Election 2026: GOP Will Hold Senate

I am still on summer break until after Labor Day. However, this special posting is possible because I am able to call the senate election much earlier than expected.

First, a gentle reminder about my political bona fides. I have 60 years of political experience and my record of calling elections in 20 years of blogging has been prescient – including calling Trump in 2016 and 100% of senate races in the prior 2022 midterm election.


Now that primary season is over and the nominees have been determined, it is clear Democrats have no realistic path to win control of the senate.

Senate seats in the classes of 2028 and 2030, and thus not up for election in 2026, are comprised of 33 Republicans (GOP) and 34 Democrats (Dems).1 In the class of 2026, there are 15 seats safe for the GOP and 10 seats safe for Dems.2 This results in 48 GOP seats and 44 Dem seats (total 92) that either are not up or are safe in 2026.

The GOP will have 50 senate seats and control the senate if they win Texas and Maine.

To cut to the chase, there is no realistic way Dems win Texas, and Maine likely is out of reach. Texas is a laugher; I expect the GOP to win by 500,000 votes. Maine will be closer, but not competitive. The Dem candidates in Texas and Maine are deeply flawed; and in Maine are up against someone who always outperforms polls.

When Texas and Maine are added to the GOP total, this gives them 50 seats and, with the vice president, control of the senate. This is not a surprise as Dems have known all along they needed Maine to have even an outside shot at the senate. Even if by some miracle the Dems win Maine, they would still need to win all 6 of the remaining seats in play including 3 that are leaning GOP. Don’t forget about Minnesota.

Share More Liberty – Less Government

This means the GOP has 50 seats and the Dems 44 – with six that are competitive. Following are how things now stand with the six remaining states.

Alaska: The GOP is 90% likely to carry Alaska. The only possible roadblock is Dem shenanigans – running a candidate with the same name.

Michigan: Republicans are 80% likely to win. El Sayed is far (real far) outside the mainstream and he is up against a strong candidate who nearly won last time.

Iowa: The probability is 65% that the GOP will hold Iowa.

North Carolina: This is a toss-up.

New Hampshire: This is a 55% – 45% election in favor of the Dems. The GOP always comes close in NH and they have a real shot at winning this time. However, as of now they are the underdog.

Georgia: I handicap this as 60% likely to stay with the Dems.

Of the six that are competitive, three (Michigan, Alaska, Iowa) lean strongly GOP. The remaining three (Georgia, New Hampshire and North Carolina) are in the Democrat column or are in a dead heat.

My fearless forecast is the senate will be 53 Republican to 47 Democrat. For the Dems to take control would require them to win Maine, plus all 6 competitive states and Minnesota, a Sisyphean task for which the probability is infinitesimal.

Subscribe now

House of Representatives

The house is the polar opposite of the senate. Anything is possible. The conventional wisdom is that there are only about 18 seats that are competitive. However, there could be a blue wave if Iran is not settled and inflation spikes, plus the historic pattern of the party out of power gaining seats. There could be a red wave if voters punish the Dems for their embrace of socialism – really, communism.

As the election approaches, stay tuned for more fearless forecasts from MLLG.

1

Independents are counted as Democrats.

2

Although Minnesota generally is considered safe for the Dems, I believe it is in play and the GOP has a credible chance to flip it.

Original on Substack

Medicare For All – Canadian Style

Note to readers: I am on break until after Labor Day; but given all the chatter about Medicare for all, I wanted to share my perspective from 20 summers on Canada’s doorstep.

My family spent 20 summers in Whitefish, Montana, 50 miles south of Canada and only four hours from Calgary and its 1.7 million people. Given the myriad attractions of Whitefish and Glacier National Park, there is a massive Canadian presence during the summers. However, many Canadians also come for the medical care.

I always asked our northern neighbors how satisfied they were with the state run healthcare. Of the many I queried, only 2 said they were satisfied. The first said he liked the care in Canada, but always came to Montana when the waits were too long. The second defended the system by saying it was good at triage, i.e. if your condition seriously deteriorated, they would try to move you up on the waitlist.

Serious Systemic Problems

The core problems with Canadian Medicare are deeply embedded – limited capacity, slow patient flow1, rising demand, ageing population, government inertia and long wait times. Following are some of the specific problems.2

  • Too few hospital beds forces patients to wait to be admitted to a hospital.

  • Emergency departments are overwhelmed with lengthy wait times.

  • There are shortages of primary care doctors, thus pushing patients into emergency rooms for care that should have been handled in primary care. This, of course, exacerbates the wait times for emergency care.

  • Long-term care and home care are dysfunctional. This keeps acute care beds occupied longer than necessary and slows care throughout the system.

  • There are long waits for diagnostic imaging which slows treatment.

  • A dire shortage of specialists results in an average wait time of 30 weeks and as long as 77.4 weeks in some provinces.

There are only 400 MRI machines in all of Canada – less than in Los Angeles, Chicago, Houston or Dallas – where same day service is the norm.

Share More Liberty – Less Government

Typical Wait Times

Following are some current wait times for various medical procedures.

Specialist consultation: 30 weeks

Orthopedic surgery: 57 weeks

Cataract surgery: 20 weeks

Hip replacement: 40 weeks

MRI and CT scan: 22 weeks

Emergency room: up to 24 hours

There currently are 5.8 million, or 1 in 8, Canadians on some form of medical waitlist. The equivalent number for the USA would be 43,750,000!

Confiscatory Taxation

Not only is Canadian healthcare dysfunctional, it is uber-expensive. The federal income tax rate (middle bracket) is 26%; provincial rates add another 26%; payroll taxes add 8%; healthcare is 6% and there is a sales tax of 15%. If you are keeping score, the total is 81%. For all that money, there are 5.8 million Canadians on medical wait lists where some inevitably die waiting for treatment.

The comparable taxes for Montana are: federal income tax (mid bracket) 22.0%, state income tax 4.7%, payroll tax (Social Security) 6.2%, Medicare 1.5% and sales tax 0%. The total for Montana is 34.4% with same day service and no waitlists. Montana delivers far superior healthcare at half the cost of Canada. No one from Montana ever goes to Canada for healthcare.

Subscribe now

Meanwhile in Montana

In Montana many of the procedures listed above are available same day or within a few days. Moreover, the cost is affordable for Canadians without insurance who must pay out-of-pocket. I have heard many heart-wrenching stories about delayed healthcare from my Canadian summer friends, many of whom passionately forewarned me against Canadian style socialized medicine for the USA.

Lessons From Canadian Healthcare

It is an immutable law of economics that if something is in great demand, it must be rationed via either cost or time. Since Medicare for all is free, it can’t be rationed by cost and must be rationed by time. BINGO! How comforting it must be for the 5.8 million Canadians on waitlists to know that if their condition seriously deteriorates, they just might be moved up higher on the waitlist.

Desperate Canadians wait up to 77 weeks for treatment that is instantly available just 50 miles south in Montana – and for half the taxes Canadians pay. Free medical care is no good if it is inaccessible and you die on a waitlist. Keep that in mind when you hear some clueless socialist wannabe touting Medicare for all.

1

The US experiences the same problem in government run programs such as the VA, where some doctors see only 8 patients a day versus up to 40 per day in the private sector.

2

Sources for Canadian data are the Canadian Institute for Health Information (CIHI) and the Fraser Institute.

Original on Substack

American Exceptionalism

Happy 250th anniversary to my readers! America is facing difficult challenges, many of which I have blogged about on these pages. However, today I put our nation’s troubles aside and celebrate what makes America so special. Following are some of the ways in which America is truly exceptional.

Liberty: In 1776, the world population was 750 million and not one of them enjoyed liberty as we understand it today. People lived under monarchies, empires, feudal systems, serfdom and bondage. America was the sole exception.

Founding Principles: America is the only nation founded on enlightenment ideas: natural rights emanating from God, consent of the governed, individual liberty and the rule of law. These ideals united Americans more than bonds of religion, nationality or tribe. Our motto, E Pluribus Unum, means one out of many.

First to Overthrow Colonial Rule: The shot fired at Lexington on July 29, 1775 was called the “shot heard around the world” for good reason.

Oldest Charter of Government: The Constitution created a durable system of separated powers, checks and balances and federalism that has endured far longer than that of any other country. Over 50% of all constitutions fail within 20 years.

Melting Pot: We are a nation of immigrants. America has absorbed tens of millions from every continent with high rates of assimilation and intermarriage. We don’t have a rigid class structure, Sharia courts or no-go zones. Never has any country been so welcoming to so many people from so many places for so long.

Give me your tired, your poor, your huddled masses yearning to breathe free, the wretched refuse of your teeming shore. Send these, the homeless, tempest-tost to me.

The American Dream: We believe anyone, regardless of background, can achieve success through hard work. Anyone can own a home, start a business and go to college. There is no such thing as the German dream or the Chinese dream.

Self Correction and Moral Arc: America fought a bloody war largely to abolish slavery. We were among the first to dismantle legal segregation and expand rights to women, gays, seniors, Native Americans and even animals.

Sacrifices For Freedom: The USA has a special responsibility to shape world affairs, defend freedom and promote democracy. America has laid costly sacrifices on the altar of freedom – and in most cases without conquest, territory or resources. The only thing we ask for is a plot of land to bury our dead.

Frontier Spirit and Manifest Destiny: America’s open frontier shaped a uniquely self-reliant, innovative and mobile national character. It fostered a can-do attitude and the belief that any difficulty could be overcome.

Share More Liberty – Less Government

Global Leadership: As the world’s only superpower after WWII, America established the post-war liberal international order including the Marshall Plan, NATO, Bretton Woods, United Nations and containment of Soviet communism. The US is the only nation that can project power globally via aircraft carriers, bases and alliances.

Even after 250 years, America continues to captivate and inspire people the world over; they dream, not only of coming to America, but of becoming Americans.

Economy and Innovation: America has 25% of the world’s GDP with only 4% of the population and 6% of the land mass. We have the most Nobel Prizes in science and economics by far. Virtually all innovations and transformative technologies originate in the US, including smart phones, computers, AI, fracking and internet.

Cultural Power: English is the global lingua franca due to America’s overwhelming influence. We are dominant in entertainment, movies, music, sports and consumer culture. American brands and cultural exports shape global tastes.

Subscribe now

American Exceptionalism

The listing above contains 12 characteristics that make America exceptional. I cannot think of any other country that has even one of these badges of exceptionalism.

America is the only nation defined by an idea, one that continues to be noble, true and eternal. It captivates and inspires people the world over, who dream, not only of coming to America, but of becoming Americans. This land is our land, from California to the New York Island, from the redwood forests to the gulf stream waters, from purple mountain majesties above fruited plains to oceans white with foam.

As we celebrate our nation’s 250th birthday, may God continue to shed his grace on America, to stand beside her and guide her with a light from above. May God bless America – our truly exceptional home sweet home.


Note to Readers: MLLG is taking a summer break until after Labor Day. However, there likely will be some unplanned posts during the summer. Thanks for reading and stay tuned.

Original on Substack

In Defense of Price Gouging

Hurricane season is just beginning. The first time a hurricane makes landfall in the US, expect politicians and the media to denounce price gouging, establish hotlines for reporting violations and threaten offenders with dire consequences – this despite economists’ near unanimity that this practice is beneficial.

Market prices are determined by voluntary cooperation among people. Government prices are coercive and based on the naked police power of the state. Markets enforce themselves; government prices are enforced by men with guns.

Politicians are hypocritical. While they shamelessly denounce price gouging, they engage in the same practice. Prices at airports, turnpike rest stops and sporting venues – to name but a few – all are vastly inflated because government has a monopoly. Free market prices would be much lower at these places.

A poor ghetto kid risking his scarce capital to broker tickets outside a sporting event should be honored and encouraged – not called a scalper and treated like a criminal.

Americans understand and accept that prices for the same product fluctuate in different circumstances, such as hotel rooms in a college town for the weekend of a big football game. Yet if the price of the same hotel room rises due to an approaching hurricane, it somehow is condemned as gouging. I get it. People view a football game differently than a storm; however, in theory, there is no difference.

Market prices alleviate shortages by directing resources to where they are most needed. Government prices, such as rent control, result in scarcity, substandard housing and higher prices for units not subject to rent control. Market prices are non-political and foster civility. Government prices criminalize honest behavior, create black markets, incentivize illegal behavior and breed disrespect for the law.

Hurricanes and Generators

In a free market, entrepreneurs would buy and stock more generators in advance of a storm. Some may drive to other cities, at some peril, to buy generators to resell for what buyers are willing to pay. Some buyers may pay a lot if they stand to lose thousands of dollars of food in freezers or need to run vital medical equipment; others may just want the convenience of electricity. Market prices would mean those who stand to lose the most or have the greatest need would get generators.

Subscribe now

Moreover, entrepreneurs bear the risk of getting stuck with unwanted generators if demand is insufficient or if the hurricane changes track or weakens. Soon after the storm passes, the price of generators reverts to the status quo ante.

Anti-gouging laws ensure that no one gets additional generators and they criminalize honest and economically desirable behavior.

With anti-gouging laws, no one gets added generators from entrepreneurial activity. In a free market, every decision and price is voluntary and non-coercive. With government prices, such as anti-gouging laws, everyone suffers. The intrepid entrepreneurs who supply extra generators are subject to vilification and arrest, while economically illiterate politicians and the media pander.

Hurricanes and Hotel Rooms

The situation with hotel rooms parallels that of generators. Again, price signals result in the most economically efficient allocation of hotel rooms. By adjusting prices when demand surges, consumers benefit. Higher prices result in the following, all of which result in more hotel rooms being available.

  • People are incentivized to stay with family or friends instead of a hotel.

  • Some would travel to more distant locations where rooms are cheaper.

  • Families that may have taken 2 rooms decide to make do with 1 room.

  • Some may decide to stay for fewer nights.

  • The supply of rooms would be vastly increased, as higher prices incentivize local residents to rent out rooms – or even their entire house.

Share More Liberty – Less Government

Hurricanes and Price Gouging

The price mechanism assures that more people will get more generators and hotel rooms. Far from being evil, higher prices enable the market to allocate scarce resources to the benefit of all consumers. Why should a storm be different than a football game – or for that matter than to Uber’s surge pricing?

There is no such thing as price gouging. Free market prices convey accurate and valuable information to guide consumers. Government prices such as rent control are dishonest and harm consumers. In which kind of society would you rather live, one based on voluntary cooperation of people in free markets, or one based on lies, coercion and enforced by men with guns?

Original on Substack

Legacy of Cuban Communism

Cuba Today

Cuba today suffers 700% inflation, a shrinking economy, 20 hours daily without electricity, mass emigration, collapsing wages, food shortages, demographic implosion, rotting infrastructure, currency chaos and political repression.

The numbers you are about to read in the following paragraph defy belief. Be assured however that the data have been checked from two independent sources. If you wish to check for yourself, I suggest starting with Copilot and Grok.

Cuba’s GDP per capita1 is $7,380, ranking among the lowest of 200 countries. The monthly take home pay of the average Cuban is $16 and the median annual household income is $146, a 96% decrease since 2015. The minimum wage is 3 cents per hour. The workweek is 44 hours. I could cite more statistics, but there is no point.

The cost of living is so high that it takes four months at the average pay to buy a basic food basket with 17 essentials. A dozen eggs costs 3,500 pesos, or about $30.

Authentic Che Guevara

Che may adorn iconic tee shirts worn by clueless youth. Useful idiots, in and out of the media, may offer encomia. But when the regime inevitably falls, the people of Cuba will render final judgment. Statues will be felled, murals defaced and the truth outed that Che was a despotic, murderous megalomaniac who took pleasure in inflicting incalculable suffering. Following are some of his atrocities.

  • He executed 500 people without due process; some were broadcast on TV.

  • At the UN, he said: “We have executed, are executing and will continue to execute”.

  • As chief judge of the revolutionary court, he oversaw systemic atrocities.

  • His writings were racist and homophobic.

  • When mothers pleaded to spare their sons, he sped up their executions.

  • He committed atrocities in Latin America and Africa.

Keep all of the above in mind the next time you see some know-nothing socialist wannabe decked out in a Che tee shirt.

Share More Liberty – Less Government

Real State of Cuban Health Care

Even Cuba’s hyped health care is a dismal failure. It couldn’t save Fidel Castro. There was delayed intervention, surgical failure and complications. They had to bring in a doctor from Spain. Infant mortality, once claimed to be ultra low and even superior to the USA, was a lie. Cuba uses forced abortions for any pregnancy considered risky and they don’t count infant deaths from underweight births.2 Cuba’s infant mortality is among the worst in Latin America and light years behind the USA.

Most Cuban doctors are sent abroad to earn hard currency for the regime. The host country pays Cuba (not the doctors). The doctors are paid a pittance by Cuba which pockets the difference. The doctors can’t quit because the regime uses their family members, who must remain in Cuba, as hostages.

Cuba and Taiwan

In 1959 revolutions occurred on two islands. Both were mountainous, 25% arable, and relied on sugar exports. Both faced large, powerful and hostile enemies that were less than 100 miles away. However, in 1959 one island was far ahead of the other in terms of health, education, income and many other metrics. That nation was Cuba.

In 1959 Cuba took the path of communism, while Taiwan became a free-market capitalist democracy. Fast forward to the present day to see the differences.

  • Taiwan’s GDP per capita of $98,000 ranks 10th in the world. Cuba’s is $7,380 and ranks among the worst. Taiwan is 13 times better.

  • The average monthly salary in Taiwan is $1,865, or 115 times Cuba’s.

  • Minimum wage in Taiwan is $6.11 per hour – 20,567% more than Cuba.

  • Median household income in Taiwan is 236 times that of Cuba.

  • Taiwan’s freedom index is 4th best in the world; Cuba ranks 175 out of 176; only North Korea is worse.

The above comparisons show the differences between freedom and capitalism versus tyranny and collectivism, between liberty and repression and between prosperity and stagnation. Recall that in 1959 Cuba’s GDP was double that of Taiwan.

Cuba today is a nihilistic society where 35% of all pregnancies are aborted.

Subscribe now

Legacy of Cuban Communism

Cuba has been a basket case for decades. However, the regime was propped up, first by the USSR and later by Russia, Iran and Venezuela.3 Now that none of those countries bails out Cuba, the real picture of the disaster that is Cuba emerges for all to see. And it is an ugly picture. The only redeeming feature is that it provides more evidence of the complete and utter failure of 67 years under socialism.

The data in this post reveal the depth and the breadth of the human and economic train wreck that is Cuba. It showcases the differences between capitalism and collectivism; the contrast with Taiwan is particularly breathtaking.

Cuba is a failed, nihilistic society; 35% of pregnancies are aborted. Nonetheless, Bernie Sanders, AOC, Zohran Mamdani and their progressive fellow travelers advocate the same policies that failed so miserably in Cuba. Go figure.

1

All data for Cuba are based on the CUP (Cuban peso) at the market exchange rate.

2

By contract, the US is best in the world at keeping low birth weight babies (as low as 400 grams) alive; it counts infants who don’t survive as live births and also as deaths.

3

Cuba still is heavily supported by remittances from Cuban Americans. Without that, Cuba would be even worse off – if one can imagine what that would look like.

Original on Substack

MLLG

America’s Greatest Christmas Story

America’s Greatest Christmas Story

The true inspirational saga of George Washington’s 1783 Christmas

George Noga
Dec 22, 2024

 

Reprising a MLLG tradition, I present the greatest American Christmas story. ¹ It is 100% true, known only to a few, deeply moving and uniquely American. It begins November 17, 1783 and ends on Christmas Eve. This could not have happened anywhere but in America; it shaped our republic in ways still being felt today.

a statue of a man riding on the back of a white horse
George Washington

November 17-20 – Newburgh, NY – Word of Peace Treaty

The Continental Army was encamped in Newburgh, NY, where earlier that year Washington quelled a revolt of his officers over back pay. He called a meeting, gave a short talk and then reached in his pocket for a letter from Congress to read aloud. He gazed at the letter and fumbled it without speaking. He then took a pair of reading glasses, which no one had seen him wear before, from his pocket. He then said, “Gentlemen, you will permit me to put on my spectacles, for I have not only grown gray but almost blind in the service of my country.” Everyone was moved to tears as they realized the sacrifices Washington had made. The rebellion died instantly.

Thanks for reading More Liberty – Less Government! Subscribe for free to receive new posts and support my work.

On November 17, 1783 George Washington received word the peace treaty had been signed. Now he could resign his commission and return to Mount Vernon, from which he had been away for 8 long years – excepting only a few days while enroute to Yorktown. Washington yearned to be home in time for Christmas but he had less than 6 weeks, many duties to perform and many miles to travel.

Immediately upon learning of the peace treaty, Washington issued farewell orders in which he lauded his troops for the extreme hardships they endured and urged them never to forget the extraordinary events to which they bore witness. He closed by announcing his retirement from service stating, “The curtain of separation soon will be drawn . . . and closed forever”. He appeared above all human ambition. Upon hearing his remarks, King George III called Washington “the greatest man of his age”.

November 21 – December 4 – New York City – Farewell to Officers

Washington traveled the 70 miles from Newburgh to New York arriving November 21. He believed it necessary to reoccupy New York to protect the British withdrawal and to prevent any untoward incidents. Washington was greeted as a hero with cheering crowds. Nearly every home had a drawing or lithograph of him in the window. Receptions and dinners were held nightly in his honor.

On December 4, Washington hosted a farewell reception for his officers at Fraunces Tavern. He realized the inadequacy of any formal address and did not trust his emotions to read one. When all the glasses were filled, he offered a toast.

“With a heart filled with love and gratitude, I now take my leave of you. I most devoutly wish your latter days may be as prosperous and happy as your former ones have been glorious and honorable. . . . I cannot come to each of you but shall be obliged if each of you will come and take me by the hand.”

Thereupon, each officer came forward to take his hand; every one was suffused with tears and unable to utter a single intelligible word.

December 5-18 – Philadelphia, PA

Next, Washington travelled 95 miles to Philadelphia. All along his route and at every stop throughout his entire journey, citizens gathered to pay tribute. Always courteous, the general accepted every proffered hand and returned every greeting.

America never before and never again will experience such an emotional outpouring for one man. Every citizen understood that he conducted them through a long and bloody war that achieved independence for their country. Everyone knew viscerally that there never again would be another such moment or another such man.

December 19-23 – Annapolis, MD – Returning His Commission

Washington traveled 129 miles to Annapolis, then the seat of Congress, arriving on December 19. From December 20-22, he was feted endlessly at lavish dinners and balls – always preceded with 13 toasts followed by 13 cannon shots.

On December 23 there was a special session of Congress to honor Washington and to accept his resignation. Attendance overflowed the facilities with people everywhere. Washington delivered his address, closing by saying, “ I retire from the great theater of action and here offer my commission and take leave of all employments of public life.” Thereupon, Washington withdrew from his coat pocket the parchment given him in 1775 that was his appointment as Commander-in-Chief and ceremoniously returned it. This speech is considered the most significant ever delivered in civil society.

December 24 – Mount Vernon, VA

Immediately after his speech on December 23, Washington set out for Mount Vernon. However, it was so late and the days so short, he got only 26 miles and stopped for the night in Bladensburg, MD. The next morning, Christmas Eve, he rode 16 miles to the Potomac River and crossed via ferry to Alexandria, VA.

Washington then rode the final 6 miles to Mount Vernon. It already was dark but about a mile away from Mount Vernon he could see its many green-shuttered windows all ablaze with candles. It was, after all, Christmas Eve.

 

I AM TAKING A HOLIDAY BREAK. MY NEXT SCHEDULED POST IS JANUARY 19, 2025. WATCH FOR SPECIAL UNPLANNED POSTS.

THANKS FOR READING MORE LIBERTY – LESS GOVERNMENT. BEST WISHES TO MY READERS FOR A MERRY CHRISTMAS AND HAPPY NEW YEAR!

1  For a more in-depth treatment, read “General Washington’s Christmas Farewell – a Mount Vernon Homecoming 1783” by Stanley Weintraub. The 174 page book is available on Amazon. I wholeheartedly recommend this book. Read it to your children over the holidays.

 

© 2024 George Noga
More Liberty – Less Government, Post Office Box 916381
Longwood, FL 32791-6381, Email: mllg@cfl.rr.com
MLLG

Why DOGE Will Fail

Why DOGE Will Fail

There is a long and inglorious history of failure

George Noga
Dec 15, 2024

 

I have posted frequently about cutting government spending.1 There is no way to make government more efficient; the most that can be accomplished is to reduce its size and scope. It still will be inefficient – just on a smaller scale. None other than Ludwig von Mises weighed in at length in his 1944 book, Bureaucracy2

“Citizens compare the operation of the government to business. They find bureaucracy is wasteful, inefficient, slow and cumbersome. They don’t understand how reasonable people allow such a system; why not adopt proven business methods? However, such criticisms are invalid and do not consider the differences between government and business. The bureaucracy cannot be improved by bringing in businessmen.”

Uncle Sam wasting money

There is a lengthy and inglorious history of the appointment of élite blue ribbon committees to cut government waste. The most recent are the 1982 Grace Commission and the 2010 Simpson-Bowles Commission.

Grace Commission

The Grace Commission was established by President Reagan in 1982 to identify government waste and inefficiency. It was chaired by noted businessman J. Peter Grace. The commission presented its report to Congress in January 1984. It concluded that one-third of all government revenue was consumed by waste and inefficiency. Its recommendations would have saved $140 billion per year. However, the GAO and the CBO estimated the savings at only $24 billion per year.

Although the commission highlighted areas for potential cost savings, only a very few of its recommendations were adopted. The actual impact of the Grace Commission was negligible and it proved to be a disappointment. There are compelling parallels between the Grace Commission and DOGE. Both were initiated by conservative presidents fresh off an election mandate and run by acclaimed businessmen.

Simpson-Bowles Commission

In 2010 President Obama established the Simpson-Bowles Commission to address the national debt and deficit. The commission proposed a comprehensive plan to reduce the deficit by $4 trillion over 10 years. The plan included both revenue increases and spending cuts. Despite the bipartisan makeup of the commission and the sterling political reputations of Simpson and Bowles, the plan never even came to a vote in Congress – it was dead on arrival.

Department of Government Efficiency (DOGE)

DOGE is the latest attempt to cut spending. It was created by a popular president, fresh off an electoral mandate, and is cochaired by the most successful businessman on the planet (Musk) along with another billionaire entrepreneur (Ramaswamy). It has generated much public interest and support. One would certainly think that if ever slashing government spending could be done, it would be by this president and these co-chairs. However, so it also was with Reagan and Grace.

Musk initially asserted he could cut $2 trillion annually. That is impossible without deep cuts to both Social Security and Medicare – which Trump ruled out. Even cutting $1 trillion is a pipe dream; it would require cutting the entire government except for entitlements, mandatory spending, defense and interest on the debt. Following is the actual spending for the fiscal year ended September 30, 2024 in billions. 3

Total revenue from taxes and all other ………. $4,920

Medicare, Medicaid, CHIP, Obamacare …….. 1,600

Social Security ……………………………………………..….. 1,461

Interest on the Debt ………………………………………… 882

National Defense …………………………………………….. 874

Income Security4 ……………………………………………. 671

Veterans’ Benefits …………………………………………… 325

Discretionary Spending ………………………………… 937

Total Spending ……………………………………………… $6,750

Deficit ……………………………………………………………… $1,830

What Will DOGE Actually Accomplish?

Social Security and Medicare are off the table. Income security (government pensions) and interest on the debt cannot be cut. Only minor cuts can be made to defense spending – which most agree should be increased. Big cuts to veterans’ benefits are impossible. That leaves only the cost of running the government ($937 billion). So, what will DOGE accomplish? Following is my fearless forecast.

The best outcome is for DOGE to cut $250 billion or 3.7% overall, but 26% of the $937 billion cost of running the government, i.e. discretionary spending.

  • A realistic expectation is for DOGE cuts of $100 billion to $200 billion.
  • The hype from Trump, Musk and Ramaswamy will be over the top. They will shamelessly trumpet and flog all their spending and personnel cuts. They will represent them to be more significant than they really are.
  • The hype from those opposed to the cuts will be outrageous. They will shamelessly trot out people allegedly harmed and assert DOGE is throwing granny over the cliff and starving children to death. Be prepared to see ads depicting alleged victims in the most dire circumstances imaginable.
  • Every government program has a constituency both inside and outside government. Expect them to fight fiercely to save even minor budget cuts.

DOGE has the most propitious opportunity in my lifetime to effect meaningful spending cuts. However, the math is heavily stacked against it. I look for a typical government ending to DOGE. In the final reckoning, DOGE will cut spending by up to $200 billion (including fiscal legerdemain) and will claim victory by asserting they cut $2 trillion over 10 years. Opponents also will claim victory by limiting spending cuts to a minimum and living to fight another day to restore the cuts.

It is impossible to take the politics out of politics. In the end, all sides will claim victory. The spending cuts will be less than meets the eye – they will be mostly hat and no cattle. Over time, the cuts will be restored and life in Washington will go on as before.

If DOGE cuts say $200 billion, that’s exactly 3% of all spending – weak tea indeed. All such a cut will do is to reduce the deficit by 11%. At most, it would delay the final reckoning by one year. It would not alter the death spiral trajectory of America’s spending, deficit and debt crisis.

Moreover, Trump’s campaign promises exert a strong bias for more spending and/or less revenue and will offset most of the DOGE spending reductions which, contrary to assertions, cannot be made up by tariffs and more energy production.

At day’s end, it is all about the numbers. There simply is no pathway for significant spending cuts without putting Social Security and health care (Medicare, Medicaid, CHIP and Obamacare) on the table. Stay tuned; it will be a wild ride!

  1. Please see my most recent post “Government Failure Explained” dated October 20, 2024. It is available on my website www.mllg.us and in the Substack archives.
  2. The following quote has been updated for modern usage, but the meaning is unchanged.
  3. These data were for FY 23-24. This FY interest on the debt will increase another $100+ billion and Social Security and Medicare will increase significantly due to unfavorable demographics.
  4. This includes unemployment, SSI, federal pensions and SNAP among others.

© 2024 George Noga
More Liberty – Less Government, Post Office Box 916381
Longwood, FL 32791-6381, Email: mllg@cfl.rr.com

MLLG

Why Liberals Hate Capitalism

Why Liberals Hate Capitalism

Capitalism is to each according to his accomplishments

America is engaged in a great culture war for the preservation of capitalism along with liberty – which is symbiotically linked to capitalism. As economist Joseph Schumpeter predicted a century ago, capitalism has sown the seeds of its own destruction.1 Schumpeter laid the blame at the feet of liberal professors who, freed from the need to work, would promote anti-capitalist dogma which eventually would result in people voting for a social welfare state, i.e. socialism.

College professors indoctrinating socialism

“Capitalism will not survive. Its demise will not be due to economic failure; instead its very success . . . creates conditions in which it cannot survive.” Schumpeter

Just how bad is the anti-capitalist mentality? In recent polls, a majority of Americans ages 18-29 believe socialism is the ideal economic system2 They embrace feel-good notions about some abstract socialist utopia3 that never has existed and never can exist. They simultaneously harbor a dark vision of capitalism as a dog-eat-dog system. Clearly, the vituperation of capitalism by professors has infected college students and wafted into the general population. It appears Schumpeter was prescient.

Why Liberals Favor Socialism Over Capitalism

There are many reasons progressives hate capitalism and embrace socialism.

  • Capitalism evolved organically. No intellectual wrote a capitalist manifesto. Adam Smith did not invent capitalism; he merely explained what people did naturally. Capitalism just happens; it doesn’t require academics to theorize.
  • No one is needed to control capitalism. Socialism however requires controllers, i.e. socialist intellectuals who deign to know what is best for everyone.
  • Capitalism is egalitarian. Some uneducated bloke can make a fortune stripping junked autos for parts because he provides a valuable service to consumers. In contrast, the intellectual feels unrecognized and unrewarded.
  • Professors are rewarded by bureaucrats, not markets. They succeed by pleasing statist employers, not by providing value to consumers.
  • Capitalism is to each according to his accomplishments, not his intentions.
  • Liberals believe their advanced degrees, pet theories and pristine intentions should be rewarded and override the free decisions of consumers, if necessary by using the police power of the state. Capitalists believe in laissez faire.
  • Collectivists prefer government regulation to the chaos of the marketplace.
  • Consumers are sovereign. Intellectuals enjoy no special status and the common man holds all the power via his decisions to buy or not to buy. The most powerful economic force on earth is a consumer armed with a free choice. Wealth can be achieved only by serving sovereign consumers – with every penny a vote.
  • Capitalism brooks no excuses for failure. Those who fail are found wanting by their fellow man. Both the carrot and stick are real. The economic landscape is littered with failed businesses and crushed dreams of wannabe entrepreneurs. Under socialism, there are no consequences for failure.
  • Socialists desire control over others because they know what is best for the poor ignorant rubes in flyover land. Capitalists just want to be left alone.
  • Intellectuals see themselves as heroic figures reining in greedy capitalists, saving helpless victims and basking in the approbation of mankind. Capitalists simply want to provide a product or service consumers value more than its cost.
  • Liberals focus on the perceived inequalities and social injustices of capitalism rather than on its astounding success in ending extreme poverty on our planet.
  • Progressives ignore the total failure of all collectivist systems ever imposed by man. They ignore Venezuela, Cuba, North Korea and the former USSR and believe they will get it right the next time. Capitalists know better.

Schumpeter’s Prediction: True or False?

Over 100 years ago Schumpeter predicted the success of capitalism would lead to its destruction. He feared the demise of capitalism, along with its corollaries of wealth and liberty, would usher in a new dark age resulting in a lengthy and unspeakable Orwellian torpor where men lead lives of quiet desperation. We are now in the end stage of a great cultural war to decide if our children and grandchildren inherit a world of free men and free markets or one of a never-ending socialist miasma.

I fear Americans have lost the critical connection between capitalism and the wealth and liberty it produces. By most objective metrics, it appears socialism is on the ascendancy. Even in America, that great bastion of capitalism and the richest country on earth, its youth favor socialism. Hopefully, this post will help explain why America’s liberal intelligentsia hate capitalism and love socialism.

Liberty is like a beautiful but fragile garden in the middle of the jungle; it requires constant vigilance to survive. It is not a natural state, but must be protected constantly against forces trying to destroy it. We Americans are not doing a good enough job tending the garden. Nowhere is it written that the garden will survive.

  1. Please see my posts of March 4, 2018 and March, 11, 2018 for a comprehensive analysis of Schumpeter’s prediction. All my posts are available on my website: www.mllg.us.
  2. See my post of May 26, 2024. It is available in the Substack archives and on my website.

  3. Most college students who favor socialism trot out Sweden as an example of a socialist nirvana. They are blissfully ignorant that Sweden is a capitalist state with sky-high taxes on its middle class. If Sweden were a US state, it would be 30% poorer than the USA’s poorest state, Mississippi.

    © 2024 George Noga
    More Liberty – Less Government, Post Office Box 916381
    Longwood, FL 32791-6381, Email: mllg@cfl.rr.com

Blue State Exodus Now a Stampede

Blue State Exodus Now a Stampede

California Dreaming has transmogrified into the California nightmare

George Noga
Nov 17, 2024

Latest IRS data confirm the exodus of wealth and income from blue states is now a rout. Millions of Americans voted with their feet and wallets. The biggest losers in the past year of adjusted gross income are California $24B (billion), New York $14B, Illinois $10B, New Jersey $5B and Massachusetts $4B. The winners are Florida $36B, Texas $10B, South Carolina $5B, Tennessee $5B and North Carolina $5B.

man in blue t-shirt and blue denim shorts holding black dslr camera
Family packing up and leaving California

This post compares California and New York to Florida in key metrics and also addresses quality of life issues between red and blue state America.

California Versus Florida

The California dream is now the California nightmare. Compared to Florida electricity costs 200% to 300% more, while gas is $2 a gallon more. The median-priced home is double that of Florida. California taxes middle-income taxpayers at a higher rate than red states tax millionaires. Of course, Florida has no state income tax. Zoning restrictions, wacko environmentalism, climate madness and public sector unions run amok in the Golden State – not so in the free state of Florida.

In recent years FL gained over 1 million jobs while CA lost 100,000. Despite this, the CA unemployment rate is double that of FL. Small business taxes in CA have a top rate of 13.3% versus zero in FL. State and local taxes in CA are $10,000 per capita versus $5,400 in FL and per person spending in CA is $15,000 versus $8,800 in FL.

Every Californian owes $20,000 in unfunded pensions versus $5,000 in FL. Despite sky-high taxes, CA has a budget deficit of $50B, while FL has a surplus of $20B. CA spends 45% more per pupil on K-12 schools but, its test scores are much lower. CA has homelessness, open drug use, college riots, decriminalization of shoplifting, progressive prosecutors, and sanctuary status. FL has none of these.

New York Versus Florida

Refugees from progressive NY also are fleeing en masse to FL and it is easy to see why. A resident of Miami pays no (as in zip, nana, zero) state and local income tax while denizens of the big apple pay 14.8%. New Yorkers pay 8.875% sales tax versus 6.0% in Miami. Florida’s constitution caps residential property taxes, which are less than 1% compared to more than double in the Empire State.

NY spends twice as much as FL even though FL has 2.5 million more people. Florida’s economy is growing at twice the rate of NY and its unemployment rate is half that of NY. Estate taxes in NY are 16% while FL has no estate tax whatsoever. Incidentally, a moving van costs 500% more in New York.

Quality of life in NY and CA versus FL

Paying double (or more) in taxes in CA and NY (versus Florida) might be palatable if the money was spent to create la dolce vita for their citizens. Instead, they have used the money to create hell holes of toxic governance, sky-high taxes, identity politics, Kafkaesque regulation, stratospheric living costs, mandatory unionization, crumbling infrastructure, massive public debt, unfunded liabilities and tanking credit ratings.

CA and NY have failed union-run government schools that are petri dishes for dysfunction and social pathologies. Some independent think tanks rate FL schools best in America – and at less than half the cost of CA and NY. Recently FL enacted a universal school choice law empowering parents to choose the schools best for their children. In obeisance to uber-powerful teachers unions, CA and NY shuttered their schools for years causing irreparable harm. Florida quickly reopened schools. Unlike FL, NY and CA teach the 1619 Project, CRT and encourage children to question their gender – and even to begin transitioning without parental notification.

CA and NY are woke sanctuary states that tolerate homeless encampments and open purchase and use of drugs that have turned cities into open sewers. They decriminalize arson, shoplifting and looting while defunding police and eliminating cash bail. They pit their citizens against each other based on race, age, income and gender. Housing is scarce, dilapidated and expensive with rent control and eviction bans in place. Climate change madness runs amok doubling – or even tripling – the cost of energy. None of the above horrors are present in the free state of Florida.

Blue State Stampede Creates Vicious Circle

California, New York and other deep blue states are hemorrhaging billions and billions of dollars of tax base. This creates a vicious circle; the exodus of their most productive citizens leaves behind an even more progressive electorate that further raises taxes causing even more productive taxpayers to flee. Rinse and repeat.

A corollary of the blue state vicious circle is a red state virtuous circle. The massive influx of productive citizens, along with their tax base, results in a more libertarian electorate that permits red states to lower their taxes or provide more and better services causing an even bigger stampede from blue states. Rinse and repeat.

It is hard to see how the stampede ends. At some point a blue state collapse seems inevitable – following the storyline of Atlas Shrugged. For now, people are voting with their feet and wallets to escape blue state America, where safety, culture, civility and liberty go to die. Will the last person to leave CA and NY kindly shut off the lights?

© 2024 George Noga
More Liberty – Less Government, Post Office Box 916381
Longwood, FL 32791-6381, Email: mllg@cfl.rr.com

MLLG

Election 2024 Fearless Forecast

Election 2024 Fearless Forecast

Trump wins handily and the GOP takes control of the senate

George Noga
Nov 3, 2024

I based my fearless forecast of a decisive Trump victory on the data listed below. These were the facts as of my final edit on November 2nd.

November 6th newspaper headline
  • The average of national polls has the race about even and well within the 3% margin of error. As explained in my October 6th update ¹ (on my website and in Substack archives), Harris must have a lead of at least 4 points to win in the Electoral College. Since the margin of error is 3 points, Harris falls short of her magic number even if the entire margin of error moves in her direction.
  • Polls show 79% of voters believe the country is headed in the wrong direction.
  • Harris’ job approval rating is only 45% while Biden’s is 43%.
  • Polls in battleground states are tight, with most having Trump a slight favorite; they all are within the margin of error. However, due to Trump’s record of outperforming polls, Harris must be ahead by 2-3 points to win.
  • Harris has a history of starting strong and fading rapidly.² In her race for CA Attorney General, the vote was much tighter than expected. In the 2019 Dem primary she started off polling 15% but ended up at 1%. The momentum favors Trump as voters learn more about Harris and don’t like what they see.
  • Legal betting markets favor Trump by over 60%, with the average around 62%.
  • When asked if they were better off than 4 years ago, 55% say no.
  • Trends in voting blocks favor Trump. Blacks, Hispanics, Jews, Asians, Catholics, youth and union members all poll stronger for Trump than in prior elections.
  • Polling on the two major issues, the economy and immigration, strongly favors Trump. Harris leads only on abortion.
  • In the generic ballot, surveys show the GOP even or slightly ahead. This is better than in prior elections when the generic ballot heavily favored Dems.
  • Voter registrations (particularly new ones) favor the GOP.
  • Metrics of enthusiasm, crowd size and yard signs all favor Trump.
  • Trump is well ahead in the polls versus where he was in 2016 and 2020.
  • Early voting appears to favor Trump. The GOP has reduced the Dem’s advantage in early voting. This is worth one percentage point for Trump as studies have shown that 10% of voters who plan to vote on election day fail to do so.
  • Trump’s “favorability” number hit 50% this past week – the highest ever.

Based on the above facts, calling the election for Trump appears to be a no-brainer. However, there is a narrow pathway for Harris to win. There also are many pathways Trump and the GOP could win in a statement election. The odds are as follows.

Harris Wins – 10 % Probability

An unlikely confluence of events could result in a Harris victory. Remember that no one expected Trump to win in 2016 and the much anticipated red wave in 2022 failed to materialize. Here’s what it would take for a Harris victory: (1) the 3% margin of error in the polls swings heavily toward Harris; (2) late momentum breaks her way³; (3) the Dems’ ground game and vote harvesting delivers big time; and (4) Harris squeaks by in enough of the swing states to win.

Trump Wins Comfortably – 50% Probability

This is the most likely outcome, i.e. Trump wins based on all the metrics listed supra. Trump wins all the states he carried in 2020, plus enough swing states to put him comfortably over 270 electoral votes. It will not be a cliffhanger.

Trump Wins Big With Over 300 Electoral Votes – 30% Probability

In this scenario, Trump carries all or nearly all the swing states plus picks off one or more blue states such as NM and CO.

Trump Wins In Landslide – 10% Probability

For this to happen Trump would need to carry all the swing states plus several of the following: NH, NM, CO, VA and MN. In this scenario, Trump also would win the national popular vote.

Republicans Take Back Senate

At a minimum, the GOP will hold onto all of its current senate seats plus pick up seats in WV and MT for a 51-49 majority. If Republicans win big, they will pick up at least two more seats for a 53 to 47 edge. If Trump wins in a landslide, the GOP will add even more seats in some of the following states OH, NV, PA, MI, WI, MD and AZ for a 55 to 45 senate majority.

House of Representatives – Too Close To Call

Republican control of the House likely depends on how well they defend the seats they won in 2022 in CA and NY. However, if Trump wins big, the GOP will pick off several more seats in light blue districts.

1     Harris will amass a margin of over 6 million votes in CA, NY and IL (combined) over Trump’s margin in TX and FL (combined). This results in a 6 million vote margin for Trump in the other 45 states. Finally, 6 million votes equal 4% of the total vote of 150 million. This math explains why Harris must win the national vote by at least 4 points to win in the Electoral College.
2     This is explained by her likeability problem. She comes across as inauthentic because she cannot articulate her true beliefs – which (outside of California) are political suicide.
3     There can be significant movement in the final few days if undecided voters break in the same direction. This happened in 1980 with Reagan and with Humphrey in 1968. The late surge for Humphrey was palpable and he would have won if the election had been just a few days later.
© 2024 George Noga
More Liberty – Less Government, Post Office Box 916381
Longwood, FL 32791-6381, Email: mllg@cfl.rr.com