RUTHFULLY YOURS

https://www.nationalreview.com/corner/senator-scotts-home-run/?utm_source=recirc-desktop&utm_medium=homepage&utm_campaign=river&utm_content=featured-content-trending&utm_term=third

I’d recommend that everyone read Senator Tim Scott’s rebuttal to President Biden’s address last night. A few highlights below.

Is America still upwardly mobile? Senator Scott’s own journey is an argument in favor.

Growing up, I never dreamed I would be standing here tonight. When I was a kid, my parents divorced. My mother, my brother and I moved in with my grandparents. Three of us, sharing one bedroom. I was disillusioned and angry, and I nearly failed out of school. But I was blessed.

First, with a praying momma. And let me say this: To the single mothers out there, who are working their tails off, working hard, trying to make ends meet, wondering if it’s worth it? You can bet it is. God bless your amazing effort on the part of your kids.

I was also blessed by a Chick-fil-A operator, John Moniz. And finally, with a string of opportunities that are only possible here in America.

Senator Scott offered a powerful argument for expanding school choice based on the terrible and damaging decisions of so many public schools to keep their doors closed for far too long during the pandemic.

Most of all, I’m saddened that millions of kids have lost a year of learning when they could not afford to lose a single day. Locking vulnerable kids out of the classroom is locking adults out of their future. Our public schools should have reopened months ago. Other countries’ did. Private and religious schools did.

Science has shown for months that schools are safe. But too often, powerful grown-ups set science aside. And kids like me were left behind. The clearest case I’ve seen for school choice in our lifetime is because we know that education is the closest thing to magic in America.

And the senator offered a powerful critique of the president’s family policies, arguing that they are designed to support parents who want to use commercial childcare, and offer much less for families who have decided other arrangements are best.

https://issuesinsights.com/2021/04/30/biden-deserves-zero-credit-for-booming-economy-covid-gains/

In his speech to Congress this week, President Joe Biden heartily patted himself on the back for everything good that is happening right now.

He described a country in crisis when he took office and said that “After 100 days of rescue and renewal, America is ready for a take off.”

The day after Biden’s speech, the Commerce Department reported GDP growth for the first three months of this year was 6.4%. New COVID cases are on the decline, and vaccines are plentiful.

So, it looks like Biden’s right, doesn’t it?

Except he doesn’t deserve any credit for any of those things.

Take the GDP number. Far from being in a Great Depression-scale crisis, the economy had been rapidly recovering from the government-mandated (and scientifically unjustified) lockdowns – with GDP leaping 33.4% in the third quarter of last year and another 4.3% in the fourth quarter.

When Biden took office, Q1 of this year was nearly a third over, and he didn’t sign his “American Rescue Plan” into law until mid-March, just two weeks before the quarter ended. So, even though checks started rolling out to people, that rescue plan was too late to have a significant impact on overall growth.

As a matter of fact, the GDPNow forecast for Q1 – which is a running estimate of the economy based on available data as they are released – was much higher before Biden signed his rescue plan than where it ended up. (See the chart below.)

https://www.wsj.com/articles/the-post-pandemic-boom-11619736069?mod=opinion_lead_pos1

President Biden can hardly be blamed for trumpeting the U.S. economic resurgence in his address to Congress. But his claim that “America’s house was on fire” when he entered office? It was already extinguished, as Thursday’s first-quarter GDP report showed.

Real GDP rose 6.4% in the period as vaccines rolled out, state lockdowns eased and Americans spent December stimulus payments. Incredibly, real GDP was a mere 0.87% below the 2019 fourth-quarter business cycle peak and probably would have surpassed it if not for supply-chain problems and disincentives to work. Consumer spending contributed 7.02 percentage-points to growth—about 70% of that for goods, but spending on services also increased, especially on recreation, food and accommodation.

Housing chipped in 0.49 percentage-points as the surge in home building and renovations continued. Business investment added 1.29 percentage-points, mostly from software and IT equipment, despite a global semiconductor shortage and transportation bottlenecks that have snarled manufacturing. Net exports and reduced inventories subtracted 3.51 points.

What’s amazing is that U.S. output is nearly what it was in the fourth-quarter of 2019 even with payrolls being about 5% smaller. Businesses and workers have become more productive during the pandemic. Aggregate employee compensation is 2.9% higher than in 2019’s fourth quarter as businesses have increased pay to reward and attract workers. Total personal income in the first quarter was up a whopping 16.7% from the pre-Covid peak. Much of this is pent-up savings—the personal savings rate was a near record 21%—that will turn into more consumer spending as people resume travel and leisure activities.

Mr. Biden wants to take credit for rescuing an economy in flames, but Democrats in Washington have been dousing dead embers. The economy was poised to accelerate as vaccines rolled out no matter who was President.