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With the Democrats’ Resist Movement crumbling on a seemingly daily basis, little signals are starting to point to red wave in 2020. Salena Zito, the best retail political reporter in the business, wrote this article reporting of an election in Wisconsin that’s apparently not getting enough attention. In the article, Ms. Zito writes “Less than a month ago, conservative Judge Brian Hagedorn was a dead man walking. As he raced against liberal Judge Lisa Neubauer for a seat on the Wisconsin Supreme Court, the local press portrayed him as an anti-gay extremist and bigot. They called out the Christian school he founded for its code of conduct stipulating ‘no sex outside of marriage between a man and a woman.’ Never mind that this code of conduct is common practice at private religious schools across the country.”

How did that election turn out? Ms. Zito wrote:

Conservative activist Mary Magdalen Moser, a poll worker for the Republicans, sensed a turn in the tide. She was infuriated by the media’s treatment of Hagedorn, and she knew the populist coalition that put Trump in office would be electrified. “Wisconsinites have always been a very open bunch,” she told me. “As long as you stay out of our way, we let you do your own thing. People were incensed that Neubauer went after Hagedorn’s faith.” Against all odds, Hagedorn won the state, including two Democratic-leaning counties, Racine and Kenosha, just like Trump did in 2016. “Trump and Hagedorn won because they didn’t back down,” said Moser, a 56-year-old who lives in Kenosha. Though she grew up in a Democratic home and has never registered with either party, she calls the treatment of Hagedorn a tipping point.

Ms. Zito isn’t the only one noticing signs of a red wave building. Brandon Judd noticed it, too:

President Trump’s shrewd governance, along with unforced errors by the Democratic Party, has the president positioned to not only win the White House for a second term but also to win back the House and make gains in the Senate.

One of the mistakes that the Resist Movement made is saying no to any initiatives put forth by President Trump. People hate it when politicians are obstinate. This is a vulnerability that Republicans are preparing to exploit:

Anyone that thinks that illegal immigration plays in the Democrats’ favor is kidding themselves. It doesn’t. Picture this visual: while President Trump and Sen. Graham put centrist proposals on the table that would fix the crisis, Democrats say (and vote) no to everything. That’ll play as well as a fart in a quiet church. This isn’t the type of visual Democrats can afford to maintain.

If Pelosi’s Democrats in the House either shoot Sen. Graham’s proposal down or if they just don’t act on his initiative, they’ll get steamrollered in 2020. This isn’t just a federal issue. This unabated flood of refugees into our country also get shipped to other states besides border states. Wherever they show up, be it in Minnesota, Tennessee, Florida or elsewhere, these illegal immigrants put incredible pressure on school districts, clinics and hospitals. That means they put tremendous pressure on taxpayers and state governments.

If Democrats won’t work with Republicans to solve this illegal immigration crisis, they’ll soon be eligible to work in the next Democrat presidential administration. That won’t be until at least 2024.

Based on the massive tax increases in Tim Walz’s budget, he intends to continue Gov. Dayton’s work of turning Minnesota into a cold California. Walz’s budget calls for a couple massive tax increases and a massive spending increase. It does nothing to make Minnesota a pro-growth state. The biggest ‘accomplishment’ of Gov. Walz’s budget is that it makes Minnesota less competitive.

Gov. Walz won’t admit it but he’s a dipstick. Look what he said about education:

The first priority of my budget is education. As a former teacher, I’ve seen firsthand the power of education to change a life. But as I travel around the state, I see how the quality of a student’s education is too often dependent on their race or ZIP code.

That’s BS. The biggest determinant is whether a student comes from a 2-parent family. If they don’t, their chances of getting a great education drop significantly.

Here’s another thing Gov. Walz said:

The third priority of my budget is community prosperity. Right now, whether from the urban North Side of Minneapolis or the rural town of Hallock, many families struggle to find child care for their kids, secure housing that’s affordable or even just make ends meet.

Our budget tackles these challenges head on. It expands access to the Child Care Assistance Program and increases the supply of quality child care in shortage areas. It increases rates of homeownership for households of color, expands workforce housing in greater Minnesota, and provides loans to help seniors stay in their homes. It reinstates state aid to cities and counties across Minnesota to help local governments in greater Minnesota improve public safety, streets, libraries, parks and housing.

I don’t doubt that it’s difficult finding affordable child care. However, the Walz-Flanagan budget does nothing to increase prosperity. Taking money out of people’s wallets to pay for other things isn’t the right way to build wealth. Imposing regulations is another way to prevent the creation of wealth.

In the first 2 months of the Walz-Flanagan administration, they’ve filed a lawsuit and proposed major tax increases. That’s how to prevent prosperity.

During the partial government shutdown, we were told that the economy was getting hurt. It’s possible that might still be the case but this morning’s jobs report didn’t provide proof of that:

Job growth in January shattered expectations, with nonfarm payrolls surging by 304,000 despite a partial government shutdown that was the longest in history, the Labor Department reported Friday.

The unemployment rate ticked higher to 4 percent, a level where it had last been in June, a likely effect of the shutdown, according to the department. However, officials said federal workers generally were counted as employed during the period because they received pay during the survey week of Jan. 12. On balance, federal government employment actually rose by 1,000. Economists surveyed by Dow Jones had expected payrolls to rise by 170,000 and the unemployment rate to hold steady at 3.9 percent.

Simply put, the doom and gloom that was forecast by Democrats didn’t materialize. Instead, Larry Kudlow’s prediction that the economy would remain strong proved true.

This is why politicians shouldn’t talk about the economy:


Now Sen. Schumer will be able to dine on a major helping of crow at next Tuesday’s SOTU Address. Earlier this week, Sen. Schumer told President Trump to stay out of the negotiations and leave the governing to the Senate. After this jobs report, which blew away the expectations by 140,000 jobs (304,000 actual vs. 165,000 forecast), Sen. Schumer should stick to what he does best — whining while wearing bad-fitting glasses.

Meanwhile, Nancy Pelosi issued this statement:

The January jobs report holds some encouraging news, but it belies the lasting financial damage that the Trump Shutdown has inflicted on hundreds of thousands of Americans across the nation. Federal workers, many of them veterans, saw their financial security shaken, their credit ratings harmed, and their lives upended by the longest shutdown in history. And now, with families still hurting, President Trump refuses to take a second senseless shutdown off the table.

Meanwhile, House Republicans overwhelmingly voted against a pay raise for federal civilian workers, refusing to respect the perseverance and patriotism of the men and women who were just furloughed or forced to work without pay. This consistently callous GOP attitude disrespects workers, dishonors our values and damages our economy.

House Democrats are working For The People, moving forward with our bold agenda to lower health costs, raise workers’ wages, and restore integrity to government. We must keep government open, and keep working to deliver an economy that works for every American, not just the wealthy and well-connected few.

What financial damage? I don’t see it. Next, getting told that Democrats “are working For The People” is a little like being told that arsonists are assisting firefighters. There just isn’t a ring of truth to it. Finally, saying that the “GOP attitude” is damaging the economy is BS. The economy isn’t damaged.

If this article is an indicator, Tim Walz’s economic record will be as lackluster as Gov. Dayton’s.

The article states that “Outgoing Speaker of the House Kurt Daudt suggested the state improve at enticing young people into trades and manufacturing — two industries struggling to fill positions. Gov.-elect Tim Walz said some school districts lack the money to properly train an adequate workforce thanks to the state’s over-reliance on local property taxes to pay for schools.”

The thing that DFL politicians haven’t admitted is that more people from all age and income groups are leaving Minnesota than are coming in. There’s a worker shortage because people are leaving Minnesota.

This is also why MnSCU universities are struggling. Until Minnesota starts worrying more about growing the economy with pro-growth economic policies rather than growing government, this problem will persist.

Part of the problem, too, is that environmental activists have successfully lobbied for strangling regulations. Our regulatory regime is so strict that it’s difficult to grow a business. More to the point, it destroys the incentive to even locate here. If you’re thinking about starting or growing a business, do entrepreneurs gravitate towards states with high taxes and outrageous regulations? Or would you gravitate towards states with lower taxes and reasonable regulations?

Last week, I received an email from Sarah Anderson talking about the state budget surplus. Rep. Anderson wrote “Dear Neighbors, today the state budget forecast was released showing a whopping $1.54 billion surplus.” We have another $2.45 billion in the State’s rainy day fund. Despite all this money sitting in Minnesota’s coffers, it’s stunning that the DFL is pushing tax increases.

It’s time to ditch Minnesota’s ‘business model’ and establish new priorities. The achievement gap isn’t closing, at least not compared to what they should be for all the money that’s gotten spent.

Minnesota’s economy isn’t terrible but it isn’t exactly hitting on all cylinders, either. The DFL spent most of the last decade building Minnesota’s government instead of building Minnesota’s economy. In 2013, Gov. Dayton and the DFL legislature passed the biggest tax hikes in Minnesota history. Since then, the middle class of all age groups have left Minnesota. The only income group that’s increasing their percent in the state are the lowest incomes.

It makes sense. From an education standpoint, Minnesota is mediocre. From a taxes and regulations perspective, Minnesota isn’t competitive. It isn’t close. If the DFL doesn’t admit that their blueprint isn’t working, we’ll quickly turn into a cold California. Why does the DFL think that raising taxes will strengthen the economy?

In 2007, the DFL insisted that spending should be indexed to inflation. Now Melissa Hortman insists that, because spending isn’t tied to inflation, the $1.54 billion surplus is really only $382,000,000. According to Hortman, that’s justification for additional tax hikes.

The moral to this story is that the DFL doesn’t understand a thing about economic competitiveness. They want their tax hikes regardless of whether it hurts or not. This move hurts badly. Throughout the state, people from all income groups (except the poor and the working poor) are leaving for lower-tax states. That’s what’s driving the worker shortage.

Let’s hope Hortman and Walz don’t kill Minnesota’s economic competitiveness entirely. BTW, this is how socialism kills economies. When people lose the ability to make profits, they either leave the state or they stop making what they’d been making.

According to this article, the Center for the American Experiment is ruffling a few feathers with its recent report on Minnesota’s economy. Economist John Phelan, the author of the report, wrote that “The state’s economy is growing, but it’s growing below the national average.”

Later in the article, it says “Phelan cited data that has become popular with conservative economists: gross domestic product per worker. By that measure, Minnesota ranks 28th among the 50 states and Washington, D.C., and is well below the national average. It’s in stark contrast to the figures cited by economists, including gross domestic product per capita. By that measure, Minnesota is indeed above the national average and ranked 15th. The difference is that per capita measures the state’s economy against its entire population, while per worker measures it against only those who are employed.”

Economists can argue which is the better way of measuring economic growth. The only thing that people care about are whether lots of good-paying jobs are getting created. They aren’t. If the economy was creating lots of good-paying jobs, there wouldn’t need to be a push for a $15/hr. minimum wage because the economy would be creating lots of jobs that pay more than that.

Further, companies and people are moving out of Minnesota for places like North Carolina, Georgia, Texas and other states because Minnesota’s business climate sucks. The DFL argues that we just need a well-trained work force. I don’t disagree that we need skilled workers but I’ll vehemently disagree that that’s all we need. I was stunned to hear during the campaign that Minnesota’s lowest income tax bracket was higher than the top bracket in 20+ states.

That’s before we talk about Minnesota’s regulatory regime. Saying that it’s stifling is understatement. It’s designed to prevent competition and prevent economic growth. Most of it is built to appease the environmental activists and encourage lawsuits.

Given the high taxes and punishing regulations, why would anyone build or expand their business in Minnesota? They’d have to be masochistic.

You’d never know it by the MSM’s coverage but President Trump had a pretty successful G20 summit. Liz Peek’s article highlights those victories. Ms. Peek wrote that “President Trump scored major successes at the G-20 summit that concluded over the weekend in Argentina. Specifically, the community of nations agreed in their official communique to ‘necessary reform’ of the World Trade Organization, a top White House priority, and recognized the decision of the U.S. to withdraw from the Paris Climate Accord, and to still utilize ‘all energy sources and technologies, while protecting the environment.’ In addition, the Chinese promised to up their purchases of U.S.- made goods and to discuss other demands in exchange for postponing an expected hike in tariffs; President Xi also committed to designating the deadly drug Fentanyl as a controlled substance in China, and vowed to help with de-nuclearizing North Korea.”

That’s just the start. President Trump signed the new and improved trade deal between the US, Mexico and Canada. Later that morning, he met with Japanese Prime Minister Abe and Indian Prime Minister Modi. That sent a strong signal to China that South Korea, Japan and India have sided with the US, not with China. In terms of strategic importance, this development can’t be emphasized enough. China is already buckling during these tariff fights.

Thanks to Trump’s strategic pressure, China has started giving in to President Trump’s trade demands. That’s led to a major increase today for trade-sensitive stocks.”

BTW, the Dow finished up almost 288 points today. They certainly liked what they heard from the G20.

To be sure, there’s some noise coming from the Mueller witch hunt but that’s just noise. It isn’t anything that the American people take seriously. That being said, I don’t doubt that Mueller will weave together a document that Democrats will pounce on. They don’t have a choice on that. That being said, it’s difficult taking him seriously.

Finally, this is good news if it happens:

Trade negotiations between the U.S. and China will yield immediate results that will come even during the 90-day negotiation period ahead, National Economic Council Director Larry Kudlow said Monday.

Tariffs on agriculture and energy products will be lowered while nontariff barriers on American ownership of companies in China also will come down, Kudlow told the Fox Business Network. In addition, Kudlow expects progress on technology transfers and intellectual property.

“Those things should kick in soon. We should see palpable change on the Chinese side immediately,” he said. “I don’t want to be too specific, but I think the generic answer is we will see changes very quickly.”

I don’t think I’m outlandish in saying that the Democrats’ economic plan is short on growth and heavy on regulations and socialism.

For instance, the “presumptive incoming speaker, Nancy Pelosi, has vowed to pass this wage floor [$15 minimum wage] in the first 100 hours of the new Congress.” Why would she do this?

Even in wealthy Seattle, which passed a $15 minimum wage in 2014, independent researchers at the University of Washington revealed that entry-level jobs and hours worked fell as a direct consequence. As a result of reduced hours, entry-level wages actually fell by $1,500 a year, on average. A minimum wage increase that reduces wages? Just more proof that you can’t fight economics. If the $15 fallout was this bad in Seattle, think of the consequences to Main Street and entry-level employees in poorer cities such as Shreveport, Sioux Falls and South Bend.

Voting Democrat is voting against pro-growth economic policies. That isn’t to say that all Democrats are illiterate when it comes to economics. My point is that people like Ocasio-Cortez, Bernie Sanders, Elizabeth Warren and other progressive/socialist hardliners, where the energy in the Democratic Party is, hate pro-growth policies.

Hardline progressives/socialists see economics upside-down. They don’t get it that cutting taxes increases economic activity. These Democrats don’t understand that cutting regulations increases an entrepreneur’s incentive to start a new business. For that matter, only entrepreneurs notice that regulations prevent new businesses from starting.

This fall, the one thing I thought was missing was that Republicans didn’t make the case in specific enough terms of how voting for Democrats would hurt economic growth. This video is from 3 years ago:

The path to higher wages is through business-friendly policies. President Reagan, as he frequently did, put it best when he said that that you can’t pro-jobs and anti-employer. When President Obama raised corporate taxes, corporations left for other countries. In that instance, ‘fairness’ hurt American workers.

Why shouldn’t we learn that dramatically raising the minimum wage hurts everyone? Seattle’s increase to $15/hr. only increased automation while shrinking working hours. That’s rather counterproductive.

The Democrats’ economic blueprint is a blueprint for stagnation.

I agree with Townhall.com’s Katie Pavlich that the Democrats’ smear factory, aka the Senate Judiciary Committee’s Democrats, owe Associate Justice Brett M. Kavanaugh an apology. Unfortunately, that won’t happen. It won’t happen because too many of that Committee’s Democrats have presidential ambitions.

Pavlich is right in quoting the Committee’s report when it said “After an extensive investigation that included the thorough review of all potentially credible evidence submitted and interviews of more than 40 individuals with information relating to the allegations, including classmates and friends of all those involved, Committee investigators found no witness who could provide any verifiable evidence to support any of the allegations brought against Justice Kavanaugh. In other words, following the separate and extensive investigations by both the Committee and the FBI, there was no evidence to substantiate any of the claims of sexual assault made against Justice Kavanaugh.”

It isn’t difficult to predict that House Democrats will open another investigation into the FBI’s investigation of these charges. Jerry Nadler and Elijah Cummings can’t wait to start that investigation. Further, it isn’t difficult to predict that their investigations will produce tons more allegations but no corroborated testimony that verifies the women’s accusations.

It’s difficult to picture the House getting much done during the next 2 years. It isn’t difficult to picture them opening dozens of investigations into the Trump administration. I wouldn’t be surprised, though, if Pelosi insists on passing a corporate tax increase. Here’s why:

Don’t be surprised if House Democrats cause a recession in the next 16-20 months. When Pelosi was speaker the last time, she helped create a financial crisis. We didn’t get out of it until unified Republican government and President Trump’s leadership produced the current surge in economic growth.

This MPR article highlights what happens when politicians dabble in economics.

The article starts by interviewing a couple of business owners about the effect that the Trump/GOP tax cuts have had. Ultra Machining president Eric Gibson told MPR that he’s happy for the tax cuts, saying “From a business owner perspective, we’ve got a lot of great things going on right now. From a tax perspective, as an example, a lot of what we can reinvest in the business is from those tax reductions.”

At Yeager Machine in Norwood Young America, company president Mike Yeager said “I like what the Republicans and President Trump have done for me personally and my business. I will vote for people that support the current administration’s policies.”

Rather than listening to her constituents, Tina Smith thinks that she knows better, saying this:

“It doesn’t feel like a difficult position to me.” Smith said she would not have voted for the bill because it showers wealthy people with tax breaks at the expense of the middle class and will add more than a trillion dollars to the national debt.

“It’s not like that money was sitting in a bank somewhere waiting to be passed out. That’s money that we borrowed from our children and our grandchildren. I do not think that’s responsible.” Smith said increasing investment in workforce training and innovation would help more people get ahead.

How stupid is that? Tina Smith wants the government to “invest” our taxes in government workers because … government has such a great track record of “workforce training and innovation”? Let’s get a little serious. Then there’s this:

President Trump inherited a growing economy, and the tax cut has helped sustain the growth, said College of Saint Benedict and Saint John’s University economics professor Louis Johnston.

Technically, the economy was growing but it was the worst growth rate during a recovery in 75 years. The average annual growth rate during the Obama years was 1.9%. That’s pathetic. Since President Trump got rid of President Obama’s policies, the economy has been growing at a 4% average annual growth rate.

Republican Karin Housley (right) is a big fan of the Republican tax cut and is convinced that campaigning on it will help her win. Democrat Tina Smith said she’s not a fan because it showers wealthy people with tax breaks at the expense of the middle class. Mark Zdechlik | MPR News
Also, wages are rising during the Trump administration. They were stagnant during the Obama administration. Finally, small business confidence, which had been trending downward during President Obama’s second term, are skyrocketing under President Trump’s administration.

This is why leftists like Tina Smith and Prof. Johnston aren’t qualified to be economists.