news

The Pursuit Of Happiness

Dave Davis Commentary, Policy, The Long Journey to "More", Uncategorized , , , ,

While waiting for the long-overdue Supreme Court Tariff ruling, I’ve had time to reflect on why so many Americans have either a dim view or little knowledge of our capitalist economic system. How can a simple, common-sense system be misunderstood by so many?

I’ve been reading Zhang Weiying’s “The Logic of the Market: An Insider’s View of Chinese Economic Reform” to better understand how the Chinese economy compares to our own. Most economists talk in jargon, but the Author explains capitalism in terms of happiness rather than marginal returns and GDP.

In capitalism, people engage in consensual exchange. Consumers and suppliers freely exchange a wide range of goods. As each gets what they asked for, both are happy. You go to the supermarket, you get what you want, and the store gets paid. Both of you win.

However, if goods or cash change hands with only one party happy and the other sad, it’s robbery. Think about that. Someone points a gun at you, demanding your stuff. The thief is happy, but you’re really sad. The point of human interaction is shared satisfaction, rather than gloom.

The gauging of happiness and sadness in society to determine whether an action is successful or just a thief. can be applied to both governance and economics. Most commercial transactions in free-market economies result in happiness for all the participants. You go to Costco, get a hot dog, and fill your cart with goods you value. At checkout, both you and Costco are happy.

Continue reading →

Trump: Inept Colonialist?

Dave Davis Commentary, Policy, Uncategorized , , , ,

Shades of the British in India, we depose a Leader favorable to our enemies, leaving the existing government compliant to our rule. Trump seized and deposed Venezuela’s leader and set up a colonial relationship with the remainder of his government.

Facing an overwhelming force, those in charge of the nation surrendered control of their primary asset, oil, to the U.S. We will take the oil and market it. Whatever amount we decide to share with Venezuela must be used to purchase U.S.-made goods.

These terms sound like our colonial relationship with King George’s Britain. Control of our trade lay with the mother country. We could only buy from British manufacturers. Our Declaration of Independence leaves no doubt about what we thought of the situation. Now, Trump has taken on George III’s mantle.

At least past colonial Empires went after places that produced stuff that didn’t compete with their home products. Tobacco, indigo, sugar, and tea didn’t grow in Britain or France. These mercantilist nations made money by selling colonial produce and by monopolizing the sale of manufactured goods to their colonies.

Isn’t someone in the present administration aware that the U.S. is the world’s top oil producer? It’s as if, when England was the largest wool exporter, it deposed a foreign leader to expand his nation’s wool production. One could see eliminating a competitor, but Trump only talks about rapidly expanding Venezuela’s output. Even crazy George III could see the flaws in this policy.

Continue reading →

A Discussion Starter

Dave Davis Commentary, Policy, Uncategorized , , , ,

Gathering in Atlanta for Thanksgiving, no one ventured anything along political lines until our son’s 86-year-old mother-in-law asked everyone what they thought of Majorie Taylor Green (MTG), the controversial Georgia Republican representative. Everyone chimed in. She is everyone’s hero for standing up to President Trump, including the family Democrats. She’s even on the left-wing “The Week” magazine, contesting Trump:

This reaction shows far-out positions race across media at the speed of light, while we shun actual policy discussions. Name the first twenty politicians you think of. Sure, you’ll include Joe Biden, Kamala Harris, and the Clintons and Obamas.

Still, beyond them, you’re likely to name the likes of Donald Trump, Bernie Sanders, A.O.C., Zohran Mamdani, Jasmine Crockett, Pete Hegseth, Sean Duffy, and J.D. Vance. What do they all have in common? They’re all media savvy. It may not be too strong to say that the media brought them to their present prominence.

While we are well aware of these people, none of us associates them with any deep, well-reasoned policy positions. To be sure, they have policies, free buses, little or no immigration, high tariffs, and price controls, but none of them provides a well-reasoned defense of their positions, leaving the tasks to others. Think tanks and media outlets are left to make their positions seem coherent.

Contrast that with Reagan’s radio talks, spelling out and selling his policies. Clinton and Carter were policy wonks.

Continue reading →

Turkeys before Thanksgiving

Dave Davis Commentary, Policy, Uncategorized , , , ,

As we approach the Holidays and the New Year, our leaders are in a full retreat from reality. This situation doesn’t bode well for our future. As I pointed out in my last post, Democrats only offer bromides featuring price controls and socialism that have proven to make matters even worse. However, they’re not in control of anything at the national level, and can only throw temper tantrums like the lengthy Government we just experienced. For all the problems it caused, it changed nothing.

Our Republican President is another story. With control of the executive branch, both houses of Congress, and a conservative Supreme Court majority, he sets the agenda. If the recent elections weren’t enough of a wakeup call, Trump’s continued decline in approval indicates that the public isn’t buying what he’s selling:

The 2024 Democratic election debacle, in part, was traced to taking too many 80-20 positions, such as biological boys playing women’s sports, with them holding the short end. Now, Trump takes minority positions, but doesn’t seem to realize it. Trump’s inability to see the big picture may not only leave him an impotent lame duck but also threaten the future of the Republican Party by alienating core supporters and moderates alike.

Failing to speak against some of his most ardent “New right” supporters, who claim there is nothing wrong with the likes of Tucker Carlson normalizing the anti-Semite Nick Fuentes on his podcast. I’ve denounced left-wing anti-semitism, and right-wing bigotry is no less odious. There is nothing inclusive about “white supremacy” and “Christian Nationalism.”

Trump’s inexplicable deference to Putin’s Russia took an even darker turn this week, with an ultimatum to Ukraine that they must accept his 28-point peace plan by Thanksgiving. A plan that asks nothing of Russia, but demands Ukraine give up strategic land and cap its military strength, while forgoing NATO membership forever. In other words, a rolling surrender.  

Continue reading →

“Affordability” Is The Word

Dave Davis Commentary, Policy, Uncategorized , , , ,

Remember, in last year’s presidential campaign, the word we kept hearing was “Weird.” Part of the Democrats’ campaign strategy against the Republican ticket, the term gained such wide traction that it was later named one of Merriam-Webster’s words of the year for 2024. Now they’re back again with a new word. “Affordability.” Republicans have even joined in its use.

Zohran Mamdani won the New York City mayoralty race, decrying the absence of “affordability.” Donald Trump now claims he’s close to bagging the elusive “Affordability.” Both major parties now plan their 2026 election strategies on convincing the nation they’re the ones to deliver “affordability.”

The remedies offered by both sides sound more like comedy routines than solutions, but the laugh is on us. You don’t have to have a PHD. in economics to realize some simple facts. If prices remain high and continue to rise, it indicates an excessive demand chasing a limited supply. We quaintly call this the “Law of supply and demand.” The high price of anything is a signal to the market to produce more.

The Federal Reserve can reduce the supply of dollars, or the government can raise taxes to a point where there is less money available for spending, and the likely resulting slower business conditions lead to reduced demand. That path is painful for voters, so neither party advocates those policies.  

That leaves increasing supply. The Trump administration aims to return to the reduced regulation and favorable business tax policies that were effective during the first term of the Trump presidency. These policies are classic supply-side economics. Don’t get in the way of the market. High prices, if left uninterfered with, will attract capital and innovation, filling the gap.

Continue reading →