What’s (left) In Your Wallet? DeSantis & Deja Vu - Top 3 Takeaways – May 12th, 2022
- Well, they’re consistent. They’re wrong, but they’re consistent. I’m talking about economists. Yesterday’s CPI, or Consumer Price Index, once again came in at 41-year highs at 8.3% - while ever so slightly lower than last month’s 8.5% - it was once again higher than economists’ expectations. It’s remarkable that economists not only are so reliably wrong, but that they’re seemingly always wrong on the wrong side of inflation. You’d think if your job was to measure economic stuff, and you’d underestimated inflation every month for a year, you’d do something different. But alas, this was predictable after President Biden’s decision to offer his inflation address, prior to the release of the CPI, as opposed to after it. It’s clear the first round of interest rate increases by the Federal Reserve didn’t do much in addressing inflation. And while the recent 50-basis point increase isn’t factored into these numbers, what this guarantees is that the Fed will continue to raise interest rates aggressively for now. But most importantly what it’s already meant is that it’s another month you’ve fallen farther behind. In fact, we fell further behind faster than any other month during Bidenflation yet. Last month incomes rose by 5.5% year-over-year. That means the average household’s 2.8% worse off than a year ago. That’s even worse than the 2.6% divergence last month. In other words, while the inflation rate ticked ever-so-slightly lower last month, it proved to be a fresh 41-year high for the net impact of inflation on the average household. But hey, elections have consequences, and this really is so worth it, isn’t it? Every time you go to pay a bill you can tell yourself... At least there are no more Trump tweets...for at least for a few more months anyway.
- That didn’t take long. The recently filed lawsuit against the state attempting to prevent the dissolution of the Reedy Creek Improvement District, alleging it would hurt local taxpayers, was dismissed by a federal judge just about as quickly as it was filed. The ruling which stated the allegations were only speculation, was immediately addressed by the Governor’s Office by saying... There is no scenario where the state would inherit Disney’s debt — this is misinformation. Perhaps this will put to rest the speculation from those who are hoping — with no basis in reality — that this will end in some sort of taxpayer or state burden that partisan critics can use against the Governor. Bingo. And all of the news reporting to the contrary right along has been nothing more than fake news. That includes extensive reporting at the national, state and local level. While this issue may not be at the forefront of our concerns in South Florida, it is another example which helps illustrate the news sources you can but most commonly can’t trust for news in South Florida. As I said in my April 25th Q&A... As I say, there are two sides to stories and one side to facts. Here are the facts. Disney benefits from the Reedy Creek Improvement District. The debt held by the District doesn’t automatically transfer to local governments. This law can be an economic lift to Orange & Osceola Counties'. Property taxes will only rise for owners in those counties if local officials choose to raise their taxes – not out of necessity. Perhaps if news reporters had done their homework and reported the truth in the first place the frivolous lawsuit would never have been brought. But it didn’t take long for the truth to come out illustrating most news outlets are as frivolous and useless as this lawsuit was. And related...
- Déjà vu. If yesterday’s decision on Florida’s Congressional map feels like a form of déjà vu. There’s a good reason. We did just experience a similar version of a slightly different thing within recent weeks. After being subjected to radical headlines like AP’s stating... Federal Judge Strikes Down Portions of Racist Florida Election Law, after Judge Mark Walker’s initial ruling, Florida’s election law was reinstated last week by the 11th US Circuit Court of Appeals. We’re still waiting on a retraction from AP and company on the whole “racist” thing. Anyway. Yesterday’s initial ruling on the state’s new congressional map from state Circuit Court Judge J. Layne Smith illustrated many news reporters have learned nothing. Definitive headlines like this rained down with keystrokes yesterday... Florida’s Republican backed congressional map illegally harms Black voters & this Florida Judge Says DeSantis’ Gerrymandered Congressional Map is Unconstitutional. Well, if a news reporter declares a map gerrymandered (because the judge didn’t), it must be. Now, like Florida’s election law, this isn’t the end of the story – it's the beginning of it. This will be appealed to Florida’s Supreme Court. And there’s no certainty as to how this will turn out. Notably, the judge who issued this ruling was appointed by DeSantis. But the lack of clarity hasn’t stopped news reporters from issuing declaratives about the map.