Sadly, the Democrats are now very far from being a "pro-normal" party.
Lauren, are you aware that Joe Biden, Kamala Harris, and EVERY Democrat in Congress want to pass a new federal law allowing a naked man to ogle you in your gym's locker room? And that if you protest, you will have violated his new "rights" under that law?
It's called the Equality Act. Biden once again called for its immediate passage in the SOTU. EVERY Democrat in Congress has either already voted for it or is on record as supporting it.
On everything except abortion, the Democrats have abandoned women and girls.
I too hope they one day become a "pro-normal" party. But right now they are very far from it. Too far for me (a registered Democrat for 50 years) to vote for any of them anytime soon.
Outstanding piece, thanks for sharing. I agree with almost everything here.
On a policy note, however, "normal" Americans should not be pushing for lower federal interest rates. This position conflates the health of Wall St with that of Main St. As a millennial lefty who entered the workforce in 2010, I can assure you they are not the same, despite considerable effort by the elite to convince us otherwise.
I urge you to look into the "Cantillon Effect." In brief, those people and institutions closest to the source of money creation capture the vast majority of new wealth, and allow but a trickle to the rest of us. We can therefore thank the QE / low rates era for the stratospheric cost of housing, for example, as well as gnawing inflation and soaring inequality. When the market implodes in the next year or two, it won't be high rates that caused it; it will be the 15 years of free capital that created massive over-valuations (bubbles) across the economy, and hordes of zombie corporations surviving on rock-bottom financing rates.
Historically, 5.5% is actually a low rate. My parents paid 17.5% on their first mortgage. I'm not saying we should go back that high, but in general, the economy is healthier when higher rates force consumers to live within their means, and corporations to focus on their core business instead of seeking arbitrage / investment opportunities with free government money. When tech companies like Apple decide to expand into credit cards and savings accounts because that's where the money is, your low rates program has gone WAY too far.
Low interest rates also hurt older savers with CD and IRA accounts, who are forced to live with one- to two-percent interest rates for long periods of time. That factor should also be a major consideration in terms of setting optimal rates. Low interest rates also lead to inflation in housing markets.
Absolutely. Face-ripping shelter inflation is one of the most destructive outcomes of low rates. Institutional investors get loans at 0-2% and flood the housing market with capital, competing with homeowners (who must pay a higher rate thanks to Cantillon Effect). Absolutely devastating.
Low rates are basically cocaine for the economy. The headrush is great, but be ready for the hangover of a lifetime on the other side.
Focus on what MOST of the voters care about: Inflation, Immigration, Crime, Housing (homelessness).
These impact most Americans. These are on the minds of the voters. These are the priorities.
Voters are much less concerned about DEI, Critical Race Theory, pronouns, sex/gender, and Climate. That is the reality. Basic needs (what we need to have) comes before tweaking social order (what might be nice to have).
In other words, prioritize the needs of voters and address those needs with specific plans, not lip service. Government needs to spend on the basics, not the luxuries.
Thanks…great article. As someone who refused to vote for Trump in 16 and thinks even less of him now I would love a Democratic Party the was less insane. It would be great to vote for someone or for a set of ideas and principles as opposed to just opting out.
Sadly, the Democrats are now very far from being a "pro-normal" party.
Lauren, are you aware that Joe Biden, Kamala Harris, and EVERY Democrat in Congress want to pass a new federal law allowing a naked man to ogle you in your gym's locker room? And that if you protest, you will have violated his new "rights" under that law?
It's called the Equality Act. Biden once again called for its immediate passage in the SOTU. EVERY Democrat in Congress has either already voted for it or is on record as supporting it.
On everything except abortion, the Democrats have abandoned women and girls.
I too hope they one day become a "pro-normal" party. But right now they are very far from it. Too far for me (a registered Democrat for 50 years) to vote for any of them anytime soon.
https://womensbillofrights.com
https://womensdeclarationusa.com
https://womensliberationfront.org
https://www.amazon.com/Reckoning-Democrats-Betrayed-Women-Girls/dp/B0CN32BXC2
Outstanding piece, thanks for sharing. I agree with almost everything here.
On a policy note, however, "normal" Americans should not be pushing for lower federal interest rates. This position conflates the health of Wall St with that of Main St. As a millennial lefty who entered the workforce in 2010, I can assure you they are not the same, despite considerable effort by the elite to convince us otherwise.
I urge you to look into the "Cantillon Effect." In brief, those people and institutions closest to the source of money creation capture the vast majority of new wealth, and allow but a trickle to the rest of us. We can therefore thank the QE / low rates era for the stratospheric cost of housing, for example, as well as gnawing inflation and soaring inequality. When the market implodes in the next year or two, it won't be high rates that caused it; it will be the 15 years of free capital that created massive over-valuations (bubbles) across the economy, and hordes of zombie corporations surviving on rock-bottom financing rates.
Historically, 5.5% is actually a low rate. My parents paid 17.5% on their first mortgage. I'm not saying we should go back that high, but in general, the economy is healthier when higher rates force consumers to live within their means, and corporations to focus on their core business instead of seeking arbitrage / investment opportunities with free government money. When tech companies like Apple decide to expand into credit cards and savings accounts because that's where the money is, your low rates program has gone WAY too far.
SOURCES:
Cantillon Effect: https://austriancenter.com/cantillon-effect-populism/
QE and Asset Prices: https://www.forbes.com/advisor/investing/quantitative-easing-qe/
Apple Goes Finance: https://www.apple.com/newsroom/2023/04/apple-cards-new-high-yield-savings-account-is-now-available-offering-a-4-point-15-percent-apy/
Thanks, will check out.
Low interest rates also hurt older savers with CD and IRA accounts, who are forced to live with one- to two-percent interest rates for long periods of time. That factor should also be a major consideration in terms of setting optimal rates. Low interest rates also lead to inflation in housing markets.
Absolutely. Face-ripping shelter inflation is one of the most destructive outcomes of low rates. Institutional investors get loans at 0-2% and flood the housing market with capital, competing with homeowners (who must pay a higher rate thanks to Cantillon Effect). Absolutely devastating.
Low rates are basically cocaine for the economy. The headrush is great, but be ready for the hangover of a lifetime on the other side.
Focus on what MOST of the voters care about: Inflation, Immigration, Crime, Housing (homelessness).
These impact most Americans. These are on the minds of the voters. These are the priorities.
Voters are much less concerned about DEI, Critical Race Theory, pronouns, sex/gender, and Climate. That is the reality. Basic needs (what we need to have) comes before tweaking social order (what might be nice to have).
In other words, prioritize the needs of voters and address those needs with specific plans, not lip service. Government needs to spend on the basics, not the luxuries.
Thanks…great article. As someone who refused to vote for Trump in 16 and thinks even less of him now I would love a Democratic Party the was less insane. It would be great to vote for someone or for a set of ideas and principles as opposed to just opting out.