From Stephen Moore <[email protected]>
Subject Unleash Prosperity Hotline #1333
Date August 21, 2025 2:06 PM
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Unleash Prosperity Hotline
Issue #1333
8/21/2025
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1) Wake Up America: We're Nearing An Electric Grid Blackout Disaster

This headline from the energy industry news sources in recent days is hair-raising:
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This is one of the most imminent threats to our security and economy, and yet almost NO ONE in Washington or in state capitals is paying attention. Much of the crisis is due to the green energy idiocy of the last administration.

America is rapidly building data centers to make way for the AI/robotics revolution. That's the good news. The bad news is we don't have a reliable grid system to handle the massive increase in electricity demand. We're nearing full capacity and the demand could double over the next decade.

Experts say that these latest data centers "are growing faster and bigger than ever" and "can consume as much power as entire cities."

Data Center Power Demands Will Quadruple Over 10 Years
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How do we avert the crisis?
1. Remove ALL Biden-era obstacles to drilling for natural gas - the cleanest and most efficient power source.
2. Stop shutting down efficient and low cost clean coal plants.
3. Green light the building of nuclear plants.
4. Protect and expand the reliability of the electric grid system IMMEDIATELY.
5. End renewable energy mandates in many states that disrupt the grid system and double power costs.
6. Build pipelines and LNG terminals to safely transport gas throughout the country and world.

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2) Just Say No to a New Patent Tax

Here’s a really awful idea that is being circulated by the Commerce Department. A federal tax on innovation is a terrible idea - especially if it's implemented without a vote of Congress. But that's exactly what Commerce Secretary Howard Lutnick floated in a recent WSJ article:
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Commerce Department officials are discussing charging patent holders 1% to 5% of their overall patent value, a shift that could dramatically increase fees, according to people familiar with the matter. The idea is being considered by Commerce Secretary Howard Lutnick as part of his plans to raise revenue and narrow the government's budget deficit.

Patents are constitutionally protected property rights. They drive innovation in key 21st century industries like technology and medicine. They encourage the next Thomas Edisons. Our well-designed patent protections are a major reason that such a high percentage of major tech and medical breakthroughs were invented and patented in the USA. Those property tight protections combined with the 2017 tax reforms brought research and development back to these shores.

Someone needs to remind Secretary Lutnick that when you tax something you get less of it. We’re told the idea is a trial balloon. We hope it bursts.
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3) Strange Bedfellows

Uh oh! This headline sent a shiver down our spine:
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Here’s Bernie’s take:

"If microchip companies make a profit from the generous grants they receive from the federal government, the taxpayers of America have a right to a reasonable return on that investment.”

Since when is the U.S. government in the investment business?

Hey, we have a better idea. How about the government never, never never gives corporate welfare handouts to private companies.
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4) Democratic Voter Registration Numbers Are Plunging

We have said many times that we lament the death of the moderate Democrats. The takeover of the Democratic Party by the radical left makes BOTH parties worse and is bad for America.

Democrats are paying a high price for their left turn excursion. Polls now show only 33% of voters approve of the Democratic Party. But even worse news for the Democrats is the collapse in Party voter registration. As The New York Times reports: "The stampede away from the Democratic Party is occurring in battleground states, the bluest states and the reddest states" - i.e., everywhere.

Only 30 states ask people if they wish to register by party, but Democrats lost ground to Republicans in every single one of them between the 2020 and 2024 elections -- a swing of some 4.5 million voters. In 2018, Democrats accounted for 34% of new voter registrations, while only 20% registered Republicans. Now the GOP is in the lead.

Of the states with party registration, four are presidential battleground states -- Arizona, Nevada, North Carolina, and Pennsylvania.

All of them saw steep declines in registered Democrats, especially among young and Latino voters.

We hope the Democrats rediscover their JFK or even Bill Clinton centrist positions make a comeback, but at the moment, the message of wealth redistribution rather than wealth creation, radical climate change policies, and make America look like Illinois and California isn't cutting it.
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5) A Tariff Buzzkill

We mentioned in a recent HOTLINE that coffee prices have been surging (up more than 15% this year). We pointed to the 15% coffee tariffs and the new 50% tax on Brazilian beans that took effect in early August.

There are clearly other causes for the higher costs for a cafe mocha at Starbucks - including droughts in South America. But we get 37% of our coffee beans from Brazil, and so, sorry, a 50% tariff is going to hit Brazil AND American coffee drinkers.

We don’t understand WHY we put tariffs on coffee. There are almost no jobs protected or saved. The U.S. simply does not have a climate suited for growing coffee beans.

So why not go with free trade in coffee beans and make mornings great again?
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6) Missing the Big Picture

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