If a man belittles a woman, it could become a lawsuit. If women belittle men, it’s a Hallmark card. —Warren Farrell
Everywhere I look this morning, someone is threatening to file a lawsuit against someone else. Of course, the big one in the news recently has been the threats on the part of the Republican nominee for President who claims he’s going to file a lawsuit against all the women who claim he sexually assaulted them. Most of us look at that threat as empty, yet another attempt on the part of the candidate to bully people because, you know, that’s all he really is: a big bully.
However, in response to that threat, there is news today that at least one of the women claiming to have been assaulted says that if the Republican candidate sues her, she’s going to turn around and file a lawsuit against him. She’s claiming emotional distress from him calling her names and such. Should any of this mess actually see the inside of a courtroom, which is probably won’t, she probably has a better case than the Republican candidate does against her.
Oh, and the candidate’s legal problems don’t end there. It would seem that some of his fellow Republicans don’t want to be associated with their party’s candidate in any way, shape, or form. So, when their party’s candidate created ads that imply there is a connection between the Congressmen and the Presidential nominee, the Congressmen threatened to, you guessed it, file a lawsuit. Understand, this isn’t just one Republican, which could be dismissed as petty. FIVE of them are threatening to sue. They’re claiming defamation of character. Go figure.
Oh, and just to prove we’re not all focused on politics, Suge Knight is threatening to sue Dr. Dre. Suge claims that Dre cut him out of the Apple deal for Beats by Dre. Understand, Knight is already in jail for the alleged murder of Terry Carter and claims Dre hired a hitman to remove his presence from this planet.
As utterly stupid as that whole mess sounds, we found some lawsuits that are worse. Americans can be really dense.
Budweiser Sued For False Advertising
I could almost see this one having some legitimacy if the beer maker was claiming that their beer actually tasted like something other than swill. They’re not, though. Instead, some dude in Michigan, whose brain, we assume, was frozen during the harsh winter they have up there, was upset because no bikini-clad models appeared out of nowhere for him as they did in the commercial.
No, seriously, he actually filed a lawsuit. You can read all about the damn thing here. Apparently, this guy doesn’t understand the difference between reality and fantasy. I’m betting he still thinks all the girls on OkCupid are real, too.
The Cases Against Amusement Parks
A lot of people apparently think that amusement parks are easy lawsuit targets. My guess is that someone told them all they have to do is file and that the parks will settle out of court. Sounds like an easy payday, right? Uhm, not necessarily so. While the parks do often settle legitimate claims privately when they’re obviously at fault, they don’t just throw money at everyone who sues them.
Back in March, 2009, the Orlando Sentinel ran a story about all the crazy reasons people give when attempting to sue the many amusement parks in that area. The list is somewhere between amusing and unbelievable. For example, a man from Virginia sued Disney World in 2005, saying food poisoning caused him to gag so badly he ruptured his esophagus. Now, I’ve had some really bad food at amusement parks, but gagging hard enough to rupture the esophagus? Dude, just spit it out and move on.
Then, there was the woman from Hawaii who sued Busch Gardens-Tampa Bay in 2006, saying she contracted a rare blood disease when a wayward vulture from a trained bird show clawed her legs. I’m guessing the lady looked so close to death that the vulture was just going for an early snack. Yes, that’s a cruel thing to say. No, I’m not especially sympathetic.
This, ladies and gentlemen, is why it costs an arm and a leg to go to an amusement park. All these ridiculous lawsuits raise the park’s insurance and, naturally, they pass that cost along to those who buy the tickets. YOU are the reason we can’t have nice things. Again. Stupid.
Some People Don’t Learn
We’ve all heard about the high costs of higher education. People are frequently graduating from college with hundreds of thousands of dollars worth of debt and are unable to find a job. I’m sure we can all understand and appreciate the amount of stress that causes. However, one young lady decided, after a grueling three-month job search (cue: What I Did Over Summer Vacation) decided to sue her alma mater, Monroe College, for the $70,000 she spent on a BS in IT.
Now, this wouldn’t be the first time that a college has gotten into trouble for allegedly promising its graduates jobs, especially in WTF fields such as court reporting and “general business.” However, this child has a degree in IT. Given all the IT jobs available across this country, if she’s not able to land one of them one has to assume one of the following problems must have occurred:
- She slept through all her classes and didn’t actually manage to learn a damn thing
- She has absolutely no interview skills, which is saying something considering the field she’s in
- She never actually filled out an application
- She mistakenly thought the IT recruiters were going to come to her
- She spilled hot coffee in the lap of every recruiter she met
Seriously, if one has any skill in IT at all, they should be able to get a job. Granted, it might mean moving outside the Bronx, which isn’t exactly the IT capital of anything. Still, the openings in IT are so voluminous that almost anyone who can spell IT can get a job in IT.
Following The Leader
Still, even with a treasure trove of really stupid reasons for filing a lawsuit available on the Internet (seriously, it was one of the easiest searches ever), we have to consider the fact that honest, hardworking, intelligent people would rather stay out of court unless they have a legitimate claim. If the police kill your child while he’s playing innocently in the park, then yes, you have good reason to sue. If a drug company suddenly raises the price of a life-saving drug by 5000% for no good reason, then yes, drop the hammer on those sons of bitches. If the airbag in your car is more dangerous than carrying a loaded gun with the safety off, then by all means, someone needs to be held accountable. There are legitimate reasons good people file lawsuits.
What we’re seeing, though, is that the person who wants to be leader of the free world uses the threat of lawsuits to get what he wants: more money. If he can get away with it, and he has for years, then everyone else on the freakin’ planet is going to try and follow that example. As clogged up as the courts already are, the situation could get so very much worse. There could be lawsuits because one failed to mention how pretty the candidate’s wife is. There could be lawsuits because one dared to call a delinquent child a troublemaker. If the Congressmen’s lawsuit stands, that would open the door for people being sued just because someone called them a friend!
Is this really the kind of leadership we need, people who misuse the courts to bully others around? We both know damn good and well it isn’t. Watch how you vote, though. If someone doesn’t win we might all get sued.
Swapping taxes for tariffs costs YOU a lot more money
Tell Me Like I’m Five
The inflationary ride of the past four years has been wild and while it’s better than it was, for a lot of people it seems that everything is more expensive than it was. While the reality seems to be different, when we look at the speed with which our bank accounts dry up, we want to blame inflation for the lack of funds available. If we’re to be honest here, though, inflation at the moment isn’t as bad as it was four years ago. Take a look. Here are the latest findings from the Bureau of Labor Statistics (BLS) published June 12:
Look at those numbers and compare them to what you see on your grocery receipt and in your checkbook. Eating out is really costing us! That’s where the biggest cost increase remains. Everything else is below or close to the two-percent inflation rate the Federal Reserve expects. That is the number that primarily decides whether the Fed will raise interest rates. Furthermore, BLS also revealed last week that grocery prices are finally going down, a whopping 0.2 percent. That may not sound like much, but depending on what you buy, you could start getting more for your dollar at the store. Personally, I’m still waiting for the meats, poultry, fish, and eggs category to come wayyyy down, but a lot of that depends on how you vote.
Yes, the prices we see in the stores are a direct reflection of the policies set by the President and Congress, both of which are subject to your vote. Since this is an election year, we all have to become economists to a certain extent in order to understand exactly what presidential nominees are talking about and whether or not they’re lying.
Hint: they don’t have a fucking clue what they’re talking about. Someone hands them a piece of paper with a bunch of numbers on it and they assume that those numbers are correct. Most of the time, however, regardless of which politician is behind the podium, the numbers are, at best, incomplete and frequently fictional.
This is currently important because last Thursday, while speaking with Republican members of Congress, the Orange Felon said that, should he become president again, he would raise tariffs by 10% and reduce taxes. He later said that he might eliminate the income tax and replace it with tariffs. A lot of ears perked up when this statement was made public. Every responsible economist in the country responded with, “There’s no way that works!” In theory, that should have been the end of the discussion.
Of course, the official GOP line is to support their nominee. SO, RNC spokesperson Anna Kelly said “The notion that tariffs are a tax on US consumers is a lie pushed by outsourcers and the Chinese Communist Party.”
If that’s the case, then every economist in the United States is affiliated with the Chinese Communist Party? We’re gonna call bullshit on that and on Anna Kelly who, like every other political affiliate, doesn’t have a fucking clue what she’s talking about.
In response, European Central Bank President Christine Lagarde said in recent days that the world risks a new “geopolitical divide” and urged governments to respect international trade rules, which are designed to keep tariffs low.
If you and I are to make intelligent decisions when we vote, (which, admittedly, isn’t easy), then we need to understand how this all works. Let’s start with tariffs.
What Are Tariffs
To answer this question responsibly, let’s look at how tariffs are defined by the Council on Foreign Relations:
A tariff is a tax imposed on foreign-made goods, paid by the importing business to its home country’s government. The most common kind of tariffs are ad valorem, which are levied as a fixed percentage of the value of the imports. There are also “specific tariffs,” which are charged as a fixed amount on each imported good (for example, $2 per shirt), and “tariff-rate quotas,” which are tariffs that kick in or rise significantly after a certain amount of imports is reached (e.g., fifty thousand tons of sugar).
Tariffs can serve several goals. Like all taxes, they provide a modest source of government revenue. Several countries have also used tariffs to help fledgling industries at home, hoping to shelter those local firms from foreign competitors. Some tariffs are also meant to address unfair practices that other countries have used to make their exports artificially cheap.
Almost every country imposes some tariffs. In general, wealthy countries maintain low tariffs compared to developing countries. There are several reasons why: developing countries might have more fragile industries that they wish to protect, or they might have fewer sources of government revenue. The United States, for instance, maintained high tariffs for decades, until income taxes supplanted tariffs as the most important source of revenue. After World War II, tariffs continued to decline as the United States emphasized trade expansion as a central plank of its global strategy.
The Constitution grants Congress the power “to regulate commerce with foreign nations, and among the several states,” which it used for more than a century to impose tariffs. Perhaps most infamous, Congress raised close to nine hundred separate tariffs with the 1930 Smoot-Hawley Tariff Act, which many economists say worsened the Great Depression. But over the past ninety years, Congress has delegated more and more trade authority to the executive branch, in part a response to its mistakes in Smoot-Hawley.
Several pieces of legislation underline this trend. The Reciprocal Trade Agreements Act of 1934 gave President Franklin D. Roosevelt the power to negotiate tariff-cutting trade deals with other countries. This was followed by the Trade Expansion Act of 1962, which granted the president authority to negotiate tariff reductions of up to 80 percent. The Trade Act of 1974 [PDF] allowed the executive branch to strike trade deals—with negotiating objectives set by Congress—that were then subject to an unamendable up-or-down vote, known as fast-tracking. Both Democratic and Republican presidents have used this authority to lower tariffs and enter into a range of trade deals, including the agreement establishing the World Trade Organization (WTO).
Just to add a wee bit of perspective, remember that Stamp Tax that prompted the Boston Tea Party? That was a tariff. Our founding fathers tended to care about them a great deal more than you and I do. The sad fact is that very few American citizens know what a tariff is nor the degree to which it affects almost everything they buy. Even items that are labeled as “made in America” may have components from another country that were subject to tariffs. We pay higher prices because of tariffs and never realize it because the tariff is built into the final cost.
So yes, tariffs are definitely a tax that you and I pay, and for that reason, we should pay attention to when and where tariffs are levied by anyone in our government.
What about income taxes?
Income taxes have technically been around since the Civil War. President Abraham Lincoln instituted the first income tax in 1861 to help pay for that bloody war. Since then, there have been a number of changes. Here’s the timeline of significant tax events:
Every time income taxes come up, there are always some zealots who pop up saying that income taxes are illegal. Those silly people are wrong. The 16th Amendment provides all the authorization the government needs to impose and raise taxes. Read it for yourself:
The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.
That’s one broad, sweeping authorization! Whether we like it or not, it’s law. Today, income tax is responsible for over $3 trillion in federal revenue and factors significantly into whether the federal government is able to balance the budget and pay its debts. This creates a problem when we start talking about changing the income tax rates. The 2024 federal budget requires revenue of $6.5 trillion. Some of the difference is made up of corporate and other taxes, and $30 billion in new tariff revenue. However, there are still not enough taxes to balance the budget. We are looking at a $348 billion deficit just for this year, according to the Bipartisan Policy Center.
Trying To Make The Numbers Work
Now that we have some understanding of tariffs and income tax, let’s try putting together the numbers according to the Orange Felon’s proposal and see if it works. First, he wants to add 10% in tariffs across the board. The Office of Management and Budget reports that in the last “Fiscal Year” — October 2023 to September 2024 — CBP officers collected over $80 billion in tariff money, nearly as much as their Treasury colleagues got from all the taxes on inheritances, gasoline, liquor, and tobacco put together. Add the $30 billion in new tariff revenue and we have $110 billion. Next, we add the proposed ten percent. That gives us $121 billion.
Okay, children, which number is larger: $3 trillion or $121 billion? Can $121 billion replace the $3 trillion without increasing the federal debt substantially? No, it cannot. The numbers don’t add up. We have a problem, and it doesn’t involve Chinese communists even a little bit.
Granted, we can’t exactly expect a felon convicted on fraud charges to be especially good at math, or logic for that matter. Again, he’s most likely basing his random vocalizations on numbers he’s heard during briefings he mostly slept through. Still, we, as voters, need to understand the dangers of proposals such as the ones he’s spouting because ridiculous ideas like this have a way of becoming law.
First, we have to realize that levied tariffs don’t exist in a vacuum. When a tariff is levied against a country, that country almost always, especially in today’s competitive environment, responds with a similar tariff on US export goods. According to Forbes:
For example, if a broad 25% tariff on all imported goods is placed, the cost of every imported good will go up by at least 25%. Retailers and manufacturers will pass that added expense on to consumers, and prices will necessarily go up on any imported goods or goods that contain imported materials. This will cause consumers to choose domestically-produced lower cost goods, to the extent they are available.
As demand shifts to American made goods, in the absence of a matching level of increased production in every sector of the economy all at once, there will be more demand for domestic goods than supply. Prices will skyrocket just as they did during past supply chain crunches.
In essence, tariffs act as a regressive tax. They were broadly eliminated in favor of an income tax in the late 19th century for just that reason. Their regressive nature means that lower and middle-income consumers would bear the brunt of the cost of financing the public fisc—effectively experiencing an immediate and substantial increase in their cost of living.
Forbes estimates that it would take something close to an 85% increase in tariffs to replace revenue generated by the income tax. Even that number is probably much too low. A more realistic number is well over 100% and at that point, things start getting very scary for the US economy.
Let’s consider the calculations of an expert: Paul Krugman, Nobel laureate in Economics. Taking to the X platform, he laid the math out for everyone to see.
Imports are about 14 percent of US GDP. Federal income tax revenue (not including payroll taxes) is about 8%. So you might think replacing it would require a tariff rate of 8/14 or around 57 percent. But tariffs would raise the cost of imports to consumers, so we’d import less, which would mean you need a higher tariff rate. But this reduces imports further, meaning a still higher tariff, and so on how high you have to go in the end depends on how much prices affect import demand — the elasticity. I assume an elasticity of 1, which is what you sometimes get for the medium run, although the long run is probably higher (which makes it worse).
With an elasticity of 1, the estimate looks like this: t*14/(1+t) = 8 Work this through, and the tariff rate is 8/6 = 1.33, that is, 133 percent. With a higher elasticity, it would go higher, maybe to infinity. So how is it that in the 19th century the federal government largely paid its way with tariffs? Because back then the government was much, much smaller. Believing that we can go back to those days is just ignorant.
133%! Consider that, according to the American Center for Progress, the ten percent increase in tariffs would cost Americans, on average, $1,500 per year, then, assuming straight across-the-board equivalencies, a 133% percent increase would cost Americans several thousands of dollars more, possibly well in excess of $10,000 per household!
I don’t think that’s quite the tax cut the Orange Felon thinks it is. Of course, what would we expect from someone who cheats on every financial deal he’s ever encountered? Oh, and the financial break would look something like $1.5 million for the 1% of Americans currently hoarding way too much money. That’s just a blip on the radar for Elon Musk, perhaps, but that always means more coming out of the pockets of people like you and me.
So, know that if you go ahead and vote for the Orange Felon, whatever your misguided reasons may be, the end result is going to cost you a lot more money than you’re paying now. Thousands more.
In my opinion, he’s not worth it. No one is.
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