3/1/21 Power Five

1. 50 Years of Tax Cuts Failed to “Trickle Down” – “The incomes of the rich grew much faster in countries where tax rates were lowered. Instead of trickling down to the middle class, tax cuts for the rich may not accomplish much more than help the rich keep more of their riches and exacerbate income inequality.”

2. The Feud Within the Scottish National Party – “Ms Sturgeon will survive. She has no clear successor. An SNP hand reckons support for independence would drop by ten points if she went. But the party will be damaged. In May’s elections, she will seek a mandate for a second independence referendum, and ask Scots to believe her government is ready for divorce negotiations of remarkable complexity with the British government. It is a lot to ask.

3. What the Bond Market Tells Us About the Biden Economy – “The yield on 10-year Treasury bonds — the rate the United States government must pay to borrow money for a decade — was 1.37 percent Monday, low by historical standards but well above its recent low of 0.51 percent in August and 0.92 percent at the end of December. Those higher Treasury rates generally translate into higher mortgage rates and corporate borrowing costs, so the surge could take some of the air out of bubbly housing and financial markets.

4. Whole Foods CEO & Conscious Capitalism – “I think when you’re in more of a crisis mode, your purpose becomes even more important, and you have to lean into your purpose. Whole Foods’ higher purpose is to nourish people on the planet. I feel like that’s what we’ve done during covid. From the very beginning, Whole Foods said, “O.K., we’ve got to keep our customers and our team members as safe as possible here, because we’re an essential business. People have to get food, and they’re going to eat at restaurants less. We’ve got to make our stores as safe as possible.” By the way, Amazon pushed us in this regard, so that we moved faster because Amazon wanted us to.”

5. Can You Believe This is Happening in America? – “What’s going on? Well, in the case of Texas and Mars, the basic answers are simple. Texas is the poster child for what happens when you turn everything into politics — including science, Mother Nature and energy — and try to maximize short-term profits over long-term resilience in an era of extreme weather. The Mars landing is the poster child for letting science guide us and inspire audacious goals and the long-term investments to achieve them. The Mars mind-set used to be more our norm. The Texas mind-set has replaced it in way too many cases. Going forward, if we want more Mars landings and fewer Texas collapses — what’s happening to people there is truly heartbreaking — we need to take a cold, hard look at what produced each.”

Logan Maxwell Hagege