Why the President can Fire the CEO of the TVA

TVA

I just read a story about the Tennessee Valley Authority (TVA) and the fact President Trump fired its CEO and one board member. My first reaction was, what what what? How can a political entity fire the CEO of the TVA? It turns out the TVA is owned by the Federal Government although it receives no tax dollars and acts almost exclusively just like a private company. So, my second question is, what what what?

Where is my Time Travel Hat? I have to get to the bottom of this immediately. Did I leave it in the freezer again? No. In the tax document drawer? No. Ah, there it is in the Gloomhaven Box, how did it get there? Oh well, let’s see, still fits, spin three times, fancy colors, bright lights, dizzy spell, and, where am I?

Is that President Franklin Roosevelt over there? What is he saying, selfish purposes, let’s listen in: Never shall the federal government part with its sovereignty or with its control of its power resources while I’m president of the United States. Hmm, so he’s upset that public utilities are charging high prices. He wants the government to be in charge of electricity generation. Look at all the people applauding him including Republican Senator George Norris who just blocked Henry Ford from building a private dam and utility to modernize the Tennessee Valley.

I can’t believe I’m actually watching President Roosevelt signing the TVA Act which legally prevents competition in the valley. Only the government can build power plants and dams. Oh, I see, look there, in the back room, the politicians know the dams are going to flood out tens of thousands of residents, Native American sacred sites, so they are giving TVA Eminent Domain powers to simply kick people off who refuse to sell. Smart!

Oh, look there, is that Barry Goldwater and Ronald Reagan lambasting the power of the TVA and the fact government controls it instead of private industry, it sure is. Look there, they have their own police force! A net income of $1.12 billion in 2018. They’ve been profitable since 1977.

Uh oh, energy running low, flashing lights, and I’m back home. Whew. Another successful trip. What did we learn? The government shouldn’t own industries like the TVA for a number of reasons, one of them is politicians will feel free to intervene in business decisions for which they should have no authority whatsoever.

Why does President Trump have the authority to fire the CEO of the TVA? Because the government created a monopoly and crushed any chance for private industry competition.

How does the Supreme Court justify this Socialism? The Commerce Clause which allows the regulation of streams to keep them navigable and the War Powers Act because electricity is sometimes used in the creation of munitions. Seriously? I ask. Seriously?

Tom Liberman

What Does Zero Economic Growth During Shutdown Mean?

Zero Economic Growth

Zero Economic Growth was the prediction made by the Chairman of the White House Council of Economic Advisors and that indicates something very important. It means the federal government is largely driving economic growth in the United States. Without such intervention, there is no growth. This is a complete, although inadvertent, admission that the government is far too entangled in the economy; that Socialism has completely taken over. That’s not a good thing.

Kevin Hassett is certain the Zero Economic Growth engendered by the shutdown will not have a long-term negative effect because money will pour forth from the federal government once things are settled. This is missing the entire point. Our entire economy is now dependent on taking money from taxpayers and giving it to various businesses that would not survive without it, this is socialism. We are there.

The Defense Industrial Complex, read War Machine, and everyone in it, including many of my friends and relatives at Boeing and Lockheed, would largely not have jobs without such intervention. The entire farm industry is almost completely dependent on government handouts for survival. The federal government has its noodly appendages hooked into almost every industry in the country. Education, Technology, Energy, Healthcare, you name it and the government supports it to one degree or another.

The switch from capitalism to socialism is all but complete despite any claims from Republicans to the contrary. That particular political party is probably more responsible for this turn of events than the actual socialist who clamor for it. Every time the government passes a law that supports one company over another, every time the federal government spends a single dollar, they are influencing the economy of the nation. The more money they spend, the greater the impact.

Ever since the Reagan election of 1980 it has been economic doctrine that government stimulus is needed during economic difficulties. As the money flows so does the influence it wields. When a business wants to succeed, they seek out government contracts. They tailor their proposals to the requirements meted out by the government.

Now, don’t get me wrong, the government always has, and always will, have some influence over the economic health of the United States. The point is that it shouldn’t have such an outsized reach that without it our economy will suffer Zero Economic Growth. That’s where we are at and even the Trump Administration admits it is so. The entirety of economic growth in the United States is completely dependent on the government, you heard it directly from the horse’s mouth.

Tom Liberman