Week Ending July 2nd, 2021
What ever happened to Property Rights?… While we celebrated our Independence, our Constitution was under attack. The Supreme Court ruled 5-4 to uphold the federal eviction moratorium.
What does it mean – I am no lawyer, but I believe this is unconstitutional. This decision allows people to stay in their apartments or other rental units and not pay any rent that they agreed to until August. According to economist Stephen Moore, the latest estimate is that landlords are losing $13 billion a month in rental payments.
What about the mortgage? If you cannot collect the rents, how does a landlord pay the mortgage on the building? Are they going to be protected? Currently many landlords have been forced to sell or default on their loans and the number of landlords facing the possibility of defaulting on their loans is growing daily.
My question for you is, since when can the government tell a private enterprise that it cannot collect its rightful payments from its customers? We just celebrated our Independence and part of the grievances with Great Britain was due to the illegal quartering of troops that lead to the 3rd Amendment in our constitution. The 3rd amendment guarantees and protects a citizen’s right to the ownership and use of their property without the intrusion by the government.
What is next?… Are we going to solve hunger in America by allowing the poor to go into a grocery store and take whatever they want without paying? Woops, already solved in San Francisco and other lawless and poorly run cities. Target just announced this week it is closing stores early because they cannot afford the labor or cost of security in San Francisco due to the high level of theft. Folks, you just can’t make this up.
Watch out business… Through Executive orders, the Federal Trade Commission (FTC) voted to expand its list of regulations it can now sue businesses for and adjust fines based on inflation.
What does it mean – While the FTC has always been a great watch dog for the consumer and has done great things to protect the consumer, this administration is weaponizing a bureaucracy or unelected government agency to decide how it will achieve its goals. Through more executive orders, this administration is allowing an unelected agency to target winners and losers through targeting certain industries governed by the FTC. This is the antitheses to free markets and capitalism. We already have tremendous protection for consumers. Better than anywhere else in the world.
Worldwide Minimum Tax… Secretary of the Treasury, Janet Yellen is working with 130 countries to create a world minimum tax.
What does it mean – Not sure about you, but I am not willing to give up my sovereignty. Our government is the only one in the world that is run by the people for the people. Why would we bow to the 130 countries that depend on us for protection and global welfare to stay in power. This is bad for American business and bad for global competition.
Taxes should be a race to the bottom. We should want to attract capital and innovation, not push it away through mediocracy. We should strive to be the best and least expensive country to do business in. This will punish American businesses, especially small businesses.
Ask yourself, do you think China or Russia will live up to this agreement? How has China been doing so far with its trade agreements, environmental agreements, or anything else they have agreed to? Ask Taiwan, Hong Kong, Japan, India and the Philippines. The list goes on and on. No transparency and no accountability in this deal.
Open states cooking… States that are open are leading the charge on all economic fronts.
What does it mean – If you live in CA, NY, NJ, IL, MI, WA, OR, and several other highly regulated states with high taxes and overbearing regulations, you are hoping for those governors and state legislatures to stop what they are doing open their states. Policy matters.
Jobs… Better than expected. Month over month Nonfarm Payrolls up to 850,000 according to ADP.
What does it mean – States that are open or opening fully are making up for the above-mentioned states.
Always at your service,
Doug De Groote, CFP®, MBA, CTC Managing Director