Big

Numbers have consequences.

U.S. National Debt Surpasses $35 Trillion

I’m old enough to remember when $483k could buy a decent starter home.

‘The gross national debt is currently $35 trillion. This equates to:

·        ‘$104,497 per person

·        ‘$266,275 per household

·        ‘$483,889 per child’

Why Big War absolutely loves red tape and regulation

Defense contractors are actually companies whose primary competitive advantage is the ability to shape, manipulate, and exploit bureaucracy for their own benefit. They just happen to make weapons. 18% of total cost comes from the regulatory compliance premium according to a study in 1994.

‘With the Pentagon late last year failing its sixth audit in a row and majority of major weapons systems coming in way over budget while failing to deliver promised capabilities, it’s evident that our defense procurement system has major problems.

‘Perhaps the most significant underlying cause (among many) is that not only do all defense contractors make a profit from regulations — but the giant firms that have come to dominate our defense industry thrive on regulations. They turn regulatory compliance into a competitive advantage.

‘In other words, the more regulations and red tape levied on defense contractors, the more profits they reap.’

More congressional staff? Conservatives are coming around to the idea

One consequence of Loper is that the experts will start to flow out of the agencies and to Congressional staffs.

‘But there is one potential response that seems to unite the right and the left: Congress needs more expertise and capacity, and that means more staff.

‘“There is a growing bipartisan consensus for building capacity in a way that hasn’t existed in a long time,” said J.D. Rackey, a senior analyst at the Bipartisan Policy Center.’

Inequality Is Caused By Inflation

The rich are the ones who can exploit and manipulate government largesse, only to benefit further from the consequential inflation.

‘It is not just those who directly receive fresh money who benefit from an increase in the money supply. As everyone else’s purchasing power erodes from inflation, owners of substantial assets, like factories, are lifted relatively. They continually receive a transfer of purchasing power at the expense of everyone else. An 8% annual inflation rate — a realistic estimate considering that economic growth masks the true increase in the money supply — enhances the value of hereditary capital by 2,200 times when compounded over a century, or 220,000%. Conversely, a family without assets had their purchasing power reduced to 0.045% of its original value. This means inflation continually creates inequality. This is the real reason the rich get richer, why the world is so unequal, and why so many bad decisions are made in the internal power struggle for inflation capture.

‘By continually handing free money to the rich, government facilitates a transfer of purchasing power from the population to the moneyed class. This skews wealth distribution and continually impoverishes the working class. Earned money now makes up a smaller portion of the overall purchasing power available. In a free market, wealth accumulation would rely more on productive enterprise than rent-seeking, resulting in a more equitable distribution of wealth based on productivity. Work would be more highly rewarded, and even modest employment would provide substantial purchasing power, reducing the need for a welfare state. Thus, the current system perpetuates inequality that favors the rich at the expense of the broader population.’

Do We Need One Million Regulatory Restrictions and ESG?

If one regulation distorts behavior, what does one million regulations do?

‘How much federal regulation does the typical business even face? Unfortunately, that important question is nearly impossible to answer. The Code of Federal Regulations is so large — more than 100 million words — that it would take years for anyone to read it.

‘But a computer algorithm can read it quickly. The Mercatus Center at George Mason University has an AI tool that counts the number of federal regulatory restrictions. It estimates that there were 1,091,860 restrictions as of January 2023.’

Bye Bye, Administrative State Shadow Courts

Jarkesy for the win.

‘Referencing the British usurpation of colonial America’s juries, the high court wrote that “the right to trial by jury is ‘of such importance and occupies so firm a place in our history and jurisprudence that any seeming curtailment of the right’ has always been and ‘should be scrutinized with the utmost care.’”’

Graft, bureaucracy hamper Congo investment -W.Bank

The incentive for corruption exists wherever there is bureaucracy because it wrests some portion of control over business models to the hands of the clerk.

‘Analysts say a three-year post-war transition period was plagued by widespread corruption as government loyalists and rebels vied for key jobs in ministries and public companies.

‘Labara said Congo's failure to push through basic reforms, like simplifying cumbersome business registration procedures, has created an atmosphere that continues to breed corruption.

‘"What we are trying to do is streamline the procedures ... Once you have clear guidelines, it will reduce the potential for corruption," he said.’

The Mess States Are Making of AI Regulation

The tragedy of the commons. Over-regulation of AI at the state level threatens to defeat the potential of the new technology.   

‘In 2023, lawmakers in at least 31 states introduced more than 190 AI-related proposals, according to data from the Software Alliance, an industry trade group. That represented a 440 percent increase over the number introduced in 2022. Only a handful of those bills were enacted, but that hasn’t discouraged prospective AI regulators: Today, state legislatures and the District of Columbia are considering nearly 650 pieces of AI-related legislation, many of which define AI differently.

‘How AI startups and small businesses, often strapped for cash and resources, are supposed to comply with such a potentially complicated regulatory framework remains a mystery. But what is clear is that this is no way to usher in the next technological revolution, nor is it even certain that this revolution will happen under American leadership if the United States does not play its cards right.’