Each week we wish we could report on something fundamentally different rather than just unimportant details that reflect no genuine improvement anywhere. Of course, we define improvement as adopting the Economic Democracy Act, but we’re hoping that something in the current situation will get people to wake up:
• Shrinking Real Income. As reported in an article in USA Today, “American workers have one big complaint about their jobs: They don’t get paid enough to keep up with the cost of living. Even with cost-of-living adjustments or pay increases, 4 in 10 workers say their income has not kept up with their expenses, according to a new USA TODAY/SurveyMonkey Workforce Survey of more than 3,000 Americans.” The answer is not to raise wages without a corresponding increase in productivity, however (as Walter Reuther pointed out many years ago), but to cut workers (and ultimately every citizen) in on profits which are a residual after costs are met and do not raise prices . . . including wages. Adopting the Economic Democracy Act would solve this problem very easily.
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| Jerome Powell |
• Blind Leading the Blinder. As we might have made clear on a significant number of occasions, we do not agree with Federal Reserve Chairman Powell’s Keynesian prescriptions . . . but they are at least consistent within his framework and he at least attempting to hold the line on not using the central bank to advance a political agenda . . . more than has become traditional, anyway. That is why, as reported in an article in Fortune magazine, “It’s Federal Open Market Committee (FOMC) meeting week, and Chair Jerome Powell is likely to once again disappoint the White House by announcing a hold to the base interest rate. How fierce the reaction from the Oval Office will be is anyone’s guess, but markets are fairly convinced that the two-day conference concluding tomorrow will result in the interest rate being held steady in the range of 3.5% to 3.75%.” This is consistent with Powell’s Keynesian principles, but they are the wrong thing to do . . . although those of the current administration are, er, “wronger.” The only real solution is to adopt the Economic Democracy Act.
• Weak Dollar = Great America? As reported in an article in Bloomberg, “President Donald Trump indicated he’s comfortable with the dollar’s recent decline, helping send the currency to its lowest level since early 2022. ‘No, I think it’s great,’ Trump told reporters in Iowa on Tuesday when asked if he was worried about the currency’s drop. ‘I think the value of the dollar — look at the business we’re doing. The dollar’s doing great.’” Yes, for foreign buyers of U.S. goods . . . which are then subject to retaliatory tariff-induced price increases in other countries, and higher prices domestically as the dollar loses value and prices rise in response (as well as what is added by the domestic tariffs imposed by the current administration). No, it’s not “great” to have a currency that constantly fluctuates in value as many authorities have noted over the centuries. It only benefits the rich and powerful, whichever way it goes. The only real solution is to make the currency sound again by adopting the monetary and tax reforms of the Economic Democracy Act.
• Tanks A Lot. As reported in an article in Yahoo! Finance, “Consumer confidence plunged to its lowest level in more than a decade this month — surpassing even the doldrums of the pandemic — according to a survey from the Conference Board. The overall consumer confidence index fell by 9.7 points in January from December’s reading, hitting its lowest point since May 2014, as views of both the country’s present and future economic state soured.” Can you blame them? Of course, you know what we’re going to say about how to restore not merely consumer confidence in the economy, but to restore the economy. That’s by adopting the Economic Democracy Act.
More hype than practicality
• More On the Trump Accounts. Evidently there’s no idea so bad that you can’t find people to get behind it . . . it’s only the good ideas that seem to go begging for supporters. As a case in point, take the so-called “Trump Accounts.” Despite the outrageous claims made for the gargantuan earnings to be expected, there are a number of other serious weaknesses . . . but that doesn’t stop people from pouring cash into them. As reported in an article in the Business Insider, “JPMorgan and Bank of America are among the latest financial firms to commit to contributing to ‘Trump Accounts’ for the kids of US-based employees. The banks announced on Wednesday that they will match the government's one-time $1,000 contribution to investment accounts for newborns, known as ‘Trump Accounts,’ for the children of their employees. Their announcements coincide with a ‘Trump Accounts Summit,’ where President Donald Trump and Treasury Secretary Scott Bessent are speaking.” Unfortunately, the gift may come at a cost — under current tax law, it is likely the matching funds will be included among the parents’ taxable income as the match does not appear to meet the requirements for a non-taxable gift. Obviously, adopting the Economic Democracy Act would be better across the board for everyone, but we don’t seem to be able to get people to listen.
• Powell Warns of Coming Crash. He may be out, but he’s not down. According to an article in the Motley Fool, “Fed Chairman Jerome Powell warned in September, ‘By many measures... equity prices are fairly highly valued.’ Other policymakers have expressed similar concerns. Minutes from the FOMC meeting in October stated, ‘Some participants commented on stretched asset valuations in financial markets, with several of these participants highlighting the possibility of a disorderly fall in equity prices.’ Additionally, the latest version of the Federal Reserve’s semiannual financial stability report was published in November. It warned that the S&P 500’s forward price-to-earnings (P/E) ratio was ‘close to the upper end of its historical range.’” Now, we do NOT agree with Powell’s essentially Keynesian orientation or even his basic understanding of money, banking, credit, or finance — but that doesn’t stop him from being right. Where we do definitely disagree is in the prescription to resolve the problem: adopt the Economic Democracy Act.
We're opposed to THIS, too.
• Why Not a HEC? President Trump made his name as a dealmaker and a real estate developer, so his opinion should carry a lot of weight, especially given his goal of making America great again for ordinary people, such as the ones who make up the reputedly vast “MAGA” network. That’s why it is a matter of concern to us that his reported reaction to proposals to build “low income” housing for the areas devastated by in the Pacific Palisades fires. We can agree with him — up to a point. We, too, would oppose the “$100 million plan for a ‘multifamily low-income housing development’ in areas that were most affected by the Palisades, Eaton, and Hughes fires.” We would not, however, automatically write off any proposal for low-income housing . . . just the usual way of doing it. There’s nothing that says low-income people have to live in ugly multi-family dwellings. Why not have single-family dwellings owned and financed through a Homeowners Equity Corporation? This could easily be a step toward adopting the Economic Democracy Act nationally.
• 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.
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