Oil versus Beef: A Primer on the Elasticity of Demand

Our neosocialist president has been on one of his usual rants, going after the oil companies for booking large profits following his conflict with Iran. He complained: “When you look at one company where they made 12 times what they made the year before, they ought to give some of that back to the public. And they better cut the retail price, the consumer price.” This from a man who made $2 billion last year while sitting on his butt. At ExxonMobil, quarterly profits more than doubled from a year earlier to their highest level since 2022, reaching $14.5 billion. Chevron posted its highest quarterly earnings on record, at $12.1 billion.

Trump’s carping doesn’t sound like a republican – he really is an economic socialist. He actually sounds like Joe Biden who made the same accusation, charging fossil-fuel companies with profiteering on the Ukraine war after oil prices spiked following the Russian invasion. Biden asked Congress to pass legislation penalizing oil-and-gas companies. At least Trump hasn’t gone that far — yet.

What would an economist say about oil? They would say that its demand is inelastic with both prices and profits going up. What about beef? Tyson Foods, the country’s largest meat processor just lowered its profit forecast because of the runup in beef prices. So why would an oil company’s profits rise as its price soars, while Tyson’s profits fall even though the price of beef is soaring too? Economists have a name for this: the elasticity of demand. It describes the relationship between a change in a product’s price and the resulting change in total revenue. When that relationship is positive, demand is said to be inelastic; when its negative, demand is elastic.

Consider beef. When its price climbs, consumers buy less of it and substitute other meats. So when the price rises but the quantity purchased falls enough that total revenue actually declines, economists call that elastic demand — and that appears to be exactly what’s happening with beef. Consumers are substituting. Since Tyson also processes pork and chicken, it will be worth watching how the company’s overall profits hold up as chicken and pork consumption likely rise (eat mor chikin! – and the other white meat). Tyson’s beef costs rose by $575 million last quarter, pushing up its prices with falling  beef revenue. The company’s beef sales price rose almost 12% year over year, but sales volume fell 16%. Tyson now expects an adjusted operating loss of $500 million to $650 million for its 2026 fiscal year — though it says its chicken business should keep overall profits steady.

Oil is a different story. Like beef, oil has substitutes — green energy, shale, hydrogen, natural gas, electricity, nuclear, and hydropower. But those substitutes are useless for immediate use. I can’t simply swap hydrogen for diesel in my F-250 or gas in my GLS 450. My only real alternative is to drive less – or ride my motor scooter more. Beyond cars, oil heats our homes and serves as a critical industrial input well beyond simply fueling engines. It’s the foundation for plastics, synthetic rubber, and countless other chemicals. As someone once put it, “petroleum is everywhere.” It’s an input to transportation, electricity generation, and heating, and to the production of everyday consumer goods — smartphones, clothing, make-up, toothpaste, medicine, carpet. Given all that, we’d expect demand for oil to be relatively inelastic in the short run, since it takes time to retool production processes and transport systems around alternative inputs.

So did the quantity demanded for oil fall when prices rose? According to the U.S. Energy Information Administration, the answer is actually yes. Oil demand has declined in recent months. But that drop wasn’t large enough to bring total revenue down at the higher prices.

https://www.eia.gov/outlooks/steo/report/global_oil.php

None of this should surprise us. We’ve seen this story before, and we should come to expect it. The oil market is inherently volatile, driven by OPEC’s production decisions, geopolitical events, and natural disasters that disrupt refineries and supply lines. Trump’s confrontation with Iran is only the latest in a long, unending line of events that move the price of oil.

Markets are dynamic. Prices change constantly. If Trump is unhappy about how much money Big Oil is making, he shouldn’t point his finger at the executives of Shell and ExxonMobil. He should point it at himself.

Trump Skedaddles. Kushner Bro Buys the Lakers. Hong Loses 

Trump Hides, Leaves Rubio and Bessent Behind

Did you see the reports that when Trump got off the plane in Turkey for security reasons, he left Marco Rubio and Scott Bessent behind on the plane? Also left behind were Stephen Miller and White House Communications Director Stephen Cheung. Trump, remember, was pulled off the plane over fears of an assassination attempt by Iran — U.S. intelligence had reportedly picked up multiple signs of a potential threat to the aircraft carrying him. The president took with him only his closest aides: Dan Scavino, the White House deputy chief of staff; Walt Nauta, director of Oval Office operations; and Natalie Harp, who assembles Trump’s daily briefings.

Trump and his inner circle pulled off quite an extraordinary piece of deception — boarding Air Force One in full view of the cameras, then sneaking off in an airport catering container and leaving the country on a military jet instead. According to CBS, the decision to keep Rubio and Bessent on the decoy plane was meant to preserve the line of succession in case something happened to Trump. Forgive me but what does it say about the president leaving a hundred people on a plane that might be attacked, while the select few slip out in a cargo container. This is astonishing. Even more astonishing is that none of the “sacrificial lambs” quit. They must really love their jobs.

Kushner (Josh) and Iger to Buy the Lakers

Jared Kushner’s older brother Josh, along with Disney’s Bob Iger, are buying the Los Angeles Lakers for a record $12.5 billion. The Lakers are currently owned by Mark Walter, who bought the team last year from the Buss family for what was then a record $12 billion. Walter still owns the Dodgers and holds a minority stake in the English soccer club Chelsea. Iger is a partner in Kushner’s venture capital firm, Thrive Capital, which buys assets in companies that technology can’t duplicate — I guess he’s never played “Madden.” Kushner is also a minority partner in the Miami Heat and presumably will have to sell that stake once the Lakers deal closes.

Hong Loses in Wisconsin

To the surprise of just about everyone — including the winner David Crowley — Francesca Hong lost the democratic primary for governor of Wisconsin. Hong had been leading by double digits in the polls, 44% to Crowley’s 22%. She lost anyway, but barely: 39.8% to 39.4%. I was surprised. Wisconsin has long been fertile ground for socialists, featuring the Peoples’ Republic of Madison. For years, the state capitol, Madison has been dominated by the far left. Voters in the state had just ousted two conservative members of the state Supreme Court and current governor Tony Evers has been a sharp contrast to Scott Walker. I figured the path was clear for socialists to take statewide office.

But Evers endorsed Crowley — the Milwaukee County executive who had earlier dropped out of the race and who had endorsed the state’s lieutenant governor, Sara Rodriguez, who in turn dropped out over “serious mismanagement and inaccuracies in campaign finance filings.” Before that, the state’s former lieutenant governor, Mandela Barnes, had dropped out, saying the polling made clear who the next nominee would be (Hong). Crowley then jumped back into the race.

Hong, a dues-paying member of the Democratic Socialists of America, is a state legislator who endorses the entire DSA platform. She said Thanksgiving was a “colonizer” holiday and should be canceled. She wants Medicare for All, taxpayer-funded childcare, the top tax rate raised to 17%, and the elimination of all college debt. She wants to abolish ICE, defund the police (which she says exists to uphold white supremacy), and believes poverty drives crime — so that redistributing wealth to address poverty would stop criminals from being criminals. She wants to abolish the Senate, though she admits that’s “not practical at this time.” She wants the government to take over private enterprise, and to launch a state “public option” for health coverage. She would set up a Wisconsin Public Bank to give small businesses better rates, and she wrote a bill to create publicly-owned grocery stores. She would repeal Wisconsin’s right-to-work law, offer illegal migrants state IDs, and use sanctuary policies to “protect Wisconsinites of all documentation status from secret police.” She would raise the minimum wage to $20, legalize marijuana, and pass a “binding clean electricity standard requiring 60% renewable power by 2030.” She wants a 32-hour work week with no cut in pay and would cap utility costs “at 2% of income for energy-burdened households.” What’s not to love? A friend of mine called Hong “Looney Tunes.” That disrespects Daffy Duck, Bugs Bunny, Porky Pig and Tweety Bird. The fact that she came so close to the nomination is sobering.

As usual, college-educated white voters voted for the socialist. But she lost blue collar voters, voters without a college degree and blacks – Crowley is black. So the pattern continues. What’s interesting now is that Crowley’s win dampens republican hopes of flipping the state’s governorship. The republican nominee is Rep. Tom Tiffany, a member of the hard-right House Freedom Caucus and the most right-wing member of Wisconsin’s delegation. Of course, Tiffinay is endorsed by Trump, which in Wisconsin may be the kiss of death.

More Trump Never Forgets. Michigan’s Punt – and a wee flashback.

Trump Never Forgets

 

On top of writing two new executive orders to curtail birthright citizenship and hounding Lisa Cook, the president is now pushing for new charges in the Reflecting Pool case. U.S. Attorney for the District of Columbia Jeanine Pirro dismissed the case and sharply criticized Interior Secretary Doug Burgum for the evidence presented in the indictment. Trump was livid — I’m honestly surprised he didn’t fire Pirro on the spot. Instead, he’s asking, or really demanding, that the Justice Department reconsider the case.

Pirro said the government’s decision to charge Olympic canoeist David Hearn with a felony was ill-informed, and that a botched renovation — not vandalism — was actually responsible for the reflecting pool’s damage. Now, at Trump’s urging, his “Justice” Department is exploring whether a case built on misdemeanor charges might still be viable.

Trump said Pirro should “revisit her hastily made decision,” and he posted a photo on social media captioned “Vandalism” that he claimed showed graffiti and damage to the Reflecting Pool. He also said “a highly credible witness” saw Hearn ripping and tugging at the pool’s coating. Hearn himself admitted that out of curiosity he reached into the water to touch a piece of coating that had already come loose from the bottom. Reopening a case like this would be highly unusual under normal circumstances. But Trump’s vengeance knows no bounds.

Michigan Punts on Freshman Grades – and a wee flashback

 

First the University of Michigan has allowed its students to terrorize the Jewish members of its board of regents. Then the state elects a Muslim to replace an incumbent Jewish regent. The state democrats then nominate an avowed antisemite to run for the Senate. Now is it merely circumstance that the university’s College of Literature, Science, and the Arts has decided beginning in Fall 2027, in the interest of “mental health,” to stop reporting traditional letter grades on first-semester transcripts for incoming freshmen? They will replacing them with “pass” or “no credit” designations. Students will still get a letter grades and receive instructor feedback in every course, but those grades will stay internal. They won’t appear on official transcripts or affect first-semester GPAs. The college explained “We believe that covering grades will help students start strong and curb the mental health crisis unfolding among college-aged individuals.”

I’ve always been in the “you’re in college now, this isn’t 13th grade” camp. But when I brought this up recently, a dear friend suggested that maybe the transition to college is genuinely tough, and that Michigan’s College of Literature, Science, and the Arts had seen a number of student suicides connected to grades. If so, we’d have to assume that underlying mental illness had gone undiagnosed, and that even though the number was small, the college judged it serious enough to shield all incoming freshmen. But that is speculation for no data were provided by the college to justify its decision. Why only this one college, and not business or engineering? Michigan has 19 schools and colleges. Why is this the only one with “sensitive” students, especially because I doubt if any of the departments within the college are noted for their academic rigor. I hope that my Phd alma mater does not follow this lead of That School Up North.

This will not end well. For what it’s worth, Johns Hopkins tried the same thing 40years and it was a dismal failure. Students mostly goofed off their first semester, which made it harder, not easier, to adjust to campus life and classroom rigor. The university stopped the practice in 2017 and said “Faculty members believe that covering grades can delay development of study skills and adaptation to college-level work. That delay is particularly a concern for students in sequential courses, where the second-semester syllabus builds directly on first-semester work.” Some students were naturally upset and a group of them issued this statement “Students from low income backgrounds, first generation students, students struggling with mental health, students with disabilities, international students, and sexual assault survivors, as well as students whose experiences exist at intersections of marginalized race, gender, and sexuality, are disproportionately affected by this change.”

I suspect the University of Michigan administrators would say the same things to justify this move. But those same administrators would be aghast at what my father did when he opened my first-quarter grades from the University of Georgia. Back then, grades were mailed directly to your parents. Dad opened the envelope, balled up the grades, and threw them on the floor. He pointed his finger at me and said, “Don’t you ever bring grades like that into my house again!” I was aghast. I thought I’d actually done pretty well, especially considering that almost every night that quarter, someone broke my dorm windows, set my room on fire three times with lighter fluid squirted under the door, scratched obscenities into my door, jammed my keyhole with chewing gum, and vandalized the bathroom that only I used. In the classroom, no one would even sit in the same row as me, and at least one professor was openly racist – I was the University of Georgia’s first Black male freshman.

So I picked the grades back up and unfurled them. I’d made an A, a B+, and a B. Later, when I made straight A’s, Dad said, “Don’t they give A pluses at that place?”

More than once I was asked “How do you handle the pressure of representing the entire black race?” My response was “That’s easy compared to handling the pressure of representing my family at home.”

White Privilege? Trump vs. Cook (Yet Again)

White Privilege vs. Cultural Appropriation

 

I’ve never watched a WNBA game, and I don’t intend to. That’s not because I’m sexist — I simply don’t like professional basketball, men’s or women’s. But it’s hard to miss the controversy swirling around two white players in the league. Caitlin Clark has, by some estimates, single-handedly boosted the WNBA’s value by $1 billion, yet she gets roughed up almost every time she takes the court. Sophie Cunningham has faced similar treatment, in her case tied to her public stance against transgender athletes competing in women’s sports. In a recent game she was clotheslined by opponent DiJonai Carrington, who was ejected for the foul. Afterwards, she posted “white privilege,” implying she’d been ejected only because she’s black and Cunningham is white. That got plenty of media coverage. Yet has anyone mentioned that Carrington’s hair is long and blond? I’d wager that she isn’t a natural blond. Is she borrowing a little “white privilege” of her own, or is that simply cultural appropriation?

 

Never Give Up! Birthright Citizenship (Redux)

 

President Trump is one never to be deterred by a mere Supreme Court setback. After his push to end birthright citizenship was blocked, he signed two new executive orders aimed at reaching a similar result. The first would deny citizenship to babies whose parents are “alien enemies of the United States, members of foreign terrorist organizations,” or people who lobby and act on behalf of foreign governments — as though infants inherit their parents’ allegiances. But children born to foreign diplomats are already excluded from citizenship under existing law.

The second is to end “birth tourism” where parents travel to the US solely to have their children born here. I’ve reported before of travel agencies set up in foreign countries solely to facilitate that purpose. But the practice is already illegal. The U.S. can deny a visa to anyone believed to be traveling here just to give birth, and the government – including during the Biden administration – has prosecuted birth-tourism operators before. For example, back in 2019, a Chinese national pleaded guilty today to federal criminal charges for running an Orange County-based “birth tourism” business that catered to wealthy pregnant clients and Chinese government officials, charging them tens of thousands of dollars to help them give birth in the United States so their children would get U.S. citizenship. Donald Trump was president in 2019. Did he forget that the law already existed banning birthright tourism?

Senate democratic Leader Chuck Schumer wasted no time denouncing the orders as illegal saying “Trump has just set himself up for yet another loss in the courts. Democrats will challenge this order, and we will win.” Why he and the dems take this position is beyond me because they only apply to a very small number of babies born under those circumstances. Most birthright citizenship goes to babies born by illegals – around 250,000 a year. In 2024, only 9,600 babies were born to mothers with foreign addresses. 

Lisa Cook (Redux)

 

Trump is again trying to fire Fed governor Lisa Cook. The Supreme Court’s earlier ruling held that Cook couldn’t be fired without due process. So Trump now appears to be giving her that process specifically in order to fire her. She received a letter stating the president was “considering removing you from your position,” citing allegations of mortgage fraud, and asking her to respond in writing by the end of August.

Cook is accused of misrepresenting a second home as her primary residence on a 2021 mortgage application in order to secure more favorable loan terms. In no small irony, Trump did the same thing himself on mortgage applications on secondary residences in Florida. https://www.propublica.org/article/trump-mortgage-fraud-florida-principal-residences.

Unlike Trump, Cook is not independently wealthy and has spent over $1 million on her legal defense while denying the charges. Even if guilty in most comparable mortgage-fraud cases, the offense is treated as a misdemeanor carrying a modest fine – certainly not a fireable offense. 

Needless to say these are Trumped up charges. Cook released a statement following the Supreme Court’s ruling.

“This was never about mortgage documents signed years before I became a Federal Reserve governor. It was an attempt to remove me on a manufactured pretext because I refused to bow to political pressure and continued to set interest rates based only on what would best serve the American people. That is the most fundamental obligation of a Federal Reserve governor. Today’s ruling affirms a principle that has underpinned sound economic stewardship for generations: that the Federal Reserve must make all its policy decisions guided by evidence and independent judgment, free from political interference. This bedrock principle has guided the Federal Reserve since its founding.”

Cook’s legal defense is being funded in part by donations to the Democracy Defenders Fund (democracydefendersfund.org). Her attorney, incidentally, is Abbe Lowell — the high-profile defense lawyer who has represented Hunter Biden and Letitia James on the left, but also on the right Jared Kushner and Ivanka Trump in inquiries related to Russia.

But the fundamental question is if Trump can get away with it while Cook gets ousted, is this “white privilege”?

Border tax windfall profits. Biosimilars. More antisemitism.

Windfall profits?

A friend of mine pointed out that the importers who received the $165 billion rebate from Trump’s border tax refund just got windfall profits. That is because the importers paid the $165 billion to get the goods into the country and passed some – or all – of it on to their customers. Those customers paid the higher prices but won’t get any of the refund that goes back to the importers. A case in point is that a small company that sells imported spices just received $110,000 in refunds. It is now suing the administration over its imposition of its new border tax to replace the expiring ones. The company, Burlap and Barrel, says that the border taxes targets “businesses like ours, where there is no

domestic alternative.” The company says “There is no domestic alternative” for peppercorns grown in Zanzibar or herbs from the south of France.”

What is interesting is that the owner of Burlap and Barrel, Ori Zohar, says that the burden of fighting the illegal border taxes falls on small businesses like his whose existence is threatened by increased costs. The larger businesses are better able to handle the costs and seek to stay on the good side of the president by taking a conciliatory approach, donating to favored projects such as the new White House ballroom, rolling back controversial diversity initiatives and largely avoiding challenging Trump’s policies in court – also giving him a diamond crusted watch helps as well. ” Maybe Zohar should send the president a box of Herbes de Provence.  

Sen. Dr. Rand Paul

Larry was questioning why a physician would be a politician. Great question. The broader question is why would anyone want to be a politician? Why run for city councilman, trustee, school board or even state representative or state senator? Maybe I can see running for mayor, governor or national office because of ego – but not these piddling local offices. Fifty four physicians have served in the US Senate. Currently there are four – all republicans: Rand Paul, John Barrasso, Bill Cassidy and Roger Marshall.

Well Dr. Rand Paul just introduced a bill that might not have been introduced by someone other than a doctor. It expedites access to biosimilars. Reason  says “Biosimilars are medications that are highly similar to biologic medications that have already been approved by the Food and Drug Administration (FDA). Biologic medications are drugs produced using living systems, such as microorganisms, plant cells, or animal cells. Examples include antibodies used to treat allergies, arthritis, or cancer, and GLP-1 agonists and VEGF inhibitors to help ameliorate maladies like diabetesand macular degeneration, respectively.” The legislation would permanently codify earlier Food and Drug Administration (FDA) guidance, making it easier for competing pharmaceutical manufacturers to get their own versions of biosimilars approved more quickly and at less expense. Dr. Paul’s legislation would speed up patient access and likely result in lower prices for these medications.https://reason.com/2026/07/31/rand-pauls-biosimilar-drug-bill-could-cut-costs-speed-patient-access/

More Left Wing Antisemitism

A DSA-Bernie Sanders-AOC-Elizabeth Warren endorsed antisemite Abdul El-Sayed won Michigan’s democrat primary. The establishment including Governor Gretchen Whitmer had endorsed Rep. Haley Stevens. The polls showed El-Sayed with a solid lead of 54% to 39% showing the strength of the socialists among younger voters. But El-Sayed squeaked by with less than 16,000 votes. He will run against Rep. Tim Tiffany and will be one of two contests to see if the DSA can win a statewide contest (Wisconsin’s governor’s race Is the other).

Yet for me the bigger news is the announcement by the Michigan’s attorney general, Dana Nessel, says she will not attend the state’s convention because she doesn’t feel safe because she is Jewish and is not openly hostile to Israel (like her fellow Jew Bernie Sanders). This is truly amazing. The state’s top law enforcement officer doesn’t feel safe attending her own party’s convention? Maybe she – and her fellow Jews – need to leave the Michigan democrat party. Well she vote for the antisemite El-Sayed? If she had any guts she would announce that she won’t.

She doesn’t feel safe nor perhaps should other Michigan Jews. Recently in a “Free Palestine” demonstration at the University of Michigan, the homes and vehicles of Jewish UM regents were vandalized. The regents were threatened and given 24/7 security. This is ridiculous. Those protestors should be thrown in jail and if students, expelled from the university. Why are we letting the DSA and their supporters turn this country into Nazi Germany? And these loons say Trump is Hitler?

BTW, A Dearborn-based attorney, Amir Makled, who had posts praising Hezbollah terrorists and urging Iran to “show no laxity” against Israel won the Democratic Party’s nomination for the University of Michigan Board of Regents. Makled beat incumbent Jordan Acker, a supporter of Israel, and recently introduced El-Sayed at a rally featuring the antisemite influencer Hasan Piker. The University of Michigan Board of Regents consists of eight members elected statewide to eight-year terms.

I used to look on Bernie Sanders as the harmless old uncle kept hidden away from the public. Now I am not so sure. Until he gets his lunatic fringe followers under control, he is now a dangerous old fool. He can only regain harmless old uncle status by speaking out against the mob that he, himself, has birthed.

Ogles Ousted. More Socialist Kool-Aid. Trump’s Ballroom.

Ogles Ousted

Despite the president’s endorsement, Andy Ogles lost his reelection bid to former agriculture commissioner Charlie Hatcher by six points. Trump had called Ogles “a Conservative Warrior who has strong support from his Community.”

The New York Times called this an upset — a knee-jerk reaction since the paper never took the time to actually analyze the race. Right-wing media mourned his loss, and some even called for Trump to bring him into his administration.

However, many of us conservative Tennesseans breathed a sigh of relief. Ogles may have been the most intellectually challenged member of Congress. He posted controversial comments claiming “homosexuality has no place in America” and that “pluralism is a lie.” He also posted that “Muslims don’t belong in American society” and called for Zohran Mamdani to be deported after Mamdani won the Democratic nomination for mayor of New York. Asked about U.S. support for Israel’s military campaign in Gaza, Ogles said, “You know what? I think we should kill them all if that makes you feel better. Everybody in Hamas.” He added, “Hamas and the Palestinians have been attacking Israel for 20 years. It is time to pay the piper.” In a later statement, he dismissed media coverage of the exchange as “Marxian,” saying, “I stand by Israel and their right to punish Hamas on a scale of Biblical proportions, including their accomplices.”

Ogles was also under FBI investigation over his campaign finance records. It was never made clear where he got the $320,000 he loaned his own campaign. I know plenty of people who agree with Ogles’ comments, but that’s not the main reason I wanted to see him gone. He may have been a firebrand who said out loud what other elected Republicans only thought privately, but behind those comments was an intellectually vapid human being. Tennessee’s Republican establishment was clearly embarrassed by him. Gov. Bill Lee and former Gov. Bill Haslam defied Trump by endorsing Hatcher instead. Charlie Hatcher’s voting record, for what it’s worth, will likely be indistinguishable from Ogles’.

More Dumb Socialism

What exactly is the leadership of the Democratic Socialists of America thinking? In their manifesto — beyond the ten agenda items I covered in an earlier post — they’re clearly trying to recruit new members (useful idiots) by painting a picture of what a socialist takeover would supposedly look like. In “A Day Without Capitalism,” they ask readers to “imagine taking a day off from work in a future without capitalism”:

1. You work as much as you’re able and no more than needed, and you control your own labor and see it put to good use. It’s not just a job to pay the bills.
2. Speaking of bills, you don’t really have them anymore. You have no debt. You don’t need health insurance. You don’t pay a mortgage or have a landlord, because comfortable housing is a human right. Your retirement is publicly funded. Food, education, energy, medicine, and transportation aren’t for-profit businesses — they’re common goods and utilities.
3. What do you do on your day off? Maybe in the morning you walk your kids to school, run errands, or go to a doctor’s appointment. In the afternoon you might play a sport, practice a new skill, read, or plan a trip. In the evening you could meet up with friends or family, eat together, catch a movie, or head to the park.
4. A socialist day off could look like any good day now. But what if you were free to spend your time as you liked without worrying about cost or dreading going back to work? What if you didn’t have to think about rent or loan payments at the end of the month, or saving for college, or affording groceries?
5. What would it actually be like? It’s been said that it’s easier to imagine the end of the world than the end of capitalism. But just because it’s hard to imagine doesn’t mean we shouldn’t try to make it happen. Workers deserve more.

program.dsausa.org

Do people really believe this garbage?

More on Trump’s Ballroom

The D.C. Circuit Court, in a 2-1 ruling, has halted construction on Trump’s White House ballroom. As with most decisions these days, the focus immediately shifts to who appointed the judges. Here, the majority were appointees of Biden and Obama, with a Trump appointee in dissent. I’m less interested in who appointed whom than in what the law actually says — or implies. The court ruled that the president cannot demolish the East Wing and begin above-ground construction without congressional approval.

Of course, the president had already razed the East Wing and is well into building the over-budget ballroom by the time this ruling came down. Trump will now have to appeal to the Supreme Court — and it’s worth remembering he already lost this case once before, in a lower court, which ruled that the White House belongs to the people of the United States, not to whoever currently occupies it.

What would Republicans have said if Obama had wanted to tear down the East Wing to build a basketball court? Or if Clinton had wanted to add a WWE arena? Oh, wait — that was Donald Trump.

Does a $20 Burrito Come with Chips and a Drink?

What’s with this $20 burrito nonsense? A college student complains about the cost of a burrito and republicans are rushing to see who can be the biggest fool about it.  The simple response would have been, “Yeah, eating out can be expensive these days.” Instead, we’re getting a rerun of Trump’s own “let them eat cake” moment, when he brushed off rising prices at Walmart caused by his illegal border taxess. Remember: “Maybe the children will have two dolls instead of 30 dolls, you know?” He also “And maybe the two dolls will cost a couple bucks more than they would normally.”

Note to republicans: don’t have a guy who made $2 billion bucks by just sitting on his butt comment on how much things cost.

I go to a local seafood restaurant once a month with a friend. My fish sandwich runs $16, his grilled yellowfin $18. We both skip the $145 lobster “special.” Sure, we could drive down the street to a fast-food fish joint for less or just stay home. But we choose not to.

That’s the key word: choice. Nobody is forcing you to by that $20 burrito but if you do it comes with an opportunity cost — you’re choosing not to buy a cheaper one and buying more stuff with the change. My Walmart sells an eight-pack of burritos for $5.47. “But there’s a difference between a $20 burrito and a Walmart one,” you might say. I’d certainly hope so — the same way there’s a difference between that restaurant fish sandwich and the fast-food version. So instead of telling college kids to “suck it up and eat ramen,” as Rep. Dan Crenshaw did, maybe just tell them to choose wisely.

Economics is the study of making choices under limited resources. This is the perfect economic lesson.  But it’s not just the college kids who are whining. The republicans are whining too, having forgotten Econ 101.  “The market doesn’t care what you think something ‘should’ cost,” Crenshaw said. “Only communists care — they set prices, remember? And then everyone starves, remember? Are you a communist? Or are you an American adult male capable of handling his own business?” Crenshaw seems to have forgotten that his own president is fond of setting prices himself. Though to be fair, Trump isn’t a communist — more of a socialist-lite, or maybe a neo-socialist.

But Crenshaw has missed the boat. Ben Shapiro missed the boat too, arguing that young Americans shouldn’t be buying pricey burritos in the first place. “If you’re paying $20 for a burrito and you’re not independently wealthy, you’re doing life wrong. We have enough problems as a country without insane expectations that the government is going to provide us gourmet-quality burritos.”

What garbage. The beauty of choice is that a young person can splurge on a $20 burrito if he wants, understanding he’s giving something else up to do it. Why not treat yourself once in a while? Even a Harvard sophomore eats in the cafeteria every now and then. Shapiro shouldn’t be worried about the government handing out “gourmet-quality burritos” — in an actual socialist country, people would be thrilled just to get the eight-pack from Walmart.

There’s some irony in the fact that Trump beat Biden partly by campaigning on affordability. Now he is being bitten in the place where he sits by the same issue. He can blame Biden all he wants for the ongoing cost-of-living problems, but at this point it’s his to own. His policies have made things worse, and he’s done nothing to fix it. Biden is irrelevant now. Trump is either unable or unwilling to undo the damage he’s caused. Republicans mocking college kids for complaining just makes themselves look like idiots.

As a professor, I see a teaching moment here. It reminds me of Les McCann’s classic “Compared to What?” All this whining makes it sound like food costs are the front line of the affordability crisis. They aren’t. The numbers say otherwise. We are not living through some unprecedented food emergency. As David Harsanyi points out, drawing on Bureau of Labor Statistics data:

In 1901, the average American family spent 42% of its disposable budget on food.

By 1945 that figure was 23%. By 1965, 15%. By 1985, around 12%.

Today it’s 9.7%, and that number is inflated by historically high rates of dining out and food delivery.

https://nypost.com/2026/08/05/opinion/check-the-data-doom-and-gloomers-food-costs-arent-what-you-think

Now put that in your burrito!

Bell Beats Bush (and Socialism) Again

While most eyes were on the Michigan Democratic Senate primary, a race that’s gone almost completely unnoticed by the press unfolded in Missouri. Wesley Bell, a progressive, pro-Israelcongressman, won his rematch against democratic socialist and ex-Squad member Cori Bush. Bush had the backing of the usual suspects, including Bernie Sanders, and had railed against AIPAC’s support for Bell. But voters in this majority-minority district didn’t seem to weigh Israel policy the way white, college-educated liberals elsewhere do. It wasn’t close — Bell won 59% to 36%. This should send a warning message to the democrat leadership and the DNC that are allowing socialists to come into their party. Namely. black voters don’t vote for socialists.

Bush and her supporters whined that Bell’s earlier win was driven solely by AIPAC money and it’s true that AIPAC again spent heavily to back him. But who could blame them? Bush is clearly antisemitic and while in office was highly critical of Israel saying that the “collective punishment of Palestinians in Gaza is a war crime.” But Bell did not waver in his support for Israel and in a majority black district decisively rejected Bush’s antisemitism. 

There are two key differences between Bell and Bush. First, Bell is not a socialist, he is a progressive. After his victory, he said: “St. Louis is up against a president that is coming after our healthcare, our due process, and the paychecks of working families. These are neighbors losing coverage, families watching grocery bills climb, and people picked off our streets without so much as a semblance of due process and basic fairness. I will keep standing up to this reckless and cruel administration every single day.” Yep. Sounds like a progressive to me.

Second, Bell supports Israel while Bush has aligned herself with pro-Palestinian, pro-Hamas wing of the democrat party. The race became the most expensive primary in Missouri this year, with candidates and outside political action committees combining to spend $8.4 million — $7.2 million of it on Bell’s behalf.

The press has been rushing to call Sanders a “kingmaker” – no irony intended – but I bet little if anything will be said about his backing a loser in Cori Bush. Once more, black voters are rejecting the socialist grift from the democrat socialists which is being completely ignored by the media. Almost gone unnoticed is that in every race thus far where a socialist has run to oust an establishment democrat, blacks have overwhelmingly backed the establishment democrat. This means that in the general election, the democrats are going to have to worry about black turnout. Will blacks now show up to vote for a candidate that they obviously reject – just because there is a “D” next to their name? I seriously doubt it. Because now the question is that if the democrats insist on having socialists carry their banner in the fall, will blacks sit this one out? Wouldn’t it be ironic that the democrats may lose an election because their most loyal constituencies, blacks and Jews are repelled by the socialists and antisemitics on the ballot?

Just remember: you read it here first.

Erica Schwatz and More Trump Derangement Syndrome

You mean someone voted against her?

When Dr. Erica Schwartz was nominated for CDC director I said she should be confirmed unanimously by the Senate committee. You may recall that Dr. Schwartz is a black woman with an unbelievable resume.  She served in the U.S. Navy and U.S. Coast Guard, a rear admiral in the U.S. Public Health Service Commissioned Corps, previously served as deputy surgeon general during the first Trump administration, medical degree from the Brown University and is board-certified in preventive medicine. She holds a master’s degree in public health and a law degree from the University of Maryland. She has received several awards, including a Legion of Merit, two Meritorious Service Medals, and Commendation Medals from both the Navy and the Coast Guard. She managed and oversaw the Coast Guard’s mishap prevention, response, and investigation, as well as its childcare programs, food services delivery programs, Ombudsman, Substance Abuse, Health Promotion, and Sexual Assault Prevention and Response programs.

Who would vote against her? The answer: all the democrats (dumocrats) on the committee vividly displaying Trump Derangement Syndrome. Even Maryland’s Angela Alsobrooks voted no. Again Dr. Schwartz’s law degree is from the University of Maryland (where I once taught an MBA class while working at CBO).

Unbelievable.

During her hearing, Senator Bill Cassidy and other senators asked her what she would do if Kennedy instructed her to make changes that were not supported by science. Schwartz pledged to “never betray the science,” but she declined to dissent from some of the actions Kennedy has taken. She declined to commit to taking down a CDC website that suggests a link between childhood vaccines and autism. Recall that President Trump is pressuring Kennedy to recommend fewer childhood vaccines since Trump is convinced that there is a link between vaccines and autism. However, Schwarz did agree agree that existing medical evidence has not found a link. 

Asked by Sen. Tammy Baldwin (D-Wisc.) if she believes mRNA vaccines, including the COVID-19 vaccine, “are safe and effective.” She was unequivocal in her response saying “I do believe that mRNA technology is safe and effective.” That answer would put her in conflict with statements from her to be boss Robert Kennedy, Jr. 

Bernie Sanders asked her how she’d respond if Trump or Kennedy asked her to implement “unscientific” policies that could “harm the health and wellbeing of the American people.” She responded “I do not think that the secretary or the president would ask me to do something like that.”

Sanders said that he would vote against her saying he was not confident she will “stand up” against Kennedy. “Will we have people in the Trump administration who have the guts to stand up to people who are anti-science and into conspiracy theories? And I am afraid that, right now within HHS, we have a secretary who will not tolerate this…. We need people in this country who are going to stand up, protect the American people, and I don’t think you’re going to see that right now with Secretary Kennedy in his position.” Does Sanders really think that a Trump nominee will come out at a confirmation hearing and openly oppose the president and Kennedy? This only reinforces Sanders’ hatred for all things Trump and his Trump Derangement Syndrome. If he honestly believes that Dr. Adm. Schwartz should not be CDC director then he and all his fellow democrats on the committee are simply fools.

The full Senate confirmed her 51-44. The only democrat to vote to confirm was Tim Kaine of Virginia. Even Fetterman voted against her. Isn’t it interesting that the democrats scream racist at all things Trump yet voted against confirming one of the most credentialed nominees of this administration – who is also a woman and a minority?

Pirro out? DNC finances down. Rivian R2 up?

Bye, Bye Judge Pirro?

Did you notice that once Fox’s The Five’s Jeanine Pirro was passed over for attorney general that she actually started to exhibit a spine. Previously she was gung ho in aggressively pursuing everyone that Trump’s sic’ed her on. Then all of a sudden she drops the charges of vandalizing the reflection pool against the Olympic athlete. Her office reported that a “visual inspection showed damage throughout the Reflecting Pool, even in the middle of the pool, where a vandal wouldn’t likely attempt to peel the lining. Given all of this newly discovered information, it is difficult to attribute the widespread damage to the Reflecting Pool to vandalism.”

Predictably, Trump had a cow. “I disagree 100% with Jeanine Pirro,” he posted. “I don’t know what she was thinking? To me, it was a pure case of VANDALISM.” Later he said “I guess she choked.” He said he was “really disappointed” in her because “she folded like an umbrella.” Trump, if you recall gave the $16 million no job to a company that has worked for him in the past. Interior Secretary Doug Burham whose office oversees the Reflecting Pool vehemently disagreed with Piro, staying on Trump’s good side saying “The evidence is clear, vandals have repeatedly caused damage to the Reflecting Pool. Some of these acts were even caught on camera.” However, the earliest reports of the pool’s blue liner coming loose were reported on June 18, the day before Hearn was arrested and two weeks before his indictment. I guess Pirro knew that the indictment would not stick and was a waste of time and money.

Now the question is how long before she has to go back to Fox?

Well Bernie and AOC did say they hated billionaires!

Reports are out that the Democrat National Committee is hurting for funds. Seems like the party’s deep pocket billionaires are not shelling out as much money as in the past. George Sorors, Linkedin’s Reid Hoffman and others are not giving to the DNC. Rather the big money is going into individual congressional races. James Talarico’s campaign in Texas is sitting on an astounding $55 million in his race for a senate seat. But while the Republican Senate Leadership Fund has $283 million, the dems have only $125 million. 

DNC chairman Ken Martin has drawn criticism from the ranks perhaps in part due to the $1billion blown on. The Kamala Harris campaign. But I think there may be another issue. Bernie, AOC, Warren and the rest of the progressives on the left and the kooks on the farther left keep bashing billionaires. Although I think that the deep pockets on the left have kept silent because they ultimately will pull the strings when the democrats come back into power, enough may be enough. But Chris Murphy who as usual doesn’t have a clue has said “I think it’s always a very tough job,” Sen. Chris Murphy (D., Conn.) said of the DNC chairmanship. “The amount of money is certainly concerning, but at the same time, we’re not necessarily losing elections these days because candidates don’t have enough money. It is because Republicans have billionaires.”

Idiot. What will be interesting to see is if all the red billionaires will bankroll AOC if she decides to run for the Senate or heaven forbid the White House.

Will Rivian survive?

I’ve been accused of hating EVs. I don’t hate them. I hated the government trying to force them down our throats. I hate the damage they do to the environment with all the resources necessary to produce lithium batteries. My relatives in the Congo continue to get abused and shafted while digging up cobalt. But congratulations to Elon Musk and Tesla. I ever thought an EV would be profitable in my lifetime. I was wrong. Since I no longer pull a fifth wheel, if my F-250 ever dies, I would consider buying an electric pickup – but not a $100,000 Rivian. Maybe a used Ford Lightening or the new yet to be seen $30,000 Ford pickup. The Slate is a bit too minimalist for me. Rivian (with the inverted Edsel eyes) has introduced a cheaper EV – the R2. The model just released is $58,000 still too pricey for me. But cheaper models are on the horizon that will be built in my home state of Georgia. The company is not yet profitable posting a net loss of $837 million, narrowing from a year-earlier loss of $1.15 billion. Revenue for the quarter was up 27% at $1.66 billion. Rivian also raised its guidance for the year, projecting adjusted losses as high as $2

billion. Ouch.