Central Europeans confident Trump committed to NATO
Cisco Systems was a friend of mine $CSCO
May and Trump reaffirm commitment - Mays spokesman
Letter: Squeezed ‘rich’ show polarisation of society - The most read letter of the week
Whos Tim? More than half of voters do not know who Tim Farron is
Michael Steele: Gianforte better put his ‘big boy’ pants on
Game of Thrones final season will be the shortest yet
10 fascinating things you probably didn’t know about Georgia
#BREAKING: Ariana Grande to return to Manchester to play benefit concert for bombing victims. More to follow
Revealed: Jeremy Corbyns three decades of blocking terror legislation 
Freddie Mac: Mortgage Serious Delinquency rate unchanged in April
Trump’s war on extremism has some awkward allies in Saudi Arabia
.@JustinTrudeau In 2015 15,700 people died of #diabetes in #Canada. How will your leadership change this? @G7 #G7
Allies of Brazils Temer prepare for the day after
FBI scrutiny of Kushner brings Russia probe into the White House
Frequent flier Mugabe racks up the air miles - and dollars
Wall Street may get a new chance to gut Obamas broker-conflict rule
A photographer strives to capture cities’ essence in a single image
FBI scrutiny of Kushner brings Russia probe into the White House
Ingram Pinn’s illustration of the week: An American in Brussels
The Kickstarter-backed smartwatch that gets it right
Nigerian Sales Managers Report Slower Rate of Growth in May. #SMI
Could #Gold Break $1,300 By Independence Day? | @SdBenali |
Ariana Grande to return to Manchester to play a benefit concert for victims of bombing 
Animals of the Week: 26 May 2017
Yesterday Cramer Berkowitz paid 176 times trailing earnings for 10,000 Cisco $CSCO
Republican National Committee attacks Clinton for speech several months after election
At least 624,500 people live in besieged areas in Syria
This Is Not the Democracy We Fought For - Former Robben Island Prisoner: #SouthAfrica
Solar employs more U.S. workers than Apple, Google, Facebook, and Amazon
#Albania Returning #Brazil Poultry Shipment with Salmonella
Shout out to everyone who owns $WBA
Developers break ground on the first net-zero residential community in Wisconsin
Your periodic reminder that consensus growth expectations appear too pessimistic
Clinton mocks Trump on inauguration crowd size claims and alternative facts
And then there were none
The new Rover is taking all kinds of new moves to Mars
Urban Innovator of the Week: Karla Henderson
New Zealand launches into space race with 3D-printed rocket
Trumps views on Paris climate deal are evolving but hasnt made a decision yet
If Democrats want to win races, they have to spend money. They didn’t do that in Montana.
#Fire breaks out in abandoned house in Athens #Monastiraki district #Greece
What happens in your brain when you reconnect with an ex:
Technicals warning a breakdown in yields is increasingly probable, protect for a move to 2.00% RBC
The dark truth behind the design of Oreo cookies
3 trends are shaping the rapid rise of drones. @chr1sa
May, Macron Clash on Timetable for Brexit Talks in First Meeting
Try and see whos having the least fun.
Africa is Not Poor, its Wealth is Being Stolen #Africa
#ANCNEC - Fate of South Africas Zuma to Be Determined? #SouthAfrica
#Kirchentag all over the place #dekt17
Preet Bharara on Montana Republican: If he were an immigrant, hed face deportation
So much water pulsed through a melting glacier that it warped the Earths crust
Some investors bet Brazil has further room to fall
Tunisia opens trial over 2015 Sousse beach killings
Slow times fuel stunt foods
Strong homepage this morning. Great work, @AmerBanker team. Now get back to work.
Clinton on election loss: I won’t lie, Chardonnay helped
The 10 best grill gadgets for a better BBQ
Volatility 411 05/26/17
This is the difference between investing in infrastructure and giving your kitchen to Olive Garden.
;)
Build your #MemorialDay menu with these #delishdeals!
Greece seeks allies ahead of Eurogroup as IMF seen losing confidence
European body backs Greek judges over Turkish officers extradition
Time for QE4 @ChicagoFed
As Ramadan begins, read up on key findings about Muslims by @pewresearch:
Robo Doc ...beats #Roboadvisor @HSBC finds: via @business MT @annairrera #fintech
Taxi for Theresa May? @stephenkb explains why the Tories falling poll lead isnt a surprise
House will vote on bill repealing parts of Dodd-Frank next month
Americans are obsessed with eating healthy ... and with Twinkies
BMW, Mercedes become latest carmakers caught in Trumps crossfire
Or Revlon. $REV Good grief.
How built-out Barcelona found space for an urban forest
MIT engineers have figured out how to 3D print pasta:
Trump still not backing Paris climate agreement: Italys PM
Why Donald Trump’s weird handshake matters
This hacker built his own iPhone using parts from Chinese electronics markets
The forward 12-month P/E ratio for $SPX is 17.6, above the 10-year average of 14.0.
Pentagon Admits U.S. Airstrike in Mosul Killed 105 Iraqi Civilians
The Fall of the Damned - Peter Paul Rubens - 1620.
Nokia: The AI-Driven Rise Of Predictive Customer Service -
Safe Sex: Chinese buy condom business as savvy youth spur demand
.@ArianaGrande Will Return to Manchester for Benefit Concert
Behold, the rarely seen inbox zero message in Gmail
I dont think Ive ever checked out a Rite Aid chart before. $RAD
Corbyn branded crass for linking terror at home to wars abroad, reports @carldinnen
In Manchester, a show of determination, anger, fear and love
NY Times rips Trump over embarrassing NATO speech
Preparations for the Islamic holy month of #Ramadan #AA
#Shipping failing to meet #emission reductions targets: IEA by @Splash_247
NDs @kmitsotakis : No confidence in government handling of new-generation #terrorism
Boehner: Almost everything Trump has done in office has been a complete disaster
Solar PV sets new record for GB, generating 8.8 GW
Asias First Fully #Automated #Terminal Operational by @Mar_Ex
Macron snubs Britains May on post-#Brexit trade deal talks
ChOTD-5/26/17 $XOI Oil Gas Stocks Testing Lifetime Up Trendline…AGAIN (Close Up)
ICYMI: Jony Ive named chancellor of one of the world’s most prestigious art schools
Abandoned wellhead casing
UNC has a fun excuse for its recent scandal: fake news.
ChOTD-5/26/17 $XOI Oil Gas Stocks Testing Lifetime Up Trendline…AGAIN (Zoomed Out)
Alabama governor signs law banning cities from removing Confederate monuments
As the U.S. Sends More #Oil to World, #OPEC Sends Less to U.S. by @climate
Today in #London is great for many things... but not for selling woollen clothes.
Greece’s experience in EZ is in a league of its own @SoberLook @jsblokland @DeanDijour
Did Admiral Mike Rogers tell the NSA that Trump colluded with the Russians?
This is why corporate money has no place in politics:
Trump rows shadow ‘toughest G7 in years’
The 5 things the Tories arent telling you about their manifesto, by @JuliaRampenMM
Clinton tells grads: There may be trolls in life who may call you a nasty woman
#Venezuela Secretly Plotted to Sell Banned #Syrian #Oil to the U.S. by @bpolitics
Top Trump economic adviser admits ‘Coal doesn’t even make that much sense anymore’
Almost 100 prisoners escape from Brazilian prison
Portraits of protest: We speak to 10 Thais gagged by lèse-majesté law
2:00PM Water Cooler 5/26/2017
Hillary Clinton is auditioning for a role in the Trump resistance.
Trump son-in-law #JaredKushner to cooperate with FBI over Russia investigation #Russiaprobe
Merkel says it was six to one against Trump on climate change
Trump to maintain or even strengthen Obama-era sanctions against Russia, top adviser says
I’d found a family I didn’t know I was missing. @scottkjohnson on @cwdiabetes
No, not THAT J.C.
Brexit may be curbing immigration even before its happened
5 things you need to know about the global pension crisis
Legal General, Aviva plan Ireland moves post-Brexit
Trump and other leaders clash on trade, climate at G7
BA and Iberia plan third-party booking surcharge, Amadeus shares hit
The Germans are bad, very bad, Trump reportedly told EU officials in a closed-door meeting
Tech firms must do more to remove harmful content from Internet: UKs May
Sheriff David Clarke directed officers to hassle plane passenger who criticized him: report
Electric cars seen cheaper than gasoline models within a decade
Mother of Manchester attack victim pays tribute to daughter with a tattoo
There’s more time to weigh in on new data project measuring outdoor rec’s economic impact.
G-7 leaders embrace brevity as Trump cuts goals down to size via @bpolitics
Trump still not backing Paris climate agreement: Italys PM
From 1960 to 2015, child mortality fell by 77% globally. #health #progress
New airport scanners could end bans on laptops and liquids
How to spend $182,000 on a low-key convertible
Zambian court allows opposition leader to challenge treason prosecution #Zambia
Masked gunmen kill 28 in attack on Christians in #Egypt
South African Union Vows to Intensify University Strike #SouthAfrica
Sometimes its good to enjoy the journey, not just the result. #smallsteps #behappy
Two Years of Buhari - How Did We Survive?: #Nigeria
Experts have upgraded Donald Trump’s impeachment odds yet again
Now house prices are being cut in Londons property hotspots
Behind the scenes at yesterdays summit in#Brussels: #Trudeaus #NATO socks! #Canada #Trudeausocks
cuisine, St Malo,
Inmates of Chicagos Cook County Jail can now order gourmet pizza made behind bars.
+32°C sur la côte malouine, on se croyait sur la côte dAzur
VERBATIM: Clinton compares Trump to Nixon
#HillaryClinton attacks proposed Trump budget cuts as cruelty
The complete guide to deflecting bike thieves
How to earn more on your emergency savings
.@craigpaton27 Does FMQs: @kezdugdale sneaks in a double header
Alabama executes 75-year-old man
Deputy President Taking Bribes From Kiir - South Sudan Rebels: #SouthAfrica
Texas governor appears to joke about shooting reporters
Da kommt noch was und das von allen Seiten
JPMorgan: As Market Yawns At OPEC Production Cuts, Watch Price of Oil Drop Further $
South African sales growth increases to highest level in 14 months in May. #SMI
This has happened today: flight in a Tornado! Crazy cool. What a beast. #tonka
Beyond #Trump, Campaigners Demand #G7 Leaders Commit to #Climate Action
Orders for durable goods fall to 5-month low
FEC faults Cruz on Goldman Sachs loans in rare unanimous vote
Heres the effect lower demand for office space in London is already having
Economy wasn’t as bad as it looked in first quarter, GDP shows
Consumer sentiment edges up in May as Americans remain politically polarized
Find our why #Asheville is Appalachias most surprising city #lp #travel #BestintheUS
Foreclosures keep falling, but housing won’t be back to normal for at least another year
Cmon bulls. $SPX right on the cusp of a positive close and 7 straight gains. That would match run back to July 2013
Why LSD trips last so long and connect us to the universe:
GM lawsuit digs a deeper grave for diesel
Tunisian Trial Opens Over Beach Attack on British Tourists
Eric Trump dismisses alleged attempted hack on Trump Organization as “crazy”
Spot on, @jeremycorbyn
Trump’s Move to Deter Russian Aggression
Nice day for a walk over the Brooklyn Bridge.
Electric cars are (slowly) taking over the world. Will F1 adapt to survive?
JUST IN: Comey knew key intel in Clinton email investigation was fake: report
Softbanks CEO is preparing for a world populated by billions of robots
Bitcoins crazy fast rise, in one chart:
Study: Tomatoes may stave off stomach cancer. #tomato #stomachcancer
Trump economic advisor: US probably looking to get tougher on Russia
GOP candidate’s attack on journalist is an extension of Trump’s violent, anti-media rhetoric
Broadcasters are now talking policy – but the BBC are preoccupied with leadership
U.S.-led airstrikes killed 100 civilians, 40 children in the Syrian town of Mayadeen.
Tens of thousands visit Protestant congress in Berlin
Six to One Against Trump on Climate in Honest Exchange at G-7
Robin McAlpine: To end the violence we must change ourselves #Manchester
Theres lots of industrial breakup talk, but little action
Homeland Security chief: If you knew what I know, youd never leave the house
The Real Story of What Got Us to the Top of the Food Chain
Britain has a huge network of bike lanes that it totally forgot about
Congrats to Greg Gianforte, #Montana #Republicans, and violent, fanatical enemies of the free press everywhere.
Obsessed? Bitter? Hillary Clinton to Twitter Trolls: Were coming back for you #tcot
Retirement savings gap seen reaching $400 trillion by 2050
[OP-ED] Is this a time of living dangerously for netizens in #Indonesia?
Scientists are using gene editing to try to slow cancer growth
The First Children’s Picture Book, 1658’s Orbis Sensualium Pictus:
Are you on #telegram? Follow us for our latest updates!
Machine learning reveals systematic sexism in astronomy:
What Japan plans to do if North Korea strikes — GillianTett
Google and Stripe Eye a slice of UPI pie in India via @economictimes
The ethnic cleansing of Palestine did not start and end in 1948
Goldman: Oil Glut To Return When OPEC Deal Expires: $USO $WTI $OIL
Could The New Border Detention Centres Turn Deadly?: #SouthAfrica
Court rules against indictment of former ELSTAT chief
Remains of identified soldiers to be returned to Greece from Cyprus
Trumps disturbing Ramadan message to Muslims
#Vegan Burgers Are Taking Over the Meat Case in 280 New Grocery Stores @beyondmeat
I see political scientist fraud boy has found a new gig telling people what they want to hear.
Ex-Bush defense chief: Im glad Trump scolded NATO nations
Impoverished Pakistan district decries lack of concern
Here’s the first truly damning evidence that Trumpcare will increase your premiums
Liberian Vice President Boakai - I Am Not Old to Be President: #Liberia
VERBATIM: Clinton blasts Trump at Wellesley graduation
Lawmakers demand hearing on weapons sold to Saudi Arabia
Many means of coming to this answer: but which market has the most untapped value? $SPX, global shares, $EEM, etc:
No @g7 country has provided its fair share to #FightFamine. #NowNotLater
Almost 2,000 children have died in Pakistans poverty-stricken Tharparkar since 2011
thats much better
Harvard economist Ricardo Hausmann calls on JPMorgan to remove Venezuela from its bond index
@MarkYusko FOMO in the equity markets...
Is the Crypto Asset Class Finally Coming Into its Own?
Boris Johnson, 2005, on Iraq war blowback
Academic Research Insight: The Social Media Factor $
Remember Redhat? $RHT Any day now that opportunity to make money will arrive.
Everything in Africa Belongs to Us, We Must Reclaim It - Malema: #SouthAfrica
G-7 climate row deadlocked but US says #DonaldTrump evolving
RT @barronsonline: No Quadruple Leveraged ETFs For You! #SEC
Liberian Court Orders Child Rights Activist Arrested: #Liberia
Trump still not backing Paris climate agreement
Cambridge creates professor of play to bring women to tech via @marketsjoe
Yates defends her resistance to Trump: I couldn’t in good conscience defend a Muslim ban
REVISED TIMETABLE! All finals and semi-finals
President Trump could bring new life to New START. Heres how:
Thats a lesson she took and she has taken that lesson in a hard way.
UK election: Tories target northeast | Opinion
Ghana,Togo Partner to Eliminate Female Genital Mutilation: #WestAfrica
Iraqi forces call on civilians to flee Mosuls IS-held Old City
Venezuelans take to streets peacefully to defend the Bolivarian Revolution. #26May #LaPazExigeDialogo
G7 summit: leaders to clash on trade and climate change
Most in former Yugoslavia favor multicultural society, although some tensions remain
WATCH: First promo released for Megyn Kellys new NBC show
Rep. Devin Nunes still has subpoena powers in House intel probe of Trump-Russia ties
Microsofts Xbox Game Pass will end your free time forever @DanielHowley
G7 agrees to disagree as Italy suggests Trump doesnt know what he wants @bpolitics
A Modest Proposal - Make the Next Minister of Women a Man: #SouthAfrica
This is how boneworms dissolve and digest a whole whale skeleton:


Dan Crawford
How wrong is IBD on California? Let us count the ways
1 month ago




by Kenneth Thomas

How wrong is IBD on California? Let us count the ways

Investor’s Business Daily has a hit piece out on California, as you can tell from the headline, “Taxifornia does it again.” Here’s the first paragraph of the editorial*, to give you a good flavor of it:

California’s far-left government has done it again. Not realizing its real problems are excessive spending on misplaced priorities, excessive taxes, too much debt and a far-too generous welfare state, its legislature working in cahoots with Gov. Jerry “tax-and-spend” Brown has pushed through the largest tax hike in state history.

Amazingly, the editorial does not mention regulations once, though it did get around to the “job-killing $15-an-hour minimum wage” recently passed, along with the proposal for a single-payer health insurance system. I guess that counts as massive self-restraint on the editors’ part.

The article calls California “the highest-tax state in the union.” If that’s so, it’s just another example of the false claim (popular also with Arthur Laffer and the conservative American Legislative Exchange Council) that high taxes always mean bad policy outcomes. (FWIW, according to Forbes, California only has the sixth-highest state and local tax burden.)

So what have been the consequences of all of California’s tax increases? According to IBD, “Since 2004, California has lost more than 1 million people, representing a $26 billion net income loss.” Of course, no one has actually been lost. California’s population grew by almost exactly 4 million between 2004 and 2016, from 35.25 million to 39.25 million. What IBD’s editors are referring to is net interstate immigration and even there, the analysis is a little squirrely. From 2004 to 2008, the state had net interstate emigration of over 100,000 per year, with a low point of 288,000 net loss in 2006 (you know, during the housing disaster), but in every year since 2009, the number has been under 100,000 per year. Of course, interstate immigration is only one element of population change, and IBD conveniently omits the rest.


And the $26 billion alleged income loss due to interstate out-migration over that time period? A rounding error in an economy which grew from $1.8 trillion (2004) to $2.2 trillion (2015) annually in real 2009 dollars. I’m not even going to bother searching for their unlisted source.

The article further claims that because of taxes, over 10,000 firms, including Toyota, “have either fled the state or reduced their investments.” Of course, Toyota has been replaced in its Fremont factory by Tesla, the most valuable auto company in the United States by market capitalization (yes, I agree: it does need to make profits sometime to maintain this). Again, we need to look at the bigger picture. California hit its pre-recession peak employment in January 2008 at 16,949,800 (6.1% unemployment rate), went below 16 million employed and over 12% unemployment in the worst of the Great Recession, but in December 2016 reached 18,376,600 employed with just a 5.2% unemployment rate. So something more than offset all the companies that “fled,” I guess.

Of course, not everything is hunky-dory in California. As Woody Guthrie sang in 1940, “you won’t find it [California] so hot, if you ain’t got the do-re-mi.” It’s just as true today. California has persistent problems with a shortage of affordable housing, with studies rating it as having the highest housing costs in the country. But that means, contrary to the tax-doomsayers, that it is low-income people moving out and higher income people moving into the state, the opposite of what we’d expect if the anti-tax hype were true.

All in all, the editorial is Exhibit 538 in pressuring states to cut taxes, pretending you can provide infrastructure, education, and training without tax revenue, and that you can create prosperity by creating low-wage jobs.

* Thanks to a non-blogging friend for pointing out this editorial.