the Skids. According to “The Conference Board,” there has been “a decline in financial situation expectations from consumers.” And that means? According to the article, “The expectations index, which is based on consumers’ short-term outlook for income, business, and labor market conditions, ticked down to 65.2 from 72.9 and remained below the threshold of 80 — which typically signals recession ahead — for the second straight month.” Whether due to President Trump’s bizarre economic and fiscal policy or not, the solution is the same: the Economic Democracy Act.
• Social Security System Imploding. At least according to The Washington Post, the Social Security system is breaking down. As the Post reported, “The Social Security Administration website crashed four times in 10 days this month because the servers were overloaded, blocking millions of retirees and disabled Americans from logging in to their online accounts. In the field, office managers have resorted to answering phones in place of receptionists because so many employees have been pushed out. Amid all this, the agency no longer has a system to monitor customer experience because that office was eliminated as part of the cost-cutting efforts led by Elon Musk.” Although our usual recommendation to solving the ultimate problem remains to adopt the Economic Democracy Act, in this case it is first not to destroy the system before you have a replacement already in place and functioning. After all, it is simply common sense not to blow up a bridge until you have another way across the river.
• Trump and Control of the Federal Reserve, Part II. In his continuing bid to expand his personal power over anything he sees, President Trump is “setting up a potential fight with Powell,” the chairman of the Federal Reserve. We are not a particular fan of Jerome Powell, but he at least trying to operate within a consistent — if in our opinion badly flawed — Keynesian framework. President Trump, on the other hand, seems to be operating within a framework delineated by whatever a throw of the dice or a magic 8-ball say. Trump’s goal seems to be to spread chaos wherever he goes, then thinking he will make a profit from it. If he truly wanted to do something positive and profitable, of course, he would push for adoption of the Economic Democracy Act.
• They’re All Heart. Assuming it goes through, people who received too much in Social Security benefits will soon face a 100% “clawback”, that is, a complete withholding of benefits until the overpayment is made up. This was previously capped at 10%. Given that far too many people rely on their Social Security benefits as their sole source of retirement income, this change in policy is both despicable and heartless. Admittedly, it is a very good argument for adopting the Economic Democracy Act, but we’d rather have a more rational one.
• Retracting Again. Yet again, the Social Security Administration has done a double take on a proposed reform, this time involving the new requirements for applying for benefits or changing some specifics. Total chaos has ensured in the never-ending quest for so-called efficiency, as evidenced by the crashes of the SSA website. Do we need say that the solution is to adopt the Economic Democracy Act?
• Greater Reset “Book Trailers”. We have produced two ninety-second “Book Trailers” for distribution (by whoever wants to distribute them), essentially minute-and-a-half commercials for The Greater Reset. There are two versions of the videos, one for “general audiences” and the other for “Catholic audiences”. Take your pick.
• The Greater Reset. CESJ’s book by members of CESJ’s core group, The Greater Reset: Reclaiming Personal Sovereignty Under Natural Law is, of course, available from the publisher, TAN Books, an imprint of Saint Benedict Press, and has already gotten a top review on that website. It can also be obtained from Barnes and Noble, as well as Amazon, or by special order from your local “bricks and mortar” bookstore. The Greater Reset is the only book of which we’re aware on “the Great Reset” that presents an alternative instead of simply warning of the dangers inherent in a proposal that is contrary to natural law. It describes reality, rather than a Keynesian fantasy world. Please note that The Greater Reset is NOT a CESJ publication as such, and enquiries about quantity discounts and wholesale orders for resale must be sent to the publisher, Saint Benedict Press, NOT to CESJ.
• Economic Personalism Landing Page. A landing page for CESJ’s latest publication (now with an imprimatur), Economic Personalism: Property, Power and Justice for Every Person, has been created and can be accessed by clicking on this link. Everyone is encouraged to visit the page and send the link out to their networks.
• Economic Personalism. When you purchase a copy of Economic Personalism: Property, Power and Justice for Every Person, be sure you post a review after you’ve read it. It is available on both Amazon and Barnes and Noble at the cover price of $10 per copy. You can also download the free copy in .pdf available from the CESJ website. If you’d like to order in bulk (i.e., 52 or more copies) at the wholesale price, send an email to info@cesj.org for details. CESJ members get a $2 rebate per copy on submission of proof of purchase. Wholesale case lots of 52 copies are available at $350, plus shipping (whole case lots ONLY). Prices are in U.S. dollars.
• Sensus Fidelium Videos, Update. CESJ’s series of videos for Sensus Fidelium are doing very well, with over 155,000 total views. The latest Sensus Fidelium video is “The Five Levers of Change.” The video is part of the series on the book, Economic Personalism. The latest completed series on “the Great Reset” can be found on the “Playlist” for the series. The previous series of sixteen videos on socialism is available by clicking on the link: “Socialism, Modernism, and the New Age,” along with some book reviews and other selected topics. For “interfaith” presentations to a Catholic audience they’ve proved to be popular, edging up to 150,000 views to date. They aren’t really “Just Third Way videos,” but they do incorporate a Just Third Way perspective. You can access the playlist for the entire series. The point of the videos is to explain how socialism and socialist assumptions got such a stranglehold on the understanding of the role of the State and thus the interpretation of Catholic social teaching, and even the way non-Catholics and even non-Christians understand the roles of Church, State, and Family, and the human persons place in society.
Those are the happenings for this week, at least those that we know about. If you have an accomplishment that you think should be listed, send us a note about it at mgreaney [at] cesj [dot] org, and well see that it gets into the next “issue.” Due to imprudent and intemperate language on the part of some commentators, we removed temptation and disabled comments.
#30#
