Happy Hump Day. May the rest of your week be enjoyable and productive. Here are a few odds and ends to ponder.
One of the flaws of the President is he defines everything transactionally, with winners and losers. Two comments. Winning does not make you right, it just means you won. He is telling folks to discount Senators Flake and Corker because they will retire next year because they were going to lose. Yet, one thing the President needs to realize is they are dead-on accurate in their concerns.
The President has a difficult time with multilateral agreements, preferring bilateral where one side can win and the other lose. But, if we are seeking long term relationships everyone must benefit. The Nobel Economics Prize winner John Nash developed what is now called the Nash Equilibrium for multilateral agreements – simply if each partner seeks the best gain for the whole, more economic gain will occur. This runs in direct contrast to Trump’s zero-sum game approach. It should be noted there is a business alliance of car makers and others telling him to not ditch NAFTA, a multilateral agreement.
Climate change continues to increase the magnitude of hurricanes, forest fires and droughts. The GAO noted the costs of catastrophic events are escalating as a result to the tune of $300 Billion, not counting the events of the last two months. These costs will likely get worse given the rising sea levels, temperatures and amounts of rain that melt away snow and expose the terrain to these intense forest fires.
On the positive side, renewables continue there double-digit per annum growth and are more affordable long term. The Mayor of Greensburg, Texas signed a twenty-five year contract for wind energy as the numbers were more compelling. Texas leads the country in wind energy with 16% of their energy portfolio and Iowa has almost a third of its energy by wind. It should be noted that irrespective of pulling the Clean Power Plan, America will blow past the requirements in carbon reductions based on the work of several states and market forces. Folks like Trump, Pruitt and Perry are less relevant in this conversation and need to stay out of the way.
That is all I have for now. Your thoughts are welcome.