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Kidnapping, human and sex trafficking concept of a female hostage and a man holding knife in an abandoned house. (Photo: AdobeStock)
Kidnapping, human and sex trafficking concept of a female hostage and a man holding knife in an abandoned house. (Photo: AdobeStock)

As the partial government shutdown over border security nears its 17th day, the Justice Department (DOJ) announced the sentences for members of a notorious Mexican sex trafficking organization that “frequently” relies on the U.S. southern border to smuggle their victims.

Last week — and only two days after Democratic congressional leaders interrupted a presentation on border security in the Situation Room at the White House — five members of a notorious Mexican sex trafficking organization were sentenced to prison terms ranging from 15 to 25 years.

The U.S. Attorney’s Office for the Eastern District of New York and the Department of Justice’s Civil Rights Division prosecuted the case, and said three more defendants are scheduled to be sentenced by District Court Judge Edward R. Korman on January 15.

“These well-deserved sentences reflect the gravity of the human trafficking crimes these defendants committed,” said Acting Attorney General Matthew Whitaker. “The defendants operated an extensive sex trafficking enterprise that preyed on vulnerable young women and girls, deceiving them with false promises, coercing their compliance, and compelling them into submission through beatings, threats, isolation, and intimidation.”

How the Sex Trafficking Racket Works

For over a decade, the Rendon-Reyes Trafficking Organization, based in Tenancingo, Tlaxcala, Mexico, has used the insecurity and lawlessness at the southern border to smuggle young women and girls to the U.S. from Mexico and Central America.

Female victims, some as young as 14 years old, were often lured into fraudulent romantic relationships by male members falsely promising them love and marriage. In other cases, some victims were forcibly abducted and, on one such occasion, the victim’s child was also taken.

Members of the Rendon-Reyes Trafficking Organization arranged for professional human smugglers known as coyotes to smuggle the victims across the southern border.

Court documents show members illegally residing in the U.S. relied on various methods to force the victims to comply and engage in prostitution, including severe and repeated beatings, sexual assaults, forced abortions, threats to the victims, their families and children, and psychological harm.

Victims were forced to perform as many as 45 sex acts a night without compensation. Members of the Organization took all of the criminal proceeds, and funneled that money back to Mexico.

The defendants, all of whom residing in the U.S. did so illegally, previously pled guilty to racketeering, sex trafficking, and other federal charges following their arrests in Mexico and the United States.

President to Visit Southern Border Amid Shutdown

White House Press Secretary Sarah Sanders announced President Donald Trump would visit the southern border on Thursday.

“President @realDonaldTrump will travel to the Southern border on Thursday to meet with those on the frontlines of the national security and humanitarian crisis,” she tweeted. “More details will be announced soon.”

The announcement indicates negotiations to reopen the government have been fruitless, even as the president revised his request in terms of both funding and the physical barrier, itself.

Initially, President Trump requested $5 billion to build a physical barrier made of concrete where border personnel argue it is needed on the southern border.

He privately cut the requested amount roughly in half and revised the material for the wall itself to steel.

But while Democrats claim to support border security, they have thus far refused each offer, opting instead to introduce a spending bill that is dead on arrival in the U.S. Senate.

“A wall, in my view, is an immorality. It’s the least effective way to protect the border and the most costly,” House Speaker Nancy Pelosi, D-Calif., said in a recent interview with Elle. “I can’t think of any reason why anyone would think it’s a good idea — unless this has something to do with something else.”

Democrats have also claimed the wall would be ineffective, despite claims to the contrary from the heads of the Department of Homeland Security (DHS), Customs and Border Patrol (CBP), and the National Border Patrol Council.

“The Administration is committed to addressing the humanitarian and security crisis at our borders,” DHS Secretary Kirstjen Nielsen recently tweeted. “Business as usual and the status quo simply won’t work in a crisis.”

The investigation of the Rendon-Reyes Trafficking Organization was led by Homeland Security Investigations (HSI) New York’s Trafficking in Persons Unit, and the U.S. Attorney’s Office for the Eastern District of New York.

DOJ said Mexico’s Procuraduría General de la República and Policía Federal “played a prominent role” in the investigation.

“These individuals will now face the consequences of their callous criminal actions exploiting women and girls whom they forced into sex slavery for profit,” Homeland Security Investigations Executive Associate Director Derek Benner said, adding the sentences “speak to the strong bilateral relationship between the United States and Mexico, in which both nations are committed to holding accountable those engaged in the ruthless act of human trafficking,”

The effort was coordinated through the U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative, which was established in 2009 “to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, and restore the rights and dignity of human trafficking victims.”

As a result, U.S. federal prosecutors have brought cases against more than 170 defendants in New York, Georgia, Florida, and Texas.

The Eastern District of New York has to date indicted more than 80 defendants, assisted more than 150 victims, including 45 minors, reunited 19 victims’ children with their mothers, and secured restitution orders of over $4 million on behalf of trafficking victims.

However, the White House maintains that prosecution is not prevention and, the success of federal prosecutors should serve as a sobering reminder of the severity of the humanitarian crisis on the U.S. southern border.

Defendants Sentenced to Federal Prison

The defendants were sentenced to the following prison terms:

  • Jovan Rendon-Reyes, aka Jovani, 32, of Mexico, was sentenced to 20 years in prison;
  • Saul Rendon-Reyes, aka Satanico, 41, of Mexico, was sentenced to 15 years in prison;
  • Felix Rojas, 48, of Mexico, was sentenced to 25 years in prison;
  • Odilon Martinez-Rojas, aka Chino or Saul, 47, of Mexico, was sentenced to over 24 years in prison; and
  • Severiano Martinez-Rojas, 53, of Mexico, was sentenced to over 24 years in prison.

Severiano Martinez-Rojas was also sentenced in a related case in the Northern District of Georgia. Those proceedings were transferred to the Eastern District of New York for entry of the defendant’s guilty plea last year, and the cases were consolidated for last week’s sentencing.

“Human trafficking is disgraceful and unacceptable,” said Assistant Attorney General Eric Dreiband. “This sex trafficking enterprise was extensive and resulted in the abuse of young women and girls.”

Defendants Jose Rendon-Garcia, aka Gusano, 35, of Mexico, Guillermina Rendon-Reyes, 48, of Mexico, and Francisco Rendon-Reyes, aka Pancho, 30, of Mexico, will be sentenced on January 15.

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The Justice Department (DOJ) revealed a notorious

A Walmart employee who serves as a "customer host," walks in front of the customer service desk at a Walmart super-center location in Gainesville, Florida. (Photo: Laura Baris/People's Pundit Daily/PPD)
A Walmart employee who serves as a “customer host,” walks in front of the customer service desk at a Walmart super-center location in Gainesville, Florida. (Photo: Laura Baris/People’s Pundit Daily/PPD)

The U.S. Service Sector cooled slightly in December after months of threatening to overheat. The Institute for Supply Management (ISM) Non-Manufacturing Index (NMI) came in at 57.6, lower than the consensus forecast but still reflecting robust growth.

“The non-manufacturing sector’s growth rate cooled off in December. Respondents indicate that there still is concern about tariffs, despite the hold on increases by the U.S. and China,” Anthony Nieves, Chair of the ISM Non-Manufacturing Business Survey Committee. “Also, comments reflect that capacity constraints have lessened; however, employment-resource challenges remain.”

“Respondents are mostly optimistic about overall business conditions.”

The headline Business Activity Index has reflected growth for the 113th consecutive month.

The New Orders Index ticked up 0.2% in December to 62.7%, while the Employment Index declined 2.1% to 56.3%.

Survey Panel Responses

“Economy still chugging along, despite the rise in interest rates and relentless political claptrap. Mid-winter [activity] appears to be helping a variety of sectors, including agriculture and construction.” (Finance & Insurance)

  • “Economy still chugging along, despite the rise in interest rates and relentless political claptrap. Mid-winter [activity] appears to be helping a variety of sectors, including agriculture and construction.” (Finance & Insurance)
  • “Overall, our year-end outlook is positive. We are already receiving converted RFPs to orders for 2019. Based on the uncertainty of the tariffs, we have advised our clients to make purchases early in first quarter 2019, if possible, to save money. There is concern in our industry regarding the full year due to tariffs, unless a deal can be reconciled with China. We expect lower profit margins and reduced sales for 2019 until our suppliers can source product from other countries, which may not be until late [in the year].” (Management of Companies & Support Services)
  • “Business is still on an uptrend. Receiving more inquiries for training going into new year.” (Professional, Scientific & Technical Services)
  • “Steady demand and supply. Finding qualified employees is a challenge.” (Public Administration)
  • “Business is exceeding expectations. 2019 should equate or exceed 2018.” (Real Estate, Rental & Leasing)

The ISM Non-Manufacturing Index (NMI) finds the

Credit card vector, Mastercard concept. (Photo: CC0 Creative Commons)
Credit card vector, Mastercard concept. (Photo: CC0 Creative Commons)

Mastercard Incorporated (NYSE: MA) on Monday announced it will be dropping its name from its logo, leaving only the iconic red and yellow interlocking circles that have been the hallmark of the brand for more than 50 years.

The company said the move to a more flexible, modern design is an effort to evolve amid changes in the consumer and commerce landscape.

“Reinvention in the digital age calls for modern simplicity,” said Raja Rajamannar, chief marketing and communication officer at Mastercard. “And with more than 80 percent of people spontaneously recognizing the Mastercard Symbol without the word ‘mastercard,’ we felt ready to take this next step in our brand evolution. We are proud of our rich brand heritage and are excited to see the iconic circles standing on their own.”

The red and yellow interlocking circles symbolized the brand’s promise to connect people to Priceless possibilities. The image below represents the change.

Photo: Image sourced via Mastercard

“We live in a time where, increasingly, we communicate not through words but through icons and symbols. Mastercard has had the great fortune of being represented by two interlocking circles, one red, one yellow, since its founding in 1966, said Michael Bierut, partner at Pentagram. “Now, by allowing this symbol to shine on its own, Mastercard enters an elite cadre of brands that are represented not by name, but by symbol: an apple, a target, a swoosh.”

“Mastercard’s two interlocking circles have always represented their commitment to connecting people. Now, that commitment is given greater presence by Mastercard’s status as a symbol brand.”

The global payments processing company boasts a network connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. The move to symbol branding follows another major announcements last week.

On Friday, Mastercard named Donald Chesnut as its first chief experience officer, effective January 14, 2019.

Mastercard announced they are dropping the name

On Liberty Never Sleeps, Tom discusses the Oscars, the outrage over and in response to Rashida Tlaib, and the fight over whether The Wall is immoral.

*Miss Baloney Arms 2019 and the Oscars
*Talib and Trump Outrage
*The Agenda in Congress
*Another Sweden
*The Wall is Immoral?

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On Liberty Never Sleeps, Tom discusses the

Alexandria Ocasio-Cortez during a widely criticized viral interview with PBS (Public Broadcasting Station). (Photo: Screenshot)
Alexandria Ocasio-Cortez during a widely criticized viral interview with PBS (Public Broadcasting Station). (Photo: Screenshot)

It’s not quite as bad as Matt Yglesias, who wants a top tax rate of 90 percent, a rate that Crazy Bernie also likes. But Congresswoman Alexandria Ocasio-Cortez, D-N.Y., is not bashful about wanting to use the coercive power of government to take much larger shares of what others have earned.

And she doesn’t want to take “just” half, which would be bad enough. She wants to go ever further, endorsing a top tax rate on household income of 70 percent.

Those of you with a lot of gray hair may recall that’s the type of punitive tax regime we had in the 1970s (Does anybody want a return to the economic misery we suffered during the Nixon and Carter years?).

So it’s very disturbing to think we may get an encore performance.

Here are some excerpts from a Politico report.

Rep. Alexandria Ocasio-Cortez (D-N.Y.) is floating an income tax rate as high as 60 to 70 percent on the highest-earning Americans… Ocasio-Cortez said a dramatic increase in taxes could support her “Green New Deal” goal of eliminating the use of fossil fuels within 12 years… “There’s an element where yeah, people are going to have to start paying their fair share in taxes.” …When Cooper pointed out such a tax plan would be a “radical” move, Ocasio-Cortez embraced the label… “I think that it only has ever been radicals that have changed this country,” Ocasio-Cortez said. “Yeah, if that’s what radical means, call me a radical.”

There are many arguments to make against this type of class-warfare policy, but I’ll focus on two main points.

First, this approach isn’t practical, even from a left-wing perspective. Simply stated, upper-income taxpayers have considerable control over the timing, level, and composition of their income, and they can take very simple — and completely legal — steps to protect their money as tax rates increase.

This is one of the reasons why higher tax rates don’t translate into higher tax revenue.

If you don’t believe me, check out the IRS data on what happened in the 1980s when Reagan dropped the top tax rate from 70 percent to 28 percent. Revenues from those making more than $200,000 quintupled.

Taxes Paid on Income Over $200 thousand, 1980 - 1988. (Source: Internal Revenue Service/IRS)
Taxes Paid on Income Over $200 thousand, 1980 – 1988. (Source: Internal Revenue Service/IRS)

Ms. Ocasio-Cortez wants to run that experiment in reverse. That won’t end well — assuming, of course, that her goal is collecting more revenue, which may not be the case.

Second, higher tax rates on the rich will have negative consequences for the rest of us. This is because there is a lot of very rigorous research that tell us:

And this is just a partial list.

And I didn’t even include the potential costs of out-migration, which doubtlessly would be significant since Ms. Ocasio-Cortez would impose the developed world’s most punitive tax regime on the United States.

I’ll close by recycling this video on the harmful impact of punitive tax rates.

Alexandria Ocasio-Cortez wants an income tax as

Cartoon businessman running away to avoid paying taxes. (Photo: AdobeStock/PPD/Adiano)
Cartoon businessman running away to avoid paying taxes. (Photo: AdobeStock/PPD/Adiano)

despise the death tax. It should be abolished.

My main objection is that it is immoral. If a person earns money, pays tax on the money, and then responsibly saves and invests the money (which generally requires paying another layer of tax), it is reprehensible that politicians want to tax the money yet again simply because the person dies.

But I’m also an economist, so I don’t like the tax because it is the most pernicious form of double taxation. The levy not only drains capital from the private sector, it also discourages the building and creating of wealth in the first place, while also lining the pockets of accountants and tax lawyers.

None of that is good for those of us who will never have enough money to get hit by the tax.

The only silver lining to this dark cloud is that we get very interesting stories of what people are willing to do to escape this unfair and destructive levy.

Jeanne Calment’s apparent longevity turned her into a global celebrity before she died at the age of 122 years and 164 days in 1997. However, that age is being challenged… Yuri Deigin, a genealogist, claims that Mrs Calment actually died in 1934 and that her daughter, Yvonne, usurped her identity… The genealogist said that Mrs Calment, born in 1875, and Fernand, her husband, were the joint owners of a department store in Arles, in Provence. If Mrs Calment’s death had been registered, Mr Calment would have had to pay inheritance tax of up to 38 per cent on his wife’s half of the business. …Mr Deigin said that Mr Calment avoided the bill by telling officials that it was his daughter who had died. The daughter then passed herself off as her mother for the rest of her life.

Not everyone accepts Mr. Deigin’s analysis and it’s possible that will be genetic testing of Mrs. Calment’s remains.

For what it’s worth, I’m guessing the story is accurate. We already have lots of evidence that people will take extraordinary steps to protect family funds from this additional layer of tax.

Sadly, I don’t have to worry about the death tax. But if I did, I would do everything in my power to make sure my kids got my money rather than the despicable people in Washington.

So I admire Mrs. Calment. Yes, she broke the law, but that doesn’t bother me when the law is unjust.

People will take extraordinary steps in tax

Series with themes reflecting a certain billionaire politician who won the 2016 presidential election touting a very strong labor market. (Photo: AdobeStock)
Series with themes reflecting a certain billionaire politician who won the 2016 presidential election touting a very strong labor market. (Photo: AdobeStock)

The U.S. economy surpassed 150,000,000 jobs for the first time ever following the Employment Situation report for December 2018.

“With more than 5,000,000 jobs added since the 2016 election, the American economy surpassed 150,000,000 jobs for the first time ever,” U.S. Secretary of Labor Alexander Acosta boasted in a statement following the release of the jobs report.

The Labor Department via the Bureau of Labor Statistics said the U.S. economy added a whopping 312,000 jobs in December, crushing the forecast.

“It doesn’t get any better than this,” Larry Kudlow, the president’s chief economic advisor said. “I’d urge people again to rethink their pessimism.”

Coupled with upward revisions to October and November, the economy welcomed a total of 370,000 more jobs.

“While job growth remains strong, it is important that policymakers continue to foster an environment that promotes job creation and wage growth,” Secretary Acosta said in a warning to lawmakers. “This Administration will keep working to grow our economy and create family-sustaining careers for America’s workers.”

The labor force grew by 419,000 and the participation rate rose to 63.1%, up from 62.9% the previous month. It is now 0.4% higher on the year.

The unemployment rate moved up to 3.9% as a result of increased participation.

“Labor force participation for women 25-54 was particularly strong, rising by 0.3%, returning to 2009 levels,” Secretary Acosta added. “More individuals moving into the labor force is welcomed news as job creators look to fill seven million open jobs.”

The Dow Jones Industrial Average (^DJI) shot up over 300 points following the report. It rose higher to +700 points following comments from Federal Reserve Chair Jerome Powell.

The Employment Situation, known more commonly as the monthly jobs report, follows the ADP National Employment Report released Thursday. ADP said the U.S. private sector alone added 271,000 jobs.

“This closes a very strong 2018,” Secretary Acosta said. “Positive news was widespread: 2.6 million new jobs created in the past twelve months, America’s average wage earnings are on the rise, 8 months of unemployment below 4%, and series low unemployment rates this year for African-Americans, Asian-Americans, Hispanic-Americans, and those without a high school degree.”

The U.S. economy surpassed 150,000,000 jobs for

A coffee shop displays signs for Visa, MasterCard and Discover, in Washington, May 1, 2013. (Photo: Reuters)
A coffee shop displays signs for Visa, MasterCard and Discover, in Washington, May 1, 2013. (Photo: Reuters)

Mastercard Incorporated (NYSE: MA) on Friday named Donald Chesnut as its first chief experience officer, effective January 14, 2019.

Mr. Chestnut most recently served as global chief experience officer at SapientRazorfish, where he worked with Fortune 500 clients integrate consumer-centric strategies into brand experiences.

He will lead a team that supports the organization’s delivery of consumer payment experience, “while providing merchants, issuers and other partners a more holistic way to work with Mastercard’s products and services,” the company said in a press release.

“Providing customers with clear, consistent and rewarding experience is what differentiates leaders from the rest of the pack,” Michael Miebach, chief product officer said. “Donald’s background and extensive work with leading brands across cultures and countries will build on a strong foundation and strengthen our ongoing activities.”

Mr. Chestnut served in several roles at Sapient for more than two decades. Before becoming global chief experience officer in 2017, he served as chief creative officer and lead for the agency’s experience design practice. He also held digital and interactive experience roles with American Express and Siegel & Gale.

Chesnut received a master’s degree in Interactive Telecommunications and bachelor’s degree in Computer Science and Dramatic Literature, all from New York University.

Mastercard Incorporated (NYSE: MA) on Friday named

Man reading newspaper with the headline Job Market. (Photo: AdobeStock)
Man reading newspaper with the headline Job Market. (Photo: AdobeStock)

The Employment Situation in the December jobs report is very strong, with the U.S. economy creating far more jobs than forecast and wages continuing to rise at a pace not seen in a decade.

The Labor Department via the Bureau of Labor Statistics said the U.S. economy added a whopping 312,000 jobs in December, crushing the forecast.

The consensus was looking for just 180,000, ranging from as low as 160,000 to as high as 200,000.

The unemployment rate rose slightly by 0.2% to 3.9%, the result of more people entering the labor market and looking for work.

The labor force participation rate came in at 63.1%, up from 62.9% the previous month. The employment population ratio was unchanged at 60.6% for the third consecutive month.

However, both measures were up by 0.4% over the year and unemployment has remained below 4% for 8 consecutive months, the longest period since the 1960s.

Manufacturing added a solid 32,000 jobs in December, bringing the industry total over the year to a stunning 284,000. Manufacturing added 207,000 jobs in 2017, a reversal from the “life support” trend under the previous administration.

Construction added 38,000 in December, bringing the industry total to 280,000 jobs in 2018. That compares to an already strong increase of 250,000 in 2017.

The quality, in addition to the quantity of jobs created under the Trump Administration has clearly and finally resulted in upward wage pressure.

In December, average hourly earnings for all employees on private nonfarm payrolls rose 11 cents to $27.48. Over the year, average hourly earnings have increased by 84 cents, or 3.2%.

Each of the wage measures beat their respective consensus forecast and average hourly wage exceeded 3% for the third straight month, gains not seen since April 2009.

Average hourly earnings of private-sector production and nonsupervisory employees increased by 9 cents to $23.05 in December.

For context, average hourly earnings increased by 81 cents, or 3.1% from the previous year in November, which matched October as the largest single-month gain since 2009.

Wage growth in the month of December proved even stronger.

“In theory, this report should keep the Fed from sounding more aggressive on rates,” Tim Anderson, analyst at TJM Investments said. “If Chairman Jerome Powell confirms that today, markets will rip.”

The Dow Jones Industrial Average (^DJI) already shot up over 300 points following the news.

The Employment Situation, known more commonly as the monthly jobs report, follows the ADP National Employment Report released Thursday. ADP said the U.S. private sector alone added 271,000 jobs.

“We wrapped up 2018 with another month of significant growth in the labor market,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.

Revisions

The change in total nonfarm payroll employment for November was revised up from +155,000 to +176,000, and the change for October was revised up from +237,000 to +274,000.

With these revisions, employment gains in October and November combined were 58,000 more than previously reported.

“With more than 5,000,000 jobs added since the 2016 election, the American economy surpassed 150,000,000 jobs for the first time ever,” Secretary of Labor Alex Acosta said in a statement responding to the report.

“While job growth remains strong, it is important that policymakers continue to foster an environment that promotes job creation and wage growth. This Administration will keep working to grow our economy and create family-sustaining careers for America’s workers.”

The Employment Situation in the December jobs

In this June 9, 2017 House Minority Leader Nancy Pelosi, D-Calif., speaks on Capitol Hill in Washington. Democratic Party divisions are on stark display after a disappointing special election loss in a hard-fought Georgia congressional race. (Photo: AP)
In this June 9, 2017 House Minority Leader Nancy Pelosi, D-Calif., speaks on Capitol Hill in Washington. Democratic Party divisions are on stark display after a disappointing special election loss in a hard-fought Georgia congressional race. (Photo: AP)

House Democrats revived the “Gephardt Rule,” or automatic increases in the debt ceiling triggered after the lower chamber passes a budget.

Under Article I Section 8 of the U.S. Constitution, Congress must authorize the borrowing of money on national credit.

Rep. Dick Gephardt, D-Mo., first proposed the rule in the late 1970s. From the founding of the Republic until 1917, the U.S. Congress had directly authorized each individual debt issued.

Congress changed how it authorized debt in the Second Liberty Bond Act of 1917, allegedly needed to finance U.S. involvement in World War I.

Worth noting, the same argument was made in support of a direct progressive income tax, which was unconstitutional until the ratification of the 17th Amendment.

Democrats, and their media allies claim (as NPR put it), the rule change aims to “eliminate causes of major instability during the previous eight years of Republican rule in Congress.”

House Republicans forced members to vote to approve debt ceiling increases in the interest of accountability and fiscal responsibility.

NPR added the additional claim that it “never resulted in reducing spending and only added to a culture of brinksmanship in recent years that often threatened the U.S. into default on its debts and increased economic uncertainty around the globe.”

For the record, while overall spending continued to rise, it did result in sequestration and a reduction in the trajectory of growth in federal spending. Further, the threat of default from debt ceiling fights is grossly overblown.

Below is the latest Congressional Budget Office (CBO) projection on major budget aggregates.

As you can see, the U.S. Treasury Department will collect more than 10 times as much revenue as needed to fulfill obligations (net interest) to those who have lent money to Uncle Sam.

Source: Congressional Budget Office (CBO)
Source: Congressional Budget Office (CBO)

In other words, the administration can choose to pay interest on the debt and defer other bills.

U.S. Treasury would be able to avoid default without debt ceiling increase approval for the simple reason tax receipts are far greater than what’s needed to pay interest on the debt.

As CATO Institute and PPD contributing economist Dan Mitchell has argued for years, debt limit fights are harmless because there’s no risk of default.

Mr. Mitchell even explained to the Senate Budget Committee a few years ago that it would be easy for the U.S. Treasury to “prioritize” payments to ensure bondholders would never be adversely impacted.

However, discretionary spending, which funds rent-seeking special interest groups, does suffer in the event of a government shutdown.

Put simply, rent-seeking is when an individual or entity uses company, organizational or individual resources to obtain an economic gain, typically a competitive advantage.

Rent-seeking doesn’t require reciprocity, meaning wealth created from the gain (e.g. competitive advantage) benefits only the rent-seeker, not society as a whole.

In fact, their interests often hurt average citizens, who do not have the resources to rent-seek on Capitol Hill.

Rent-seekers have vast resources to lobby for their interests, which often hurt average citizens, who do not have the resources to rent-seek.

But there’s a catch. It is very expensive to rent-seek, particularly if average tenure is low. But it is not, and incumbents securing automatic debt ceiling increases is exactly what rent-seekers expect of them in exchange for monetary support.

An example is a company lobbying lawmakers for the contract pertaining to the Supplemental Nutrition Assistance Program (SNAP), better known as foods stamps.

That money currently goes to JPMorgan Chase, a leader on Wall Street in an industry that has clearly swung its support behind the Democratic Party.

For their part, Democrats insist rent-seeking isn’t behind the rule change.

“We are proposing historic changes that will modernize Congress, restore regular order and bring integrity back to this institution,” House Rules Chairman James McGovern, D-Mass., said in a statement.

House Democrats reviving the "Gephardt Rule," or

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