Center on Capital & Social Equity
Exploring economic inequality – Advocating for the bottom 50%
Congress’s priorities are clear: Israel military aid over domestic needs – Hill
Israel’s Settler Colonialism: The Unyielding, Unrelenting Reality – Ramsy Baroud/LAP
Israel’s far right says new office to oversee mass transfer of Gazans – msn/WaPost
Even Israel’s Best Friends Are Repulsed by Netanyahu’s Far-right Antisemitism Conference – Haaretz
DOGE or DOPE?
Musk’s China business ties complicate his U.S. national security role – msn/WaPost
Does Musk’s prominent role in the Trump Administration undermine Tesla’s ability to oppose Trump tariffs that hurt Tesla? Does his role at Tesla compromise his and DOGE’s ability to make the federal government more efficient? Is one reason the Trump team brought him into government to neuter opposition from business leaders to high China tariffs? … Get out of Dodge!
Ka-Ching!
Tesla Trade-Ins Rocket to Record High as Elon Musk Backlash Deepens – Daily Beast
“The halt in deliveries comes after the Trump administration separately slashed $1 billion for schools and food banks to buy food from farms.”
How low can private equity go?
Private equity firms consolidating homes for disabled – msn/WaPost
“Private equity firms have been buying up scores of companies that care for people with intellectual and developmental disabilities, according to a new report by an advocacy group that warns that the surge of investment in an industry that has traditionally been nonprofit could result in investors’ demands coming before the needs of their vulnerable clients.
“The report from the Private Equity Stakeholders Project, a nonprofit watchdog group, said that over the past decade the firms have been bundling smaller group homes and service providers into very large outfits spanning multiple states. Alpine Investors has amassed a home care services company with 100,000 employees, according to the report; working together, two other private equity firms, Centerbridge Partners and Vistria Group, have built two firms with 61,000 and 45,000 workers.
“Many such services for people with intellectual disabilities — residential care, home health and personal assistance — were historically provided by nonprofits, some of them religious organizations. They are most commonly funded by Medicaid payments. The report notes that some of the companies built by private equity firms have been cited for repeated deficiencies in patient care since the purchase.”
“The arrest of Badar Khan Suri, who is in the U.S. legally and who DHS said was spreading ‘Hamas propaganda,’ is part of an increase in Trump administration detentions of people with legal status.”
Make no mistake: The intended audience here is you and me – meaning all American citizens and their family members. And the intent is to make you afraid and shut you up. If you criticize Donald Trump or his Administration’s actions, they can and will stretch the limits of the law to hurt you. If you speak out against Israel’s mass killing of civilians in Gaza or systematic theft of land in the West Bank, for example, Israel’s embassy can make a call to the US government resulting in your detention and an attempt to kick you out of this country. Don’t think this affects you? What if you want to speak out on a different issue? Take your pick. Get your documents ready.
Another case in the Supreme Court pipeline.
4 things to know about Trump’s effort to dismantle the Department of Education – CNN
“While the president cannot completely shut down the agency without approval from Congress, the department announced earlier this month that nearly half its staff would leave through layoffs and voluntary buyouts. It remains to be seen what will happen to the agency’s programs and functions, and legal challenges to Trump’s executive order are likely.”
So many roads now lead to the Supreme Court as the Trump Administration pushes to expand the power of the executive branch to control economic and social policy and to restrict freedom of speech. It would be no surprise if Chief Justice John Roberts turns out to be one of the most important figures in American history.
“The White House is already embroiled in a bunch of fights over who runs which parts of government. And one way to understand this action at the FTC is as part of a legal strategy to tell the courts, in a uniform way, that Trump, as the democratically elected leader, believes the Constitution empowers him to execute all Federal policy however he chooses.
“And that’s a reasonable view, though the alternative – that Congress should be able to design institutions with some flexibility – is also reasonable. That said, ultimately, all roads here lead to the Federal Reserve. The logic of Trump takes us there. As Slaughter said earlier today on CNBC, if any commissioner at any agency can be fired by the President for any reason, then so can the Federal Reserve Chair or any Fed board member.”
Did Tariffs Cause the Great Depression? A Look at the Widespread Theory – msn
In the analysis below, an economist familiar with the Trump Administration’s trade and economic policy strategy suggests a “narrow path” through which the inflationary impact of a trade war on American consumers might be buffered by devaluing the US dollar. Tariffs on money?
A User’s Guide to Restructuring the Global Trading System – Stephen Miran, Hudson Bay Capital
“Conclusion: The next Trump term presents potential for sweeping change in the international economic system and possible accompanying volatility. It is important for investors to understand the tools that might be employed for such purposes, as well as the means by which government may attempt to avoid unwelcome consequences. This essay attempts to provide a user’s guide: a survey of some tools, their economic and market consequences, and steps that can be taken to mitigate unwanted side effects. Wall Street consensus that an Administration has no means by which to affect the foreign exchange value of the dollar, should it desire to do so, is wrong. Government has many means of doing so, both multilaterally and unilaterally. No matter what approach it takes, however, attention must be paid to steps to minimize volatility. Assistance from trading partners or the Federal Reserve can be helpful in doing so. In any case, because President Trump has shown tariffs are a means by which he can successfully extract negotiating leverage—and revenue—from trading partners, it is quite likely that tariffs are used prior to any currency tools. Because tariffs are USD-positive, it will be important for investors to understand the sequencing of reforms to the international trading system. The dollar is likely to strengthen before it reverses, if it does so. There is a path by which the Trump Administration can reconfigure the global trading and financial systems to America’s benefit, but it is narrow, and will require careful planning, precise execution, and attention to steps to minimize adverse consequences.”
Miran’s theory came up this week as an AEI panel of economists discussed the Administration’s emerging economic policies (posted previously on this blog). Also see: Why Is Trump Undermining the US Economy? – Michael Strain/Project Syndicate.
Trump aides prep new tariffs on imports worth trillions for ‘Liberation Day’ – WaPost
“The potential to more than double the scope of Trump’s tariffs has alarmed economists and some congressional Republicans, while other White House allies are concerned about the logistical challenges of a complicated new import tax regime. The precise nature of these new duties has spurred extensive discussions at the highest levels of the administration, with Vice President JD Vance, Commerce Secretary Howard Lutnick, White House aide Peter Navarro and Treasury Secretary Scott Bessent all playing a role in the talks, the person familiar with the plans said…”
“Trump says he’ll use the revenue from tariffs to “offset” more of his big pending tax cut. That tax cut will disproportionately benefit wealthy Americans and big corporations, as did Trump’s first-term tax cut. But revenue raised from tariffs will be coming disproportionately from average working people. Hence, it will be a massive transfer of wealth from most Americans to the super wealthy and giant corporations…”
Meanwhile, evidence of growing economic distress and inequality abound:
Government says nearly 9 million Americans have taken on a second job – msn
“You have to work harder to make ends meet..”
Rent Crisis: U.S. Cities Where Housing Costs Are Soaring
HCA’s CEO-to-worker pay ratio in 2024 – Becker’s Hospital Review
“Nashville, Tenn.-based HCA Healthcare CEO Sam Hazen was paid 391 times more than the health system’s median employee in 2024, according to a March 4 proxy statement filed with the Securities and Exchange Commission. Mr. Hazen’s total compensation was $23,799,137 in 2024. The total compensation of HCA’s median compensated employee was $60,820, according to the report. The ratio of these amounts was 391:1…In 2023, HCA’s CEO-to-worker pay ratio was 356:1.”
US Births Fell in 2023 to Lowest Level in More Than 40 Years – Bloomberg
“Americans have been putting off parenthood because of sky-high health costs for themselves and their children, according to Sarah Hayford, director of the Institute for Population Research at the Ohio State University. General political, economic and even climate uncertainty have also contributed to the delays, she said in an interview.”
Telling the nuanced story of economic inequality in the U.S., layer by layer – Minneapolis Fed
“Minneapolis Fed economists find widening gaps—while government plays a large and growing role in countering them…”