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Unleash Prosperity Hotline – Weekend Edition
Issue #1203
02/14/2025 – 02/16/2025
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1) In-N-Out of California

Will the last business left in tax-hell California please raise your hand?

Another iconic Golden State business waves adios. There were more than 350 just from January 1, 2018, through December 31, 2021, including 11 Fortune 1000 companies. The exodus has increased since then.

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The Irvine office will close by 2029, the company said in a release. Snyder said that some of the corporate workers there will move to Baldwin Park, while others will make the cross-country jump to Tennessee, where the company is currently building a new corporate office that’s slated to open next year.
The good news is maybe we will start to see In-N-Out stores in the Midwest and on the East Coast now.

By the way: when's the last time you read about a business moving TO California?
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2) A Good Way to Lose Jobs

We are open-minded to the reciprocal tariffs idea, but we strongly oppose Trump's steel and aluminum tariffs. They didn't work in Trump's first term and they won't work now. As Alex Tabarrok of George Mason University points out, we lost way more jobs in manufacturing from steel tariffs than we gained:

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Tabarrok also notes that Bush steel tariffs didn't work either:

"Going back further, a good analysis from Lydia Cox of the Bush steel tariffs found that even though the tariffs were temporary, they led to a rearrangement of supply chains which led to long-lasting declines in exports and employment in steel using industries."

Let's not do that again.
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3) Quote of the Day
"[Trump] has abruptly upended efforts since the Watergate scandal four decades ago, some more successful than others, to insulate the Justice Department from political interference of one president or another."

This is from the front page of USA Today with this instant classic headline:

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Huh?

We're economists not lawyers, and we don’t defend all of Trump's actions, or how he sometimes inappropriately targets political enemies. But are the USA Today editors suffering from early signs of dementia? Is their collective memory THAT short?

No president (probably in American history) politicized our justice system and the FBI more than Joe Biden. You don't have to believe us. Even a report by the liberal Brookings Institution concluded:

"President Biden has repeatedly violated the post-Watergate norm against commenting on Justice Department investigations."

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It was the Biden FBI that outrageously raided Trump's home in Palm Beach and raked through Melania's clothes drawers, put hundreds of January 6 protesters who never entered the Capitol in jail for many months without a "speedy trial," put Trump economic advisor Peter Navarro in jail and others (for essentially the "crime" of serving in the Trump White House).

They imprisoned pro-life peaceful protesters, and yet refused to prosecute the criminals who burned down buildings and stores during the 2020 summer race riots. The Biden Justice Department prosecuted Trump for mishandling classified documents but gave Biden a pass when he did the same.

Biden and his minions may not have invented Lawfare, but they perfected it.
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4) Could Conservatives Hold the House and Senate In Next Year's Midterm Elections?
Yes, but if they are to have ANY of holding majorities next year, they need to deliver quickly on the Trump tax cut.

The midterms are just 20 months away.

The good news is that President Trump is having a good run in the opinion polls. CNN digital data reporter Harry Enten reports that Trump has had a positive approval rating for 21 straight days so far in his second term. During his first term, he had a net approval rating in only 11 days.

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A new analysis by the election handicapper Cook Political Report finds Republicans favored to keep Senate control with the only two toss-up seats they found - Georgia and Michigan - currently held by Democrats.

As for the House, going into 2026, Republicans will likely have only a five-seat majority (220 to 215) when all vacancies are filled. But the Cook analysis lists only 18 seats in its Toss Up category. If the two parties split those evenly, the GOP would end up with a majority of 222 seats - two more than what they now have.

But if conservatives fail on the tax cut, and American families are facing a $3,000 tax increase next year, they deserve to be routed.

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5) Betsy DeVos Says Shut It Down
The Department of Education does not run a single school. It does not employ any teachers in a single classroom. It doesn’t set academic standards or curriculum. It isn’t even the primary funder of education—quite the opposite. In most states, the federal government represents less than 10 percent of K–12 public education funding.

So what does it do? It shuffles money around; adds unnecessary requirements and political agendas via its grants; and then passes the buck when it comes time to assess if any of that adds value.

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6) No Direction Home

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