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From CNBC:

“Sources told CNBC that a potential tie-up between the storied chemicals behemoths would be structured as a merger of equals.

The expected deal, which was first reported by The Wall Street Journal on Tuesday night, would likely be followed by a breakup of the combined entity, with separate businesses created to house the agricultural, materials services and specialty products operations.”

Read here for more.

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As is common in most years, domestic policy trumps all other issues. While the Republicans believe immigration is the top issue to run a winning campaign, Democrats believe the minimum wage issue is a winner for their candidates.

Democratic strategist Donna Brazile wrote an op-ed where she believes millions of low-wage employees could form a very powerful voting bloc:

Shawanda Wilson, who works at Taco Bell in Tampa, Fla. and makes $8.25 an hour, has never voted before. Neither has Tonya Harrington, a 42-year-old home care worker from Durham, NC, who makes $7.25 an hour. Both say they’ve steered clear of voting booths not because they don’t care, but because they’ve felt politicians don’t speak for them.

That’s changing. Buoyed by $15 victories across the country, including in New York, Los Angeles and Seattle, fast-food cooks and cashiers, home care workers and child care workers like Shawanda and Tonya recognize that by joining together in a movement, they can make politicians care. Now they are vowing to head to the polls, and they’re hoping to bring with them the more than 60 million Americans movement organizers say are paid less than $15.

It’s not such a crazy thought. While recent ballot initiatives for $15 failed in Tacoma, Wash., and Portland, Maine, a recent poll of workers paid less than $15 an hour commissioned by the National Employment Law Project showed that 69% of unregistered voters would register to vote if there was a candidate who supported $15 and a union; and 65% of registered voters paid less than $15 an hour would be more likely to vote if there was a candidate who supported $15 and union rights.

We know the economic recovery has not been uniform, and nearly all the gains have gone to the top 1%, or the top 0.1%, as Bernie Sanders likes to remind us. The median income for an American worker is about $28,000, and overall household income has decline almost $2,000 since 2008. Meanwhile, millions of children live in poverty and cannot get enough food to eat or access to a great education. From an emotional standpoint, raising the minimum wage would lift millions out of poverty. While $15 an hour won’t do much in New York City, $15 an hour in most part of the country would be a big boost.

The minimum wage comes down to basic math. The argument for one is true if businesses were sitting on a pile of unspent money and were hoarding it instead of investing in their company. Since few, if any, businesses (particularly small- and medium-sized businesses) are run by heartless pigs who just want to hoard cash, the fact that they may not pay $15 an hour is more a symptom of: a favorable job market for employers; and that paying $15 an hour to all employees would require prices on good and services to go up, or to layoff some employees to pay for the others to have a higher wage. Not sure how the laid-off employees will feel about being sacrificed for the “greater good”.

Today is #GivingTuesday, a break from the spending we do for the holiday season. Consider supporting  CRI this holiday season to support out 2016 objectives for Education Savings Accounts and a Paycheck Protection law for all workers in Delaware. Visit https://www.caesarrodney.org/index.cfm?ref=90905 to help us meet our end of the year fundraising goals.

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Since 2008 America has seen a greater number of businesses close than open. According to Gallup, roughly 6 million businesses out of 26 legally recognized actually function; the rest are inactive or exist only on paper. Of these 6 million “real” businesses, 3.8 million employ 1-4 employees. Only about 108,000 businesses in America (2% of “real businesses”) employ 100+ people. If we continue to kill off small business with over-regulation and over-taxation, how will the government be able to pay its bills, short of more printing, borrowing, and cancelling debts?

From Gallup: (article truncated for space)

“The U.S. now ranks not first, not second, not third, but 12th among developed nations in terms of business startup activity. Countries such as Hungary, Denmark, Finland, New Zealand, Sweden, Israel and Italy all have higher startup rates than America does.

We are behind in starting new firms per capita, and this is our single most serious economic problem. Yet it seems like a secret. You never see it mentioned in the media, nor hear from a politician that, for the first time in 35 years, American business deaths now outnumber business births.

The U.S. Census Bureau reports that the total number of new business startups and business closures per year — the birth and death rates of American companies — have crossed for the first time since the measurement began. I am referring to employer businesses, those with one or more employees, the real engines of economic growth. Four hundred thousand new businesses are being born annually nationwide, while 470,000 per year are dying.

You may not have seen this graph before.

Until 2008, startups outpaced business failures by about 100,000 per year. But in the past six years, that number suddenly turned upside down. There has been an underground earthquake. As you read this, we are at minus 70,000 in terms of business survival. The data are very slow coming out of the U.S. Department of Census, via the Small Business Administration, so it lags real time by two years.

Here’s why: Entrepreneurship is not systematically built into our culture the way innovation or intellectual development is. You might say, “Well, I see a lot of entrepreneurial activity in the country.” Yes, that’s true, but entrepreneurship is now in decline for the first time since the U.S. government started measuring it.

Because we have misdiagnosed the cause and effect of economic growth, we have misdiagnosed the cause and effect of job creation. To get back on track, we need to quit pinning everything on innovation, and we need to start focusing on the almighty entrepreneurs and business builders. And that means we have to find them.”

No matter how much some people will try to convince you the Roaring Twenties are back, the reality is that we have far too many businesses closing and not enough replacing them.Businesses do open and close all the time, but a lot of business closings are small businesses getting shut down because of government policy via regulation and taxation. A lot of these policies are Cronyist policies pushed by big business to weaken their competition, which is smaller stores. Thus for example, a big chain like Costco can safely come out in favor of the minimum wage increase knowing it will end up hurting the roughly 80 percent of businesses which employ nine or fewer people, while at the same time reaping the benefits of “caring” for their employees (note: we don’t object to Costco paying its employees well; we applaud it. But just because Costco might be able to afford a wage increase doesn’t mean every business can).

Crony business policies, government bureaucrats who make new regulations to justify their jobs, politicians who want to “do something” to get votes, and a well-intentioned but misinformed public which votes for things like minimum wage hikes  all result in a decline in new business startups and jobs lost and never created in the first place. We at CRI support economic policies which make it easier for people to start businesses and create new (hopefully well-paying) job opportunities without sacrificing necessary regulations and basic standards of decency. But unless we fundamentally change the way our country is operating, that 70,000 per year decrease in total businesses operating in America will increase in number.

Help support CRI! Your support allows us to research and provide analysis to the public on policies which will best grow the economy and create jobs. An end to the prevailing wage, Right to Work legislation, an end to Delaware’s gross receipts tax and lower corporate income taxes and personal income taxes, health care reform which encourages innovation from the private sector, and energy policies which would give people more choices would go a long way to helping Delaware, and America, make a sound economic recovery for all. Please consider making a contribution today.

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