Tag: economy

IT BEGINS: Zohran Mamdani Announces Plans to ‘Tax the Wealthy’ to Compensate for NYC Budget Deficit 

Well that was fast.

Zohran Mamdani has been mayor of New York City for less than a month and he is already talking about raising taxes on the ‘wealthy’ to make up the city’s budget deficit, which he claims is on par with the Great Recession.

Get ready to see a lot of Uhauls leaving the city.

CNBC reports:

New York Mayor Mamdani says city must hike taxes on wealthy to fill $12 billion deficit

New York City Mayor Zohran Mamdani on Wednesday said the city’s wealthiest must pay more in taxes to help fill the staggering budget deficit of more than $12 billion that he was left by his predecessor.

“This is at a scale that’s actually greater than what we saw here in New York City during the Great Recession,” Mamdani said of that budget hole during an interview with CNBC “Squawk Box” co-anchor Andrew Ross Sorkin at City Hall.

The Democrat, who took office on Jan. 1 after campaigning on a platform of hiking taxes on the rich, attributed the big deficit to “gross fiscal mismanagement.”

He pointed to actions taken by former Mayor Eric Adams, and by ex-New York Gov. Andrew Cuomo, whom he soundly defeated in the November general election, for causing that budget gap.

Mamdani vowed that his administration will be up front with New Yorkers about budget issues that have been “hidden from them for far too long.”

City Comptroller Mark Levine earlier this month said the new mayor faces a budget shortfall that is projected to total $12.6 billion over the next two fiscal years.

That comprises a $2.2 billion projected deficit on the city’s nearly $116 billion budget for fiscal 2026, which ends on June 30, and a $10.4 billion gap in fiscal 2027.

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Gretchen Whitmer Defends Abortion: Killing Babies for Profit is “Just Good Economics”

Michigan Gov. Gretchen Whitmer defended the killing of unborn babies in abortions Wednesday during her State of the State address, claiming pro-abortion laws are “just good economics.”

Whitmer, a pro-abortion Democrat, was re-elected to office in November along with a new Democrat-controlled state legislature. Together, they have promised to repeal a 1931 state abortion ban and ensure that abortion on demand remains legal in Michigan for years to come.

Speaking at the state Capitol in Lansing, Whitmer made the argument that killing unborn babies in abortions is good for the economy, according to a video of her speech from The Recount.

Portraying abortion as a “freedom” and a “right,” she said: “Protecting these freedoms is the right thing to do, and it’s just good economics. States with extreme laws are losing talent and investment, because you know what? Bigotry is bad for business.”

The Democrat governor promoted killing unborn babies even while promising to work for a “brighter future” for all Michigan residents, State of Reform reports.

“I can’t wait to share my vision for our state as we move towards our bright future, and lay out my plans to lower costs, bring supply chains and manufacturing home to Michigan, and ensure Michiganders have unparalleled economic opportunity and personal freedom,” she said ahead of her speech.

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“Emergency Intervention”: Trump To Cap Residential Electric Bills By Forcing Tech Giants To Pay For Soaring Power Costs

Back in August, when the American population was just waking up to the dire consequences the exponentially growing army of data centers spawned across the country was having on residential electricity bills, we said that the chart of US CPI would soon become the most popular (not in a good way) chart in the financial realm.

One month later we added that it was only a matter of time before Trump, realizing that soaring electricity costs would almost certainly cost Republicans the midterms, would enforce price caps.

Turns out we were right.

And while Trump obviously can not pull a communist rabbit out of his hat, and centrally plan the entire US power grid, what he can do is precisely what he is about to announce. 

According to Bloomberg, Trump and the governors of several US Northeastern states agreed to push for an emergency wholesale electricity auction that would compel technology companies to effectively fund new power plants, effectively putting a cap for residential power prices at the expense of hyperscalers and data centers. Which, come to think of it, we also proposed back in October.

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92% Of Employed Americans Have Cut Back On Spending As The Standard Of Living In The US Crumbles

The headline of this article is not a misprint.  The reason why “affordability” has become the number one issue for U.S. voters is because most of the population is being absolutely crushed by the rising cost of living.  

Just look at how much you are paying for electricity compared to five years ago.  And just look at how much you are paying for food compared to five years ago.  Housing costs have risen to absurd heights, property taxes have become absolutely insane in many areas of the country, and health insurance premiums have more than doubled for millions of Americans.  It isn’t just a coincidence that so many people are bitterly complaining about the cost of living these days.  The truth is that most of the country is experiencing very real pain.

Of course it isn’t an accident that this has happened.  Our politicians have borrowed and spent 28 trillion dollars that we did not have since Barack Obama first entered the White House in January 2009, and I warned that all of this money would create rampant inflation.

On top of that, the Federal Reserve has pumped trillions of dollars that were created out of thin air into the financial system since 2008.  That has helped the stock market hit record highs, but it has been one of the factors that has made the cost of living unbearable for the rest of us.

The very foolish decisions that our leaders have been making have had dramatic consequences.

Our standard of living is crumbling right in front of our eyes, and now a brand new report is telling us that 92 percent of employed Americans have been forced to cut back on spending…

For millions of Americans, staying financially afloat now means difficult trade-offs. As the price of everyday necessities continues to rise faster than wages, new data shows workers are cutting back wherever they can – often at the expense of savings, overall financial security and even essential needs.

That is the picture emerging from Resume Now’s 2026 Cost-of-Living Crunch Report, a national survey of 1,011 employed Americans, which has found that only 17 percent of Americans feel financially secure enough to cover essentials and save money. Nearly two-thirds of respondents cited everyday essentials as their biggest financial burden. What’s more, a remarkable 92 percent said they have cut back on spending, including on items many would previously have considered non-negotiable.

Please notice that only “employed Americans” were asked about the cost of living.

More than 100 million U.S. adults are not working at all.

For those that do not regularly follow my work, yes that is an accurate number.  The vast majority of U.S. adults that are not working are considered to be “not in the labor force” by the federal government.

Another survey that was conducted at the end of December found that 70 percent of Americans consider the cost of living where they live to be “not very affordable” or “not affordable at all”…

American consumers aren’t feeling great about the economy or their own financial situation, with the phrase “affordability crisis” dominating headlines and political campaigns over the last few months.

The majority — 70% — of Americans surveyed in a Marist poll of over 1,400 adults taken in December, say that the cost of living in their area is not very affordable, or not affordable at all, for the average family.

This is the result of decades of incredibly bad economic policy.

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The Real Reason the Economy Feels Rigged

A 45% higher chance of death—just for picking the wrong hospital.

That’s not a typo.

If you undergo surgery at a private equity–owned facility, your risk of dying from complications skyrockets—and almost no one is talking about it.

It’s one of the most horrifying stats you’ll hear this year.

And it’s only the beginning.

2026 kicked off with a flood of bankruptcies. At the center isn’t a broken system—it’s a system built to break things.

Private equity is profiting from collapse. Businesses are being gutted, jobs are vanishing, and the public is left picking up the pieces.

Tiffany Cianci is sounding the alarm: the private equity bubble is about to burst, and your retirement may already be exposed.

While these firms quietly cash out, they’re also selling you “solutions.” Like 401k plans riddled with loopholes—marketed as safety nets, but designed to benefit Wall Street.

What’s being sold as protection for the middle class might actually be a trap.

Tiffany joins us to expose what’s really happening and what you can still do to protect yourself before it’s too late.

You’ll never look at the economy—or your retirement—the same way again after watching this interview.

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Why is Keynesian Economics Collapsing?

In his 1936 book, ‘The General Theory of Employment, Interest and Money,’ John Maynard Keynes argued that aggregate demand was too volatile to be stable and would lead to inflation or recession. His theory honed in on spending as a means of price control. Low aggregate demand, Keynes argues, would lead to high unemployment and stagflation. Government could intervene through fiscal policies to increase aggregate demand, as an example, increased government spending could tame inflation. According to Keynes, interest rates could also be adjusted to encourage spending and stimulate demand. So why are these theories failing miserably today?

To begin, the United States had a balanced budget when Keynes presented his theory. The government is now the biggest borrower, acting in its own self-interest under Adam Smith’s theory of the invisible hand that Keynes spent his career attempting to deny. According to Keynes, “there is no self-correcting mechanism in a free market economy that automatically restores full employment.” He believed that the government could change the business cycle but arguably regretted this notion on his deathbed.

Keynesian economics gave the government the green light to manipulate the economy, or at least make numerous failed attempts to do so. There is that old joke about communism that you can vote your way in, but must shoot your way out, seemingly fitting to the utter disaster governments have created regarding our economic situation.

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The Apocalyptic Shortage That Never Happened: Democrats’ Tariff Doomsday Narrative Imploded  

Remember earlier this year when President Trump was locked in a tit-for-tat trade war with China? Then, a broad coalition of Democrats, corporate media outlets, mainstream economists, and left-leaning think tanks warned that higher tariffs would spark pandemic-era supply-chain chaos and trigger price spikes for consumers. Two quarters later, those dire predictions have yet to materialize.

MSM propagandists sounded the apocalypse alarm:

  • March: KOMO News: ‘It’s worse than COVID’: Point Roberts seeks state aid amid US-Canada tariff crisis
  • April: NBC News: Product shortages and empty store shelves loom with falling shipments from China
  • April: Fortune: Tariffs threaten a pharmaceuticals shortage, as 95% of ibuprofen comes from China
  • April: CNBC: The trade war’s wave of retail shortages will hit U.S. consumers in stages.
  • April: Axios: How Trump tariffs could cause a global recession
  • April: Vox: America may be headed for this rare type of economic crisis
  • April: CNN: Trump took the US economy to the brink of a crisis in just 100 days
  • May: The Guardian: Trump’s tariffs: ‘It feels like Covid 2.0. So many things are getting disrupted’
  • May: Business Insider: The worst is yet to come: Trump’s tariffs could mean even higher prices and empty shelves within weeks

Democratic Party and MSM’s supply-chain apocalypse alarm peaked in mid-April, then resurfaced in a smaller echo wave by August, according to Bloomberg data tracking mainstream media headline counts for the term “tariff.”

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Almost 150,000 children were living in jobless households this Christmas as number of homes without an income hits 11-year high

Almost 150,000 more children spent Christmas in a home without an income this year after the number of jobless households hit an 11-year high under Labour, official figures show.

There were 1.52 million youngsters living in a house where not a single adult family member is employed as of September, according to data from the Office for National Statistics.

Last year, 1.37 million children were in a workless household in October to December 2024, meaning an extra 146,000 children spent Christmas in a home without an income this year.

The figures also reveal that the number of children in workless households is at its highest level for 11 years. The last time there were more children in a house where no adult family member is employed was in October to December 2014, when the total was 1.54 million.

The Conservatives blamed the rise on Labour’s £25billion raid on employer National Insurance contributions and minimum wage hikes, which have driven up the cost of taking on workers.

They claim that with firms scaling back and jobs disappearing, more families are being pushed out of the workforce entirely, leaving children to bear the consequences.

Helen Whately, Tory spokesman on work and pensions, said: ‘Too many parents are being priced out of work by Labour’s Jobs Tax and Unemployment Rights Bill.

‘It’s a tough Christmas for people who have been made redundant and can’t find new work, and for those still in jobs seeing their taxes go up to pay for more benefits. Labour is offering more and more handouts to people on benefits, making welfare the rational choice rather than work.

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A Bipartisan Push to Revive a 1930s Law Could Make Grocery Prices Even Higher

Groceries, like almost everything these days, are seeing prices rise. Millions of Americans have tempered some of these hikes by purchasing bulk goods at wholesale prices at warehouse club retail stores such as Costco, Sam’s Club, and BJ’s Wholesale Club. But these savings could soon cease. A bipartisan coalition of lawmakers is looking to crack down on wholesale prices by reviving a nearly 90-year-old antitrust statute.

In the weeks leading up to Congress’ winter recess, Sen. Chuck Grassley (R–Iowa) solicited the signatures of fellow Senate Republicans on a letter to Attorney General Pam Bondi and Federal Trade Commission (FTC) Chairman Andrew Ferguson asking them to investigate supply practices that hurt small businesses, particularly grocers. Reason has acquired a copy of the letter, which calls on Bondi and Ferguson “to utilize all federal laws…to bring enforcement actions against any discriminatory conduct that you may discover in violation of…the Robinson-Patman Act.”

The Robinson-Patman Act (RPA) is a 1936 antitrust law that bans discrimination “in price between different purchasers of commodities of like grade and quality…where the effect of such discrimination may…tend to create a monopoly in any line of commerce.” After a period of strong enforcement in the mid-20th century, recent decades have witnessed a marked decline in federal RPA cases: Before the FTC, under the leadership of Chairwoman Lina Kahn, sued Southern Glazer’s Wine and Spirits for selling alcohol to larger retailers at lower per-unit prices in December 2024, it had been more than 20 years since the federal government filed an RPA suit. Then–FTC Commissioner Melissa Holyoak dissented from Khan’s complaint, which she characterized as “elevating the interests of competitors over competition” in a way that was “at odds with the plain text” of the RPA.

Grassley argues that the statute recognizes certain forms of price discrimination as harming competition, but he doesn’t acknowledge that the RPA allows price differentials that reflect “differences in the cost of manufacture, sale, or delivery resulting from the differing methods or quantities in which such commodities are to such purchasers sold or delivered.”

Grassley claims that a lack of competition is forcing independent grocers “to accept increasingly discriminatory terms and conditions for their products, including less favorable…price terms”—even as he rightly describes the grocery business as “experienc[ing] high turnover and low margins.” Such phenomena are textbook indicators of a competitive industry, not a monopolized one.

Grassley also claims that “independent businesses are often the only source of groceries, consumer goods, or pharmaceuticals in many small towns and urban centers.” If this were true, such small businesses needn’t worry about larger firms receiving bulk price discounts; they wouldn’t be competing with them at all.

Of course, the opposite is true. Local businesses face intense competition from Amazon, Walmart, Target, FreshDirect, CVS, Walgreens, and the myriad other firms that ship groceries, goods, and drugs directly to consumers. These large firms enjoy bulk discounts and attract customers by passing on part of their savings to them in the form of lower prices.

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Bernie Sanders Wants To Pause New Data Centers To Stop the Economy From Growing Too Much

The United States is leading a global data center boom. Investors are plowing some $7 trillion into the infrastructure necessary to support AI development, with 40 percent of that investment happening here in the United States.

This boom in data center investment is so pronounced that many analysts argue it’s propping up an economy that’d otherwise be wobbling under the strain of tariffs and high borrowing costs.

Some skeptics credibly argue that the money flowing into AI research and the physical infrastructure needed to support it is a bubble that will eventually pop.

Unconvinced by the skeptics is Sen. Bernie Sanders (I–Vt.), who seems to believe that data center investment will generate large profits, produce technological innovations, and drive economy-wide productivity growth.

Therefore, he wants to shut it down.

In a video posted to Instagram, the socialist senator called for a federal moratorium on data center construction until our politicians can figure out just what the hell is going on.

According to Sanders, the development of artificial intelligence and robotics technologies powered by data centers “is moving very, very quickly, and we need to slow it down.”

He warns that the current boom, if left unchecked, could well end up enriching already wealthy billionaires investing in the technology, leading to job automation and powering a distracting and alienating technology.

A “moratorium will give democracy a chance to catch up with the transformative changes that we are witnessing and make sure the benefits of these technologies work for all of us,” Sanders concludes.

Given general bipartisan support for “winning the AI race” and the amount of growth being generated by data center investment, it’s unlikely that any such moratorium will come to pass.

The fact Sanders is proposing it anyway is reflects just how much anxiety he and other members of the socialist left feel whenever capitalism is working.

Whether it’s driverless cars or choices in deodorant brands, Sanders cannot stop worrying and learn to love it when capitalists make productive investments and give consumers what they want.

Any economic growth that is not planned by the bureaucrats and approved by the electorate is inherently suspicious and perhaps downright malicious.

Sanders’ call for a data center moratorium is to prevent investment in this infrastructure from yielding productive fruit.

He’s worried that investors will reap profits from data center construction. Those same profits would be a signal that their investments were a prudent use of capital that’s driving real growth in the economy.

Likewise, the job automation Sanders worries about would be another sign that data center investments were well-placed. A primary purpose of capital investment and technological innovation is to shift more labor off the backs of human beings and onto machines.

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