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A woman pulls shopping carts through the aisle of a Target store in Torrington, Connecticut November 25, 2011. (Photo: Reuters)

A woman pulls shopping carts through the aisle of a Target store in Torrington, Connecticut November 25, 2011. (Photo: Reuters)

The Conference Board said the Consumer Confidence Index came off a 17-year high in December, though it remained elevated at 122.1. Digging deeper into the data, the smear campaign launched by Democrats and Big Media against the Tax Cuts and Jobs Act definitely had an impact.

The Present Situation Index increased from 154.9 to 156.6, while the Expectations Index declined from 111.0 last month to 99.1 this month.

“Consumer confidence retreated in December after reaching a 17-year high in November,” said Lynn Franco, Director of Economic Indicators at The Conference Board. “The decline in confidence was fueled by a somewhat less optimistic outlook for business and job prospects in the coming months.”

According to the Conference Board survey, which mirrors political polls, American consumers do not yet fully understand how the first overhaul to the U.S. tax code in more than 31 years will impact their own finances. The Joint Committee on Taxation (JCT) said more than 80% of Americans will see their tax burden go down, while just 5% will see their tax burden rise.

That 5% is mostly higher-earners in high-tax states. Still, the retreat is not cause for alarm as consumer confidence still remains very high.

“Consumers’ assessment of current conditions, however, improved moderately,” Ms. Franco added. “Despite the decline in confidence, consumers’ expectations remain at historically strong levels, suggesting economic growth will continue well into 2018.”

How consumers view their present-day conditions was slightly more positive in December, as the percentage saying business conditions are “good” increased slightly from 35.0% to 35.2%. The percentage saying business conditions are “bad” decreased a tick from 12.3% to 12.1%.

Consumers’ assessment of the labor market was a mixed bag, though there was a very shiny silver lining.

The percentage claiming jobs are “plentiful” fell slightly from 37.5% to 35.7%, while those claiming jobs are “hard to get” also fell from 16.8% to 15.2% (a 16-year low).

Consumers’ optimism about the short-term outlook declined sharply in December, no doubt the result of the negative coverage and downright dishonest “analysis” of the tax overhaul.

The percentage of consumers anticipating business conditions to improve over the next 6 months fell from 23.1% to 20.2%, while those expecting business conditions to worsen increased from 6.7% to 9.2%.

Meanwhile, the percentage expecting more jobs in the months ahead fell moderately from 21.3% to 18.4%, while those anticipating fewer jobs rose significantly from 12.1% to 16.3%. Still, the percentage of consumers expecting an improvement in their short-term outlook managed to increase from 20.3% to 22.3%, while the proportion expecting a decrease also rose, from 7.6% to 8.9%.

The Conference Board said the Consumer Confidence

United States U.N. Ambassador Nikki Haley, right, speaks during United Nations Security Council meeting on North Korea's latest launch of an intercontinental ballistic missile, Wednesday July 5, 2017 at U.N. headquarters. (Photo: AP)

United States U.N. Ambassador Nikki Haley, right, speaks during United Nations Security Council meeting on North Korea’s latest launch of an intercontinental ballistic missile, Wednesday July 5, 2017 at U.N. headquarters. (Photo: AP)

A new poll finds nearly 3 in 10 likely voters have no opinion of Nikki Haley, the U.S. Ambassador to the United Nations (UN) for the Trump Administration. Ambassador Haley, who had a 60% approval rating as governor of South Carolina, is viewed at least somewhat favorably by 40% of likely voters and at least somewhat unfavorably by 30%.

That includes 22% who have a very favorable opinion and 12% with a very unfavorable opinion.

It has been a rumor for quite some time that Ambassador Haley has future presidential aspirations. However, there is an element to the Republican base which believes she is too hawkish, or willing to use the U.S. military for unnecessary foreign interventions.

While only 6% of Republicans have a very unfavorable opinion of Ambassador Haley, another 11% have a somewhat unfavorable opinion.

Meanwhile, the United Nations General Assembly voted 128-9 in favor of a resolution condemning President Donald Trump’s decision to recognize Jerusalem as the capital of Israel. The president also ordered the State Department to move the U.S. Embassy from Tel Aviv to Jerusalem, which Secretary Rex Tillerson said they would be preparations to do “immediately.”

Ambassador Haley, with a White House blessing, warned the UN before the vote that countries who do not opposed the resolution could face a significant decrease in financial support from the United States. Now, she has announced major cuts to its UN budget for the 2018-2019, a move a majority of the country supports.

Just 36% believe the U.S. is getting a good return on their investment to the UN, though that number did increase slightly from the previous year.

The survey of 1,000 Likely Voters was conducted on December 20-21, 2017 by Rasmussen Reports. The margin of sampling error is +/- 3 percentage points with a 95% level of confidence.

A new poll finds nearly 3 in

U.S. President Donald Trump (2nd L) and first lady Melania Trump (3rd L) stand with Israeli Prime Minister Benjamin Netanyahu (2nd R), his wife Sara (R) and Israel's President Reuven Rivlin (L) upon their arrival at Ben Gurion International Airport in Lod near Tel Aviv, Israel May 22, 2017. (Photo: Reuters)

U.S. President Donald Trump (2nd L) and first lady Melania Trump (3rd L) stand with Israeli Prime Minister Benjamin Netanyahu (2nd R), his wife Sara (R) and Israel’s President Reuven Rivlin (L) upon their arrival at Ben Gurion International Airport in Lod near Tel Aviv, Israel May 22, 2017. (Photo: Reuters)

Israel could name a future train station at the Western Wall after President Donald Trump in honor of his “brave decision to recognize Jerusalem as the capital” and move the U.S. Embassy from Tel Aviv to Jerusalem.

Israel’s transportation minister Yisrael Katz said they plan to extend a high speed rail to the Western Wall. The project, which will soon be complete, involves constructing two underground stations and excavating over 2 miles of tunnel beneath Jerusalem and under the politically and historically sensitive Old City.

“The Western Wall is the holiest place for the Jewish people, and I decided to call the train station that leads to it after President Trump following his historic and brave decision to recognize Jerusalem as the capital of the State of Israel,” Minister Katz told the Jerusalem Post on Wednesday.

President Trump’s announced the decision in early December, which not only fulfilled a major campaign promise but also a 22-year old national promise to the Israelis.

In 1995, Congress passed The Jerusalem Embassy and Relocation Act, which recognized Jerusalem as the capital of Israel and called for moving the U.S. Embassy from Tel Aviv to Jerusalem. Waivers are permitted by presidents in the event national security is a concern, which President Trump signed in June.

Transportation Ministry spokesman Avner Ovadia said the project is estimated to cost more than $700 million and, if approved, would take 4 years to complete.

Katz’s office said in a statement that the minister advanced the plan in a recent meeting with Israel Railways executives, and has fast-tracked it in the planning committees.

The decision enraged the Palestinians, who claim the Old City will be the capital of their future state, though Israel captured it in the Six-Day War in 1967. The anti-Israeli bias United Nations General Assembly voted 128-9 in favor of a resolution condemning the decision last week.

The vote is indicative of what may be to come. The Western Wall train proposal will likely face fierce opposition from the international community.

President Trump said it was “long overdue” and “the right thing to do,” while Secretary Rex Tillerson said the State Department would “immediately” begin “preparations to move the U.S. Embassy from Tel Aviv to Jerusalem.”

Israel could name a future train station

People shop in Macy's Herald Square in Manhattan, New York, U.S., November 23, 2017. (Photo: Reuters)

People shop in Macy’s Herald Square in Manhattan, New York, U.S., November 23, 2017. (Photo: Reuters)

U.S. consumers have made the 2017 holiday season historic for retail sales during the period from November 1 through December 24, or Christmas Eve. According to Mastercard SpendingPulse, a report on national U.S. retail sales across all payments types, holiday sales increased 4.9% in 2017 and set a new record for dollars spent.

This is the largest year-over-year increase since 2011.

“Evolving consumer preferences continue to play out in the aisles and online sites of retailers across the U.S.,” said Sarah Quinlan, senior vice president of Market Insights, Mastercard. “Overall, this year was a big win for retail. The strong U.S. economy was a contributing factor, but we also have to recognize that retailers who tried new strategies to engage holiday shoppers were the beneficiaries of this sales increase.”

Online shopping, or eCommerce, also experienced large gains compared to 2016, which the report said was boosted in part by a late season rally. Online sales soared 18.1% from their levels in 2016, but they aren’t drowning out brick-and-mortal retail sales as many economists had forecast.

There is no doubt from the data that the improving labor market and overall economic conditions in 2017 have fueled an industry resurgence.

The Conference Board said the Consumer Confidence Index hit the highest level in 17 years, while the latest jobs report from the Labor Department via the Bureau of Labor Statistics said unemployment remains at a 17-year low.

The Survey of Consumers found pre-holiday consumer sentiment was the highest in more than a decade and wage growth was at an expansion high. The Bureau of Economic Analysis (BEA) also said personal consumption expenditures rose 4.5% year-over-year in November.

As a result, sales weren’t driven almost exclusively by high-income consumers, as was the case in past years. In 2017, holiday shoppers were a broad coalition of the U.S. population due to rising wages and lower unemployment.

Sales of electronics and appliances rose 7.5% from last year, the strongest rate of growth for the last 10 years.

The Mastercard SpendingPulse report bodes well for government report on retail sales next month. Advance estimates for November retail sales from the U.S. Census Bureau nearly tripled the consensus forecast, surging 0.8% to $492.7 billion from the previous month, and 5.8% since November 2016.

Retail sales strength will undoubtedly lift the outlook for consumer spending in the fourth quarter (4Q), which in turn bode well for gross domestic product (GDP).

The BEA said last week the “third” and final estimate for 3Q GDP was a solid 3.2%, up from 3.1% in the 2Q. While that’s down slightly (0.1%) from the second reading for the 3Q, the U.S. economy is back on track to grow at or above 3% for three straight quarters for the first time since 2004.

According to Mastercard SpendingPulse, U.S. retail sales

U.S. President Donald Trump addresses the 72nd United Nations General Assembly at U.N. headquarters in New York, U.S., September 19, 2017. (Photo: Reuters)

U.S. President Donald Trump addresses the 72nd United Nations General Assembly at U.N. headquarters in New York, U.S., September 19, 2017. (Photo: Reuters)

expressed approval when President Donald Trump proposed to reduce U.S. funding for international bureaucracies, mostly because of my disdain for the statist policy agenda of the International Monetary Fund (IMF) and Organization for Economic Cooperation and Development (OECD).

Sadly, there’s has not been much follow-through by the White House, and it looks like Congress isn’t going to cut either the funding or the authority of these bloated institutions. And that means they will continue to advocate for class-warfare tax policy and bigger government.

But, as reported by AFP, some seeds were planted early in the year that may eventually save money for taxpayers.

…a draft executive order…prepared at the White House could deprive the United Nations of billions of dollars in US financial support. The United States is by far the UN’s biggest financial contributor, providing 22 percent of its operating budget and funding 28 percent of peacekeeping missions, which currently cost $7.8 billion annually. …The Trump administration is proposing a 40 percent cut in some US funding, according to the draft executive order titled “Auditing and Reducing US Funding of International Organizations.”

And it appears that some of the seeds germinated. According to the Associated Press, steps are being taken to reduce the fiscal burden of the United Nations.

The U.S. government says it has negotiated a significant cut in the United Nations budget. The U.S. Mission to the United Nations said on Sunday that the U.N.’s 2018-2019 budget would be slashed by over $285 million. The mission said reductions would also be made to the U.N.’s management and support functions. The announcement didn’t make clear the entire amount of the budget or specify what effect the cut would have on the U.S. contribution. U.S. ambassador to the U.N. Nikki Haley said that the “inefficiency and overspending” of the organization is well-known, and she would not let “the generosity of the American people be taken advantage of.”

By the way, “nicked” or “trimmed” would be more accurate than “slashed.”

Nonetheless, at least it’s a small step in the right direction.

And the recent U.N. vote against the U.S. may lead to additional budgetary savings, as explained in the Wall Street Journal by John Bolton, a former ambassador from the United States to that bureaucracy.

…the U.N. showed its true colors with a 128-9 vote condemning President Trump’s recognition of Jerusalem as Israel’s capital. …America is heard much more clearly at the U.N. when it puts its money where its mouth is. …the White House should also reconsider how Washington funds the U.N. more broadly. …Despite decades of U.N. “reform” efforts, little or nothing in its culture or effectiveness has changed. …Turtle Bay has been impervious to reform largely because most U.N. budgets are financed through effectively mandatory contributions. Under this system, calculated by a “capacity to pay” formula, each U.N. member is assigned a fixed percentage of each agency’s budget to contribute. The highest assessment is 22%, paid by the U.S. This far exceeds other major economies… The U.S. should reject this international taxation regime and move instead to voluntary contributions. This means paying only for what the country wants—and expecting to get what it pays for. Agencies failing to deliver will see their budgets cut, modestly or substantially. Perhaps America will depart some organizations entirely.

Bolton has some targets in mind.

…earlier this year the U.N. dispatched a special rapporteur to investigate poverty in the U.S.? American taxpayers effectively paid a progressive professor to lecture them about how evil their country is. The U.N.’s five regional economic and social councils, which have no concrete accomplishments, don’t deserve American funding either. …Next come vast swaths of U.N. bureaucracy. Most of these budgets could be slashed with little or no real-world impact. Start with the Office for Disarmament Affairs. The U.N. Development Program is another example. Significant savings could be realized by reducing other U.N. offices that are little more than self-licking ice cream cones, including many dealing with “Palestinian” questions. …Thus could Mr. Trump revolutionize the U.N. system. The swamp in Turtle Bay might be drained much more quickly than the one in Washington.

And Rich Lowry of National Review didn’t even wait for the latest controversy.

Here are some excerpts from a column he wrote in late 2016.

We are the chief funder of a swollen, unaccountable U.N. apparatus that has been a gross disappointment for more than 70 years now. …As early as 1947, a U.S. Senate committee flagged “serious problemsof overlap, duplication of effort, weak coordination, proliferating mandates and programs, and overly generous compensation of staff within the infant, but rapidly growing, UN system.” And those were the early, lean years. We pay more than anyone else to keep the U.N. in business, about 22 percent of the U.N.’s regular budget. …Because nothing involving the U.N. is clean or straightforward, it’s hard to even know how much the U.S. pays in total into the U.N. system. But it’s probably around $8 billion a year. We should withhold some significant portion of it.

My view, for what it’s worth, is that the United Nations is better (less worse?) than the OECD or IMF.

But that’s mostly because it doesn’t have much power. When it does try to intervene in policy — global warming and gun control, for instance, as well as the Internet, the War on Drugsmonetary policy, and taxpayer-financed birth control –, the U.N. inevitably urges more power and control for government.

If you think I’m exaggerating about a statist mindset at the United Nations, check out this jaw-dropping tweet from a high-level bureaucrat.

Wow. Before capitalism, as explained in videos by Deirdre McCloskey and Don Boudreaux, human existence was characterized by grinding poverty. But once free markets were unleashed, the world has enjoyed unprecedented prosperity.

Yet this liberating and enriching system is “an urgent threat” according to the United Nations.

Wouldn’t it be more appropriate if the bureaucrat who sent out this tweet instead focused on hellholes where the free market is suppressed and persecuted – such as VenezuelaNorth KoreaZimbabwe, and Cuba?

My friend Walter Williams perhaps has the best response to the U.N.’s vapid sentiment (h/t: libertarian Reddit).

 

Others share my concern, as illustrated by this passage from a column in the U.K.-based Daily Telegraph.

Hillel Neuer, the head of UN Watch, a campaign group, called this a “loony tweet”, adding: “While millions of people are suffering from genocide, sexual slavery and starvation, it is far from clear why the UN would instead focus its attention on unidentifiable ‘urgent threats’, let alone on economic subjects about which it has neither competence nor expertise.” Mr Neuer pointed out that socialist economics had brought misery to Venezuela without drawing similar criticism from the UN. “The same UN human rights office has failed to issue a single tweet about this past month’s dire human rights crisis in Venezuela, where millions face mass hunger in part due to attacks on the free market,” he said.

Let’s look at other examples of U.N. statism.

For example, the bureaucrats are inserting themselves in American racial issues.

The history of slavery in the United States justifies reparations for African Americans, argues a recent report by a U.N.-affiliated group based in Geneva. …The group of experts, which includes leading human rights lawyers from around the world, presented its findings to the United Nations Human Rights Council on Monday, pointing to the continuing link between present injustices and the dark chapters of American history. “In particular, the legacy of colonial history, enslavement, racial subordination and segregation, racial terrorism and racial inequality in the United States remains a serious challenge, as there has been no real commitment to reparations and to truth and reconciliation for people of African descent,” the report stated. …The reparations could come in a variety of forms, according to the panel, including “a formal apology, health initiatives, educational opportunities … psychological rehabilitation, technology transfer and financial support, and debt cancellation.”

By the way, I’m fine with a formal apology (assuming one hasn’t already been issued). Slavery is a stain on American history, after all.

And I’d be delighted to see a massive school choice initiative, which would benefit students from all backgrounds, but I strongly suspect black kids would disproportionately gain.

I fear, though, that the U.N. panel is primarily interested in “financial support,” which is simply a euphemism for a bigger welfare state. And since the current welfare state already has caused great damage to the black community, making it even bigger would be very ill-advised.

Here’s another example of bizarre policy from a division of the United Nations. The bureaucrats at the World Health Organization want to classify the absence of a sexual partner as a disability.

…the World Health Organisation will change the standard to suggest that a person who is unable to find a suitable sexual partner or is lacking a sexual relationship to have children – will now be equally classified as disabled. WHO says the change will give every individual “the right to reproduce”. …Gareth Johnson MP, former chair of the All Parliamentary Group on Infertility, whose own children were born thanks to fertility treatment, said: “I’m in general a supporter of IVF. But I’ve never regarded infertility as a disability or a disease but rather a medical matter. …Dr David Adamson, an author of the new standards, argued…”It puts a stake in the ground and says an individual’s got a right to reproduce whether or not they have a partner. It’s a big change. …It sets an international legal standard. Countries are bound by it.”

Hey, I’m had many tragic periods of celibacy in my life and I never even got a handicapped parking sticker!

More seriously, I have great sympathy for people with fertility issues. Not only because I have empathy for them, but also because of my concerns about demographic decline.

But there’s a big difference between saying that people have a right to try to have children and the U.N.’s assertion that others are obliged to help people have children.

It doesn’t help that the U.N. newest top bureaucrat has a very dismal track record.

Here are some of the grim details from Claudia Rosett.

…former Prime Minister of Portugal Antonio Guterres…brings to the job a record that suggests he is a perfect fit to head a UN that is prone to overreach, mismanagement, waste, fraud, abuse and government meddling in every aspect of life — provided we all want even more of the same. …Guterres also served as president of the Socialist International, from 1999-2005… From 2005-2015, Guterres served as high commissioner of the UN agency for refugees (UNHCR)… That sounds great, except the UN’s own auditors…issued an audit report identifying a series of “critical” lapses by the UNHCR under Guterres’s management. …If that’s how Guterres managed — or mismanaged — a single UN agency while running it for more than a decade, is it likely he will do a better job as secretary-general? …we get a longtime socialist with a record of managerial incompetence, heading a multi-billion dollar, diplomatically immune, opaque, globe-girdling organization funded with billions of other people’s money (America, which bankrolls roughly one-quarter of the UN system with your tax dollars, being the largest contributor). What could go wrong?

The answer to Claudia’s question is that we’ll probably get business as usual.

And since that means more waste and more advocacy of bad policy, that’s unfortunate news for taxpayers all over the world.

So I’m keeping my fingers crossed that the Trump Administration does the right thing and puts the U.N. on a diet.

Let’s close with some humor. Here’s a Jeff MacNelly cartoon, presumably from way back in the 1970s.

 

P.S. In my experience, many U.N. officials and bureaucrats are smart, well-meaning people. But as I noted during a trip to Switzerland back in 2009, it would be much better if they were in the private sector where their skills and abilities could be used for expanding prosperity.

There is plenty of fat and waste

A International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) worker gestures at the General Motors Assembly Plant in Arlington, Texas June 9, 2015. (Photo: Reuters)

A International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) worker gestures at the General Motors Assembly Plant in Arlington, Texas June 9, 2015. (Photo: Reuters)

The Texas Manufacturing Outlook Survey showed regional factory activity grew at the strongest pace in more than a decade, indicating rapid growth over the month of December.

The production index soared 18 points to 32.8 this month, the highest its been in 11 years. The general business activity index and the company outlook index posted double-digit increases, coming in at 29.7 and 31.5, respectively. Both the latter components are also the highest they’ve been since 2006.

Labor market indicators also suggest much more rapid employment growth and longer workweeks in December. The employment index came in at 20.4, an increase in 14 points from November. More than 30% of firms reported net hiring, compared with 11% reporting net layoffs.

The hours worked index shot up to 23.3, a 12-year high.

Upward pressure on prices (inflation) continued in the month of December, while upward wage pressures not only continued but intensified. The raw materials prices index remained unchanged at 32.5 and the finished goods prices index ticked up to 17.9. The wages and benefits index shot up 11 points to 25.1.

Looking to the future, price expectations increased notably for a second month in a row. The index of future finished goods prices increased significantly to 42.7, up from 18.9 in October and 35.8 in November. That’s more than 20 points above its series average.

Further, expectations of future business conditions remained highly optimistic. The index of future general business activity ticked up to 40.9, while the index of future company outlook was unchanged at 40.1. The Trump Administration has clearly presided over — if the cause of — renewed optimism in the sector.

Panel Comments

“Due to NAFTA (North American Free Trade Agreement) fears, companies had scaled back orders in 2017. But looking forward to 2018 and 2019, there has been communication that existing customers and new customers alike are interested in localizing business from the U.S. and Asia into Mexico.”

“If those who oppose Trump are successful, I believe business will be significantly affected, which is why I remain neutral on the six-month outlook even though, on paper, I should have a positive outlook with the tax-break promise.”

Next release: Monday, January 29

About the Texas Manufacturing Outlook Survey

Data were collected Dec. 12–20, and 104 Texas manufacturers responded to the survey. The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state’s factory activity. Firms are asked whether output, employment, orders, prices and other indicators increased, decreased or remained unchanged over the previous month

Survey responses are used to calculate an index for each indicator. Each index is calculated by subtracting the percentage of respondents reporting a decrease from the percentage reporting an increase. When the share of firms reporting an increase exceeds the share reporting a decrease, the index will be greater than zero, suggesting the indicator has increased over the prior month. If the share of firms reporting a decrease exceeds the share reporting an increase, the index will be below zero, suggesting the indicator has decreased over the prior month. An index will be zero when the number of firms reporting an increase is equal to the number of firms reporting a decrease. Data have been seasonally adjusted as necessary.

The Texas Manufacturing Outlook Survey showed regional

The Federal Reserve Bank of Richmond said the Fifth District Manufacturing Survey continued to grow but cooled to a more moderate pace in December. The composite index fell from its record high 30 in November to a reading of 20.

The decline was fueled largely by a decline in new orders, down 19 points to 16, backlog of orders, down 25 points to -4, and shipments, down 9 points to 24. Still, manufacturing firms remained very optimistic, as all expectations indicators increased save for vendor lead time, which fell slightly from 10 to 7.

The Federal Reserve Bank of Richmond said

A house-for-sale sign is seen inside the Washington DC Beltway in Annandale, Virginia January 24, 2016. (Photo: Reuters)

A house-for-sale sign is seen inside the Washington DC Beltway in Annandale, Virginia January 24, 2016. (Photo: Reuters)

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers all nine U.S. census divisions, gained 6.2% annually in October 2017. The 10-City and 20-City Composites reported year-over-year increases of 6.0% and 6.4%, respectively.

“Home prices continue their climb supported by low inventories and increasing sales,” says David M. Blitzer, Managing Director & Chairman of the Index Committee at S&P Dow Jones Indices. “Nationally, home prices are up 6.2% in the 12 months toOctober, three times the rate of inflation.”

Seattle, Las Vegas, and San Diego reported the highest year-over-year gains among the 20 cities. In October, Seattle led the way with a 12.7% year-over-year price increase, followed by Las Vegas with a 10.2% increase, and San Diego with an 8.1% increase. Nine cities reported greater price increases in the year ending October 2017 versus the year ending September 2017.

Sales of existing homes dropped 6.1% from March through September; they have since rebounded8.4% in November. Inventories measured by months-supply of homes for sale dropped from the tight level of 4.2 months last summer to only 3.4 months in November.

“Underlying the rising prices for both new and existing homes are low interest rates, low unemployment and continuing economic growth. Some of these favorable factors may shift in 2018,” Mr. Blitzer added. “The Fed is widely expected to raise the Fed funds rate three more times to reach 2% by the end of the New Year.Since home prices are rising faster than wages, salaries, and inflation, some areas could see potential home buyers compelled to look at renting. Data published by the Urban Institute suggests that in some West coast cities with rapidly rising home prices, renting is more attractive than buying.”

The S&P CoreLogic Case-Shiller U.S. National Home

Karl Marx, left, the author of the 1848 pamphlet The Communist Manifesto, and Ayn Rand, right, the Russian-American author of Atlas Shrugged.

Karl Marx, left, the author of the 1848 pamphlet The Communist Manifesto, and Ayn Rand, right, the Russian-American author of Atlas Shrugged.

Over the years, I’ve shared examples of a politically correct Christmas, several versions of a TSA Christmas (herehere, and here), a couple of versions of The Night Before Christmas (here and here), and even a story of Santa Claus getting busted by the IRS.

But one of my favorites is the poster asking whether Santa Claus is on the left or on right.

Is he more like Bernie Sanders because he “gives out lots of free stuff”?

Or is he more like Paul Ryan because he “is a maker, not a taker”?

Amusing, but it’s time to take this this to the next level. Right or left is too mainstream. Let’s ask the more fundamental question: Is Christmas a Marxist holiday or a Randian holiday ?

We’ll start with the first option. Here’s a cartoon strip that would make Karl Marx smile.

 

Now let’s look at some Christmas spirit from Ayn Rand.

There are 21 satirical Randian Christmas cards to choose from. Here are the two that I found most amusing.

 

And…

 

Ouch. While I’m a fan of Atlas Shrugged and think Rand was a net plus for the cause of liberty, I’m not a Randian and these quotes are a good example of why her philosophy of objectivism leaves something to be desired.

But this isn’t a day for serious discussion.

So I’ll close by linking to some clever Obama-era Christmas cartoons (herehere, and here).

And this one-liner from Jay Leno is always worth a chuckle.

Last but not least, here’s a cartoon video showing what would happen if Obama ran the North Pole and another video with Santa grousing about unhelpful policies from Washington.

Merry Christmas everyone.

Is Santa Claus more like Karl Marx

President Donald Trump speaks during a bicameral meeting with lawmakers working on the tax cuts in the Cabinet Meeting Room of the White House in Washington, Wednesday, Dec. 13, 2017. Attending the meeting are, from left, Rep. Kevin Brady, R-Texas; Trump; Sen. Orrin Hatch, R-Utah; Rep. John Shimkus, R-Ill., and Rep. Fred Upton, R-Mich. (AP Photo)

President Donald Trump speaks during a bicameral meeting with lawmakers working on the tax cuts in the Cabinet Meeting Room of the White House in Washington, Wednesday, Dec. 13, 2017. Attending the meeting are, from left, Rep. Kevin Brady, R-Texas; Trump; Sen. Orrin Hatch, R-Utah; Rep. John Shimkus, R-Ill., and Rep. Fred Upton, R-Mich. (AP Photo)

Yesterday’s column about “the tax nightmare before Christmas” was based on my fear that politicians will try to impose a value-added tax at some point in the not-too-distant future.

Today’s column is about the spending nightmare that is already happening. The bottom line, as expressed in this clip from a recent interview with Neil Cavuto, is that Republicans are not doing what’s right for the country.

Need some evidence?

How about  what was reported today in the Hill?

Lawmakers are under pressure to get a deal to increase the budget caps and prevent automatic across-the-board spending cuts, known as sequestration. …a deal has remained elusive, with both sides battling over how much to increase both defense and nondefense spending.

Needless to say, they should be battling over how much to cut spending, not how much to increase it.

Unfortunately, the propensity to over-spend is a long-standing pattern. In an uncharacteristic episode of fiscal sanity, Congress enacted the Budget Control Actin 2011, which then led to a much-needed sequestration early in 2013.

But ever since that point, as explained back in 2015 by the New York Times, politicians have been figuring out ways to get out from under this modest bit of fiscal discipline.

They raised the spending caps at the end of 2013.

And raised the spending caps again in 2015.

In other words, GOP fecklessness isn’t anything new.

Here’s another clip from the recent Cavuto interview. I argue for spending caps with sequester enforcement.

But I confess that enacting such caps is just part of the battle. The real challenge is making sure politicians can’t wiggle out from under such fiscal constraints.

In my fantasy world, we avoid that problem by making spending restraint part of the Constitution, an approach that has been very successful for Hong Kong and Switzerland.

That doesn’t seem likely any time soon in America.

And let’s not forget that Republicans also are poised to splurge on a new “emergency” package – and this money would be exempt from spending caps. Here’s another portion of the Hill story.

The $81 billion package provides aid for communities affected by recent hurricanes in Texas, Florida, Puerto Rico and the U.S. Virgin Islands, as well as wildfires in California. The Senate is expected to take the legislation up once they return to Washington.

And the bill is turning into a bidding war, thanks in part to some supposed fiscal conservatives.

…Cornyn and fellow Texas GOP Sen. Ted Cruz want… more funding for their state’s Hurricane Harvey recovery efforts. …Cruz said…his state, which he said had up to $180 billion in hurricane damage, would only be eligible for a small portion of the money in the House bill. But any push to help Texas would likely set off a demand from other delegations for help responding to wildfires in California, as well as additional funding for hurricane relief in Puerto Rico. Rep. Luis Gutiérrez (D-Ill.)…said that Puerto Rico needs an estimated $94 billion to rebuild.

don’t think the federal government should be in the business of compensating people for losses following natural disasters. That simply rewards those who go without insurance while also creating perverse incentives to build in risky areas.

But if politicians actually think that it’s the federal government’s responsibility, then they should reduce other spending to finance supposed emergencies. Heck, FDR and Truman did this for World War II and the Korean War, and they weren’t exactly fiscal conservatives.

Let’s close with some additional bad news. What’s written above relates to the GOP’s failure to control “discretionary” spending. That’s the part of the budgetthat funds the Pentagon, as well as providing most of the outlays for departments that shouldn’t even exist (such as TransportationHousing and Urban DevelopmentEducationEnergy, and Agriculture).

If you really want to be depressed, keep in mind that Republicans also are dropping the ball on “entitlements,” which are programs that are designed to automatically increase every year (such as Social SecurityMedicare, and Medicaid) and are largely responsible for America’s very grim long-run fiscal outlook.

Republicans should be battling over how much

People's Pundit Daily
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