Regulatory Overreach Threatens Economic Freedom and National Security

On February 8, 2024, Brad Beck, Phil Kerpen, Helen Raleigh, Lorne Levy, and Karen Levine joined the show. Brad Beck guest hosts the February 8, 2024 broadcast while Kim Monson takes the day off, discussing Colorado legislation, Austrian economics, and introducing guests Kerpen examines the disconnect between positive economic headlines and household realities, detailing how regulatory costs and inflation erode living standards while EV mandates and internet regulations.

Federal Regulations and the Regulatory Burden

Start listening at 29:49 – Hour 1

Phil Kerpen, president of American Commitment, dissects the disconnect between positive economic headlines and the reality facing American families. While media outlets trumpet strong job numbers, Kerpen points to the Bureau of Labor Statistics quietly revising away 1.2 million previously reported jobs over the past year. The cost of living has outpaced wage growth, leaving most households with diminished purchasing power compared to just a few years ago.

Kerpen identifies credit card debt as the mechanism Americans use to bridge the gap between stagnant wages and soaring prices. Consumer debt levels signal trouble ahead, he warns, as families stretch to maintain their standard of living. The Biden administration compounds these pressures by adding an estimated $5,000 per household annually in new regulatory costs, according to University of Chicago research.

Electric vehicle mandates draw particular criticism. The Congressional Budget Office increased its cost estimate for EV subsidies under the Inflation Reduction Act by $224 billion, Kerpen notes, because mandating purchases triggers automatic subsidy payouts. Internet regulations and patent seizure proposals round out what he calls an unprecedented regulatory assault on the economy.

“Well, if you look at the credit card debt numbers, that explains it. People are dealing with the cost of living going sky high by running up consumer debt. And, you know, that could be the next bubble because a lot of people are getting in big trouble, I think, right now with consumer debt.”

Phil Kerpen, President, American Commitment

North Korea’s Dangerous Shift

Start listening at 71:24 – Hour 2

Helen Raleigh, senior contributor at The Federalist, sounds the alarm on North Korea’s increasingly aggressive posture. Since November 2023, Kim Jong-un has abandoned the pretense of peaceful reunification with South Korea, tearing down symbolic peace monuments and closing inter-Korean cooperation offices. His rhetoric has shifted from typical bluster to explicit rejection of diplomatic solutions.

Historical parallels trouble analysts. In 1950, Stalin encouraged North Korea’s invasion of South Korea to draw American attention away from Cold War Europe. Today, Putin similarly benefits from North Korean provocations that divert U.S. resources from Ukraine. China calculates that any conflict weakening American forces would aid Xi Jinping’s designs on Taiwan. North Korea’s estimated 50 to 60 nuclear warheads capable of reaching South Korea, Japan, and U.S. territories in the Pacific represent decades of failed Western appeasement policy.

“Everybody’s wondering whether he’s preparing for war. And there are definitely some historical similarities between what he’s doing now compared to what his grandfather was doing when he was prepared for invasion of South Korea.”

Helen Raleigh, Senior Contributor, The Federalist

Electric Vehicles and the Toyota Lesson

Start listening at 88:05 – Hour 2

Raleigh examines the electric vehicle market through the lens of Toyota’s contrarian strategy. While Ford and GM raced to phase out gas-powered vehicles, Toyota CEO Akio Toyoda cautioned against abandoning consumer choice. The recent Chicago deep freeze vindicated his skepticism as EV charging stations became parking lots full of dead batteries unable to function in sub-zero temperatures.

Ford and GM now retreat from their EV commitments as consumer demand fails to materialize despite government subsidies. Toyota, offering a diverse lineup including hybrids, cannot produce vehicles fast enough to meet demand. The market has spoken, Raleigh observes, yet the Biden administration presses forward with mandates that will artificially constrain gas-powered vehicle supply and drive prices higher.

China’s dominance of rare earth mineral supply chains for EV batteries adds a geopolitical dimension. Beijing has already weaponized these resources against Japan, and the human rights abuses in cobalt mining operations in Africa undercut any environmental moral high ground.

“The Toyota only provides very few models of EVs, but for the rest of the offering, they provide a variety of offerings. And the consumer loved it. They couldn’t sell their hybrid fast enough. And so the reality proved Mr. Toyota was right.”

Helen Raleigh, Senior Contributor, The Federalist

Immigration Reform Requires Border Security and Legal System Overhaul

Start listening at 100:10 – Hour 2

Raleigh draws on her own 17-year journey from China to U.S. citizenship to critique current immigration policy. Legal immigrants who followed every rule and paid every fee watch millions cross the border with no consequences. Denver’s mayor now admits the city lacks resources to accommodate the influx, while Raleigh’s cab driver describes buses depositing migrants at airport hotels where some knock on neighborhood doors asking for money.

Her prescription in her book The Broken Welcome Mat pairs border security with fundamental legal immigration reform. The current family-reunification bias discriminates against skilled workers without U.S. family ties while creating decade-long backlogs. Canada and Australia demonstrate that skill-based immigration creates immediate economic contributors rather than dependent populations. Migrants arriving ready to work benefit both themselves and the economy, Raleigh argues, but only if legal channels provide a realistic pathway.

“That’s why the lawlessness of Southern border, I talk to many legal immigrants like me, it really makes us very upset. You know, because we all did, you know, we all follow the rules, no matter how long it takes, how much money it costs. We all follow the rules and we all paid our dues.”

Helen Raleigh, Senior Contributor, The Federalist

Colorado Real Estate and Mortgage Markets

Start listening at 21:18 – Hour 1

Lorne Levy of Polygon Financial Group reports mortgage rates remain in the mid-to-upper 6% range after the Federal Reserve signaled rate cuts will wait until the second half of 2024. The 10-year Treasury yield climbed back above 4%, but Levy counsels patience as markets settle following Chairman Powell’s comments. First-time homebuyers should budget conservatively, he advises, since lender qualifications do not account for everyday expenses like groceries and childcare.

Karen Levine of RE/MAX reports a robust January for Colorado’s Front Range housing market. Improved interest rates have enabled more buyers to enter the market, though inventory constraints continue to pressure prices. New construction starts above $500,000 in most areas, pushing first-time buyers toward condominiums or eastern communities like Bennett where Lennar offers single-family homes under $450,000.

“I’m going to tell you right now is you’re going to qualify for a bigger check than you want to write. We take into account only items that appear on your credit report. So you either have a house payment that’s manageable, that will allow you to, when you add in all your other expenses, you can still handle all the payments.”

Lorne Levy, Mortgage Specialist, Polygon Financial Group