Losing the middle class

Most of my readers know that, after months of speculation as to his fate, former Delaware Senator and Vice-President Joe Biden entered the 2020 tournament for the Democratic presidential nomination a couple weeks back.

I had the opportunity to find this out a little in advance as I’ve been on his American Possibilities e-mail list for awhile. Of course, that’s morphed into the Biden 2020 mailing list so now I get regular missives from him on a variety of topics. Most of them I ignore, but this one begged for a counterpoint. I’ll pick it up after the formalities and omit the appeals for money as I go point-by-point. He’ll be in italics and I’ll be in regular font since it works better than a blockquote.

Michael, this country wasn’t built by bankers, CEOs, or hedge fund managers. This country was built by the American middle class.

It’s nice that you know my name, Joe, and in many respects you are correct. But most “bankers, CEOs, or hedge fund managers” were once members of the middle class – they just used hard work, talent, and aptitude to rise above the rabble that may not have had those same priorities, abilities, or desire to succeed. And the country needs ditch-diggers, too: there’s no shame in hard work. America was built by this team effort.

But today, the middle class is under attack, and too many families are being left out. They are working longer hours for less pay.

That’s why I’m calling for a $15 minimum wage — so we can build an economy where everyone has a chance to get ahead. (Emphasis in original.)

An hour is really still 60 minutes, but I get the point. But it seemed to me that median wages were increasing faster than inflation was since your successor took office, and government figures bear me out. They also prove that the Trump administration is succeeding much better than your old boss in addressing the situation.

I’ll grant the numbers come in at the tail end of the Great Recession (on the cited chart they begin in 2010) but in constant dollars the time period from 2010-2016 saw a net increase of just $5 a week during that six-year period. Moreover, while women’s earnings increased $10, men’s earnings actually declined $2 a week in constant dollars (based on 1982-84.)

Conversely, under Trump men have increased by a full $10 in nine quarters and women are up $2. Overall, the numbers are up $6 despite a hiccup at the end of 2017 that saw a sharp decrease in all categories. In 2018-19 men are up $11 a week, women $4 a week, and overall we have gained $10 a week. (Remember, that’s in 1980’s-vintage constant dollars. In actual 2018-19 terms the numbers since the end of 2017 are $51 a week for men, $29 for women, and $44 overall. A full $20 of that overall figure came upon the enactment of the Trump tax cuts between 2017Q4 and 2018Q1.)

Given that the average wage is now $23.31 an hour (and has risen about $1.50 since Trump came into office): I think the middle class is doing pretty well in this economy. But let’s soldier on:

And Michael, I’m asking you to stand with me on this, Sign your name to call for an increase of the national minimum wage to $15:

No, you’re standing by yourself on this one, Joe. Aren’t I already on your mailing list anyway? (By the way, that was originally a link to the money page.)

The middle class isn’t a number — it’s a set of values. Owning your own home. Sending your kids to college. Taking care of your geriatric parents.

The cost of all of these things is rising. And wages? Those aren’t.

We need to fix that. (Emphasis in original.)

Didn’t I just prove that wages were rising? Surely not everyone has an equal bump in pay, but as a whole they are.

And let’s talk about these milestones, shall we? One huge issue for the Millennials is the student loan debt they carry thanks to a society (aided by government regulatory policies at all levels) which requires a college degree for most of the desirable jobs. But not every degree is created equal; hence you get the proverbial womyn’s history majors working part-time as a barista at Starbucks while many engineering majors make serious coin. (Moreover, a large percentage of STEM majors are foreign students – look at a list of graduates from any engineering program and you won’t see a lot of common American names.)

And why is college so expensive in the first place? Conveniently, this chart happens to go back to my senior year of college and is in constant 2015-16 dollars – so you can see how the cost has grown so much faster than inflation. It’s been almost twenty years since I set foot on the campus of my alma mater but even in that fifteen years between graduation and my last visit there was a LOT of building on that campus – mainly in the category of student amenities such as a recreation center and complete renovation of the student center. Yeah, there were a couple new academic buildings (and they were gutting and expanding the architecture department building at the time) as well but that’s not what really attracts the kids.

Add to that the multitude (as in growing at a rate twice as fast as student enrollment) of new administrators – who surely receive an upper-middle-class salary and benefit package – and you have the beginning of a rampant increase in costs.

But the kicker was finalized by your old boss. Once the government shifted from guaranteeing loans – a practice for which the modern incarnation began in the early 1990s as a pilot program under Bush 41 – to becoming the sole provider in 2010 as a codicil to the Obamacare act, schools had no incentive to keep costs in line – why not dip your greedy mitts into that sweet manna of taxpayer dollars and keep everyone working on campus fat and happy? They had their money, so who cared if the government didn’t get theirs? That was on the student!

So the graduates (if they finished at all) have no money for a house, which is why many millions still live at home. And since their Boomer parents seldom put enough away (perhaps because they’re still supporting Johnny and Sally) for retirement and old age – believing Social Security and Medicare would somehow be enough to cushion their lavish lifestyles – those Boomers and their kids got a rude awakening when it was time for long-term care: Medicare doesn’t cover it and Medicaid will help itself to your estate for reimbursement.

Maybe it’s time to reconsider how much the government has already “fixed” for the middle class here? And don’t worry, I didn’t forget about ol’ “Creepy Joe.” Here he is again:

We need to restore the basic bargain for Americans so that if you work hard, you are able to share in the prosperity your work helped create.

To do this, we need to start with paying fair wages from the beginning.

Joe, did you forget that the true minimum wage is zero? Chances are, if you work hard and learn the skills needed to succeed in the workplace, you won’t be a minimum-wage worker for long. Yes, you may have to relocate or do tasks you might think are “beneath” you, but there are still paths to success in America – even in states where the minimum wage is set to the federal minimum.

Honestly, if we wanted “fair” wages we would have no minimum wage. That would be the ultimate in fairness as you are paid what you are worth to the employer. Don’t forget: employers aren’t there to give you a job, they are working to make a profit for themselves. If that doesn’t suit you, there are many opportunities to be your own boss – be cautioned, though, that there’s a much smaller safety net underneath you. But you would definitely “share in the prosperity your work helped create.”

I’m asking you to speak up, with me, and call for a raise of the national minimum wage, as the first step of many to have the back of American workers.

I told you no once, Joe. Get the government off the back of American workers.

This is just the first step. I look forward to sharing more about my plan for America in the future. Stay tuned.

Yeah, that’s what I was afraid of. When your plan consists of rightsizing government to conform to the Constitution – that would be a good first step. Until then, you’re just a guy who’s lived on the taxpayer dime for way too long.

You know, Joe, I was only six years old when you were first elected, and in that interim time I’ve worked in the private sector for thirty years or so. (For about fifteen of those I was paying off student loans – and that was only for about $10,000, plus scads of interest.) You made it all the way to vice-president, and I’ll give you props for dealing with the tragedies in your life. But arguably you have less in common with a working man than Donald Trump does, even though you talk a good game and he’s a billionaire or whatever. Trump took risks and had spectacular failures but he’s signed the front of checks for thousands of employees, too.

And comparing his economic record to that of your former boss – well, I don’t think there are too many who want to go back to that malaise. I know I don’t.

I don’t know what your domestic situation is, but I would be curious: what do you pay your hired help? Hopefully it was more than your charity giving once was.

Anyway, it was nice talking to you, Joe. Good luck in the debates – you’ll need it.

Odds and ends number 93

There’s been a lot piling up in my e-mail box as I prepared The Rise and Fall of the TEA Party, so now that I have that wrapped up I can move on to a few long-overdue things, like this one. As always, it’s things I can speak to in a couple sentences to a few paragraphs, wrapped up in a rhetorical bow.

On the Maryland front

I’ve received a number of items from my old friends at the Maryland Public Policy Institute but these few stuck out at me. First was Marta Mossburg’s assessment of our governor’s Presidential election chances:

If Gov. Larry Hogan decides to challenge Donald Trump for the presidency, he will lose before stepping into the ring.

A man who in the State of the State and at his second inauguration tried to out Roger Mr. Rogers with calls for bipartisanship has no chance outside the small neighborhood of Maryland. Anyone with an R beside their name is evil to those on the progressive left throughout the nation even if they never don a MAGA hat. And what in his record will speak to the national Republican base so loudly they would be willing to dump Mr. Trump for him?

“I lowered tolls!” isn’t a rallying cry to stir the masses. Neither is “I stopped Democrat overreach!” And “I supported the most expensive public transportation project in the world” won’t win him an invitation to break bread with wealthy Republican donors who want to shrink government.

“Maryland needs to win for Gov. Hogan to win higher office”, MPPI blog, February 5, 2019.

Not to mention we already have a socially-liberal #NeverTrump in the running for losing the GOP nomination. But the point remains: Donald Trump, for all his faults, is probably more conservative than Larry Hogan is. A conservative Larry Hogan would veto practically everything the Maryland General Assembly passes (instead of caving in to some of their worst proposals) because how often do they even consider his sponsored bills? Add to that the fact that Trump will actually campaign for conservatives (unlike what happened to a certain Maryland U.S. Senate candidate last time around) and the thought that Hogan would be wise to concentrate on Maryland makes more sense.

And if that wasn’t enough, MPPI scored big with their assessment of Maryland’s spending problem and long-standing alternatives to a job-killing $15 per hour minimum wage.

A fast-growing industry

Speaking of Governor Hogan and caving in: despite Maryland’s foolish refusal to get in on the game, extraction is the nation’s fastest-growing industry. But even Andy Harris has been reluctant to advocate for offshore drilling despite its potential benefits, as this op-ed suggests. As I often say, the reason environmentalists oppose seismic testing isn’t the harm to creatures but is truly that of what we may find is out there now that testing methods have improved over those of 30 years ago.

On the other hand, those trying to kill industry in the country are hard at work trying to fool people. Two cases in point come from the Capital Research Center, which posted a couple good pieces on union influence in politics these days in left-leaning states as well as the federal government. But if you really want to take the cake, just listen to what Slow Joe Biden said a few days ago:

It’s time we told the truth about what unions have really done for America.

With the dues they paid, the picket lines they walked, the negotiations they sweated through, those union workers weren’t just standing up for other union workers.

The rights they fought for benefited every American worker.

Minimum wage. Overtime pay. The 40-hour workweek. Safer working conditions. The elimination of child labor, for crying out loud. The list goes on and on.

This country wasn’t built by a few Wall Street bankers, CEOs, or hedge fund managers. It was built by the American middle class.

“It’s Time To Tell The Truth About Unions.” e-mail from American Possibilities.

Here’s a little more truth: I was often told by a relative – who was a union steward, for crying out loud – that “unions are for the lazy man.” When the incentives become perverse, like intentionally slow-walking a task so the productivity expectation remains artificially low, it’s apparent that unions provide a floor level of benefits but also create a ne plus ultra of accomplishment. The most productive and innovative have no place in a union.

Good news for the Constitution (party)

Did you know the Constitution Party has 110,000 registered voters around the country? It doesn’t seem like much but worth remembering is that not all states specifically allow registration to any party but the big two.

But I love the contributions being made by an unknown person who goes by the nom de plume “Digital Paul Revere.” In one statement, DPR said a lot about the type of person the Constitution Party should attract:

I am writing to you because I have witnessed firsthand the absolute horror of socialism. These essays are not newsletters. They aren’t meant to bring you recent Party news. They are long-form commentaries on current events happening in our country. They are viewpoints, seen through the lens of a Millennial American who has lived for a significant length of time under a true socialist dictatorship: China. These essays are meant as an olive branch to young Americans, frustrated by the perversion of the political process today, alienated by the major political parties, crushed under unimaginable debt with little hope of ever having the means to repay it, and “politically homeless”. They are also meant to give older generations of Americans a glimpse into the future that awaits your children and grandchildren, should you fail to act now.

In these essays, I hope to provide a point of view that will help fellow American patriots see the danger that our nation is in and call to action all who wish to see the situation improve. I can tell you with absolute conviction that many Americans do not know the extent to which socialism has corrupted our systems and institutions. I didn’t know either. It is only after having lived under true socialism that I can see the telltale signs of its growing influence on our country.

“Introduction to a Reformed Millennial,” DPR.

In a similar vein, DPR writes that it’s better to be an American. I like that.

The Constitution Party also gained a couple more officeholders thanks to partisan switches – one from Republican and another from a conservative Democrat who was elected based on their votes in a North Carolina race. In looking up the results, though, I found this gentleman was an incumbent county commissioner who turned out to be a primary election loser that took advantage of the CP’s newly-won ballot access to avenge his primary loss. In most cases, “sore loser” laws would prevent this, so his victory comes with an asterisk, too. It’s tough to compete with the duopoly, though.

The Kochs of the Left

The penultimate piece before I go is a groundbreaking report from the Capital Research Center on a left-wing dark money entity called Arabella Advisors. If you ever wonder how these left-leaning “grassroots” groups suddenly pop up out of nowhere, this piece may help you to understand that it’s some serious Astroturf. And they had the nerve to call the TEA Party “Astroturf?” Sorry, I know some of the TEA Party founders and believe me, they are legit. If you’re still not convinced, read this.

Flogging the scamPAC horse

That’s not to say that the TEA Party didn’t eventually sell out, though. Call it flogging a dead horse, but the TEA Party Express is coming off like a scam PAC with an appeal that claims:

The recent polls coming out are showing President Trump behind many of the Democratic candidates.  Now, as financial disclosures are due for the first quarter of the year, we see that these Democrats are raising unheard of millions of dollars – over $70 million and counting.  So Trump is behind in both the polls and in the critical fight for financial resources to communicate with the American people.

We launched the “Tea Party for Trump” to get conservatives off the sidelines and back in the field to preserve the tremendous gains we have made over the last two years and achieve even more victories ahead in a second term of Trump-Pence.

“Fight back for Trump” e-mail from Sal Russo of the Tea Party Express.

There are no less than seven different linked appeals for donations.

Now I’m not sure if the TPX (as I called it for shorthand in my book) ever ran a bus tour for the 2018 midterms – if they did it was nowhere near my radar and I think I have a decently attuned one. But if Lloyd Marcus is to be believed they may get the band back together for Trump 2020. We will see.

Still. it’s a shame how far the TPX has fallen. Luckily my friend Mark Williams isn’t dead or he may be rolling in his grave about this one.

Now that I have pretty much cleaned out my e-mail, I think we can put odds and ends to bed for a few weeks.

Why $15 is the wrong fight

I have seen reports all over social media and the “real” media that the Maryland House of Delegates has passed an increase in the minimum wage that will eventually lead it to $15 per hour by 2025. I’m not up on just who is who in the House these days but I presume a 96-44 vote is pretty much party line – there may have been a Democrat who voted against it, but I don’t know and it likely doesn’t matter in the scheme of things because it’s a vetoproof majority and the way Democrats are ramming this through it will be passed at a time when the veto can be overridden in session. (With Larry Hogan’s record, I can no longer say “inevitable veto.”)

It should be pointed out first of all that the “fight for $15” is sort of a misnomer because the raise from the current $10.10 per hour – a rate established last July – to $15 an hour would not be complete until January, 2025. This is a significant change from the original bill, which mandated the raise be in place by July, 2023. (The House bill has been amended while the cross-filed Senate bill remains as it was originally intended, so it works well for comparison.) But since the state began regularly raising its minimum wage in January, 2015, workers have already received a 26.3% bump in four years – well beyond the rate of inflation and a far cry from the normal 2-3% annual raises many workers receive if they are lucky. Whether it takes eight years or ten years, a salary increase of 87.5% for gaining absolutely no skills is far more than the market would naturally allow.

I’ll circle back to that point in a moment, but it’s also worth considering that union workers who have their wage rates tied to a point above the minimum wage will also get a raise. And when workers get a raise, guess who else does?

In today’s climate of dramatic minimum wage increases of 50% or more, unions — predominantly in the service sector — can also directly benefit from minimum wage increases because their members’ pay is less than the new minimum. Take California, for instance, which passed a $15 minimum wage last year. The Employment Policies Institute (EPI) usedCensus Bureau data to estimate that roughly 223,000 union members in the state will receive a direct pay increase by the time the law is fully implemented.

It’s bad news for taxpayers, but a solid investment for unions. A powerful California-based SEIU local spent about $1.6 million to collect the signatures needed to qualify the $15 ballot measure that forced Gov. Jerry Brown to back such a mandate. EPI estimated that California unions can expect a return on investment of roughly $9 million in additional dues per year.

“Why Do Unions Fund The Fight For $15 Minimum Wage? Because They Gain A Financial Windfall In Return,” Ed Rensi, Forbes, January 19, 2017.

You can bet your bottom dollar that Big Labor here in Maryland has similar deals with business owners held hostage to these union contracts.

Now circle back with me if you would and think about who earns minimum wage from a job. Generally they are people just entering the job market or those who don’t develop their skills beyond the point of being barely hireable. My first “real” W-2 job was working in the on-campus dining halls at college, and it was a minimum wage job – just as my roommate who snagged a cushy library job made. Since I was essentially a temporary worker, it didn’t matter to the school that I was making $3.35 an hour to run a dishwasher. And since most of my money went to the local sub shop or to buy the occasional 12-pack when I became legal, I didn’t much worry about it, either. In fact, my first job out of college at a department store was minimum wage – but this college graduate quickly parlayed his degree into a 49% raise when the architectural firm I interviewed with a few weeks earlier offered me a position less than a month after I started working at the store. More skills and a little bit of work experience = higher wages. I created more potential value from my labor.

This is the problem with minimum wage as I see it. Do you think Maryland workers are going to instantly create another 75 cents to a dollar’s worth of value to their employers each hour just because the calendar flipped from 2020 to 2021 or 2024 to 2025? Of course they won’t – but if a business owner had 20 minimum-wage employees who worked an average of 20 hours a week, it’s an extra $300 or $400 they need to clear.

I’ll grant there’s a bit of merit to the argument that raising the wage creates people with more money to spend, but what are the chances enough people will take their extra money and spend it at the business in question? When the percentage of workers who make minimum wage hovers in the low single-digits, there’s not enough of an impetus for that so-called “extra” money to make much of an impact on the economy at large but, at the same time, it can be devastating to a business that requires a lot of unskilled labor.

There’s also the impact on workers who make slightly to significantly more than minimum wage to consider. They won’t get an automatic raise, but their standard of living declines by the amount that businesses have to raise their prices to cover costs. It may only be an extra percent or two in scattered businesses, but eventually that adds up. Note that amendments to Maryland’s most recent minimum wage bill not only slowed down the increase by 18 months but also scrapped the automatic increase based on inflation – probably to make it an issue for the 2024 or 2026 elections.

I have often said, and will continue to say because it’s true, that the real minimum wage is zero – the amount you make when the job you may have secured when the minimum wage was $8 an hour and you weren’t a significant risk to the employer if you didn’t work out is the job that’s no longer available at $10.10 an hour.

Regardless, it’s all but certain that a minimum wage increase will pass in Maryland this year. The Left needs that victory and many others in order to try and tank the state and national economy for the 2020 election. (Notice the lack of enthusiasm over the 2.9% GDP increase despite the fact it’s our best since 2015 – losing by a fractional .0009% – and close to the first 3% annual calendar year growth rate since 2005. One could argue the Schumer-Pelosi-Trump shutdown may have cost us that 0.1 percent.) Apologists for the Obama economic record (“Analysts have called into question just how much a particular president actually impacts the economy during his tenure”) now expect a recession to hit by the next election (“While the fourth-quarter cooling isn’t quite as extreme as some economists feared, the metric does little to placate existing concerns about a global economic slowdown.”)

But someone believes in magic, as in that people will magically produce more value through an arbitrary wage increase. Cue the pixie dust and unicorns.

Odds and ends number 92

The more regular than it used to be look at the pile that’s my e-mail box and dredging out items worth a few sentences to a few paragraphs starts now:

A private fight for $15

My friends at the Maryland Public Policy Institute recently pointed out that there are a number of Maryland companies who are already paying starting employees $15 an hour (or soon will be.) MPPI’s Carol Park notes that, “The main goal for Maryland government should be to incentivize businesses in Maryland to grow larger and more profitable, so that they can become the new Amazon and Target and not only pay their employees $15 an hour but employ hundreds and thousands of Marylanders who are looking for a job.”

While Park is right, she also misses a point. Using that argument, larger businesses may be comfortable latching onto the so-called “Fight for $15” because it allows them to throttle back prospective competition. Small companies running on tighter margins won’t be able to pay the higher wages, so they won’t be able to compete.

Listen, if the SEIU and big business are on the same side (and, according to Leonard Robinson III of the Capital Research Center the SEIU is greasing a lot of Democrats’ palms to get this enacted at the federal level) it just can’t be good for the rest of us.

Returning to the subject of MPPI, they have also recently asked the state to “resist” raising taxes in the wake of the Kirwan Commission report advocating an additional $3.8 billion in school spending – none of which is slated to follow the child as it should. They cite prospective income tax increases on the middle class as well as possible expansion of the sales tax to include more services and business tax hikes as possible outcomes.

Knowing how the Kirwan Commission came together, is it any wonder higher taxes are on the docket? Resist we must.

Did Trump really cave? Or is it “fake news” from the dividers of Indivisible?

This probably deserves its own post, but we all know Indivisible will take credit for anything that’s a loss to America or makes President Trump look bad – naturally, that extends to the end of the recent Schumer-Pelosi shutdown. So this was their “state of play” after the furlough ended.

Pay attention to the “ask” – Republican Senators are asked for “No new wall money. Keep the government open.” It sounds to me like the Democrats have already determined they will shut it down again and try to blame Trump again. Nope, that one would be on you – particularly since Democrats have the majority in the conference committee.

In another Indivisible-related item I found interesting, they laid out a fundraising wish list in an e-mail I received in the wake of the shutdown:

  • $1,475,000 for “doubling our organizing team,” adding 14 state-level organizers, 3 digital organizers, and 3 training organizers.
  • $80,000 for Hubdialer, which, as the name implies, assists volunteers in making phone calls.
  • $114,000 for Mobile Commons, which is a text messaging system.
  • $1,315,820 for digital ads. More money for Mark Zuckerberg.
  • And $140,000 for ActionKit, a “mass e-mailing tool.”

All told, that “ask” is a little over $3 million, which I’m sure they’re going to invest in pushing more propaganda for 2020. Yep, that’s some grassroots for you.

And speaking of Astroturf…

If you wondered why Obamacare has hung tough despite its unpopularity, maybe this is why. From CRC’s Hayden Ludwig:

At least thirteen pro-Obamacare organizations aren’t independent organizations at all, but websites hosted by a handful of mega-funder nonprofits: the Sixteen Thirty FundNew Venture Fund, and Hopewell Fund.

Those three funds are in turn managed by Arabella Advisors, a mysterious consulting firm based in Washington, D.C. Arabella Advisors advises wealthy clients on what it calls “strategic philanthropy.” In practice though, Arabella’s strategic giving involves philanthropic investments to left-leaning causes and organizations.

“Who is Behind the Groups Pushing Obamacare?”, Hayden Ludwig, Capital Research Center, January 10, 2019.

Nor should we forget this tangled web the Left weaved.

And people thought the TEA Party was Astroturf because Americans for Prosperity printed up a batch of signs? Okay then, feel free to be wrong.

More wasteful spending

Another winner from the CRC comes in this investigation by Robert Stilson – employment programs that make work for connected non-profits. It’s yet another case of low-hanging fruit to be plucked and another score for the Capital Research Center, which is beginning to become a (sorely needed) bulldog of the Right. Don’t miss their look at the Census controversy either.

The state of American energy…is strong

At least according to the lengthy (over 120 pages) and colorful annual report from the American Petroleum Institute. It should be required reading for environmentalist wackos, including one Larry Hogan. Maybe he’d learn something and get back to what he promised.

If you want something a little more “official” the far less colorful Energy Information Administration Annual Energy Outlook 2019 is out as well. Both documents are chock full of good news for the energy industry as long as government stays out of the way.

So is the state of American manufacturing

Fresh off “another strong month of job growth,” the folks at the Alliance for American Manufacturing believe, “This strength in factory and overall hiring gives the administration considerable leverage headed into the final leg of trade talks with China,” according to AAM President Scott Paul.

But they’re never quite happy, always wanting something more. On the heels of a Trump “buy American” executive order, the group wants it expanded already. Here’s what it covers, in a nutshell:

Within 90 days of the date of this order, the head of each executive department and agency… administering a covered program shall, as appropriate and to the extent consistent with law, encourage recipients of new Federal financial assistance awards pursuant to a covered program to use, to the greatest extent practicable, iron and aluminum as well as steel, cement, and other manufactured products produced in the United States in every contract, subcontract, purchase order, or sub‑award that is chargeable against such Federal financial assistance award.

“Executive Order on Strengthening Buy-American Preferences for Infrastructure Projects,” issued by President Trump January 31, 2019.

While the additional jobs are good news, I’ve always been a little leery of “Buy American” orders such as these just because it’s gaming the market and making American products just that much less competitive on a global scale. Why invest in new technology and better facilities when you have a captive customer?

Having said that, I do believe President Trump is trying to level the playing field a bit as other nations subsidize their industries to varying degrees, too. For several years I received missives from AAM and others decrying the “dumping” of steel on the American market by Asian competitors, and that’s a case where a “Buy American” law can be of assistance. But I would rather see fair trade as a part of free trade, and there can be instances where “Buy American” may not be the best option.

Fighting the last war

In terms of total votes, the most popular politician in Maryland isn’t Larry Hogan. Instead, the top vote-getter in 2018 was Comptroller Peter Franchot, who drew 1,620,264 votes in winning a fourth term in office. Peter carried all but three counties (Cecil, Garrett, and Washington) in defeating the vastly underfunded Republican challenger Anjali Phukan. (Her campaign, beginning in May, 2017 and ending last December, raised a grand total of $2,051.25. The remaining $460 was donated to charity.)

But Phukan remains convinced that Franchot’s victory was achieved through underhanded means. Recently she attempted to convince the Maryland Board of Elections that an investigation into Franchot’s campaign finance was necessary, but to no avail. So she took the next step:

With no administrative options left, at the suggestion of some fellow Republicans, I filed a “Writ of Mandamus” with the Circuit Court in Anne Arundel County, to make the Board of Elections investigate my concerns, and act accordingly, as required by Maryland law. In this writ I also requested an injunction and declaratory judgement. I had presented my concerns before the election board as I discovered things in the process of reviewing his campaign’s financial records, and yet the account was still deemed compliant enough for Franchot to be certified!

Anjali Phukan, newsletter to supporters, January 27, 2019.

She’s also began plugging an obscure electoral watchdog website that’s had barely 700 visits in the last 2-plus years (as there is still 2016 information on it.) A GoFundMe campaign for it has raised a grand total of $5. But while it seems Phukan is tilting at windmills, she brings up some very troubling concerns about the Maryland campaign finance system.

Having written and read a few campaign finance reports in my time, I’m sure I’ve pointed out the weaknesses in the system. But a glaring one is how one very minor change in information submitted could conceivably allow an entity to donate far more than the prescribed limit, and seldom does the Board of Elections act on these irregularities. Since I haven’t heard of them overturning any elections due to unlawful campaign finance, I presume the punishment is generally making the campaign return the donation and perhaps a modest fine to the candidate and/or treasurer.

I glanced through Phukan’s summary of Franchot’s issues and, while it wasn’t a vast percentage of his campaign funding, you would think a person who is charged with being an accurate collector of revenue wouldn’t have such large accounting errors. It seems to me that the Board of Elections is just putting these self-reported records out to present a fig leaf of accountability but not really checking into them. (And let’s face it: most campaigns in this state don’t involve enough money to pay the mortgage for a year.)

And, by extension, the lack of interest in checking Franchot’s campaign finance seems to be echoed in their lack of interest in (or utter contempt regarding) cleaning out voter rolls. The erstwhile watchdog group Election Integrity Maryland found thousands of duplicate registrations in a May, 2014 survey. (Third release here, from an archived web page.) It’s now February, 2019, and something tells me that number is twice as high. Just wait until they get the automatic voter registration!

In passing

I couldn’t let this post go by without mentioning the recent passing of my former colleague on the Wicomico County Republican Central Committee, Dave Goslee, Sr. Sadly, the 78-year-old Goslee had just in November won a seat on an institution he’d been fighting to reform for the first ten years of his twelve-plus year tenure on the Central Committee, the Wicomico County Board of Education.

Dave showed the value of getting out the vote as he won that Board of Education seat by one vote after a December recount showed that vote was incorrectly credited to his opponent. But the fourth-term WCRCC member couldn’t beat leukemia, and it’s likely his opponent will get the seat back anyway as a 14-member panel mainly comprised from the local schools will select Goslee’s successor – that committee selected William Turner, who Goslee defeated for the seat, in 2017.

Dave and I were not the closest of friends on the committee when we first started, but over the years we developed a respectful relationship as we each came to understand what the other brought to the table. He was also a devoted season ticket holder for the Shorebirds, so I saw him often even after I left the WCRCC. He will be missed, both at the games and certainly in local politics.

Coming up…

I almost put this into the odds and ends, but decided I would devote a stand-alone post to those who would tell me how to do my job. I may use that as the light-hearted stack of stuff to start the weekend.

I also have the third in a quick batch of record reviews to do for Saturday, but that may be the last for a short while. Or it may not.

Longer term, a suggestion I’ve had placed in my hopper once again was to bring back something I tried for a couple seasons in 2014 and 2015: predicting the 25-man Delmarva Shorebird opening day roster. (My 2014 guesses had 10 correct for Opening Day and 5 coming along later in the season. In 2015 I had 11 on Opening Day and 6 later on. That year I did it a week before the season, but it didn’t help.)

This year’s roster may be even more tricky because of the new management for the Orioles – players who may have been favorites under the Duquette regime may not catch the eye of Mike Elias, who will presumably prefer a player more like those in the Astros organization from which he came. (And who am I to argue with their success? Not only was the major league team a division winner in 2018, so were four of their top five farm clubs – the other was a close second. On the other hand, the Shorebirds were barely a .500 team but that was still best among Baltimore’s full-season affiliates last season.)

But since my situation is a little better than it was back in mid-decade I think I’ll give it a shot. Still not going back to Shorebird of the Week but at least I’ll enhance my coverage this way.

So the mailbox is emptier and you’re up to date.

How much will it cost? (Part three of a multi-part series)

Despite the fact he’s trailing by sixteen points in the latest poll, I still think it’s worth the time to dissect the policy proposals of Democrat gubernatorial hopeful Ben Jealous. In recent days, he’s reshuffled his priority list, displacing his previous #1 priority of education and replacing it with a jobs agenda he calls “Make It In Maryland.” As always, though, the devil is in the details.

Jealous begins by complaining that we have fallen behind Virginia in something called the New Economy Index. It turns out, interestingly enough, that Maryland is the bottom of the three states comprising the Delmarva region – although being on the bottom is still sixth-ranked in the nation. Here’s what the Information Technology and Innovation Foundation said about our three states:

Virginia comes in fourth with some of the fastest-growing companies in the country, and its proximity to the nation’s capital attracts high-skilled workers for the numerous R&D-focused firms in the region. Fifth-place Delaware is perhaps the most globalized of states, with business-friendly corporate law that attracts both domestic and foreign companies and supports a high-wage traded service sector…Sixth-ranked Maryland holds its place among the leaders primarily because it has a high concentration of knowledge workers, many employed with the federal government or with federal contractors in the suburbs of Washington, D.C.

In theory, then, a downturn in federal government employment would hit both Maryland and Virginia hard, displacing them from the top tier of the rankings. But the bulk of his “Make It In Maryland” outline speaks to something federal workers seldom have to endure: working for minimum wage. Over the next five years, Jealous would increase the minimum wage in Maryland to $15 an hour for regular workers, with tipped employees reaching the plateau three years afterward.

While Jealous claims that a $15 per hour minimum wage would increase the pay for 573,000 Maryland workers, such a raise would place those just over that threshold at risk for a significant decrease in their standard of living. After all, the extra expense businesses would have to shoulder would have to come from someplace, and that someplace generally lies in two regions: increasing prices or decreasing labor costs by lopping off the least productive or lowest-skilled employees. As I often say, the true minimum wage is zero, from being jobless.

In a properly functioning marketplace, the wage one makes is just a shade less than the amount of value that employee creates – the small difference keeps the business profitable and viable. Obviously this is a relatively subjective category, best expressed by those who work on a straight commission and/or own their own business. And it doesn’t always take a lot of skill: for example, not to pick on landscapers but doing yard work isn’t the most highly skilled job – however, it is time-consuming so there’s a market of people who don’t want to take the time and effort to maintain their lawns that’s being met by entrepreneurs of all sizes who make it their job to take care of yards.

In fact, my first job was helping my brother take care of an older lady’s lawn – for 2 to 3 hours of work after school once a week I was paid the princely sum of $5. Luckily we could ride our bikes there – about 2 miles – and we used her lawnmowers and gas can filled with $1 a gallon gas. So it was not a high-skill job but it was one she was too old and frail to do, so she found two teenage boys willing to do it. That was the value to her, since she wasn’t able to perform it herself. And as it turned out, if we were efficient I would come close to making the minimum wage, which at the time hovered around $3 an hour. (Since my brother got $10 for riding the tractor to do a maybe 3/4 acre yard while I did the trimming with the push mower, he was already making minimum and then some.)

My second job was somewhat similar, but there was a catch. For most of three academic years I made minimum wage working in the dining halls at college. If we were busy, I was creating value by ensuring the cafeteria maintained a stock of clean dishes. On the other hand, if it was early in the shift all of us standing around were a money pit. The same was true at my first job out of college, working in a department store – again, for minimum wage. If there was a customer I could assist in some way and that customer made a purchase, well, I was creating value for Hudson’s. If not, I was a money pit. Luckily, I had acquired a good education so my time there was short – just weeks later I had my first architectural job, one that I spent four years at college learning the ropes to secure. In turn, I got quite the education learning in the workplace. In the next half-decade through on-the-job training I went from being a ink-on-mylar draftsman to a CAD operator (way back with AutoCAD version 11) which made me more valuable to them. Increasing skills and knowledge to maximize production: that’s the way it’s supposed to work.

Conversely, if you artificially raise the wage without getting a corresponding increase in value, do you know what you get? Kiosks at McDonalds or self-service checkouts at Walmart. Unfortunately, those were among the jobs that people in my generation got to grasp as the first rung on the ladder, but increasing the minimum wage is going to leave those people behind – particularly in areas where the wage support isn’t already present. (There are places in the state where $15 an hour is pretty much a de facto minimum, particularly in the DC area.) In any case, increasing the minimum wage isn’t going to help very much in areas with persistent unemployment because there’s little there with which to create value.

But one place increasing the minimum wage will help? State coffers. While some will lose their jobs, I’m sure the Jealous campaign is banking on enough income being created out of whole cloth to help grease the wheels on some of their other pipe dreams. So I honestly don’t know what it will cost, but I’m sure we will all pay the price nonetheless.

Now, there’s actually more to this section than just the minimum wage. But I liked this here piece so much that I decided to split “Make It In Maryland” in two and cover the rest next time.

Taking matters into their own hands

So here I am, just thumbing through my e-mail for the day, and I find this on the Daily Signal website.

I would quibble enough to say that Delaware isn’t really part of the Northeast – particularly Sussex County, although many who have arrived there in recent years hail from the states commonly considered the Northeast – but the prospect of a right-to-work law in the heart of Delmarva could be enough to get a second look from prospective employers.

Councilman Rob Arlett introduced the proposed ordinance on Tuesday, according to the Daily Signal report, and it would need the support of two other Sussex County Council members to pass. (All five are Republicans, although not necessarily conservative ones.) The matter will be up for public discussion, per the article by investigative reporter Kevin Mooney, at the next Sussex County Council meeting on October 24. (As an aside, it should also be noted that Arlett was the state chair for the Donald Trump campaign so perhaps he has some of Trump’s business acumen.)

The article also details an interview with Seaford Mayor David Genshaw, who pointed out, “Right to work is a tool we need to compete for jobs. If you compare right-to-work states with non-right-to-work states, you can see where this could mean big gains for Delaware.”

I have a little bit of knowledge about the way Sussex County’s economy works as an erstwhile employee of one of their leading homebuilders. The eastern half of the county, basically from U.S. 113 to the beach but mainly close to Coastal Highway (Delaware Route 1) is booming with new developments, primarily homes that are purchased by retirees from nearby states who sell their $500,000 houses there and buy a $350,000 house in Delaware with the proceeds. On the other hand, the western half of the county languishes and Seaford may be the poster child for those doldrums as it’s littered with older housing stock and vacant storefronts throughout the city. While the population has increased by about 25% over the last 25 years (from 5,700 to the latest estimate of around 7,700) its growth is well off the pace of Sussex County as a whole, which has nearly doubled in that timespan.

So adopting right-to-work isn’t really going to affect the beachfront areas where the jobs are primarily retail, health care, or other service positions. But in those areas along the U.S. 13 corridor (in order from the Maryland line: Delmar, Laurel, Seaford, Bridgeville, and Greenwood) that have some infrastructure in place for new manufacturing facilities, this could be the economic shot in the arm they need to tip the scales their way.

Of course, I’m sure the union apologists will say that all right-to-work does is drive down wages. (Delaware’s minimum wage is currently $8.25 an hour, with legislation pending to eventually raise it to $10.25 an hour by October, 2020.) But the best argument to counter that is to simply remind this person that a person with no job makes $0 an hour, and anything that can bring jobs in will be beneficial to Sussex County. (The rest of Delaware would be unaffected.)

And you can bet your bottom dollar that, if this passes, Big Labor and their leftist allies will go running to the Delaware-based Clinton appointee who sits on the Third Circuit for a restraining order. While Mooney’s story notes a similar law has passed muster in the Sixth Circuit – which heard the case of a Kentucky county passing similar legislation – it’s much more of a crapshoot in the Third because most of its judges were appointed by Democrats and they tend to be more receptive to what passes for logic from the standpoint of Big Labor.

But there ought to be a little bit of interest in the fate of this bill in Annapolis and Salisbury. While Maryland is doing its best to attract new industry, they are still a closed shop state and large manufacturers have tended to prefer locating in right-to-work states. Should Sussex County succeed in its quest it’s incumbent on the state government to respond in kind by allowing the Eastern Shore to be a right-to-work area. (Perhaps our home rule would allow us in Wicomico County to do this, but I tend to doubt that’s the case in Maryland law.)

This is a story that could be huge for local economic development, so it’s a head-scratcher that a Google search for news on “Delaware right to work” didn’t find anything aside from the story linked above. I guess they would rather find other controversy to discuss for the umpteenth time. So maybe my local friends have heard it here first.

More laborers to celebrate Labor Day

I wasn’t necessarily going to write about this, but as it turns out Labor Day is a pretty good time to make this point.

When the unemployment numbers came out last Friday, it turned out that manufacturing jobs were one of the star performers as the sector gained 36,000 jobs in August – almost 1/4 of the total gain.

You may recall that for most of Barack Obama’s term I often referenced a union-backed organization called the Alliance for American Manufacturing, generally quoting their president, Scott Paul. He’s still there, and while he seemed to be pleased with the August results he’s still singing his protectionist song:

Did the robot revolution take the month off?

Adding 36,000 new factory jobs in August is good news for American workers. For the first time in a long time, manufacturing punched above its weight in the job market, accounting for 23 percent of total job growth. There’s great potential for continued manufacturing job growth – but only if we get the policy right.

How can we keep up the momentum? Pass an infrastructure bill with strong Buy America preferences to put more people back to work. The administration must also invest in training the workers of the future, move forward with rebalancing trade, and hold China accountable.

One facet of the AAM that interested me early on was their tracking of an Obama promise to create 1,000,000 manufacturing jobs – a pledge for which he fell far short by a factor of over 2/3. (Color me surprised </sarc>.) So it’s very intriguing to me that, through just eight months this year, the Trump score is already at 137,000. (Granted, there’s a slight bit of overlap from the Obama administration, but whatever bit of momentum began there may have come once it was assured Trump would be the victor in 2016.) On that pace, Trump would be in the 600 to 700 thousand range in his term.

I also think it’s fascinating that Paul talks about the “robot revolution” taking the month off but in the same statement beseeches the Trump administration to “invest in training the workers of the future.” As wage pressure is placed on the job market through misguided local and state government policies, such as the $15 minimum wage, tasks as mundane as attaching fenders on the assembly line or asking “do you want fries with that?” are going the way of the buggy whip, yielding to more skilled occupations such as working on those robots which make up the revolution. If you’ve seen pictures of modern assembly lines, automobiles and other large objects are put together more and more by mechanized means rather than a worker doing the same task of fastening rivets for eight long hours – a time when he could get tired, be less than at his best thanks to hard partying the night before, or just not trained up to the quality required for the task.

It’s true that unfair labor practices and currency manipulation have been factors in the decline of American manufacturing, but there were other processes that have affected all domestic businesses. Just ask yourself: how else would it be logical that an American manufacturer relocate to China when you consider the shipping time and costs and the learning curve needed to train hundreds of employees who may not be familiar with what the American market desires? Obviously those expenses were outweighed by the far lower wages they could pay Chinese workers, the removal of stringent regulations (not just environmental, but dealing with workers as well), and the lower tax costs. Over a 30-year period, “Made in America” became “Made in China,” and that’s often still the case today.

But I don’t think we have to be protectionist if we can create the conditions that cancel out several of the factors that drove manufacturing overseas. We already have a head start if we can keep our energy costs down by employing the resources we were blessed with instead of pie-in-the-sky schemes like dependence on unreliable wind or solar power. Add to this a corporate tax rate that is fair and not confiscatory – losing almost 4 out of every 10 dollars of corporate income seems to me a much larger piece of the pie than government needs or deserves – and a predictable regulatory regime based on common sense rather than being capricious and arbitrary, and much of the issue will be solved. At that point it’s up to the good old American worker to do the jobs Americans will do if given a shot. For example, someone has to know how to fix those machines that weld together automotive parts, and they probably won’t need a college degree to do it.

My father, who Lord willing will turn 82 in a month and has probably never turned on a computer, grew up in an era where he could finish high school and find a job at a concrete block plant doing maintenance. It was a union shop and gave him a good living, although he was unhappy at times with the union because it treated everyone equally whether they pulled their weight or not. Thousands of men around my hometown of Toledo who grew up in that era could tell a similar story as they got out of high school and went to work at a number of automotive (and other) manufacturing plants: Willys Jeep, GM Hydra-Matic transmission, Ford Stamping, Toledo Scale, Libbey Glass, and so forth – all union shops, and all providing a good middle-class income.

Kids graduating from high school now, though, are seemingly consigned to dead-end service jobs, as the days of your uncle getting you in at the Jeep plant are pretty much gone. But America needs to get back to making things, young men (and women) need jobs that can support a family, and the academic world needs a shakeout to a point where college is geared more toward the students who have the academic chops to succeed there. (Not everyone is college material in the traditional sense – some people just are geared toward and have the aptitude for working with their hands rather than sitting through a freshman English class.) A rebirth in American manufacturing can accomplish all of these goals.

So on this Labor Day and its implied salute to the American worker, consider what could be done to improve his or her lot. Lightening government’s load on industry seems to me a key step in making us the place that makes things again.

Earning my presidential vote: trade and job creation

I am finally approaching the halfway point in this quest, and pocketbook issues have considerable importance. This section is the first of two consecutive segments dealing with the economic end of government. Trade and job creation, to me, are the areas of government which most directly affect your income. (The next section, taxation, is the other end of the pocketbook equation.)

As I have noted throughout, you can work your way through the series by starting here and working forward as issues gain in weighting my decision.

In five bullet points or less, our next President should:

  • Revisit the Trans-Pacific Partnership (and other deals) to see if they can be salvaged as a good deal for the United States – which provides the majority of the GDP in each deal and should have the most favorable terms while maintaining our sovereignty. Otherwise, I believe in free trade that is fair, so we should work to isolate countries who don’t play by the rules.
  • Get government out of the way! According to the Competitive Enterprise Institute, regulations cost business $1.885 trillion in 2015. That has to stop.
  • Rather than knuckle under to the knuckleheads who think we should have a “living wage,” the federal minimum wage should be abolished entirely. States are free to continue the lunacy and watch their businesses suffer the consequences when minimum wages get too high for the market.
  • Be an advocate and cheerleader for the right-to-work movement.
  • Invest in necessary federal infrastructure, particularly highways – the “post roads” of the modern era. Not only does this benefit job creation but it would assist in getting goods from place to place more quickly.

So where do my contenders stand? Let’s find out how many of the nine points they will receive.

Castle: Opposed to TPP as “the worst of our free-trade agreements.” Should freely trade with all nations but formal agreements cost us sovereignty. (Facebook)

Hedges: Opposes Republican policy of giving away our jobs through free trade.

Supports “appropriate employment at a living wage available to all citizens who are able to work.”

“The importing of goods from and the offshoring of services to other nations are the primary causes of lost jobs and impoverished communities in America. We favor free trade only on a reciprocal basis among equals. We will impose balancing tariffs on all goods imported from countries whose wage scales, labor benefits, and environmental protections are not similar to our own. No nation which fails to protect the civil rights of its citizens may be accorded ‘most favored nation.'” (party platform)

As a party they also support right-to-work states and would index Congressional pay to the minimum wage.

Hoefling: “Politicians constantly talk about ‘jobs, jobs, jobs,’ even though they don’t have any jobs to offer that aren’t government jobs, or jobs that are subsidized by the taxpayers, and by debt shoved off on our grandchildren. As if we don’t already have more than enough of those kinds of jobs, right?

Here’s another thing: while working for a paycheck is certainly an honorable thing, it is not the American ideal. The ideal is for YOU to OWN your own piece of this country.

My goal, should I become the governor, is not to offer jobs to my fellow Iowans, or to use your money to bribe some company to provide you with a job. My goal is to secure your rights, and to then create an economic environment of FREEDOM, low taxes, reasonable, minimal regulation, and OWNERSHIP, an environment that will quite naturally lead to productivity and prosperity for all.

And, of course, the bonus is, companies will line up to do business in a state like that. You know it’s true.

‘Jobs, jobs, jobs’?

NO!

OWN, OWN, OWN!” (as Iowa gubernatorial candidate, 2014)

Johnson: Reduce the administrative burden. Level the playing field. Incentivize job growth.

As governors, both Gary Johnson and Bill Weld supported policies that incentivized job growth. In 2012, Gov. Johnson was praised as having the best “job creation” record of all presidential candidates. And Weld transformed Massachusetts from having the highest to the lowest unemployment rate of any industrialized state in less than 8 years.

Yet, Johnson has said that, “As Governor, I didn’t create a single job.” His point, of course, being that government doesn’t “create” jobs. Entrepreneurs, businesses, and economic prosperity are the building blocks for job growth.

Governors Johnson and Weld believe that we must allow a regulatory and tax environment that incentivizes fairness. Not one that picks winners and losers. The purpose of government regulation is to protect citizens from bad actors and the harm they might do to health, safety, and property. But regulation should not be used to manipulate the economy, to manage private lives and businesses, or to place unnecessary burdens on those who make our economy work.

Today, the reason so much corruption and power thrive in Washington, D.C., is that powerful corporate interests actually benefit from over-regulation. After all, they have the resources to comply with onerous laws. But for the average American, entrepreneur, or small businessperson, they don’t have teams of high-priced attorneys to help them navigate the bureaucracy.

We simply need to apply common sense to regulatory policy. Let’s get rid of the unnecessary laws and taxes that siphon the resources businesses use to create the jobs we need.

Governors Gary Johnson and Bill Weld helped create the conditions for job growth in their states. In the White House, they will create the conditions for massive job growth across the entire country. (campaign website)

McMullin: American businesses export more than $2.2 trillion per year of goods and services. The demand for American exports supported 11.5 million jobs, an increase of more than 50 percent over the past 20 years. On average, these jobs pay 18 percent more than jobs that are unrelated to exports. For all these reasons, Evan believes that trade is an engine of prosperity and that well-designed trade agreements can help our economy grow even more.

At the same time, we can do more to help American workers adjust and thrive in the 21st century. Since 2000, the U.S. economy has lost 5 million manufacturing jobs, although more than 12 million Americans still work at factories. The main driver of this trend is advanced technology, especially advances in robotics and computing. Today, U.S. automakers produce just as many cars as they did 20 years ago, yet the auto industry employs 300,000 fewer workers, a reduction of almost 25 percent.

Therefore, Evan believes that one of the most important ways to help American workers is to make education more affordable while supporting the growth of technical schools, online education, and work-based training programs. It is essential to support these alternatives to the typical full-time four-year degree program, which may not be a good fit for older students who need to work and support their families while studying. While U.S. factories have cut millions of jobs for those with a high school education or less, hiring of college graduates remains stable, while hiring of those with graduate degrees continues to demonstrate strong growth.

Around the globe—even in China—manufacturing employment is shrinking rapidly as factories rely more and more on advanced technology. Thus, using tariffs to raise the cost of Chinese imports won’t bring those jobs back to the United States. In fact, it will kill American jobs, because China and others will block U.S. exports, which now support more than 11 million jobs.

In addition, raising the cost of imports will force hard-pressed American families to pay hundreds or thousands of dollars more each year for basic necessities, from clothing to pots and pans and diapers.

Evan supports the Trans-Pacific Partnership (TPP), a trade agreement recently signed by 12 countries, including Japan, Australia, and Vietnam. The TPP will eliminate tariffs for all the countries that sign, but it will not go into effect until ratified by Congress, which must vote ‘yes’ or ‘no’ without making any changes to the agreement.

One of the biggest advantages of the TPP is that reducing tariffs to zero favors American companies. Right now, America has low tariffs, not far above zero. In contrast, other countries’ tariffs will plunge when the TPP goes into effect, opening up their markets to U.S. exports. TPP is still a good deal for those countries, because it gives them better access to the biggest market in the world (ours) and the third biggest (Japan).

TPP also helps create a level playing field between U.S. workers and their counterparts overseas. If foreign companies lower their costs by mistreating workers and polluting the environment, then its puts American companies at an unfair disadvantage. However, TPP has the strongest protections for labor and the environment of any major trade deal.

Finally, TPP is important for national security reasons. Our allies in Asia are watching to see whether the U.S. still has the ability to set the rules of the road, or whether their security depends on submitting to China. That is why the secretary of defense has said, “TPP is as important to me as another aircraft carrier.” If the U.S. abandons TPP, China is likely to intensify its campaign of intimidation in the South China Sea. Thus, support for TPP is a win-win proposition; it enhances our security and reinforces the growth of job-creating American export industries.

Americans are ready to work hard to provide for their families, but fewer and fewer are capable of finding the good jobs necessary to support a middle-class standard of living and help them to pursue their dreams. If we accept the slow growth of the Obama years this won’t change. Only if the economy begins to grow faster—at a rate of more than 3 percent year instead of less than 2—will good jobs become more widely available.

Right now, there are three major roadblocks standing in the way of a stronger economy: a tax code that rewards special interests while hurting small businesses, excessive regulations that cost businesses almost $2 trillion per year, and runaway entitlement spending that multiplies the national debt.

Evan McMullin will dismantle these roadblocks. (Editor’s note: see my next part, taxation, for point 1).

Federal regulations play an essential role in making sure that Americans have clean air, clean water, and safe food. Yet the blizzard of intrusive regulations issued by the Obama administration have gone far beyond what is necessary to protect our health and the natural environment. Instead, these regulations serve as an invisible tax that raises the cost of doing business and prevents firms from creating jobs. As president, Evan McMullin would direct federal agencies to identify a clear problem that needs to be fixed before resorting to further regulation. If an agency believes regulation is necessary, it would still have to prove that the benefits of a proposed regulation are greater than its costs. The same test would also be applied to existing regulations, which would be lifted if they were not achieving their goals.

If the United States can’t get its national debt under control, the government will eventually have to impose harsh taxes or pursue other policies that would drive the economy into a deep recession, destroying millions of jobs. The number one cause of runaway debt—now more than $19 trillion—is the cost of entitlements. Our country needs Social Security and Medicare to ensure the health of senior citizens and prevent them from falling into poverty. We also need Medicaid to provide health care to the needy. Yet these programs are so inefficient, wasteful, and susceptible to fraud that their costs are out of control. The result is that the government must borrow vast sums to keep the programs going. The Obama administration has already added $9 trillion to the debt, almost as much as every previous administration combined.

With a smarter tax code, streamlined regulations, and entitlement reform, the U.S. economy can begin to grow again at the rates it did in the 1980s and 1990s.

Evan McMullin believes that America should be the best place in the world for innovation, entrepreneurship and opportunity. We must reform a system that too often benefits the politically connected and the corporate elite, while leaving too many Americans without good jobs. By running for president, Evan McMullin is giving voters the opportunity to get the economy moving again instead of doubling down on the status quo. (campaign website)

**********

I wish Darrell Castle had been more specific and forthcoming on his economic policy. I’m sort of stuck here – on the one hand, the fealty to the Constitution he advocates would mean he would properly address most of my issues, but there are always the provisos and conditions to watch out for. I consider this a wasted opportunity for him. 3 points.

Jim Hedges has somewhat of a right idea on free trade, but the rub comes in dictating what policies other nations may have – particularly when we are so overregulated. Moreover, his stance on jobs at a “living wage” is troubling, and suggests he may not be as strongly in favor of the right-to-work platform plank. I can only give him 1.5 points.

I suspect Tom Hoefling is speaking of entrepreneurship, which is indeed sorely lacking in this country. Even better, it is a philosophy that is scalable to a national level, although the details could really be fleshed out more. He has the same problem as Castle insofar as the specifics aren’t being put out there and easily available. I give him more credit since he addressed the more important aspect of job creation. 4 points.

Gary Johnson gets it insofar as the philosophy goes, and he makes an extremely salient point regarding how the regulatory climate stifles competition. Big corporations become big donors, and then they move into the realm of lobbying for regulations designed to keep small players from gaining market share. But the question is how much will he do to promote “fairness” vs. to promote “opportunity.” There is a subtle but important difference, because fairness implies equality of outcome and that isn’t the way a free market works. Maybe I’m being picky with the term, but generally these campaign issue statements are thought through to make a certain point. 5.5 points.

Evan McMullin is much more sold on TPP than I am, particularly because China is not a party to it. One has to ask what we are giving up if other nations are suddenly going to reduce their tariffs to our level. I don’t think not having access to economies in Chile, Brunei, and several other signatories will break us.

And there’s the idea of justifying regulations – well, any idiot will tell you that of course the government agency that writes and enforces regulations will say they are justified. This needs to be determined independently of the government because job one for a bureaucrat is preserving his job, not solving problems. It’s also telling to me that Evan really didn’t discuss these educational alternatives in workforce training in his general education segment. Here he seems to want more government involvement, not less.

Note that I moved the taxation part of job creation to the next installment, but left the part about entitlements in because he also makes those same points there. I’ll discuss that subject in due course. Anyhow, Evan doesn’t do that well in this category with his political-speak. 2.5 points.

As I noted above, it’s certain my next part is taxation.

Compare and contrast: government vs. the private sector

A few days ago I mentioned the manufacturing advocates the Alliance for American Manufacturing (AAM) in a post regarding their convention plans. I wasn’t surprised to see they were very pleased with Hillary Clinton’s remarks, including a plan to “pass the biggest investment in new, good-paying jobs since World War II.” Ah yes, the old “investment” in infrastructure, where taxpayer money will be shoveled to cronies and unions in an effort to build things we may not need or use (like facilities for public transit, bike paths, and so forth) at the artificial “prevailing” wage. Spend five dollars, waste two or three more – they don’t care because it’s all on the credit card anyway.

It sounds to me just like the promises regarding the “stimulus” package from Barack Obama, officially known as the American Recovery and Reinvestment Act (ARRA) of 2009. Those “shovel-ready” jobs actually turned out to be, among other things, government backstopping certain public-sector jobs that may have been destined for the chopping block. Only a small portion of the over $800 billion spent actually went to infrastructure, but ARRA was sold as an investment in infrastructure. So pardon me if I expect little good to come from Hillary’s plan.

Anyway, last night I read a contention that was more interesting (and realistic) from American Enterprise Institute scholar (as well as professor of economics and finance) Mark J. Perry. Here is the money line:

The bottom line is that America’s abundant and low-cost natural gas and electricity have more than offset higher labor costs in the U.S. and have contributed to the strongest profitability in a generation or more for U.S. manufacturers. Within three years, and possibly even sooner, it will be cheaper for most U.S. companies to manufacture goods for the American market at home, compared to producing those same goods in Asia. (Emphasis mine.)

Of course, that prediction is fraught with peril. We could regulate our way out of the energy boom by continuing to mandate the use of expensive, inefficient renewable energy sources (or, in lieu of that, transfer payments from utility providers), we can maintain the oppressive tax climate that has been one of many reasons companies are choosing to go offshore – any bean counter will tell you it’s better to pay 15% tax than 35% – or actually enact the increasing minimum wage that unfortunately Donald Trump is now supporting. Any or all of these are possible regardless of who wins the Oval Office.

And that’s the shame of it all. Over the course of the nation’s history, we have seen America become a great industrial power only to lose its advantage to upstarts like Japan and China. (Then again, we wrested the title from the British in the 1800s so things are always fluid.) These Asian nations took advantage of newer technology and less expensive labor to attract American manufacturing jobs that were in older, less efficient unionized plants, despite the fact these items would have to shipped back thousands of miles to their primary market.

But here we have the chance to get some of this back, and my fear is that too many people want to keep the status quo in place as a political issue rather than solve the problem. We talk about being a free market insofar as trade is concerned, but I contend that we need to work on freeing our own market:

  • Toss out these federal and state regulations and carveouts that only benefit special interests or large, established competitors trying to corner their respective markets.
  • Encourage the adoption of right-to-work laws so unions are forced to compete and sell the benefits they provide for the cost to workers.
  • Instead of debating whether the minimum wage should be increased or not, we should be debating how quickly we phase it out. The true minimum wage is zero, which is what workers who are tossed out of a job when companies can’t afford the increased labor costs will earn.

In reading the GOP platform (and I’m just going to ignore the Democrats on this one, since they aren’t selling themselves as free-market, limited-government types) I saw some attention paid to these issues, although their approach seems to be more of just controlling growth and pruning around the edges than a wholesale reduction. Needless to say, that platform could be completely ignored by the elected members of the party from Donald Trump on down if the idea of enriching their friends, rather than the supporters of the other side that have engorged themselves over the last eight years, remains in place.

Sadly, over most of the last century it hasn’t really mattered which side was in power because government has grown regardless of who was in charge. (The one exception: the Harding-Coolidge era of the 1920s, when the federal budget was drastically reduced – and annually balanced – after World War I. In a time where we are stuck with Trump, Clinton, or maybe Gary Johnson, what we really needed was a Coolidge. Bobby Jindal was probably the closest we had in the GOP field.)

I began this whole process by talking about infrastructure, and there’s a legitimate need for prudent spending on upgrades where it is appropriate. Sometimes there is a need for a new federal or state facility. But I have also seen how the government uses infrastructure to maintain a cash cow, with my favorite example being the Ohio Turnpike I grew up close by.

You see, the original plan was to eliminate the tolls once the bonds to construct the road were paid off in the 1980s. (This was promised when the highway was built in the early 1950s – my dad remembers them staking it out a few miles from his house.) But then they decided that some new exits were necessary (which they were) so they decided to build those. Then it was adding a third lane in each direction between Youngstown and Toledo (a process still going insofar as I know, since I haven’t been that way in a couple years), then renovating all the rest areas (twice in thirty years, and ditto), and so on and so forth. Forget the promise to remove the tolls once the highway was paid off – they constantly spend money on projects that weren’t within the original scope, perpetuating the agency that runs the Turnpike.

In theory, we could spend money from now until doomsday on government-sponsored projects. Some contractors would benefit, but others would be left out in the cold because there’s a certain procedure required to bid on and win public works contracts. But it wouldn’t necessarily be the best use of our funds – and by that I don’t mean the money in the public till but the money that we earn for our collective pockets. If we really want to get manufacturing going and bring it back to America, we need to maximize their potential for meeting our marketplace. They may make mistakes, but that should be up to the market to pick winners and not the government.

2016 dossier: Trade and job creation

The fifth portion of my look at the GOP field looks at trade and job creation. Those that have the best ideas will qualify for nine points. This category has the potential to be very hit or miss, however. So allow me to set some of the guidelines I am looking for.

When I speak about trade, my goal is that of having free trade that is fair for all parties. With the criticism that’s been leveled at the Trans-Pacific Partnership, for example, I don’t necessarily consider it fair trade. I’m also leery of fast-track authority, although I may well feel better about it with a conservative in charge.

As for job creation, I’m looking for specific ideas which don’t involve lowering taxes because that will fall under taxation, which is a later segment in my dossier series. But taking a meat axe to regulation would be fine, as would creating the conditions under which a workforce can thrive. It will be somewhat tough to score this segment, so the more information made available the better it is for a candidate.

Bobby Jindal gets it, and is not afraid to let people know about it. The formula must work because he is a job-producing governor.

For Bobby, it begins with the power of energy, but it doesn’t stop there. Free trade is fine if we have a good negotiator on our side, but right now we don’t so there’s no need for a Trans-Pacific Partnership yet. And the minimum wage is a smokescreen when we should be looking for more. My only concern is that he is still open to an increase when the idea should be one of the market determining the wage. But that’s a minor blemish on an otherwise solid category for Jindal.

Total score for Jindal – 8.4 of 9.

There is also great promise with Ted Cruz. If he can do those things he ran for Senate on we would be in fine shape. Removing regulations on energy and spreading the truth on the minimum wage bolster a sound agenda. Yes, he flipped on Obamatrade but he came to his senses in time – and trade is one of his specialties. He seems to be an intelligent, passionate advocate for the working man.

Total score for Cruz – 8.1 of 9.

There’s a lot to like about Rick Perry on the subject of job creation – his state created a lot of them during Rick’s tenure. While he had the energy boom to thank for much of it, his principles of low taxes and predictable regulations would hold the nation in good stead.

But I hesitate a little bit from giving him a higher score because just as he quickly backpedaled from being a supporter of trade promotion authority to an opponent simply based on Barack Obama’s lack of negotiating skills and secrecy, he has walked back his complete (and correct) opposition to any federal minimum wage to just not wanting a hike.

He will be in the top tier of this category, though, as he sounds most of the right notes. Now if he could just stay in the race…

Total score for Perry – 7.2 of 9.

In Congress, Rand Paul has sponsored legislation to give Congress move oversight on regulations and worked against additional trade promotion authority and the Trans-Pacific Partnership. And he would rather lift all the boats than increase the minimum wage.

Yet the most interesting piece in his job creation toolbox is the Economic Freedom Zone, an idea he claims to have borrowed from the late Jack Kemp. It sounds good in theory, but my beef with it is that it is targeted to specific areas. For a guy who seems like he would be against government picking winners and losers, this seems to be an unusual move. It’s sort of like having a big-ticket business right across the border from sales-tax free Delaware, where you watch the competition take advantage of government edict.

Total score for Paul – 6.5 of 9.

Rick Santorum has a leg up on some of the competition because he devotes a portion of his economic plan to restoring manufacturing to America. It’s a proposal that includes the idea that regulations are too severe but, more importantly, speaks about the aspect of fair trade by opening up new markets if they play fair. He came out against the TPP as well as fast-track, noting he voted against NAFTA.

But a good plan is muddled by Rick’s support of a higher minimum wage. I suppose that is the difference between populist and conservative, but what he may gain in pandering to a few he would lose when their jobs went away. He’s also been promising his economic plan was a few weeks away on his website, so I’m tired of waiting.

Total score for Santorum – 6.3 of 9.

I find the trade and job creation ideas of Lindsey Graham interesting: “a clenched fist and an open hand…you choose” when it comes to trade, and backing one minimum wage increase while opposing a more recent one.

The entire reason he jumped up to this level came out of one idea of his:

The most costly and far-reaching federal regulations should be subject to sunset provisions, so that there is a built-in process to ensure that they are subject to review, cost-effectiveness analysis, and accountability.  Those regulations that cannot stand up to scrutiny or are no longer essential should be eliminated.

I have called for sunset provisions for far more than simple regulations, but just bringing up this concept separated him from the middle of the pack.

Total score for Graham – 6.0 of 9.

As someone who has worked exclusively in the private sector, Carly Fiorina knows something about job creation – although her critics point to HP’s job losses. And they may dispute her claim that regulations don’t go away because there are some exceptions that prove the rule. But she is right on the trade front and minimum wage, which are plusses.

Total score for Fiorina – 5.6 of 9.

I give credit to Chris Christie for making my job easier by creating his economic plan, which is a mixed bag of good ideas and near-misses. (Chief among them is the idea of reducing payroll taxes only for those over 62 and below 25, which would likely hurt those at the cusp of those ages.) I also find the mistrust of Barack Obama on trade good to hear, especially when Christie wants to revisit NAFTA.

But he’s squishy on minimum wage, and that holds him back somewhat.

Total score for Christie – 5.2 of 9.

Scott Walker has the tag line of “Let’s get to work” on his website, but I had to go elsewhere to find his ideas on job creation. It was noted that his record may look subpar but his state started from a better position and doesn’t get the benefit of the energy boom with the exception of being home to some of the best fracking sand available. While he used several conventional ideas that can work on a state level, such as investment in job training, he doesn’t really have a broad national plan. Presumably he would be a leader in nationalizing right-to-work, but we don’t know that – but we know he correctly thinks the minimum wage is “lame.”

Walker supports the TPP and the trade promotion authority that goes with it. To me that is “lame” and deducts from his score in the category.

Total score for Walker – 5.0 of 9.

Ben Carson brings a unique approach to this question. I’ll get the bad part out of the way first – he supports a minimum wage increase. But he came out early against Obamatrade and is interested in curtailing the regulatory state in surprising ways.

I also think he has some moral authority for his message on work, which is one I agree with. He also has a healthy skepticism about the current economic state, which will play well with his conservative base. He can serve as an example so I placed him a tick above some peers who I grade about the same.

Total score for Carson – 4.6 of 9.

Jeb Bush falls in the middle thanks to support of Obamatrade coupled with the idea of state minimum wages. But was the audience of Wall Street banking executives the right one to advocate for financial reform? I don’t think Main Street trusts Wall Street just yet, which is why Jeb lands in the middle.

Total score for Bush – 4.5 of 9.

For Mike Huckabee I see a lot of obfuscation. His populist approach is fine, with the philosophy of working for a “maximum wage” admirable. But it’s vague, and he won’t commit to saying no to an increase in the minimum because he signed one as governor.

On the trade front, though, he opposes trade promotion authority. It’s not a bad platform, just not that great in a crowded field.

Total score for Huckabee – 4.5 of 9.

The ideas of Marco Rubio trend along the same lines as Scott Walker, but without the executive action. His job creation platform refers mainly to taxation and education, with just a nod toward regulatory reform.

Meanwhile, his opposition to increasing the minimum wage is tempered by his support for “Obamatrade.” My fear is that he will fold on the minimum wage to do his cherished college financial aid reforms, since the two can go hand-in-hand.

Total score for Rubio – 4.5 of 9.

For John Kasich, it’s an interesting mix: he runs a state that privatized its Department of Development, but wants to place a steep tax increase on a particular job creator. He supported NAFTA but doesn’t want to see workers get the shaft. And his state has a minimum wage which automatically increases even though he opposed this in Washington. (Our DNC “hacktivists” claim Kasich believes it should be a state matter, which is the correct stance. I don’t link to them.) On the whole, I would like him to do better.

Total score for Kasich – 4.0 of 9.

Many of the more conventional ideas above are also in George Pataki‘s playbook, and he has done them: rolled back regulations in New York, vetoed a minimum wage increase, and has the idea of increasing manufacturing jobs. But he’s uncertain on the TPP. And a lot has changed in a decade.

With so little to go by, it’s hard to give him a high score.

Total score for Pataki – 4.0 of 9.

“I will be the greatest jobs president that God has ever created,” says Donald Trump. He continually cries that China, Mexico, and Japan are “killing us” economically. But would a 25% tariff on Chinese goods, as he’s proposed before, be the answer? Some say it would start a trade war we couldn’t win, but others think China is manipulating its currency by an even greater factor. To the good side, though, he’s not in favor of a minimum wage increase.

So far, though, Donald hasn’t fleshed out his overall jobs program. Being a businessman makes him an expert of sorts in the subject, but could he deal with a Congress that’s more obstinate than his employees?

Total score for Trump – 2.7 of 9.

Much as I’d like to know about Jim Gilmore, his recent entry in the race sort of limits his potential. Although it’s couched as job creation, his Growth Code will play more in the taxation category. So I can’t give him many points.

Total score for Gilmore – 2.0 of 9.

Next on tap is a fairly simple and straightforward subject – taxation. It will be worth ten points.

Is the era of full employment over?

Simply put, March was not a good month for job creation around the country. Numbers were down markedly from previous months while, as the Americans for Limited Government advocacy group pointed out, the labor participation rate tied a 37-year low.

The news was even worse in the manufacturing sector, where it contracted by 1,000 jobs. While Scott Paul of the Alliance for American Manufacturing blamed the strong dollar, calling it “a big loser for factory jobs in the United States,” it’s only a piece of the puzzle.

Paul would favor a more interventionist solution, adding:

There’s plenty that could be done to turn this around. The Treasury should crack down on currency manipulators, the Federal Reserve shouldn’t act prematurely, USTR should be assertive about enforcing our trade laws, and Congress must address currency and trade enforcement in the context of new trade legislation.

Based on Barack Obama’s promise to create a million manufacturing jobs in his second term, he needs to add 628,000 in the next 21 months – a Herculean task for any president, and almost impossible for this one. Let’s consider a few facts:

First of all, the continued low price of both oil and natural gas has tempered the energy boom to some extent. According to Energy Information Administration data, the number of oil and natural gas rigs in operation last week was 1,048. In terms of oil operations, the number is down 45% from last year and for gas it’s down almost 27%. While gasoline in the low $2 range is good for the overall economy, oil prices need to be between $60 and $80 a barrel for operators to break even, and the benchmark price has held lately in the high $40s.

As I noted, low energy prices are good for some aspects of job creation, but the energy boom is on a bit of a hiatus and that affects manufacturing with regard to that infrastructure. Throw in the unfair competition we’re receiving when it comes to OCTG pipe and it doesn’t appear this will be the cure to what ails us as far as job creation goes.

More important, though, is the financial aspect. Our corporate tax structure is among the most punitive in the developed world, which leads to capital flowing offshore despite the “economic patriotism” appeals of our government to demand it come back. Once you have the opportunity to take advantage of other countries’ willingness to charge 20% or even 15% tax, why should you willingly pay a 35% rate? Their slice of the pie may be less, but they get a lot more pies this way.

And then we have the aspect of regulations, particularly when it comes to the financial restrictions that Dodd-Frank places on the lending industry and the environmental mandates an overzealous EPA is putting on industry – look at coal as an example. If we went back to the conditions of 2006 the environment would likely not suffer serious harm and companies would have a much easier time with their accounting. I haven’t even touched on Obamacare, either.

Not all of this is Obama’s fault, but the majority of these problems can be laid at his feet. Alas, we have 21 months left in his term so many of these things will not change despite the presence of a Republican Congress which will be blamed for any setbacks.

So the question becomes one of just how many employers in general, not just in manufacturing, will be able to weather this storm. Even the recent news that both Walmart and McDonalds will be increasing their wages brought out the cynics and doubters. But it’s worth pointing out that both Walmart and McDonalds have stated they wouldn’t oppose a minimum wage hike. Such a move makes sense for them because their bottom lines can more easily manage a modest wage hike for their employees and they know their local competitors can’t. Both also have the flexibility to adopt more automation where they used to have a row of low-wage employees. As an example, most of the local Walmarts adopted a number of self-serve checkout lanes over the last year or so. If you hire a dozen fewer cashiers it’s easier to give the others another dollar an hour.

Change is a constant in the labor market, and we know this. But there are some circumstances under which businesses thrive and others where they struggle, and history has gone long enough to suggest the broad outlines we should follow. It’s unfortunate that some want to blaze a new trail when we know where the correct path is.

A question of priorities

The “90 days of terror” I call the General Assembly session do not begin until next Wednesday, but once some incumbent members were safely re-elected they pre-filed a small number of bills in each chamber – 39 in the House and 15 in the Senate.

Pre-filed bills are interesting because it gives a glimpse into what those members who introduce them believe to be burning questions. In the Senate, it’s apparent Senator Joan Carter Conway is most worried about the availability of prescription drugs in a state of emergency while Delegate Cheryl Glenn believes the establishment of the Hattie N. Harrison Memorial Scholarship for “students who pledge to work in fields of critical shortage in the State on completion of their studies” is top on her list. (Harrison was a longtime Delegate from Baltimore City who died in office early in the 2013 session.) Respectively, these bills were dubbed SB1 and HB1, presumably since they were the first bills requested for filing.

This stands in opposition to our Congress, which tends to use the lowest number bills for priority items. For example, there is no H.R. 1 yet in the 114th Congress because they reserve the number for the Speaker’s use on a bill he deems a priority. (It was used for the Tax Reform Act of 2014 in the last session.) S. 1 this term is the bill to build the Keystone XL pipeline, which Congress has tried to pass on several prior occasions.

Of the 54 bills in the hopper so far, most deal with mundane issues. But there are a few interesting Senate bills which could have merit: Senator Jim Brochin is trying to eliminate the annual indexing of the gasoline tax to inflation, while bills to exempt certain non-profits from paying a state-mandated minimum wage increase and to open up the election canvassing process to outside observers were introduced by Senator Joe Getty before he took a position in the Hogan administration. (This is interesting as Delegate Kelly Schulz also pre-filed bills on the House side. I’d be curious to know who would be considered to be the lead sponsor in the cases where that sponsor is no longer in the MGA.)

On the House side, Delegate Glenn also wants to accelerate the already-adopted $10.10 per hour minimum wage from 2018 to 2015 while Delegate Aruna Miller seeks to ban e-cigarettes from indoor venues. On the good side, Delegate Schulz wants to make sure only citizens register to vote, stop Common Core in its tracks, and eliminate one piece of the gun law.

Obviously there will be a lot more than this. Just as an example, one prospective bill that aroused a spirited discussion at an event for Delegate-elect Carl Anderton earlier tonight is Anderton’s as-yet-unreleased proposal to address our tax differential, an idea for which Salisbury mayor Jim Ireton (a possible 2018 opponent) is also pushing – however, the two probably differ on how to accomplish this goal. Once the legislation is written and introduced, it can get a fair hearing.

This also gives me the opportunity to remind readers about a great organization of volunteers called Maryland Legislative Watch, for which I have read and evaluated bills the last two sessions (and would gladly do so again.) They are a key to a more informed public, so I encourage you to check them out. Chances are we will once again see over 2.500 bills introduced and if the first 54 are any guide, it will be yet another intriguing session. And we haven’t even seen Larry Hogan’s legislative agenda yet.