One recurring theme that no one in Washington seems capable of learning is that the best way to destroy an industry is to have the government subsidize it.
That lesson came shining through in recent days when Intel acknowledged that it suffered a $16.6 billion quarterly loss. That is more than the entire annual budget of some states.
Wait. Isn’t this the same Intel that is in line to be the biggest corporate welfare recipient of federal aid under the CHIPS Act — the Biden bill designed to make sure that microchips are made in the United States, not China? Intel is first in the soup line to receive $8.5 billion in grants and $11 billion in subsidized loans. The checks haven’t been written yet, but this will be one of the biggest welfare checks ever written to an American company.
Maybe President Joe Biden, who had a joyous photo op with Intel officials when the bill was passed, should have second thoughts. Intel’s near broke. They were just replaced by their rival chipmaker Nvidia in the Dow Jones composite. Nvidia gets none of the stash from the CHIPS Act, yet its stock price has soared more than five-fold. It has been on a hiring spree and has made hundreds of billions of dollars for American investors — including pension and 401k plans.
Talk about politicians betting on the wrong horse.
It gets worse. Semafor Technology reports that instead of pulling the plug on this near $20 billion aid package, Biden officials and Sen. Mark Warner of Virginia — one of the lead sponsors of the CHIPS Act — “have discussed whether the company needs more help.” More?
This despite that Bloomberg reported that Intel has failed to provide federal officials with a viable plan to turn its financial woes around. Why do that when you have an umbilical cord to the federal Treasury?
Ironically, Intel made more than $20 billion in profits before the CHIPS Act welfare bill was passed. So far this year it has lost nearly $20 billion.
What is next? A federal takeover of Intel as happened with failing automakers and banks in 2008?
There is an important lesson here. Many Democrats and Republicans have become enamored with the idea of America adopting a Japanese-style “National Industrial Policy” that would direct hundreds of billions of tax dollars to nurture “strategically important industries” — such as manufacturing, tech products and “clean energy.”
The politicians think they can pick winners and losers better than private investors who allocate funds in our highly efficient multi-trillion dollar capital markets. Democratic Massachusetts Sen. Elizabeth Warren has effectively declared war on the half-trillion-dollar booming private equity industry, which she calls “vampires,” because sometimes they make bad bets.
But maybe it’s Uncle Sam that sucks the blood out of viable businesses. Look no further than Biden’s EV handouts, which have only corresponded with a massive consumer rejection of an industry that was flourishing before Uncle Sam started passing out tens of billions of dollars to the car manufacturers and strong-armed the U.S. auto industry to produce them. Over the past four years the federal government has authorized more than $300 billion in green energy subsidies including wind and solar power grants and yet the amount of power they produce has barely budged — thanks to low-priced natural gas.
If we want American industries to be number one, the government should stop giving them money and the CEOs should stop taking it.
Stephen Moore is a contributor to The Daily Caller News Foundation, senior fellow at the Heritage Foundation, and co-founder of Unleash Prosperity. His latest book is The Trump Economic Miracle, co-authored with Arthur Laffer.
We all know that math scores have been scandalously trending downward for many years, but the folks in the government should at least be able to count.
We’re finding more and more evidence that the statistics the government is releasing to the public are increasingly suspect and unreliable. It seems like the errors are not random but perhaps manipulated for political advantage. Judge for yourself.
Let’s start with crime statistics. Former President Donald Trump said in the debate that crime is out of control, and Vice President Kamala Harris countered by citing government statistics from the FBI indicating that crime rates are falling.
But Jeffrey Anderson, former director of the Bureau of Justice Statistics, finds a surge in urban violent crime since 2019. He writes in The Wall Street Journal that “the violent crime rate in 2023 was 19% higher than in 2019.” The urban violent crime rate was up 40%, and urban property crime rate rose 26%.
How can the Left keep saying crime is down? A big reason is the FBI figures are only measuring “crimes reported to the police.” More than half of violent crimes are not reported, thanks to what Anderson calls a new era of “lax law enforcement policies” in urban areas. Police in big cities also have an incentive to undercount crimes to make their performance look better.
Next, we have jobs data. The Bureau of Labor Statistics admitted last month that it has overstated job growth by more than 800,000 positions. And in just the last year the government has also overstated job growth by almost 500,000 from the original monthly headline numbers. This is an overcount of over 1 million. In 10 of the last 13 months, the errors were in the direction of announcing too many jobs.
So President Joe Biden gets the gangbuster headlines, and the whoopsie daisy comes later when no one is paying attention.
Those aren’t just random errors. Was the Biden Labor Department finagling the data? Maybe.
Then there was the decennial Census Bureau population count. The numbers from the 2020 census were wildly wrong, as the bureau admits.
In an analysis issued in 2021 called the “Post-Enumeration Survey Estimation Report,” the Census Bureau reported which states recorded overcounts of their population, and which saw undercounts. Florida, Texas, Tennessee and other red states were undercounted by some 1.5 million residents. The overcounting was in mostly blue states like New York and Minnesota. Again, was this just an accident?
The miscount may have cost Republicans three electoral seats. This means the presidential election and control of the House of Representatives may be decided because of an error in counting heads.
These government agencies are supposed to be politically independent, and historically, they have been filled with professionals devoid of bias. But when we see the errors all bending the data in the direction of benefiting one party, one has to wonder if this is deliberate misrepresentation.
I hope I’m wrong and that these are innocent errors. But we live in an era where everything in Washington is hyper-politicized. Elections have become a blood sport. The saying is that “all is fair in love and war.” And now add politics to that.
Stephen Moore is a contributor to The Daily Caller News Foundation, visiting fellow at the Heritage Foundation, and a co-founder of the Committee to Unleash Prosperity.He is also an economic advisor to the Trump campaign. His new book, “The Trump Economic Miracle,” coauthored with Arthur Laffer, will be released later this month.
President Joe Biden’s time in the White House is mercifully coming to an end. He is now officially a lame duck with six months to go.
Biden was a victim here of a corrupt Democratic machine that — along with a complicit media — thought they could pull off a grand election-year deceit, despite his failing cognitive abilities. The Democratic establishment and a compliant media convinced millions of primary voters that Biden was of sound mind and ready to serve four more years. This lust for power put America in danger.
How could they be so unpatriotic?
So, where will Biden stand in the history books? He was not a failed president because of his declining cognitive abilities. It was his policies that wrecked America.
It is hard to point to a single policy that he got right. On the economy, he was catastrophically bad.
The trillions of dollars of debt he rung up bought nothing. He sent inflation to the highest levels in almost forty years.
The average family lost $2,000 of income after inflation during his reign. More people died of COVID during his presidency than Trump’s — despite the availability of the vaccine.
Interest rates rose. Biden declared war on American energy. He put America back into the Paris Climate Accord—and the rest of the world went on using more fossil fuels than ever. By impeding U.S. oil and gas production and pipelines he played into the hands of our enemies — China and Iran.
Gas prices rose. Small business confidence sagged. Poverty rates rose.
Then there was the sheer incompetence. The bungled Afghanistan withdrawal was a national security disaster. The border became a broken dam with millions seeking to illegally enter the country. The government spent $7.5 billion on electric vehicle chargers and only a handful got built.
Biden gave away hundreds of billions of dollars for an illegal and immoral student loan forgiveness program. He put regulators in charge of key agencies even though — or because — they hate business. A majority of his appointees had no business experience. It showed.
When he departs the White House in the months ahead he will leave the nation poorer, weaker, more divided, more in debt, more vulnerable, and less respected than when he entered office.
This was a man who pledged to unite the country and did just the opposite. He deserves to go down in history as one of the five worst presidents of the 20th and 21st century.
Here is my list starting with the worst: 1) Woodrow Wilson; 2) Herbert Hoover: 3) Jimmy Carter; 4) Joe Biden; 5) Barack Obama.
Now the Democrats want to run Vice President Kamala Harris, who was on board with every Biden policy and helped oversee the worst border catastrophe in modern history.
Just when you thought things could not get any worse.
Stephen Moore is a contributor to The Daily Caller News Foundation, visiting fellow at the Heritage Foundation, and a co-founder of the Committee to Unleash Prosperity.
The latest official employment report finds once again that the federal government and state-and-local government hiring spree is still in full gear. Over the past year health care and government hiring has outpaced every private sector industry.
So, even though there are a lot more government workers, good luck finding them or getting them on the phone.
This is because so few of them are actually physically on the job.
What is happening in the federal government (“Club Fed”) these days borders on the absurd — or should I say the obscene. A recent survey by Federal News Network of federal workers finds only 6% are working full time in the office. Thirty percent are full time remote. Office buildings in Washington have become city-block long zombies. Especially on Fridays.
While exact comparisons between public and private employees are tricky and inexact, best estimates are that in 2023 roughly 30% of private workers were working from home or remotely either some or all of the time. In the private sector, the percentage of employees working from home has actually declined from about 50% during Covid (2020).
This means that federal employees are three times more likely to be working remotely either some or all of the time.
I am all for employees working remotely a few days a week and this is likely to become more common in the information and digital age. I do that myself.
But one has to wonder how many of these workers are really necessary. And what are the chances that these remote government workers who can almost never get fired for bad performance are putting in an honest day’s work. My suspicion is very few.
The irony is that three years ago the federal government issued an order for federal employees to return to work post-Covid. Many thousands have blatantly ignored the order.
Remember, government workers have some of the cushiest and least stressful jobs on the planet. And they get paid roughly 30 to 40% more than comparably skilled private workers — when taking account exorbitant benefits.
Here is my solution. Uncle Sam is losing almost $2 trillion a year. Stop hiring new people. Every federal agency including the biggest bureaucracy in the world — the Pentagon — should impose a hiring freeze — except for extraordinary circumstances — until the budget is balanced. Then impose a 30% across the board reduction in force (RIF).
Finally, if the government needs more revenues, start by selling federal buildings that are less than one-half occupied. Many buildings are less than 20 percent occupied.
Former President Donald Trump’s most popular rallying cry in 2016 was to “drain the swamp.” But today the swamp is deeper than ever and the deep state swamp creatures are more numerous than ever after four years of the Biden-Kamala administration. If Trump wins, he and Republicans should get draining.
Stephen Moore is a contributor to The Daily Caller News Foundation, visiting fellow at the Heritage Foundation, and a co-founder of the Committee to Unleash Prosperity.
The Biden administration has spent tens of billions of dollars on green energy and yet last year the U.S. and the world used record amounts of fossil fuels.
That would seem to be prima facie evidence that this “great transition” to renewable energy has so far been an expensive policy belly flop.
The evidence is everywhere. Americans aren’t buying EVs anymore than they were before Biden was elected. The car companies even with record federal subsidies are losing billions of dollars making EVs that people don’t want. Wind and solar still account for less than 15% of American energy, and across the country hundreds of communities are saying “not in my backyard” to ugly and spacious solar and wind farms. And of course gas prices at the pump and electric bills are 30% to 50% higher, even though we were promised that the green revolution would save us money.
A case in point is the scandalous mismanagement of how these green energy programs are being implemented. Consider the $7.5 billion federal program stuck inside the Biden 2021 Infrastructure bill — a law that Biden touts as one of his great achievements. That bill promised half a million EV charging stations installed all over the country.
Instead, there have been a grand total of… drum roll please…”seven or eight installed.” To be fair, that was through last month. They might be up to nine now.
When Transportation Secretary Pete Buttigieg was confronted recently on CBS’s “Face the Nation” about what happened with all the money, he hemmed and hawed and replied: “In order to do a charger, it’s more than just plunking a small device into the ground, there’s utility work, and this is also, really, a new category of federal investment.”
Uh huh! Sure. Installing an electric charger for a Tesla in your garage is very complicated business. It’s like trying to Build the Taj Mahal (which may not have cost $7.5 billion).
Here’s another mystery. Why can’t Pete give us an exact count on the progress when the number is small enough to use his fingers? What is for sure is that at this pace they may get 500 built by 2030 — not the 500,000 promised.
Thank God our celebrated transportation secretary renowned for riding his bike to his office in Washington wasn’t in charge of the Normandy landing.
Then there is the question of where the $7.5 billion of taxpayer money has actually gone. At their current rate of production the final program’s price tag could inflate to more than $1 trillion.
If Trump were president, he’d have long ago summoned Mayor Pete to the Oval Office and greet him with those two words that made him famous: “YOU’RE FIRED.”
Instead many Democrats are quietly talking about throwing Joe Biden off the ticket and one of the front runners to take his place is none other than the highly accomplished Pete Buttigieg.
But there are some serious lessons to be learned from this monumental screw-up.
First, though Biden loves to chat up how much money the government is “investing” — where are the signs that any of these trillions of dollars of borrowed money have improved our lives. This EV charger scandal is just another reminder that the government generally doesn’t “invest” tax dollars — it mostly wastes them.
Second, competence matters. At the Committee to Unleash Prosperity we released a study finding that more than 90% of the Biden top economic and finance team has NO experience running a business. We have an energy secretary who knows nothing about energy and a transportation secretary who knows nothing about transportation. They are either lawyers, academics, politicians or government employees.
They are not bad people. They just don’t know how to run anything — and it shows.
Finally, why do we need the government to build EV charging stations? One hundred years ago the government didn’t build gas stations. They just magically sprouted up all over the roads that crisscross America because entrepreneurs responded to the demand. So two or three brothers would scrap together some cash, buy a small plot of land on I-66, build a service station with four to eight hoses connected to a tank, put up a tall sign posting the gas price and drivers would pull in and fill er up.
All of this “infrastructure” without a single penny or instruction manual from Washington.
Can you imagine if Biden had been president in the 1920s and proclaimed that the government will build 500,000 gas stations? They still wouldn’t be built and we’d all be waiting in long gas lines.
Stephen Moore is a contributor to The Daily Caller News Foundation, visiting fellow at the Heritage Foundation, and a co-founder of the Committee to Unleash Prosperity.
