Gimme A Break, Muskrat

Originally published 11/17/2024. I told you so. Now try listening

We’re not even into Agent Orange’s Real-Life Redux, and already I’m sick of him. And, frankly, I know I’m not alone. While his cabinet choices of vile pigs, equally dubious semi-babes and other assorted deplorables may be truly disgusting, his Feckless Friends Without Portfolio are really a trip. Good, so many to choose from. But there is one whom I find truly entertaining.

Elon Musk.

Now, I’m not aware that Muskrat actually has or will have a formal position. I guess even that pasty-faced “First Lady” would have to submit to some kind of vetting and disclosure. Why do I think ole Elon don’t want to be subjected to Discovery? You know, sunlight is the best disinfectant and vermin somehow always seem to know that. So I guess we’re gonna have to be subject to this jackass who is and is not there, The Schroedinger’s cat of Trumpland. Oh, joy.

Now, Elon is a disruptor, you know. Ordinarily, disruptors are not exactly welcome because they tend not to play well with others. Muskrat, however, has turned his winning personality into big bucks. And, well, this is America. What else matters, right? Character? Ethics? Social Awareness? Common Decency? Nah. For that you’d have to find some cloistered nuns, assuming the Catholic Church has many or any left. And even….. well, forget it. The Church is not on my mind. For once. Although did you hear the one about the Archbishop of Canterbury?

No, we’re gonna stick to Elon and his Very Big Plans.

Elon is one of those Chainsaw Al kind of disrupters, you know. Let’s cut everything (except my compensation, of course). He’s also notoriously airy about keeping his promises–ask Mexico, for one, where he was saying until he was gonna build a great automobile slingshot into the US market, until he apparently lost interest. I suspect you could profitably look at some of his other commitments too, but it’s you dime, so do what you want. Personally, I want to talk about something much more interesting.

A two trillion dollar Federal budget cut. Let me make it clear from the outset. I am not gonna use some fancy budget simulation a la Wharton or CBO. Sufficient to them is the techno-wizardry thereto. Nor am I gonna muck around in the actual details of how this mighty deed of the Big Chopper might actually be carried out in the Real World. I mean, this is all some mouth-breather phantasy right? So let’s just play along using some very elementary textbook economics. Y’all remember Mr Circular Flow? That diagram you dismissed as just too silly to be of any use when some poor schlub who was trying to get you to think like a Econ put up a slide (there, even I can be modern, although I was a chalk and blackboard kind of guy myself). Yeah, you little snots from Engineering, Math and real subjects who wanted Differential Equations. Knock Yourself out. Waste of brain power, I fear. Overkill. Besides, trying to explain some brutal system of difference equations to a Trump Voter is really like try to teach the proverbial pig to sing. Really. You get frustrated and annoy the pig. Literally. Go try it on your neighbor……

Yup. Heh. Bring on the magic mushrooms, cause psilocybin is the least you’re gonna need to get through this exercise. Now, if you INSIST on some semblance of the real thing, use this. and don’t bother me further. This tells you right off the bat the old Elon is living in Muskrat world. It don’t work like, Muskrat walks into a room, and says “Out, damned budget.” But, Hell, let’s pretend it did. What do you’ll think would happen? Lol. Get ready.

(https://fiscaldata.treasury.gov/americas-finance-guide/federal-spending/#:~:text=Spending%20Trends%20Over%20Time%20and,the%20United%20States%20that%20year_

You know, that circular flow that you were daydreaming through (admit it: he or she across from you was hot) says one Big Thing. And that would be, perfesser? Well, My spending is your income. Period. Really? Swear to God? Yup. Where did you think it came from. Your Mommies and Daddies? Where did THEY get it, assuming they didn’t work for Enron and just sort of make it up as they went along. It’s gotta come from somewhere? Right? I know. The government!!!! Well, yeah, but if the government just creates money to spend and doesn’t create nothing to spend it on, well, it won’t be worth much very long. Like a microsecond, Ace. See, money is basically debt, a claim on something. A claim on nothing is worth nothing. Even in Texas. So you’re out of luck.

Try again. When you come down to it, money is basically a claim to productive activity–stuff, wizard–and the nice part of it is Uncle Sam (or Tio Huitzilopochtli) has fixed things so that these claims on stuff you produced can be exchanged for other stuff without your name being on it( dah, dah, legal tender). Cool, huh? So I make stuff, and then (use magic here) I get claims that I can use to get other stuff. Maybe, you know, you are making the other stuff in your garden. Grin. Nasty. I was thinking of tomatoes, not cannabis. But no matter. My claims become your income (and your stuff my stuff) and your income becomes….my income….and so on….and so on….Without limit? Well no, but we want to leave savings out of it, which, if you are an American, is close enough for government work. More or less, that it. Really. Well, yeah. Sorry to disappoint all you propeller heads who want unending complexity, but that’s basically it. Now go do you homework in someone else’s class.

But What About Muskrat and His Big Chopper? Ok. Why not. Federal spending is maybe a fifth of our Circular Flow. So, maybe, a two trillion dollar cut would actually cut about a third of annual Federal Spending. A third of a fifth is about 1/15, or 6 to 7 percent. No big deal right. Ah, wrong. Wrong on several levels. See that first cut, well, think hard. Suppose your BFF works for a grocer who sells to military dudes (make it simple–not really necessary). Now, those military dudes are, soon or later, gonna have less to spend when the cut affects them–and suppose Musk the Chopper decrees all must sweat equally (except Elon and his multiple offspring). So the grocer sells less, right, but then, hey, the grocer buys less, right. Ahhhhh…..I get the picture. A ripple effect. Right. Well, how much? It depends, friend, but even ” multiplying” 7 percent by small number, say 2…..well that sums to 14 percent of the Circular Flow once things settle down. Assuming nothing else happens. Which I guarantee you is wrong. You’re about to go over the cliff, but that’s ok, You ARE MAKING AMERICA GREAT AGAIN! MAGA!!!!

Dude. It’s been tried. It’s called Austerity, Big Time (Another name for a Depression if you are included). The British have tried it. Lolz. Why you think the UK is so screwed up? Because Mick Jagger is mortal? Well, that too. Don’t believe me. Here is something for you to chew. Simon Wren-Lewis, Lies We Were Told. It’s a book, yeah, but if you’re unemployed, the opportunity cost of your time is zero. So all you pay is the price of Wren-Lewis’ book, and once that’s done, it sunk cost.

https://www.cambridge.org/core/books/abs/lies-we-were-told/preface/19162B8AE9D1948872089026631A4546

Like you. Sunk by the Muskrat, Trump, and his revolting Minions.

Enjoy.