Crom Carmichael Details the Impending Implosion of the Biden Administration

Crom Carmichael Details the Impending Implosion of the Biden Administration

 

Live from Music Row Friday morning on The Tennessee Star Report with Michael Patrick Leahy – broadcast on Nashville’s Talk Radio 98.3 and 1510 WLAC weekdays from 5:00 a.m. to 8:00 a.m. – host Leahy welcomed the original all-star panelist Crom Carmichael to the studio to discuss the backfiring of vaccine mandates on federal employees and the looming implosion of the Democrat Party.

Leahy: In studio with us, the original all-star panelist, Crom Carmichael. Crom, good morning.

Carmichael: Good morning, Michael.

Leahy: I see you have the Happy Camper coffee that we just brewed for you. Are we doing okay with the coffee today?

Carmichael: It’s delicious.

Leahy: It’s delicious. Happy Camper Coffee is from BROASTTN, out of Cookeville. They sent us that care package. We thank them for it.

Carmichael: What’s their website?

Leahy: Broasttn.com.

Carmichael: There you go.

Leahy: Crom, you know what’s interesting? You came in and I said, well, Crom, what’s on your mind today? And when you told me what’s on your mind, I said, great minds think alike. Share with our listening audience what you want to discuss this morning.

Carmichael: I’m kind of looking at what I now believe is the impending implosion of the Biden administration. And frankly, maybe even of the left, at least for a period of time. And let me see if I can answer that. How many federal employees are there?

Leahy: Two million.

Carmichael: Two or three million. Something like that. And how many contractors? Another million or 2 million maybe? At least.

Leahy: Maybe more.

Carmichael: So he is forcing – and that’s the right word – he is forcing those four or five million people to all be vaccinated, regardless of their condition and regardless of their, I guess, their religious views or anything. Here’s my question. We know from the data that some people who take the vaccine, unfortunately, some people die from the vaccine. Is a person who forces somebody to take the vaccine accountable for a death or an extremely negative health outcome?

I don’t know the answer to that. But if a policeman is responsible for the results of his actions, it would seem to me that when a person uses force, and there’s no other way to describe it. The head of the teachers’ union, they’ve been supporting the mandates. But now that the mandate applies to the teachers’ unions, the head of the teachers’ unions are against the mandate.

Leahy: When did that come out?

Carmichael: It’s right here. (Leahy laughs) It’s right here in the Free Beacon. I’ll read the headline, Top Teachers Union Refuse Vaccination Requirement.

Leahy: Which one was it – was it?

Carmichael: No, it was the National Education Association. I’ll read the paragraph: The National Education Association and the American Federation of Teachers are pushing against mandatory teacher vaccination. (Leahy laughs) So what you now see is that this was really all about politics because now that the force can affect the constituency of the Democrat Party, (i.e. government employees) all of a sudden they are going, whoa, whoa.

That doesn’t work that way. We’re the privileged. We’re part of your group. Now, who isn’t part of that group? Everyone else. And so everyone else is affected by what? Immigration. And where is most of the COVID coming from today? In terms of the percentage of the population, it’s coming from south of our border. And then Biden is bringing them in. He’s not requiring them to be vaccinated. You don’t even require them to do much of anything. He loads them on buses and planes and sends them out hither thither all across the country.

Leahy: It’s almost as if it’s a deliberate intention to spread COVID.

Carmichael: Why do you throw the word almost in? He knows what the facts are, and yet he continues to do it anyway. So when I look at the amount of force now, I look at the inflation that’s coming. That’s not coming, it’s actually here. Our prices are rising now at about one percent a month, which is an unsustainable rate if it continues.

And Biden still thinks that he’s going to throw in his three-point-five, which I’ve now heard is actually closer to $5 trillion, not counting the infrastructure of the actual stuff because it’s entitlement stuff. It’s not a budget where we’re going to spend $100 million on this bridge.

Leahy: To build something.

Carmichael: It’s an entitlement. Let’s go back. Medicare. When Medicare was passed, it was projected that by 1988, Medicare would be an $8 billion a year program. By 1988, it was an $80 million program. So he missed by a factor of 10 because it went to everybody who fit by definition.

If you give an entitlement that is significant enough, more and more people will make sure that they fit the definition. And so it’s just the same thing with the states that expanded Medicaid. The budgets and the cost of the expansion of Medicaid are much greater than what the so-called experts said.

Leahy: It always is, though, isn’t it?

Carmichael: But the point is, it’s because it is an entitlement based on definition, there is no ceiling. Because I’m over 65 and paid into Social Security, my entitlement is a fixed amount. In other words, every year it’s a fixed amount, and when I die, it goes away. But in the case of Medicaid, it’s not a fixed amount, even for the beneficiaries.

You can’t properly project the number of even people who will fit the definition. And so that’s what this so-called human infrastructure is. Now they’re throwing the word infrastructure at everything. I actually heard somebody talk about voting infrastructure.

Leahy: Oh please.

Carmichael: The word infrastructure now has no meaning.

Leahy: It means nothing.

Carmichael: It’s just destroying the language when you take the current pop word and stick it on top of everything. But when I look at what’s going on, do you think that these mandates of federal employees and federal contractors are going to rile those people up who previously might have been – not have cared that much?

But now they’re being forced to do something, many of whom if you are in your twenties, you don’t need it. The data shows that your risks are greater. If you don’t have a pre-existing condition, your risks are greater. And you’ve already had COVID and your antibodies are high, other data is showing that the vaccine might not be advisable.

Leahy: Here’s the phrase that comes to mind, Crom. Rules for thee, but not for me. And federal employees and contractors think that should apply to them. Well, now they’re saying, oh, no, you don’t get away.

Carmichael: And now they’re on the side. What I’m saying is that there’s going to be very, very interesting to see if the empire strikes back on itself.

Leahy: Here’s where I think it’s going to be even more significant. It’s with the teachers’ unions. The teachers’ unions will be more significant because they consider themselves more independent from the federal government. Because their school – public schools – are paid for mostly by state and local.

Carmichael: Government-run schools.

Leahy: Government-run schools. Thank you for that correction. But it’s interesting. Usually, the Democrats and the establishment media and the unions coordinate their messaging. So what this tells me immediately after President Biden, the legal but not legitimate president, my words not yours –

After he comes out and says that, well, we’re going to mandate these vaccines for all federal employees and contractors, like within hours, the heads of the teachers’ unions say not for us. This is a mistake.

And by the way, if you saw what’s happened with Jen “circle back” Psaki, the press secretary, she’s been absent from the podium for about three days. I think what they’re realizing is their messaging is a mess. And this latest kerfuffle with the teachers union, their core constituency.

Carmichael: Government employees are the core constituency of the Democrat Party. And here’s what’s interesting. Here’s the question that Biden was asked. Well, if you think corporations should require their employees to take the vaccine, are you requiring federal employees to take the vaccine – because he’s supposedly their boss? And lo and behold, he fell for it.

Leahy: He probably wasn’t thinking that one through.

Carmichael: Well he doesn’t think anything through.

Leahy: You’re not being mean. You’re just observing the fact.

Carmichael: I’m observing 40 years. And when he does think something through, it’s meanness. And he’ll think through how to be mean. But in this case, he was simply reacting to a logical question. And that is if you’re going to urge businesses to mandate that their employees take the vaccine, are you going to do the same thing?

How else can you answer that question unless you go, that’s a great question. And I’m going to take back asking CEOs to mandate the vaccine. That would be the other answer. That’s a great question. But he didn’t. (Laughs) He didn’t give that answer.

He said, okay, well, I’m going to force everybody to do it, too. What he didn’t realize is that a lot of his constituents don’t want to take the vaccine because they have their own personal reasons for not wanting to.

Leahy: Another Democratic leader who seems to have kind of gotten off-message maybe, depending,  Nancy Pelosi, speaker of the House. There was a report that she had ordered the capitol police to arrest anybody in the capitol who wasn’t wearing a mask. You saw that report?

Carmichael: Yeah, but it doesn’t apply to her. And it doesn’t apply to – who’s the guy?

Leahy: Jerrold Nadler.

Carmichael: Jerrold Nadler. He got caught. And AOC. The Democrats had been caught walking through the capitol without wearing masks, and they’re not being arrested. And by the way, this is exactly what we’ve been saying now since I’ve been coming on your show. And that is that we have a two-tiered system of justice. And now it’s out there for everybody to see.

Leahy: Everybody to see.

Carmichael: It’s like the January sixth, the so-called rioters, they’re being held without even being charged. And they’ve been held in solitary confinement, some of them for months without even being charged.

Leahy: Yes. That’s unconstitutional.

Carmichael: It goes so much further than the Constitution because it gets into this question of equal treatment under the law. And you have in the case of – I think it was St. Louis. It was the black chief of police who was standing up there saying, this is absolutely ridiculous.

Murderers that we catch and that we bring in are being released by the district attorney. Murderers are being released back on the street. How are we supposed to do our jobs?

Leahy: You can’t do that job in that case.

Carmichael: You can’t. And this chief of police is – man, I just feel so sorry for him and the police officers under him.

Leahy: There’s a lot of people that feel sorry for this country today, Crom.

Carmichael: Yes. And that’s what I’m saying. That’s the implosion, once it starts.

Listen to the full second hour here:

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Tune in weekdays from 5:00 – 8:00 a.m. to the Tennessee Star Report with Michael Patrick Leahy on Talk Radio 98.3 FM WLAC 1510. Listen online at iHeart Radio.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Congressman Mark Green Weighs in on Washington, AOC, HR1 Bill and Taking Back the House

Congressman Mark Green Weighs in on Washington, AOC, HR1 Bill and Taking Back the House

 

Live from Music Row Friday morning on The Tennessee Star Report with Michael Patrick Leahy – broadcast on Nashville’s Talk Radio 98.3 and 1510 WLAC weekdays from 5:00 a.m. to 8:00 a.m. –  host Leahy welcomed U.S. Rep. Mark Green, a Republican congressman representing Tennessee’s Seventh Congressional District to discuss his visit at the border, AOC’s word recognition prolems, and the HR1 bill.

Leahy: We are joined on our newsmaker line by our good friend, Congressman Mark Green. Congressman Green, welcome to The Tennessee Star Report.

Green: Well, thanks for having me on. I really appreciate it.

Leahy: How are you holding up there? (Laughter) That’s my first question. How are you holding up in Nancy Pelosi’s crazy out of control, House of Representatives?

Green: Well, I haven’t snapped yet, but it’s enough to drive a man to it. I mean, some of the stuff that’s just being proposed is absolutely absurd. And you look at stuff that Fox News blew up from an interview from the border with me where I talked about AOC. I don’t know if you saw any of that.

Leahy: I saw that. So tell our listening audience about that.

Green: Well, she had heard people talking about the surge at the border and thought that we were calling the children coming across the border insurgents because we used the word surge. No, surge means a high volume over a short period of time.

Leahy: Did you spell it out? Congresswoman Cortez, surge means a high volume.

Green: It has nothing to do with people attempting to overgrow government. They like to throw that word around, by the way, inappropriately many times. But anyway, I digress.

Carmichael: Question for you, Mark, this is Crom. HR1 passed the House. I know you all couldn’t do anything to stop that from happening. It’s now in the Senate. What’s your prediction on what’s going to happen there?

Green: Yeah. It comes down to Joe Manchin. I’m hopeful that he bears the pressure. It’s going to be incredible on him from his own party. But he has now said that there are parts of the bill that he could support. So the Biden administration and Chuck Schumer said we’ll split the bill up. Now, that means it has to come back over to the House unless they trim down and amend out the parts that he doesn’t like and then attempt to pass that.

Carmichael: But don’t they have to break the filibuster to pass anything that’s not budget-related?

Green: They do. But if he gets a bill that he’s willing to support, then that will support doing it under reconciliation or some other mechanism.

Carmichael: How? Then the filibuster must not matter on anything if an election bill can be passed under reconciliation, then nothing can’t be passed under reconciliation.

Green: That’s basically what Schumer is saying. He said that he’s going to do this reconciliation process many more times than has been done in the past. That’s exactly what he has said.

Carmichael: Okay, well, then I guess Mitch McConnell’s only response is to tell 50 Republican senators don’t enter the chamber ever, and then he doesn’t even have a quorum. So if he doesn’t have a quorum, he can’t conduct business unless he decides to redefine a quorum.

Green: These guys are doing everything they can to rewrite rules and the laws and they totally disregard the Constitution. HR1 is unconstitutional. So I don’t think they care about that.

Leahy: I don’t think they care at all about that. That makes your job very frustrating. And then when you’re dealing with Alexandria Ocasio-Cortez misunderstanding words.

Carmichael: She doesn’t misunderstand it. This is what the Democrats do.

Leahy: Tell us more about how that border story blew up and the pushback against you on that Congressman Green.

Green: She was suggesting that everybody who notes the increase in the border, the surge that we’re racist. And that seems to be the mantra these days from the left. Anyone who points out, in fact, is a racist. They’re pouring across the Southern border. I’m standing there looking at 600 plus young girls in a small pod built for 33 and pointing out what’s going on because Joe Biden made ridiculous both foreign policy decisions and defense of our country, homeland security decisions that have resulted in this. This doesn’t make you a racist.

And them continually playing that racist card negates or lessens the chance that when real racism happens, we’re going to be able to spot it. And we don’t want to numb people to this word. That’s a very powerful and tragic thing when racism happens, and you should never abuse a term just for a political win. And that’s exactly what the left is doing these days. So if you’re a conservative, you’re racist and that’s inflammatory, frustrating, ridiculous. All the adjectives and you can come up with, but that’s the world we live in right now in politics.

Leahy: How can a legislative body function properly if every time the Republican Party says anything, the leadership of the Democratic Party, the mainstream media, and the Big Tech all say, well, that’s racist. How can you have any serious dialogue about important issues?

Green: Thanks for bringing up the big companies. I guess I’m going to go up to the Delta counter now and say sorry, I don’t have a photo ID. I thought I could fly on your airline without a photo ID. Delta Airlines is pushing back against the Georgia law.

Leahy: A great law, by the way, a common-sense law. Voter ID to get an absentee ballot.

Green: It’s common sense. But that word is exclusive these days from certain Democrat leaders. Basically, we get up there and we message and we fight to take back the House.

Leahy: Well, I think you’re right. What are the prospects for taking back the House? We have 30 seconds left here Congressman Green.

Green: We have a tremendous opportunity here. We just need folks to help out, but we can take back the House. We are basically six seats away right now. We’ve got a special that’s coming up. We’ll win one of those, at least, maybe two. Then we’re going to need four seats. We can do that in just 19 months with everybody’s help.

Leahy: And that’s the key point. Everybody’s help.

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Tune in weekdays from 5:00 – 8:00 a.m. to the Tennessee Star Report with Michael Patrick Leahy on Talk Radio 98.3 FM WLAC 1510. Listen online at iHeart Radio.

 

 

 

 

 

 

 

 

 

 

Host Leahy and Carmichael Examine Democratic Mobster Mentality, China, and the Co-Opting of America

Host Leahy and Carmichael Examine Democratic Mobster Mentality, China, and the Co-Opting of America

 

Live from Music Row Monday morning on The Tennessee Star Report with Michael Patrick Leahy – broadcast on Nashville’s Talk Radio 98.3 and 1510 WLAC weekdays from 5:00 a.m. to 8:00 a.m. –  host Leahy welcomed the original all-star panelist Crom Carmichael to the studio to outline how Democrat’s continue to chip away at American’s individual freedoms and China’s clever co-opting of its institutions and politicians.

Leahy: Crom, if there’s a bad idea, the United States House of Representatives, led by Nancy Pelosi, is certain to pass it.

Carmichael: It really is amazing, of course, now she has an agenda. And as I’ve said many times, I’m going to repeat myself yet again, the Democrat Party has become the party of government. And so her agenda is to give the government more power and to make as many people as possible feel beholden to the government. So everything she does is to further the power of government. And to weaken. And by the way, in to weaken the rights of the individual.

Leahy: Absolutely. The House last week on Tuesday passed a bill and sent it to the Senate where hopefully it’s going to die. But we’ll see. That was based on this very bad California law that in essence, outlawed independent contractors, destroying the gig economy. Now it passed in California. There’s an article at Reason Magazine about this. In November, California approved a ballot initiative that vetoed parts of that very bad bill that outlawed independent contractors. The question is, why are Democrats in Congress trying to force those rules down the throat of the entire country? That’s what Reason said.

Carmichael: The answer is that Democrats in general, but particularly liberal Democrats hate right-to-work laws because they want everybody to be a member of a union so that they then have to pay dues. And then 98 percent of all union dues go to Democrats. And the unions also then are able through forced union dues to employ people who are working politics on a full-time basis.

Leahy: On a full-time basis. Let me just elaborate on that Crom. You said something very important. This is a problem here that we face, left versus right in America. If you’re a left-wing, Marxist, neo-Marxist agitator and you want to be full-time employed working to destroy America, you just put your hand up. And there are just 100s of nonprofit organizations funded by anti-American left-wing billionaires. They’ll give you a job.

Carmicheal: Or unions.

Leahy: Or unions.

Carmichael: Because there are all kinds of people who work for unions who do nothing but political stuff.

Leahy: And on our side, here’s how it works. This is the disadvantage conservatives face. And everybody in our listing audience says, yeah, yeah. They look around and every time you turn around, there’s this huge push to do something really stupid left-wing. And the question is, well, where are our people pushing back? Well, most of our people are working.

Carmichael: Yeah.

Leahy: Right? And so they have to do part-time, and they don’t have the billionaires on the right. They don’t fund conservative causes in the way the billionaires on the left do.

Carmichael: Well, they’re not nearly as many billionaires on the right either.

Leahy: That’s a sad fact but true.

Carmichael: I would say that 80 to 90 percent of the billionaires are supporting left-leaning organizations. And I think they do that out of their own self-interest.

Leahy: It is self-interest because they don’t want the left coming after them for their money.

Carmichael: Right.

Leahy: So on that list of leftist billionaires, Bill Gates, Mark Zuckerberg, Warren Buffett. Terrible.

Carmichael: Warren Buffett figured that out a long time ago.

Leahy: He figured that out a long time at how you protect himself.

Carmichael: He figured out that the best way to protect Warren Buffett is to claim he should be paying more taxes, but then not follow through by paying more taxes all on his own, just to show that he really means it.

Leahy: He doesn’t pay that much in taxes. And he takes advantage of every tax law. Although he writes these editorials, (Wimpy voice) “I should be paying more.” He doesn’t pay more. He’s a hypocrite. All you Warren Buffest fans, you can invest in Berkshire Hathaway and make a lot of money but the guy is a hypocrite.

Carmichael: And this is why big business now is giving most of its money to Democrats is they’re doing it as a way to protect themselves. It really is as I told you, I’ve been watching this series on mobsters. And in the olden days, one of the things that mobsters did was they just took money from small retailers and in a particular area as protection money, saying, if you don’t get me the money, people will rob you or burn your store out or something like that. So if you give me money, I’ll protect you. That’s what’s happening now is that if you want to be a protected company and if you say something that is mildly conservative, for example, I hope the people of Hong Kong remain free.

Leahy: Yeah. Something controversial like that.

Carmichael: If you say something like that, then you’ll lose your job.

Leahy: Especially if you’re in the NBA.

Carmichael: Yes. But I’m saying virtually anywhere that if you stand up and generally as a business or as a CEO if you come out for freedom of the individual and if you say negative things about China, there’s a very good chance that you’ll lose your job. So that’s true.

Leahy: That is a true statement.

Carmichael: That is a true statement because the amount of money that the Chinese have figured out is that you can buy people. And if you buy people in power, then you can extort all the rest by having them fear the people in power. And so that’s what the Chinese have figured out how to do. The Soviets never did it because they never had the money to do it.

Leahy: Chinese have the money. Chinese have the money and were the ones who gave it to them.

Leahy: Yep. Just gave it to them. You look back and this whole theory, it was sort of a Kissinger Nixon philosophy, right? The opening of China. If we show them the wonders of capitalism, they will then adopt Western civilization values.

Carmichael: They’ll become more like us. And that turned out to be false.

Leahy: Totally false. In fact, they used our freedom. They used our liberties. They used our system to their advantage. And they are manipulating us right now.

Carmichael: Yeah. And we spend our money on far away wars. And they don’t spend any money on far away wars. They spend their money on when they’re far away is building their economic base. They are all over Africa, for example. But they’re not all over Africa with soldiers. They’re all over Africa with engineers and money. And they co-op. And then they co-op the local government so that those local cut so that those countries, more or less, become a subsidiary.

Leahy: Exactly. It’s modern mercantilism, but very clever. What they’ll do is they’ll go into an underdeveloped country, and they say we are going to put up the money to build your ports.

Carmichael: Yes.

Leahy: We’re going to build the money to build your roads. That money has a little catch to it. High-interest rates. And if you don’t do what we want, we’re going to call the money.

Carmichael: Well, and not only high-interest rates, but we then have the right to come into your country and operate mines or do what we want to exploit your natural resource.

Leahy: Exactly.

Carmichael: In other words, they go into the countries that have natural resources, and then they take advantage of the fact that they’ve co-opted the government. Now, in co-opting the government, they greatly enrich the people who run those governments. They have a very good understanding of human nature and how to exploit that aspect of human nature. Our left-wingers understand it. And our left-wingers, by the way, get very rich. I’ve got all kinds of stories here about people in government that are enriching themselves while they claim to be public servants.

Leahy: Well, the problem going on with China right now in essence, they have a very sophisticated 21st-century colonialism. But actually, they provide fewer protections for those that they are colonizing than the British did or the other Europeans did back in the 19th century.

Carmichael: They go in, and they co-opt entire governments by enriching a few people at the top and then providing them with all the support they need to remain in power.

Leahy: They’ve done a lot of that here in the United States as well.

Carmichael: Yes. All these Confucius Institutes around the country. So they’re co-opting higher education. They’re co-opting Hollywood. They’re co-opting the entire entertainment industry. They’ve co-opted our politicians. Many of our politicians have been co-opted. And then they’ve co-opted big business and Big Tech.

Leahy: Big time. Big time.

Listen to the full third hour here:

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Tune in weekdays from 5:00 – 8:00 a.m. to the Tennessee Star Report with Michael Patrick Leahy on Talk Radio 98.3 FM WLAC 1510. Listen online at iHeart Radio

 

 

 

 

The Great Dilemma for America: Crom Carmichael on the Democratic Party of Grifters and Looming Inflation

The Great Dilemma for America: Crom Carmichael on the Democratic Party of Grifters and Looming Inflation

 

Live from Music Row Wednesday morning on The Tennessee Star Report with Michael Patrick Leahy – broadcast on Nashville’s Talk Radio 98.3 and 1510 WLAC weekdays from 5:00 a.m. to 8:00 a.m. –  host Leahy welcomed all-star panelist Crom Carmichael in the studio to breakdown the potential of inflammatory effects on America’s economy from COVID and Democratic grifters.

(Chuck Schumer clip plays)

Leahy: That is perhaps one of the most dishonest grifters in American political history. Senator Chuck Schumer of New York trying to explain why they should pass a $1.9 trillion giveaway to big blue cities and big blue states and he’s using a false claim.

Carmichael: Yes. As Mitch McConnell pointed out one percent of the bill, which is, by the way, one percent of 1.9 trillion.

Leahy: It’s one percent?

Carmichael: One percent goes directly to COVID. Goes directly to COVID.

Leahy: And then eight percent indirectly?

Carmichael: Indirectly. But 91 percent doesn’t go to COVID or anything related to COVID.

Leahy: Either directly or indirectly.

Carmichael: But one percent of one point nine trillion is still $20 billion. So that is still $20 billion.

Leahy: One point nine trillion, one percent of one point nine trillion.

Carmichael: Did I get my math wrong?

Leahy: You are correct.

Carmichael: I am correct.

Leahy: You are correct sir because 10 percent of one point nine trillion would be 190 billion. One percent is 19 billion. You are correct in your math.

Carmichael: So it’s a very very large amount for COVID. And so what Schumer’s doing is what all grifters do. He’s just making stuff up. And if it were not for the willful complicity of the media you couldn’t get away with this. This is the great dilemma for our country. You have now Big Tech and big media that is in bed with the Democrat Party and in bed with all their policies.

And so you have about probably 20 to 25 percent of the population that benefits from all this grifting. And the balance of the population gets hurt. Now deficits do matter. And one of my great pet peeves is when politicians say these deficits are going to hurt our children and grandchildren. That’s false. They’re hurting us now. And what they do is they act kind of like a wet blanket.

And what they do is if productivity is growing at four percent then you ought to have real income rising at four percent. But if you have deficit spending that’s equal to more than four percent of the economy, then you may see a rise in your paycheck. But you’re going to see inflation in some of your basic goods. For example in housing prices. housing prices now across the country are going up because you see commodity prices like lumber, copper, and many of the materials that go into a home are rising at very very high rates.

And so the inflation is almost hidden. But it’s there. Let’s just say that inflation affects you at $1,000 and infects everybody at $1,000. Well, somebody’s making $50,000 dollars a $1,000 is two percent of their income. If you’re making a million dollars then $1,000 is imperceptible. If you’re a multi-billionaire, you’re making far more money on the increase in the value of your stock than you are worried about the effects of inflation.

Leahy: So I’ve got some data here. This is from a website called The Balance. It looks at the deficit as a percentage of the gross domestic product. And it’s been quite high. When Ronald Reagan took office ’19 in 1980 It was two point six percent that fiscal year. Of course, he took office and it would have been fiscal in 81 when it was two point five percent. When George H.W. Bush took office it was three point seven percent in 1990. Then we fast-forward.

It was actually a surplus during the last years of the Clinton administration. And that was due to the sort of the internet bubble. George H.W. Bush and the crash of 2008. In fiscal 2009, 9.8 percent of GDP. the deficit. it’s been really really high pretty much ever since it went down to three-point four percent in 2017. It shot back up in 2020 at 17.9 percent because of the COVID impact. And it’s going to be about 10 percent in fiscal 2021 except probably more than that now.

Carmichael: It will be more than that if this bill passes. And then they’re talking about another great big bill in behind it. And so the aging of the baby boomers is going to affect Medicare in the coming years. So under Trump the deficit as a percentage, I think you said it got down to like three-point six percent.

Leahy: Yes. Under Trump in 2017, it was three point four percent.

Carmichael: What was it in ’18?

Leahy: In ’18, it would be three-point eight percent.

Carmichael: Okay, what was it in fiscal ’19?

Leahy: Up to four-point six percent.

Carmichael: Okay. All right. And so then it was in fiscal 2010 that it exploded. So part of ’19 perhaps had something to do with COVID. I don’t know.

Leahy: No it would have been ’20.

Carmichael: All fiscal year ’20?

Leahy: Because fiscal year ’20 goes from September to October 1, 2019, to September 30, 2020.

Carmichael: But here’s what’s interesting. With all of those numbers in there, I think that the federal government is doing a very poor job of collecting the right data to understand productivity gains. I think there are a lot more productivity gains due to technology than that is being captured. I think the productivity gains that they’re capturing are in an old-school way. And productivity gains are much different now.

Leahy: That’s a very good point. Despite COVID productivity gains probably have limited the depth for people that that are involved in certain jobs it’s had less of an impact.

Carmichael: If we come out from the other side of COVID a lot of the changes that were made because of COVID will enhance productivity. If I can do a Zoom meeting and make a sale and I don’t have to go do a business trip to make that same sale then I can make perhaps three or four sales calls a day and not spend any money in doing so.

Leahy: And not travel.

Carmichael: And not travel and do all that. And so that would actually be a gain in productivity.

Leahy: In certain segments. But for instance restaurants. Making stuff in a manufacturing facility that kind of thing got hurt badly. At least on the restaurant side.

Carmichael: That’s not a manufacturer, that’s a restaurant. So what you’re seeing is that if there are a lot fewer business lunches and dinners then that hurts the restaurant business. But in terms of the macro, if people are doing things more efficiently and accomplishing the same goal then there’s a particular…

Leahy: Because one thing that you and I are not Crom, we are not Luddites. (Laughter) Luddites were the people that wanted to go in and break all the new machinery that made it easier to manufacture clothing and other things back in 19th century Great Britain.

Carmichael: So what I’m saying is that if you have a productivity gain of four percent and you have deficit spending four percent more or less than increase the money supply, then theoretically you’d have an inflation rate of close to zero. But if you have productivity gains and four percent and you have an increase in the money supply of 10 to 15 percent and that’s done consistently at some point that catches up with you and it doesn’t affect the wealthy nearly as much as it affects middle and lower class demographics.

Leahy: You’re exactly right and the people that are being hurt by all of this deficit spending really middle-class Americans.

Carmichael: And lower-income people.

Leahy: You are exactly right.

Carmichael: And all these policies the Democrats’ the school policies, in particular, they hurt lower-income children far more than they hurt anybody.

Leahy: They absolutely do. We’ll close that talk off.

Listen to the full third hour here:


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Tune in weekdays from 5:00 – 8:00 a.m. to the Tennessee Star Report with Michael Patrick Leahy on Talk Radio 98.3 FM WLAC 1510. Listen online at iHeart Radio