I turned to ChatGPT once again:
draw a Dr, Seuss parody book cover titled "If I Ran the Fed" showing Donald Trump as the author
And (once again), ChatGPT told me, nicely, sorry Paul I can't do that.
But it did suggest a compromise, and I think its result wasn't too bad.
I was inspired (of course) by dim memories of Dr. Seuss's If I Ran the Zoo. The relevant Wikipedia article notes that it's one of his books that were withdrawn from publication by "Dr. Seuss Enterprises" for unacceptable "racial stereotypes and caricatures". But this is an example of where John Perry Barlow was right: "The Internet treats censorship as a malfunction and routes around it." You can read the book here.
That Wikipedia article says the Seuss book was written in "anapestic tetrameter". I have no idea whether my parody obeys that scheme, but here you go:
"The Fed's in a slump,"
Said President Trump,
"And the guy who's in charge
Is kind of a chump."
"But if I ran the Fed,"
Said President Trump,
"I'd make a few changes.
Make the stock market jump!"
"Their 'rates' and their 'targets' and that kind of stuff
They have no idea that they're not good enough.
They're disloyal to MAGA and probably Blue.
They're awfully old-fashioned. I want something new!"
"So I'd fire them all, tell them to leave.
Put them out on the street, I'd not even grieve.
Replace them with flunkies I think I could find
Who would to my every whim be aligned!"
And I could go on, but probably shouldn't. I was "inspired" (if that's the right word) by the WSJ editorialists yesterday, who wondered: What if Trump Runs the Federal Reserve? (WSJ gifted link) Skipping to their bottom line:
We know from history what happens to central banks that become arms of politicians. See inflation in Turkey under President Recep Tayyip Erdogan and in Argentina for decades. Richard Nixon jawboned then Chair Arthur Burns to keep monetary policy easy, and the result was the 1970s great inflation.
Mr. Trump doesn’t even need this legal brawl because he is already getting his way on interest rates. Mr. Powell signaled as much Friday in his Jackson Hole speech. The Fed has made many policy mistakes—not least being too late to raise rates when inflation heated up during the pandemic—and this is one reason it is politically vulnerable to Mr. Trump’s attack.
But if he wants to change the Fed, Mr. Trump has ample opportunity through appointments to the board, including a successor for Mr. Powell as chair next year. That doesn’t seem to be enough for Mr. Trump, who in his afflatus thinks he can run monetary policy. Has he considered what a politically malleable Fed might do when the progressive left takes charge under another President?
Of course he hasn’t. Mr. Trump is all about short-term tactics and personal political advantage. Institutional integrity bores him. But if he succeeds in taking over the Fed, he and Republicans will own the results and whatever inflation returns.
And I found out that "afflatus" doesn't mean what I thought it meant. So I won't keep using that word.
Also of note:
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Lisa, listen to me. James Freeman writes on the Fed Governor in the midst of the current
afflatuskerfuffle: The Markets and Lisa Cook. (one more WSJ gifted link)In 2022 a Journal editorial called Ms. Cook unfit for the Fed job after she was nominated by President Joe Biden or whoever was running the U.S. government at the time. The Journal editorial noted:
Republicans have… raised valid concerns about Ms. Cook’s lack of monetary policy expertise. Her academic scholarship has focused almost entirely on race, and she seems to think systemic racism is the root of all economic ills. No doubt she would fit in well at university faculty lounges with similar views.
University of Chicago economics professor Harald Uhlig recently detailed in these pages how Ms. Cook called for his removal as editor of the Journal of Political Economy after he criticized the defund police movement.
Even if one believes that the Fed should be independent despite its manifest failure to provide price stability, one can also believe that Ms. Cook should be replaced.
I wouldn't be sorry to see her go. I might be sorry to see her replacement.
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Maybe not for lack of trying, but… Veronique de Rugy claims Trump Is Not the Biggest Threat to the Fed's Independence.
Concerns about the Federal Reserve's independence have grown following repeated attacks by President Donald Trump, including this week's decision to fire Fed Gov. Lisa Cook based on questionable allegations. But this debate is too narrowly focused on the president's political pressure, ignoring a growing danger in our system.
It is true that since the Treasury-Federal Reserve Accord of 1951, the Fed has had operational independence — the ability to set interest rates day-to-day — without any obligation to make government borrowing cheap. But it never had true economic independence because the bank's monetary policy cannot be insulated from the effect of fiscal policy, and vice versa.
As public debt grows, the link becomes more visible and fiscal dominance — which occurs when a central bank like the Fed becomes subordinate to the government's fiscal policy — looms larger.
Vero notes, soberly: "Fed independence, in a narrow political sense, becomes irrelevant when the arithmetic of debt service dictates outcomes."
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They're baaack! The University Near Here is a pretty idyllic place over the summer. But otherwise, as George Will notes, we got way Too many college students.
Autumn, season of mists and mellow fruitfulness (Keats), is also when too many young Americans head to college, where too many of them will study too little under the undemanding supervision of faculty who teach too little. Colleges illustrate the seepage of rigor from American life.
Since 1990, college enrollment has increased by 6 million students (29 percent). Reasons for this include government tuition subsidies and “college for everyone” rhetoric. And “degree inflation”: irrational requirements for job applicants.
Preston Cooper, then of the Foundation for Research on Equal Opportunity, reported in 2023 that applicants for a $35,600-per-year job driving an Oscar Mayer Wienermobile (a 27-foot-long motorized hot dog) had to have a bachelor’s degree. In 2000, only 16 percent of prime-age workers earning $35,000 (in today’s dollars) had such degrees; by 2022, 24 percent did. In 1990, 9 percent of secretaries and administrative professionals had bachelor’s degrees; today, 33 percent do, and a higher proportion of job listings require applicants to have one. This “paper ceiling” is especially egregious in state and local governments, where 63 percent of those earning between $40,000 and $60,000 have bachelor’s degrees or higher. Only 28 percent of such earners in the private sector do.
A recent report from the Burning Glass Institute and the Strada Education Foundation says 52 percent of recent college graduates are underemployed: in jobs not using their college learning. Meanwhile there are 750,000 industrial jobs unfilled.
Keats was no Dr. Seuss, but …