If I Gave The State of the Union
Friends, Citizens, Congress Critters, lend me your ears! I have come here at this solemn moment to share with you the state of our union as I see it. Y’all aware that up until 1913 this was delivered in a letter? So let’s dig in and, let me start by saying y’all ain’t gonna like what I’m about to say.
If you haven’t noticed, the world’s a mess, and some of that is the fault of the United States. We’ll cover the world being a mess in a different address though, but let’s stick to why we are here and that’s so I can tell you the state of our union and my vision of where we could and can be.
Overall? We could be a lot better off.
Where does the blame for our condition lie? Look to your left, now to your right; now turn your front facing cameras on and look at your selves. Yes, the blame lies squarely on YOU and those around you! While a few of you are building your wealth on insider trading most of our people are living paycheck to less than paycheck. They are finding there is just too much month at the end of their money because y’all suck at doing things that actually help, but you’re the first ones in front of a camera clamoring with platitudes trying to say something, anything to keep your seat here. YOU ARE PUBLIC SERVANTS! A good servant is not seen. A good servant does not seek praise. A good servant relies on the knowledge that a job done right is all the praise they need.
Now, I can do some things to help, but not everything. By the power of the executive branch I have a plethora of agencies under my command.
Fuel prices: sadly they are going to hurt for awhile because in 50 years no one in congress, the petroleum industry, or the automotive industry, has had the balls to fix what we know happened in 1972 and we knew would happen again! What did we get? We got Corporate Average Fuel Efficiency standards commonly known as CAFÉ standards. Did they help? Not much. All it set was an average goal across a fleet, and exempted all trucks–I bet y’all wondered why SUVs are considered trucks and where the hell did the station wagon go?
Here’s how CAFÉ works: A car company makes the Behemoth. It has 500 cubic inches of fuel sucking power spread across 10 cylinders, it gets 12 miles per gallon highway on 93 octane, but hauls a family of four, a weeks groceries, sports equipment and tows a recreational vehicle all at the same time. They also make the Sipper: It has 2 cylinders, 8 speed manual transmission, no air conditioning. It gets 75 miles per gallon on diesel, has room for the driver, their lunch, a briefcase, no passengers, and you might get a bag of groceries squeezed in somewhere. Their CAFÉ rating is 43.5 miles per gallon but the standard is 30 miles per gallon so they exceeded the target by roughly 50%! Now you tell me how that helps.
Because I can compare within a brand and model, the 1983 Honda Civic got 46 miles per gallon in the city and 59 on the highway. That same model today gets 29 city and 37 highway. What the hell happened? I can tell you the weight increased, but why? In 1983 it was a manual transmission, carbureted, car with a distributor. We added weight with On Board Diagnostics, transmission control computers, vehicle stability control, anti-lock brakes, airbags, specially designed crumple zones, then just things we take for granted like air conditioning, cup holders, and so on. Technology has advanced so why did we lose fuel economy? Can we not be safe and get good mileage? Do we need to return to carburetors and manual transmissions?
While we are on fuel economy, have any of you filled your tank in the last couple of days? Probably not, I would but Secret Service frowns on me getting out of the car. But I do pay attention to my surroundings. So let’s talk about oil. We as a nation are addicted to the stuff and like any addict our fix is killing us and keeping us from achieving our potential. With that in mind and through the power of the Enviromental Protection Agency I am mandating that all cars be manufactured as flex fuel, capable of running 100 percent ethanol fuel by January 1st 2024. Brazil has had tremendous success using ethanol and became the first successful bio-fueled economy; we could have been the leader, but now we need to catch up. All new diesel vehicles need to be capable of running 100 percent bio-diesel by the same date. I am aware that this does nothing for today’s fuel consumer but we have to break the cycle as we should have done in 1972!
I am also authorizing the phase out of gasoline powered vehicles. All new mid-size and smaller cars will be either electric or plug-in, bio-diesel hybrids by 2035. Large cars and all trucks will be bio-diesel hybrids by 2040. I am also unilaterally removing the mandate that corn be used to make ethanol. There are other alternatives such as sugar beats, and in the end ethanol is ethanol no matter the source, and corn simply requires too much fertilizer.
Now let’s face facts: Humans have lost the drug war. The plants have won. So I am instructing the Drug Enforcement Agency to stop prosecuting first time drug offenders and instead use the money intended for incarceration to get those people the quality health, and mental health care they need. I am also informing the DEA to relax enforcement as we petition congress to rework the schedule system.
I want industrial hemp to be fully decriminalized by June of this year. Hemp is an amazing plant and can serve as a wonderful solution to many of our problems.
Due to fertilizer shortages I am instructing the USDA to consider the use, safety, and effectiveness, of biosolids fertilizers such as Milorganite. This is a high nitrogen fertilizer that slow releases and could take us off petroleum based fertilizers or at least reduce our need for them, in time.
Now, through the power of the Securities and Exchange Commission I am hereby and immediately stopping all futures trading, and I mean ALL of it! The U.S. consumer is constantly paying the price of commodity futures traders speculating and by default gambling against the economy and now it stops!
By using my authority over the Federal Railroad Administration I am bringing in a task force to ascertain the viability of getting high-speed rail running on our existing rail infrastructure. Now many here tonight will be wondering why I don’t lobby congress for a massive infrastructure spending bill to ram this through. Simple: the Government does not own the right-of-ways needed. We would be looking at billions in spending and eminent domain litigation just to acquire the needed ground. Why do that? The major rail carriers already own it. We need to convince them that Amtrak needs some wiggle room in the meantime so we can speed up passenger rail service. We also need to cut the number of stops that Amtrak makes on corridor runs. We aren’t copying the metropolitan bus model where we get to speed and stop every little bit. We used to have a thriving rail passenger system in this country and we can again, if we get the major rail carriers to work with Amtrak. By working with what we already have we can get our footing, get going, and move forward!
As a nation, we are under-water in debt. I am telling y’all now I want an itemized budget, I want it balanced so that there is money left to pay down the debt and if it does not meet these criteria I will veto it. I am instructing the Treasury Department to end our FIAT currency system and move us to a silver backed dollar. Now, some will wonder “Why silver?” Simple: because in 2019 we mined 965 tons of silver right here in the United States!
I am also instructing the Internal Revenue Service to seize and audit the Federal Reserve System and until the audit is complete I am instructing the State Department to ensure none of the board or central bankers leaves the mainland U.S.
Since no-one here really wants me to stand up here and a bloviate for hours on end, over the coming weeks I will be releasing more detailed information into other aspects of modernizing our United States. A modernizing of our tax codes, of our health-care system, of our welfare and retirement systems, of our educational system and framework. Modernizing that will help to once again put us on a solid footing with the world economy and maybe even bring us back into the leadership role we once had. We aren’t going to “Build Back Better” nor are we going to “Make America Great Again” because basically those are the same thing. It is time to consider our faults, learn from our mistakes, and improve our nation. What we should be doing is leaving a better place to our grand children than we had as children.
“We are looking ahead, as is one of the first mandates given us as chiefs, to make sure and to make every decision that we make relate to the welfare and well-being of the seventh generation to come. … What about the seventh generation? Where are you taking them? What will they have?”–Oren Lyons, Chief of the Onondaga Nation
There’s a lot of provocative thinking in here. I don’t know that I’ve ever seen such an interesting mix of libertarian and socialist budget approaches. Thanks for pulling together.
That said – the federal budget is very detailed – that’s why its 20,000 or so pages long each year. With charts and tables and graphs and everything. Its actually a problem.Report
When it’s actually passed, where is a good place to look for it? Or any Treasury or other useful analysis?Report
OMB generally hosts the whole thing. Each executive agency generally has summaries on their websiteReport
A really fascinating collection of policies. Certainly you’d have incredible love for your policy mix from big ag as the ethanol business is incredibly lucrative pork for them.
I have to admit I found your rail suggestions a bit out there. America just isn’t laid out, legally or geographically, for rail. Maybe it was possible in certain urban locales back in the early 1900’s but it assuredly is not now. That’s spilled milk under the bridge as they say but good luck turning the clock back on that. The existing rail right of ways, as I understand it, work fantastically for what they’re meant for- freight- but are terrible for high speed rail which needs more level long stretches of straight rail than what exist now. We’re not China. We can’t (nor should we) expropriate the land needed for new right of ways nor can we (nor should we) run roughshod over the NIMBY’s who object and shoot the NIMBY’s who vehemently object. I just don’t see how we get from here to there.
Encouraging electric cars strikes me as a great policy. What’s your position on electricity generation?
I found your financial position very fascinating- I’ve never seen a person both encapsulate a left wing disdain for financial instruments and tools of price predicting/managing simultaneously with gold(or in this case silver) bug anti-fiat currency positions. What is the purported audit of the Fed/central banks expected to find? I’m going out on a limb here but I’m guessing, a whole lot of the Feb buying and selling (but especially buying) federal treasury bills? Isn’t that, uh, normal?Report
Worth noting here that the Fed’s balance sheet and market operations are already a matter of public record. It’s constantly being audited all the time, with updates posted on a weekly basis. It’s not clear what those calling for an audit are hoping to find.Report
They are hoping to discredit fiat money so we get forced back to gold or silver backed currency which they somehow think has magical economic powers. That’s and they detest anything appearing to be a central bank controlled by the government.Report
“I’ve never seen a person both encapsulate a left wing disdain for financial instruments and tools of price predicting/managing simultaneously with gold(or in this case silver) bug anti-fiat currency positions.”
A lot of Americans don’t understand the concept of currency in general, and especially fiat currency. Then they also don’t understand banking and budgeting outside of a household context.
And, bluntly, a lot of politicians ruthlessly exploit that for votes — creating false or misleading analogies to household budgets, severing related concepts or straight-out “if we do this, this happens” casual relationships to push BS.
And the Federal Reserve might as well be a magic wish and blame box. The number of people, for instance, who think QI was just permanently printing trillions of dollars and shoving it into the economy (instead of creating temporary liquidity) is staggering.
(Then there’s taxation, where I often hear the lovely phrase of “Don’t bother taxing corporations/the rich, they’ll just evade it so don’t try. Strangely we have laws against murder and people keep killing but nobody suggests we repeal those laws, so maybe that’s something of a solvable problem…?)Report
As long as there are loopholes, people and corporations will exploit the loopholes. As long as we refuse to fully fund enforcement there will be uncollected revenue. Private companies don’t allow that situation to happen, ever. I remain mystified as to why the government should.Report
You don’t bother taxing corporations because it’s a pass through cost. If you raise taxes on corporations across the board, or across a sector, they will simply raise prices or cut employee compensation, unless there is some significant competitive pressure to counter that (be it a Union to stop the loss of compensation, or outside corporate competitors to keep prices low).
And that’s assuming that the hike in taxes doesn’t carry enough “loopholes”* to make the hike merely symbolic.
*A misnomer if there ever was one.Report
Come the end of June, do you plan on adding the important paragraph you missed here? When the Supreme Court announces their decision in West Virginia v. EPA and the three consolidated cases, they are going to significantly restrict what the executive branch departments and agencies can do with rule-making. I want to read your paragraph that starts, “Now, I know the Supreme Court has said that many of these things exceed the authority of the executive branch…”Report
Why a silver standard? What are you hoping to achieve?Report
I’m a concerned that this would tarnish the standing of the US dollar.Report
Hah!Report
It certainly could hurt the dollar’s sterling reputation.Report
In my experience gold (and I guess silver) bugs — and crypto bros — understand that fiat currency only has value because we all agree collectively it does, but they do not seem to understand that also applies to gold, silver, or bitcoins.
And they certainly don’t grasp that while the Federal Government can indeed print more fiat (or destroy it), people can also dig up more silver — or hoard it, sell it, or otherwise manipulate it’s level of supply and thus alter it’s value, and doing so based on a desire for profit not a mandate for stable value and low unemployment rates.
Anyone familiar with American history would have noted the amazing boom/bust cycles common with gold and silver currency (or currencies backed by such), as well as the fun random inflationary cycles caused by large gold or silver discoveries.
It turns out gold and silver reserves do not actually grow roughly in line with population and GDP expansion and instead just do their own thing, regardless of how it effects the economy.Report
That’s my general experience too, but I prefer to have a conversation with a person and not an archetype, so I wanted to open by asking, since the format of the post precluded Maury from explaining her reasoning.Report
I’ve yet to meet anyone advocating for a return to silver or gold backed currency to understand exactly what it is they’re asking for and what it would entail.
I’m not sure that’s so much “archetype” as literally “my entire lived experience, and you’d be surprised at how often it comes up”. It’s not even remotely the most fringe economic idea in America.
I’m happy to read an expansion on Maury’s reasoning. I’d imagine it’d be relatively interesting given the context in which it was placed.Report
Doing some back-of-the-envelope calculations based on CPI data back to 1913, we averaged 2.6% inflation on average before 1971, and 3.9% inflation since.Report
I’ve heard this line often, about how fiat currency only has value because we think it does, but I think it has only a partial truth to it.
Currency really has two roles- one as a medium of exchange, and a second role as a speculative investment.
A speculative purchase of euros really does have value only based on faith.
But a unit of government backed currency, as I see it, has a very real and tangible value. Every unit issued represents the government’s ability to extract real tangible wealth out of the economy in the form of taxes.
It could be said that the government has a lien on every single bit of wealth produced within its borders, and that the currency has a real value based on this.Report
I think you are overly optimistic in terms of “The Federal Government.”
Sooner or later, all fiat currencies’ value goes to zero. And that’s a bad thing for the economy too.
Silver, for what it’s worth, has enough industrial/scientific applications that it isn’t purely faith-based. You have a hard limit on how low the price of silver can fall.Report
So I am instructing the Drug Enforcement Agency to stop prosecuting first time drug offenders and instead use the money intended for incarceration to get those people the quality health, and mental health care they need.
Since you’re talking about health care, I assume that you’re talking about users, not traffickers. Is the DEA actually prosecuting people for personal possession on a regular basis?
I don’t believe this to be the case. Here’s some congressional testimony from a DEA administrator:
https://www.govinfo.gov/content/pkg/CHRG-113hhrg89809/html/CHRG-113hhrg89809.htm
The DEA only makes 20-30,000 arrests per year. They don’t have the resources to mess around with users.Report
Diesel cars in the US are all but outlawed now. No one is importing them or manufacturing them (in any quantity)
News update: “MAURA ALWYEN accidently fell and hit her head on the toilet–45 times. News at 11! The Vice President takes the oath of office in 15 minutes, promises to rescind all presidential directives deceased President Alwyen executed.”
All social media and streaming services delete all records of President Maura Alwyen’s State of the Union Address.
🙂Report
Diesel powered personal vehicles in the US are 3% of the market. They are 50% percent in Europe. There is no legal restriction, just a massive marketing campaign aimed at something else. And frankly that will have to change once the Administration’s new fuel economy standards go into effect.Report
It’s not going to change. Frankly, what Europe does doesn’t matter for the US, They aren’t being imported. The VX emission fisaco effective removed them from the market. The gov’ts policies and “nudging” is clearly to electric cars..Report
So that 3% is entirely domestic production?Report
IIRC, diesel isn’t popular for POVs in the US because of CA emissions. CA requirements make diesel expensive for cars/SUVs (remember the Volkswagon scandal?). As CA goes, so goes the nation on emissions. It’s not that we can’t make diesel cars that meet CA emissions, it just adds to the price and detracts from the performance.
Trucks and larger vehicles have different standards so they get a pass.Report
Diesels have a long history of problems for personal vehicles in the US. (You’ll be able to tell that I’m old.) Paraffin separation in deep cold weather. Necessary long warm-up times. Obnoxiously visible exhaust at times. Slow response when the driver floors it. Once these were established perceptions, difficulty finding diesel pumps.
Europe has milder weather, a much longer history of underpowered gasoline engines, and a tax structure that makes diesel engine efficiency and higher energy content per liter much more attractive. You can only push catalytic cracking and such in the refineries so far, so Europe has long had surplus gasoline and the US surplus diesel. Lots of trade in finished petroleum products.Report
Welp, as a personal owner a a diesel vehicle, I’ve had no problems. It’s a 2012 runs great, low maint. and is exempt from my states emissions testing programs. The car has good torque, gets amazing fuel economy and it handles almost as well as my prior German luxury sport coupe for thousands less.
I believe that CA has special fuel requirements for ICEs as well.Report
So according to you you own and operate a car no one imports to the US. That’s gonna be tough to replace with another I guess when the time comes.Report
My wife’s first car was a diesel VW rabbit. No performance issues and with her block heater plugged in in Eau Claire it started right up. So did everyone else who plugged in.Report
I had a friend in High School that had a 70’s(?) diesel Mercedes sedan. No problems starting up in the WI winter, and while it didn’t accelerate as hard as a gasoline sedan with a similar sized engine, it still had some get up and go, and you’d find yourself doing 90 down the highway, wondering how in the hell you got going that fast.Report