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Economy

Movements such as Ban the Box are helping ex-convicts find jobs upon their release from prison. (Photo: AP)

Movements such as Ban the Box are helping ex-convicts find jobs upon their release from prison. (Photo: AP)

The Labor Department said Thursday weekly jobless claims fell to 223,000 for the week ending Feb. 25, far fewer than the median forecast expecting a rise to 245,000. That’s a decrease of 19,000 from the previous week’s downwardly revised level of 242,00 and the lowest level for initial claims since March 31, 1973 when it was 222,000.

The 4-week moving average–generally considered a better gauge–is down 6,250 to 234,250, which is a telling confirmation of labor market strength. The 4-week average is at the lowest it has been since April 14, 1973 when it was 232,750.

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No state was triggered “on” the Extended Benefits program during the week ending February 11.

The highest insured unemployment rates in the week ending February 11 were in Alaska (4.4), New Jersey (3.2), Montana (3.1), Connecticut (3.0), Pennsylvania (2.9), Rhode Island (2.8), Illinois (2.7), Massachusetts (2.7), Puerto Rico (2.7), and California (2.6).

The largest increases in initial claims for the week ending February 18 were in Michigan (+1,631), New Jersey (+1,223), Missouri (+913), Massachusetts (+662), and Connecticut (+570), while the largest decreases were in Ohio (-1,206), Texas (-811), Washington (-802), Virginia (-779), and California (-749).

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The Labor Department said weekly jobless claims

Politics

Sen. Jeff Sessions, R-Ala. is sworn in on Capitol Hill in Washington, Tuesday, Jan. 10, 2017, prior to testifying at his confirmation hearing for attorney general before the Senate Judiciary Committee.

Sen. Jeff Sessions, R-Ala. is sworn in on Capitol Hill in Washington, Tuesday, Jan. 10, 2017, prior to testifying at his confirmation hearing for attorney general before the Senate Judiciary Committee.

The White House issued a statement pushing back on the charges Attorney General Jeff Sessions lied under oath by having contact as senator with the Russian ambassador. They dismissed the idea that AG Sessions met with the Ambassador in a campaign capacity, outright.

“This is the latest attack on the Trump Administration by partisan Democrats. General Sessions met with the ambassador in an official capacity as a member of the Senate Armed Services Committee, which is entirely consistent with his testimony,” the White House said in a statement. “It’s no surprise Senator Al Franken is pushing this story immediately following President Trump’s successful address to the nation.”

House Minority Leader Nancy Pelosi called for Jeff Sessions to resign as attorney general for “apparent perjury” over contact as senator with the Russian ambassador. The call for a resignation follows a Washington Post report citing unnamed sources that he spoke with Russia’s ambassador to the United States twice last year and did not disclose it at his confirmation hearing in January.

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“Jeff Sessions lied under oath during his confirmation hearing before the Senate,” Pelosi said in a statement released late Wednesday. “Under penalty of perjury, he told the Senate Judiciary Committee, ‘I have been called a surrogate at a time or two in that campaign and I did not have communications with the Russians.’ We now know that statement is false.”

Sarah Isgur Flores, the the Director of Public Affairs at the Department of Justice, released the following statement also pushing back.

“There is absolutely nothing misleading about his answer. Last year, the Senator had over 25 conversations with foreign ambassadors as a senior member of the Armed Services Committee, including the British, Korean, Japanese, Polish, Indian, Chinese, Canadian, Australian, German and Russian ambassadors,” the statement said. He was asked during the hearing about communications between Russia and the Trump campaign–not about meetings he took as a senator and member of the Armed Services Committee.”

Sessions was asked by Sen. Al Franken, D-Minn., how he would respond “if there is any evidence that anyone affiliated with the Trump campaign communicated with the Russian government in the course of this campaign.”

The question was in response to another Washington Post report citing unnamed sources, which the FBI refutes, claiming Trump campaign officials had contact with Russian intelligence officials during the campaign.

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The White House pushed back on charges

Editorials

Carrie Owens, left, the widow of U.S. Navy SEAL William “Ryan” Owens who died during a raid in Yemen, was recognized by President Donald J. Trump, right, during his address to a joint session of Congress on Capitol Hill in Washington D.C. on Tuesday, Feb. 28, 2017.

Carrie Owens, left, the widow of U.S. Navy SEAL William “Ryan” Owens who died during a raid in Yemen, was recognized by President Donald J. Trump, right, during his address to a joint session of Congress on Capitol Hill in Washington D.C. on Tuesday, Feb. 28, 2017.

Last weekend, the newly elected Democratic National Committee chairman Tom Perez said the party under his leadership “will represent the resistance,” a radical fringe movement. They seek not only to oppose the new administration’s agenda but to undermine the will of the American people and undo the November election outcome.

If the American people didn’t know just how low the Democratic Party is willing to go to appease their lunatic leftwing base after suffering major electoral disasters, they know after Tuesday night. President Donald J. Trump delivered an optimistic, forward-looking message during what was his best speech to date. In his first address to a joint session of Congress, the president proclaimed a “Renewal of the American Spirit” and called for national unity.

Democrats, at the best of moments, sat on their hands. At the worst of moments, wackos in white shirts made obnoxious noises as they literally gave the president thumbs down.

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When President Trump explained how he directed the U.S. Department of Homeland Security to establish V.O.I.C.E., an advocacy agency for the families of victims’ of illegal immigrant crime, members could be heard booing and hissing like snakes. The noises barely ceased as he began to tell the story of Jamiel Shaw II, a 17-year-old African American who played high football and had a bright future before it was stolen by Pedro Espinoza, an illegal immigrant.

On Tuesday night, President Trump called his father, Jamiel Shaw Sr., a close friend and recognized his suffering and sacrifice.

[brid video=”118217″ player=”2077″ title=”Father of teen killed by illegal immigrant on Trump’ speech”]

Perhaps the “dreamer” House Minority Leader Nancy Pelosi invited–who, consequently, isn’t even impacted by the president’s executive action–was offended. In the modern Democratic Party, Rep. Pelosi, D-Calif., decides to bring an irrelevant immigrant to a speech only weeks after being confronted by a mother at a town hall who, like Mr. Shaw, has the audacity to ask why her child was killed by someone who should never have been in the country in the first place.

Let’s cut the crap. The deaths of a not-so insignificant number of American children are acceptable to Leader Pelosi and her party so long as they get votes from a permanent underclass.

During the most powerful moment of the speech, President Trump praised fallen Navy SEAL William “Ryan” Owens, who was killed in action during a counterterrorism raid in Yemen.

“Ryan’s legacy is etched into eternity,” he said, giving recognition to his widow who received a long standing ovation. “The Bible tells us ‘There is no greater love than to lay down one’s life for one’s friends’. Ryan laid down his life for his friends, his country and our freedom. We will never forget Ryan.”

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Much to the surprise and disappointment of Sen. Marco Rubio, R-Fla., who turned to look at his colleagues during Mrs. Owen’s 2-minute standing ovation, Democrats largely remained in their seats.

And the disgraceful behavior wasn’t just confined to Democrats inside the Capitol Building.

Dan Grilo, who boasts on his profile that he has volunteered for both Hillary Clinton and President Barack Obama, called Carryn Owens “an idiot” on Twitter.

“Sorry, Owens’ wife, you’re not helping yourself or your husband’s memory by standing there and clapping like an idiot,” he tweeted in a now deleted post. “Trump just used you.”

And Pelosi’s “dreamer” was in attendance to do what, exactly? Again, her human prop isn’t even impacted by the president’s executive action on immigration. But that’s not really the point. Democrats, with their disgraceful behavior Tuesday night that disrespected not only the president but the people who elected him, are never going to put country first. Their sycophant, little corrupt tools in the media don’t actually want unity, as they have claimed for week.

President Trump would be wise to continue to reach out to Sen. Joe Manchin and the few remaining moderate Democrats who haven’t yet realized they are in the wrong party, and ignore the minority. At this rate, they’ll be even more irrelevent in two years.

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If the American people didn't yet know

Economy

President Donald J. Trump gestures as delivers his address to a joint session of Congress on Capitol Hill in Washington D.C. on Tuesday, Feb. 28, 2017. (Photo: AP)

President Donald J. Trump gestures as delivers his address to a joint session of Congress on Capitol Hill in Washington D.C. on Tuesday, Feb. 28, 2017. (Photo: AP)

The Dow Jones Industrial Average (INDEXDJX:.DJI) closed above 21000 for the first time ever following President Donald J. Trump’s address a joint session of Congress. From the opening bell, the blue-chip index continued what was one of the fastest 1,000-point advances in history and, as early as 9:39 AM EST on Wednesday morning, the Dow climbed +196.00, or 0.94% to 21,008.24.

By the closing bell, the Dow gained 303.31 points, or 1.46% to 21,115.55 during the session. The top give winners were (2.04%) Apple Inc. (NASDAQ:AAPL), (2.04%) Boeing Co (NYSE:BA), (1.88%) 3M Co (NYSE:MMM), (1.87%) Goldman Sachs Group Inc (NYSE:GS), and (1.35%) Johnson & Johnson (NYSE:JNJ). Together, they account for half of the Dow’s rally since January 25 when the index closed above 20000 for the first time ever in history.

The Trump rally on Wall Street has now created more than $3 trillion in wealth and is fueled by promises to repeal ObamaCare,  long-awaited and desperately needed tax reform, renegotiating multilateral trade policies that have decimated the U.S. manufacturing base and $1 trillion infrastructure plan.

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“Right now, American companies are taxed at one of the highest rates anywhere in the world. My economic team is developing historic tax reform that will reduce the tax rate on our companies so they can compete and thrive anywhere and with anyone,” President Trump said to Congress. “At the same time, we will provide massive tax relief for the middle class. We must create a level playing field for American companies and workers.”

Shares of DexCom, Inc. (NASDAQ:DXCM), a San Diego-based a medical device company, were up 4.23% to 81.47.

The president also said in his speech on Tuesday night that infrastructure spending will be both a publicly- and privately-funded venture. Tapping former Republican President Dwight D. Eisenhower, who implemented what he referred to as the “last truly great national infrastructure program,” President Trump called for the hybrid infrastructure plan.

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“The time has come for a new program of national rebuilding. America has spent approximately $6 trillion in the Middle East, all this while our infrastructure at home is crumbling,” he said. “With this $6 trillion we could have rebuilt our country–twice. To launch our national rebuilding, I will be asking Congress to approve legislation that produces a $1 trillion dollar investment in the infrastructure of the United States – financed through both public and private capital – creating millions of new jobs.”

Since taking office, he has hosted a dozen meetings with business leaders and signed two rounds of executive orders (here and here) aiming to significantly scale back regulation on both small and large businesses. In anticipation of these orders, as well as the signing of regulatory and tax reform bills passed by a Republican Congress, U.S. markets have boomed.

The S&P 500 briefly crossed 2400 for the first time before closing up 32.32 points, or 1.37% to 2,395.96. The Nasdaq Composite Index also hit new highs and was up 78.59 points to 5,904.03, or 1.35%.

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The Dow Jones Industrial Average closed above

Economy

ISM-manufacturing-index

The Institute for Supply Management’s Manufacturing Report On Business Survey. (Photo: REUTERS)

The PMI Manufacturing Index, the Institute for Supply Management’s (ISM) Report on Business, increased 1.7 points to 57.7% as 17 of 18 industries reported growth. Bradley J. Holcomb, the chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee, said 17 of 18 manufacturing industries reported growth in February.

WHAT RESPONDENTS ARE SAYING …

  • “Business [is] improving and lead times are extending by two or more weeks.” (Chemical Products)
  • “Very positive outlook for this quarter. Production goals have been adjusted multiple times and increased each time due to demand.” (Computer & Electronic Products)
  • “Product demand continues to be solid.” (Plastics & Rubber Products)
  • “Bookings are heavy early in the season. Expect robust first half of the year.” (Primary Metals)
  • “Demand still outstrips capacity. Competitors have announced heavy capital investments to increase capacity.” (Food, Beverage & Tobacco Products)
  • “Sales and business continue to be strong and increasing.” (Machinery)
  • “Business holding steady in Q1.” (Transportation Equipment)
  • “Medical device manufacturing is still strong.” (Miscellaneous Manufacturing)
  • “Even though oil and gas prices are on the upswing, we still face a tough 2017 and will continue to save on costs.” (Petroleum & Coal Products)
  • “Major focus on commodities and potential [for] further inflation.” (Electrical Equipment, Appliances & Components)

Of the 18 manufacturing industries, 17 reported growth in February in the following order: Textile Mills; Apparel, Leather & Allied Products; Machinery; Computer & Electronic Products; Primary Metals; Plastics & Rubber Products; Nonmetallic Mineral Products; Chemical Products; Paper Products; Fabricated Metal Products; Transportation Equipment; Food, Beverage & Tobacco Products; Wood Products; Electrical Equipment, Appliances & Components; Printing & Related Support Activities; Petroleum & Coal Products; and Miscellaneous Manufacturing. The only industry reporting contraction in February is Furniture & Related Products.

MANUFACTURING AT A GLANCE
February 2017
Index Series Index

Feb

 Series Index

Jan

 Percentage

Point

Change

 Direction Rate of Change Trend* (Months)
PMI® 57.7 56.0 +1.7 Growing Faster 6
New Orders 65.1 60.4 +4.7 Growing Faster 6
Production 62.9 61.4 +1.5 Growing Faster 6
Employment 54.2 56.1 -1.9 Growing Slower 5
Supplier Deliveries 54.8 53.6 +1.2 Slowing Faster 10
Inventories 51.5 48.5 +3.0 Growing From Contracting 1
Customers’ Inventories 47.5 48.5 -1.0 Too Low Faster 5
Prices 68.0 69.0 -1.0 Increasing Slower 12
Backlog of Orders 57.0 49.5 +7.5 Growing From Contracting 1
New Export Orders 55.0 54.5 +0.5 Growing Faster 12
Imports 54.0 50.0 +4.0 Growing From Unchanged 1
OVERALL ECONOMY

Manufacturing Sector

 Growing Faster 93
Growing Faster 6

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.

The PMI Manufacturing Index, the Institute for

Economy

A trader wearing a Trump hat works at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., January 20, 2017. (PHOTO: REUTERS)

A trader wearing a Trump hat works at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., January 20, 2017. (PHOTO: REUTERS)

The Dow Jones Industrial Average (INDEXDJX:.DJI) breached 21000 for the first time ever in history just one day after President Donald J. Trump addressed a joint session of Congress. As of 9:39 AM EST on Wednesday morning, the Dow climbed +196.00, or 0.94% to 21,008.24.

Since the U.S. presidential election in November, the Dow has added more than 3000 points. The Dow’s 12-session winning streak that ended Tuesday ahead of the speech was the longest since 1992 and created nearly $3 trillion in wealth, more than any other similiar period in history. Investors were cautiously looking for more direction from the president, and early trading seemingly indicates they are more than happy with what they’ve heard.

In his optimistic “Renewal of the American Spirit” speech, which struck a balance between optimism and reality, the president said the nation must have an “honest” conversation about the challenges that must be faced, such as “the worst economic recovery in 65 years” and the fact his predecessor added “more debt than the other previous presidents combined.”

“We must restart the engine of the American economy” to meet these challenges, President Trump said.

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“Right now, American companies are taxed at one of the highest rates anywhere in the world. My economic team is developing historic tax reform that will reduce the tax rate on our companies so they can compete and thrive anywhere and with anyone,” he added. “At the same time, we will provide massive tax relief for the middle class. We must create a level playing field for American companies and workers.”

President Donald J. Trump addresses a joint session of Congress on Tuesday Feb. 28, 2017.

President Donald J. Trump addresses a joint session of Congress on Tuesday Feb. 28, 2017.

Tapping former Republican President Dwight D. Eisenhower who implemented what he called the “last truly great national infrastructure program,” President Trump called for a hybrid infrastructure plan supported more by Democrats than Republicans.

“The time has come for a new program of national rebuilding. America has spent approximately $6 trillion in the Middle East, all this while our infrastructure at home is crumbling,” he said. “With this $6 trillion we could have rebuilt our country–twice. To launch our national rebuilding, I will be asking Congress to approve legislation that produces a $1 trillion dollar investment in the infrastructure of the United States – financed through both public and private capital – creating millions of new jobs.”

Since taking office, he has met some one dozen times with business leaders and signed two rounds of executive orders (here and here) aiming to significantly scale back regulation on small and large businesses. In anticipation of these orders, as well as the signing of regulatory and tax reform bills passed by a Republican Congress, U.S. markets have boomed. The Dow was as high as  21,016.34 before pulling back slightly and remaining above 21000.

On Nov. 22, 2016, the Dow breached 19,000 for the first time in history and, subsequently, it closed above the historical range for the first time ever.

Despite the same dire predictions the British heard before the Brexit vote, traders in U.S. markets ended their best 5-day period since 2011 on Jan. 6. It topped 20,000 and closed above it for the first time ever in U.S. history on Jan. 25.

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The Dow Jones Industrial Average breached 21000

Video

Van Jones, a frequent critic of President Donald J. Trump, said his recognition of Ryan Owen’s widow was “one of the extraordinary moments in American politics, period.”

Carryn Owens, the widowed wife of Navy SEAL Ryan Owens, who was killed in action during a special operations raid in Yemen, received a near 2-minute standing ovation when recognized by President Trump during his address to a joint session of Congress on Tuesday Feb. 28, 2017.

“Ryan’s legacy is etched into eternity,” he said, giving recognition to his widow who received a long standing ovation. “The Bible tells us ‘There is no greater love than to lay down one’s life for one’s friends’. Ryan laid down his life for his friends, his country and our freedom. We will never forget Ryan.”

Van Jones also said that it was the moment President Trump “became President of the United States” and the kind of thing that could make him a two-term president.

Van Jones, a critic of President Donald

Politics

President Donald J. Trump addresses a joint session of Congress on Tuesday Feb. 28, 2017.

President Donald J. Trump addresses a joint session of Congress on Tuesday Feb. 28, 2017.

President Donald J. Trump on Tuesday delivered what was his first address to a joint session of Congress, calling the first month in office “a renewal of the American spirit.”

The president kicked off his roughly a 60-minute speech with a tribute to Black History Month “and the work that still remains to be done.” He condemned the threats to Jewish communities and anti-semitism.

“Recent threats targeting Jewish Community Centers and vandalism of Jewish cemeteries, as well as last week’s shooting in Kansas City, remind us that while we may be a nation divided on policies, we are a country that stands united in condemning hate and evil in all its forms,” the president said.

But he quickly turned to a more optimistic message, saying he was there to “deliver a message of unity and strength.”

“A new chapter of American Greatness is now beginning. A new national pride is sweeping across our nation. And a new surge of optimism is placing impossible dreams firmly within our grasp,” President Trump said. “What we are witnessing today is the Renewal of the American Spirit. Our allies will find that America is once again ready to lead.”

The following several minutes of the address focused on explaining the measures his administration has already taken to fulfill his campaign promises including on jobs, immigration and security. He touted the approval of the Keystone XL pipeline with the requirement companies use American-made steel, as well as the withdrawal of the “job-killing” Trans-Pacific Partnership (TPP).

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He defended his controversial yet majority-supported temporary travel ban, which he said would be re-issued shortly addressing the legal challenges while remaining effective.

“It is not compassion but recklessness to allow unfettered entry from countries where proper vetting cannot occur,” he said. “Those given the high honor of admission to the United States should love this country and its values.”

On immigration, President Trump told Congress and the American people that he has ordered the U.S. Department of Homeland Security to create an office that will serve American victims of immigrant crime and provide a “voice to those who have been ignored by our media, and silenced by special interests.”

Democrats, who largely sat on their hands Tuesday night, booed in response before the president recognized victims’ families in attendance.

Striking a balance between optimism and reality, the president said the nation must have an “honest” conversation about the challenges that must be faced, such as “the worst economic recovery in 65 years” and the fact his predecessor added “more debt than the other previous presidents combined.”

“We must restart the engine of the American economy” to meet these challenges, President Trump said.

“Right now, American companies are taxed at one of the highest rates anywhere in the world. My economic team is developing historic tax reform that will reduce the tax rate on our companies so they can compete and thrive anywhere and with anyone,” he added. “At the same time, we will provide massive tax relief for the middle class. We must create a level playing field for American companies and workers.”

The address to the joint session of Congress put Senate Minority Leader Chuck Schumer in a bit of a tough spot. While he has led opposition to even the most basic procedures in the upper chamber, he has previously indicated he is willing to work with the administration on infrastructure spending.

Tapping former Republican President Dwight D. Eisenhower, who implemented what he called the “last truly great national infrastructure program,” he called for a plan supported more by Democrats than Republicans.

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“The time has come for a new program of national rebuilding. America has spent approximately $6 trillion in the Middle East, all this while our infrastructure at home is crumbling,” he said. “With this $6 trillion we could have rebuilt our country–twice. To launch our national rebuilding, I will be asking Congress to approve legislation that produces a $1 trillion dollar investment in the infrastructure of the United States – financed through both public and private capital – creating millions of new jobs.”

“This effort will be guided by two core principles: Buy American, and Hire American.”

Worth noting, the president basically endorsed the ObamaCare repeal and replace bill supported by House Speaker Paul Ryan, R-Wis., who said the lower chamber will move in March on the issue.

“Tonight, I am also calling on this Congress to repeal and replace ObamaCare with reforms that expand choice, increase access and at the same time provide better healthcare,” the president said, much to the chagrin of Democrats in the audience. “Mandating every American to buy health insurance was never the right solution for our country.”

He said the best way to cover Americans is to provide coverage at a lower cost, citing horror stories in Arizona and Kentucky.

In what was the most powerful moment of the speech, perhaps even of any address delivered by a president to a joint session of Congress, President Trump praised fallen Navy SEAL Ryan Owens, who was killed in action during a raid in Yemen.

“Ryan’s legacy is etched into eternity,” he said, giving recognition to his widow who received a long standing ovation. “The Bible tells us ‘There is no greater love than to lay down one’s life for one’s friends’. Ryan laid down his life for his friends, his country and our freedom. We will never forget Ryan.”

Veteran were a key support bloc for the president in several key primary and general election battleground states, and he addressed them in the address Tuesday night.

“Our veterans have delivered for this nation and now we must deliver for them,” he said, clearly putting domestic issues such as veteran care above other areas that previously were prioritized by the old Republican Party.

He reiterated that the U.S. commitment to NATO can remain strong while at the same time demanding allies meet their promised obligations to the common defense.

“My job is not to represent the world,” he said. “My job is to represent the United States of America.”

FINAL WORDS

“I am asking all citizens to embrace this Renewal of the American Spirit. I am asking all members of Congress to join me in Dreaming Big, and Bold and Daring things for our country,” President Trump said in closing. “And I am asking everyone watching tonight to seize this moment and – Believe In Yourselves. Believe In Your Future. And Believe, Once More, In America.”

“Thank you, God bless you, and God Bless these United States.”

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President Donald J. Trump Tuesday delivered his

Politics

President Donald J. Trump, left, speaks from the East Room. The Environmental Protection Agency (EPA) seal, right.

President Donald J. Trump, left, speaks from the East Room. The Environmental Protection Agency (EPA) seal, right.

President Donald J. Trump signed an executive order Tuesday directing a review of a controversial Obama-era water rule governing 60% of U.S. waterways. The order implemented by the former president not only gave the federal government broad regulatory authority over permanent waterways such as rivers but also seasonal ponds, streams, ditches and other wetlands.

President Trump also signed several other items, including two bills, ahead of his address to a joint session of Congress.

The regulation the president targeted is known as the “waters of the United States” rule governing wetlands and other water bodies under the Clean Water Act. When implemented, property owners, farmers and others said it was “confusing and complex.”

The order–titled Presidential Executive Order on Restoring the Rule of Law, Federalism, and Economic Growth by Reviewing the “Waters of the United States” Rule–instructs the Environmental Protection Agency (EPA) and Army Corps of Engineers to review it.

At the signing, he also cited its impact on jobs and the economy.

“We’re going to free up our country and it’s going to be done in a very environmental and positive environmental way, I will tell you that,” President Trump said. “[We will] create millions of jobs, so many jobs are delayed for so many years that it’s unfair to everybody.”

Congressional Republicans have tried to repeal the Obama-era water rule, and the House Speaker praised the president’s order.

“The Obama administration’s sweeping WOTUS rule has been a disaster for Americans in the West,” House Speaker Paul Ryan, R-Wis., said in a statement. “That’s why the House voted to repeal it last year. I welcome President Trump’s review of this rule and hope it will be repealed once and for all. The livelihoods of America’s farmers, ranchers, and cattlemen are at stake.”

President Trump’s order requests the EPA and U.S. Army Corps to look specifically at a 2006 opinion written by the late Justice Antonin Scalia on the jurisdictional scope of the Clean Water Act. The plurality opinion in a split decision would have reduced the scope of the act by defining “waters of the United States” as covering only permanent, standing or continuous flowing bodies of water.

It also instructs Attorney General Jeff Sessions to suspend ongoing court litigation in response to a number of legal challenges against the rule, which hasn’t fared well under legal scrunity. The Ohio-based Sixth Circuit Court of Appeals issued a stayed, thus putting a hold on it.

Also on Tuesday, President Trump signed the “Presidential Executive Order on The White House Initiative to Promote Excellence and Innovation at Historically Black Colleges and Universities.” It moves the HBCU (Historically Black College and Universities) offices back from the U.S. Department of Education to the White House, which the White House says will allow the HBCU to be a partner with the administration in creating jobs and helping to make inner cities safer.

The other piece of legislation that the president signed was the “Inspire Act,” which incentivizes NASA to have women participating in science, technology, engineering and mathematics. The final bill aims to promote women entrepreneurs by encouraging the National Science Foundation to use existing federal programs to improve on and support employment of women.

President Donald J. Trump signed an executive

Policy

Art Laffer, left, the father of the Laffer Curve, and President Ronald Reagan, right.

Art Laffer, left, the father of the Laffer Curve, and President Ronald Reagan, right.

I shared yesterday an example of how a big tax increase on expensive homes led to fewer sales. Indeed, the drop was so pronounced that the government didn’t just collect less money than projected, which is a very common consequence when fiscal burdens increase, but it actually collected less money than before the tax hike was enacted.

That’s the Laffer Curve on steroids.

The purpose of that column was to share with my leftist friends an example of a tax increase that achieved something they desired (i.e., putting a damper on sales of expensive houses) in hopes of getting them to understand that higher taxes on other types of economic activity also will have similar effects.

And some of those “other types of economic activity” will be things that they presumably like, such as job creation, entrepreneurship, and upward mobility.

I now have another example to share. The New York Times is reporting that a Mexican tax on soda is causing a big drop in soda consumption.

In the first year of a big soda tax in Mexico, sales of sugary drinks fell. In the second year, they fell again, according to new research. The finding represents the best evidence to date of how sizable taxes on sugary drinks, increasingly favored by large American cities, may influence consumer behavior.

This is an amazing admission. Those first three sentences of the article are an acknowledgement of the central premise of supply-side economics: The more you tax of something, the less you get of it.

In other words, taxes do alter behavior. In the wonky world of economics, this is simply the common-sense observation that demand curves are downward-sloping. When the price of something goes up (in this case, because of taxes), the quantity that is demanded falls and there is less output.

And here’s another remarkable admission in the story. The effect of taxes on behavior can be so significant that revenues are impacted.

The results…matter for policy makers who hope to use the money raised by such taxes to fund other projects. …some public officials may be dismayed… Philadelphia passed a large soda tax last year and earmarked most of its proceeds to pay for a major expansion to prekindergarten. City budget officials had assumed that the tax would provide a stable source of revenue for education. If results there mirror those of Mexico, city councilors may eventually have to find the education money elsewhere.

Wow, not just an admission of supply-side economics, but also an acknowledgement of the Laffer Curve.

Now if we can get the New York Times to admit that these principle also apply to taxes on work, saving, investment, and entrepreneurship, that will be a remarkable achievement.

The New York Times published a report

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