Dude, all the socialists are in the White House. The White House is taxing all Americans specifically to give billions in handouts to farmers. Good-old fashioned tax and spend socialism. Maybe make Mamdani Secretary of Agriculture?
From Fortune:
“Soybean farmers are under extreme financial stress,” the American Soybean Association said in a letter to Trump in August. “Prices continue to drop and at the same time our farmers are paying significantly more for inputs and equipment. U.S. soybean farmers cannot survive a prolonged trade dispute with our largest customer.”
The One Big Beautiful Bill Act that was signed in July included about $66 billion in agriculture-focused spending. The vast majority, about $59 billion, is earmarked for farm safety-net enhancements.
But Trump has also suggested tariff revenue could be used to help farmers, and sources told the Wall Street Journal on Thursday that the administration is considering a bailout of $10 billion-$14 billion with distributions potentially starting in the coming months. During Trump’s first term, farmers got $23 billion amid an earlier trade war with China.
So communist Mamdani, elected (perhaps even remotely possibly, fairly) by New Yorkers is some sort of red-in tooth-and-claw capitalist in comparison with those White House lefties?
The test of the pudding is in the eating thereof. Give him more than a day to stuff it up … then the socialist White House will run to the rescue.
That is just $ in the private sector moving around like $ do. No change in the money supply.
But if you want an aside to blow your mind a bit more -
No clue why we want to bring back manufacturing so much. Right now we have China buying energy, and using their real factors of production ( labor, raw materials, plants and factories) - to make crap that we buy - and in return we give them $ than we can make with a key stroke - what a great deal !!
Those dollars are backed by a functioning economy though. If extended to extremes, you can’t just tell everyone to quit their jobs and give them a million dollars a year to buy crap off Amazon.We do need to actually be doing something here to make dollars look like a good trade for actual stuff.
Speaking of…..this is why threatening to default on our debt is such an incredibly harmful activity. The “debt limit” standoffs are basically “we voted to spend the money, but now we are voting to not pay the bills that just showed up”. This actually does work like your household budget - If you tell your wife she can buy a Porsche and then a few months later decide the payments are too high and you are not going to pay them, you will soon either be unwelcome at the car dealer or they will be charging you a very high interest rate.
Don’t know if the conditions in Norway was any worse than in other places at that time. The “great depression” hit hard most places.
Norway had the advantage of being energy rich even then, (in the form of hydro-electic power) producing fertilizer, aluminium and ferro allows for the world market.
PS Besides having the world’s 3rd largest merchant fleet, which employed a large number of Norwegians at the time. (Incl. your Grandfather?)
I don’t know in Norway suffer from a “resource curse”, or a “blessing”.
When oil was found in the Norwegian sector of the North Sea in 1969, Norway was already counted among the rich countries, but was lacking knowledge and technology required to develop the newfound richess.
Thus for the first few years as an “oil nation” Norway was dependent on outside expertise, mainly from USA.
But both Norwegian oil workers and Norwegian companies took advantage of the opportunities to learn and build up their expertise.
Soon there were Norwegian designed and built drilling rig and OSVs replacing US built ones and Norwegians taking over top positions, both offshore and ashore.
But what saved Norway from falling into the “petro state curse” was the political decision to establish a Sovereign Wealth Fund (aka the “oil fund”) to handle the direct Government income from oil & gas production. (Now world’s largest)
The other smart move was to limit the amount of money from the fund that could be used by the Government for budgetary purposes to 3% per annum.
This ensured that the “onshore economy” didn’t overheat, thus making other Norwegian products unaffordable on the international market.
All true, Norway is way ahead of most any other petro-state. That said, take a look at how many Norwegian employees and companies face direct international competition and how many don’t. They would still have some adjustments to make if there was no petro money. So would the USA if we had to buy all our oil come to think of it, maybe not in exactly the same way!
As for my Grandfather, he came over way before WW II, not just a little bit. He was married in the USA when the Depression struck. He might have been over before WW I actually. He and his brother ended up doing very well for themselves in the USA despite being orphaned soon after arrival.
Norway is different from the other petrochemical states in that it is close to, and part of, an existing industrial complex. Norway is also sparsely populated with a well educated population. The jury is still out as to if southern parts of the USA can be regarded as well educated..
Some parts of it certainly can be, see the Research Triangle. Other parts………maybe not so much. Also see poor parts of the rest of the country, we have a decades long sorting of smart people moving to where the action is leaving behind those who can’t or won’t move.
Has Norway been in a permanent recession?
Your ignoring a trading surplus gov could tax less and still have surplus from an expanded revenue base, more businesses and more employees.
Its 100% adding to the money supply, its dropping USD into the USA you didnt have till you exported the goods
What do the banks do with it, ( same as when the gov needs to expand the money supply) loan it out.