The economic picture this week is as confusing as everything else . . . and if you’re not confused, you should be. As usual, however, we believe that the sooner we adopt the Economic Democracy Act, the better things might start getting. In the meantime:
• Losing Faith. According to some recent polls, Americans are losing faith in what they deeply and truly believe in: capitalism . . . at least the word, since the reality seems more than a bit unreal, even if anybody could agree on a definition for something that looks more and more like socialism for the poor and capitalism for the rich . . . although we think Hilaire Belloc may have come close with “Servile State.” As reported in an article from CNN, “President Donald Trump has indicated that his main strategy for the 2026 midterm elections is to call Democrats ‘socialists’ and even ‘communists’ at every turn. And there is evidence that democratic socialism is gaining somewhat more of a foothold in recent Democratic primaries. But the larger story in American politics right now might be less the rise of socialism than the decline of faith in capitalism and economic fairness. And new polling reinforces that even the right is growing more disillusioned.” So, what else is new? Of course, all of this would be a moot point if Congress would adopt the Economic Democracy Act (EDA), but no one seems to be thinking in those terms.
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| Zohran Mamdani |
• State Capitalism? Private Socialism? Who yuh gonna call, “MythBusters”? According to a report in Forbes magazine, “New York City Mayor Zohran Mamdani's $124.7 billion budget includes one of the city's most unusual experiments in recent memory: five city‑run grocery stores that will sell staple foods at a 30% discount. Supporters see a targeted affordability measure, while economists warn the model could reshape pricing, competition and the small-business ecosystem that keeps food accessible in many neighborhoods. As the first store moves toward opening, the question is whether this intervention will expand access or introduce new market pressures.” Judging just from the facts (!!), what will happen is that the stores will first drive other stores out of business or at least out of the area, then go out of business themselves. There are two reasons for this. One, the margin for grocery stores is razor-thin at between 1-3%. This means to have a 30% discount on “core foods” means the difference will either be made up by raising prices on other items (which will remain unsold due to the higher price) or subsidized by the taxpayers . . . who are the very people providing the customers for the stores; robbing Peter to pay Peter. Two, since city projects and buildings are not taxed, there will be a significant drop in tax revenue both from the untaxed stores and the taxed stores driven out of business. This, too, will have to be made up elsewhere, probably by raising taxes on everyone else. Frankly — as usual — the only real solution is to have a limited role for the state (and that means cities, too) and adopt the Economic Democracy Act (EDA).
• The SpaceX Pump and Dump. Not unexpectedly in many quarters, SpaceX shares have gone from the anticipated blue-chip status to being in the doghouse; perhaps the company should be renamed “StonkX” to reflect its turkey status. That has raised the question whether the current pricing is a temporary dip or a permanent downturn. As reported in Moneywise, “SpaceX has erased almost $1 trillion in stock market value in five weeks — more than most individual companies in the world are worth. Retail investors who fought for shares at the $135 IPO price are down over 18% as of July 27 (2). Those who bought four days later, at the June 16 peak of $225.64, are down over 50%. A 50% discount on the hottest company in the world may look like an obvious buy, but that instinct is exactly what needs examining.” The article goes on to ponder the usual wisdom of buying low and selling high if there is no reason to expect the value per share to recover . . . which for a company that has yet to fulfill its highly hyped promise is what you’d expect. What we really need, however, is not more ways to gamble on the stock market, but to adopt the Economic Democracy Act (EDA).
• The Death of the American Dream . . . Again. Every time things get bad economically, the experts line up and announce the end of the American Dream. Of course, the only reason we can have so many funerals of the same thing is that it is not the same thing. The so-called “American Dream” has changed definitions so many times that it’s difficult to keep up. This time, as reported in Fortune magazine, “Professor [Susan] Wachter [professor of real estate and finance at the Wharton School of the University of Pennsylvania] writes that ‘in the 20th century, the American Dream entailed a familiar sequence: finish school, find a job, get married, buy a home, raise a family … In the 21st century, affordability has taken a turn for the worse—far worse—in the years since 2022. Housing costs for new homebuyers have more than doubled. Mortgage rates went from 3% to 6%, and housing prices rose by 40%.’” This looks pretty grim for this version of the American Dream — and it is. The only real solution is the one nobody seems to be considering: adopt the Economic Democracy Act (EDA) as soon as possible.
• The Beemer Bummer. They evidently managed to hold out for a while (two years at least), but this past week, BMW — Bayerische Motoren Werke — announced it is cutting around 8,000 jobs immediately, and in October will begin offering 40,000 workers “redundancy” packages to encourage termination or retirement. That amounts to about a third of the company’s 154,000 work force. The cuts are in response to a changing market and falling sales. We are reminded, however, of an anecdote Ronald Reagan told in a speech to Young Americans for Freedom, July 20, 1974: “Some years ago a top Ford official was showing the late Walter Reuther through the very automates plant in Cleveland, Ohio and he said to him jokingly, ‘Walter, you’ll have a hard time collecting union dues from these machines’ and Walter said, ‘you are going to have more trouble trying to sell automobiles to them.’ Both of them let it stop there. There was a logical answer to that . . . the owners of the machines could buy automobiles and if you increase the number of owners you increase the number of consumers. Over hundred years ago Abraham Lincoln signed the Homestead Act. There was wide distribution of land, and they didn’t confiscate anyone’s privately owned land. . . . We need an industrial Homestead Act.” Today we call it the Economic Democracy Act (EDA), but the message is the same.
• Incompetence, Insult, or Sabotage? School teachers are reporting enormous numbers of students are having their assignments done by AI and not even checking them before turning them in. Now it appears to have infected the “real world” of government. We know that such things as geography and history aren’t everyone’s cup of tea, but someone working in the United States Department of State probably should know a few basic facts . . . such as the names of countries one is talking about and getting facts straight. Nevertheless, as reported in The Telegraph, “A map of Africa with multiple countries incorrectly labelled was displayed by a Trump administration official during a global health conference. . . . According to an analysis by the news agency Reuters, the map bore an AI watermark that suggested it was made with OpenAI tools. The company said it was investigating. The state department said the map had been produced by a team member who hastily changed the slide deck before the event. Screenshots of the map first appeared in a Substack post by Emily Bass, an Aids expert, and were widely shared on LinkedIn, with one post garnering more than 40,000 views. ‘Whoever created and approved this slide did not know where countries in Africa are and did not care to check their work,’ Matt Petit, who focuses on AI and geopolitics at the Atlantic Council, said in the post.” We have recommended people own the AI tools through adoption of the Economic Democracy Act (EDA), but it is also important that people know how to use their own tools.
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| Ceuta |
• Flood of Immigrants. According to a report from the Associated Press, approximately 60,000 immigrants have crossed the border from Morrocco into the Spanish micro-territory of Ceuta, an autonomous city in North Africa with an estimated population of about 85,000. About half of the immigrants have returned to Morrocco, but more than forty are reported to have died. Immigrants are also attempting to enter Melilla, another Spanish territory in North Africa. And why the sudden rush? As reported in the article, “Many young Moroccans who crossed into Ceuta told The Associated Press that they had hoped to find better work opportunities in Spain but were returning given the mayhem in Ceuta. ‘There's nothing at home. I’d have to work 12-hour shifts for a meager wage. That’s why I came here,’ said 21-year-old Abdulah Buji, who hails from the city of Tetouan. ‘But I haven’t found any opportunities here either, so I have to go back.’” Interestingly, no one seems to consider adopting the Economic Democracy Act (EDA), as a possible solution to the immigration crisis. This is ironic, given that it is exactly what Pope Leo XIII would solve the problem 135 years ago in Rerum Novarum. As he said, “The law . . . should favor ownership, and its policy should be to induce as many as possible of the people to become owners. Many excellent results will follow from this; and, first of all, property will certainly become more equitably divided. . . . And a third advantage would spring from this: men would cling to the country in which they were born, for no one would exchange his country for a foreign land if his own afforded him the means of living a decent and happy life..
• 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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