Economics & Taxes Archives

On Economic Inequality

Over at the League of (not very) Ordinary Gentlemen there is a blog symposium going on. The “(not very)” was appended by myself, for those fellows by and large are, alas countering their “Ordinary” claim, seem ordinarily to be quite exceptional, at least at the task of writing blog posts. What follows are somewhat scattered thoughts in a defense economic inequality. (and my submission) Read the rest of this entry

Friday Link Wrap-up

“I would not have you exchange the gold of individual Christianity for the base metal of Christian Socialism.” – Charles Spurgeon. He had quite a bit to say on economic and political issues of the day, applicable to that day and this.

For those still blaming Bush for our economic situation, Paul Mirengoff reminds us that the housing  market collapse was the main cause of it, and the Bush administration tried to keep it from happening. Democrats would have none of that.

"The New York Police Department, the mayor and the city’s top prosecutors on Monday endorsed a proposal to decriminalize the open possession of small amounts of marijuana…." But the real scourge, Big Gulps, will not be tolerated.

A cautionary tale about hyper-partisanship.

Remember those advertisers that left the Limbaugh show after his remarks about Sandra Fluke? One big one tried to come crawling back, and Limbaugh just said No.

The Obama administration is against voter ID laws, but Michelle Obama herself required IDs to get a book signed. Irony. Meter. Pegging.

Austerity works, when it’s actually implemented. Just ask the European country who’s economy outpaced the average growth in the euro-zone by 500%, and has the only budget surplus there.

Obama actually was a member of a socialist political party while in Chicago. Stanley Kurtz of National Review has the documentation. Where was the mainstream media on this 4 years ago?

In case you heard otherwise, no, the Boy Scouts are not changing their policy on gay scouts and scout leaders.

Friday Link Wrap-up

Mitt Romney, a real community organizer.

Record-breaking attendance at Canada’s March for Life. Over 19,000 people participated. Support is growing.

Around the world, Obama has become something of a disappointment. He talked a good game, but was a bit short on follow-through.

However, the President has certainly had his share of ‘firsts’ while in office. Doug Ross enumerates 3 dozen of them.

If you personally know thieves that otherwise live their lives with "goodness and holiness", does that mean thieving is, therefore, condoned? This press release from the Episcopal Diocese of Washington, DC seems to suggest that.

RIP OWS. We hardly knew you (and I think you hardly knew yourself).

After being voted down unanimously in the House, Obama’s budget is unanimously voted down in the Senate. One word: Leadership.

An admission that environmentalists sat on their hands during the BP oil spill because Obama was in the White House. Again, for the Left, it’s always political. Principle always gets the back seat.

And finally, what’s next to "evolve"? (Click for a larger version.)

Smackdown: California vs. New Jersey

Rarely do you get a pair of situations so similar at the same point in time that allows you to compare and contrast the policies used to deal with it. But we have one with California and New Jersey.

In his January 2011 inaugural address, California Gov. Jerry Brown declared it a "time to honestly assess our financial condition and make the tough choices." Plainly the choices weren’t tough enough: Mr. Brown has just announced that he faces a state budget deficit of $16 billion—nearly twice the $9.2 billion he predicted in January. In Sacramento Monday, he coupled a new round of spending cuts with a call for some hefty new tax hikes.

In his own inaugural address back in January 2010, New Jersey Gov. Chris Christie also spoke of making tough choices for the people of his state. For his first full budget, Mr. Christie faced a deficit of $10.7 billion—one-third of projected revenues. Not only did Mr. Christie close that deficit without raising taxes, he is now plumping for a 10% across-the-board tax cut.

It’s not just looks that make Mr. Brown Laurel to Mr. Christie’s Hardy. It’s also their political choices.

Each had a huge deficit going in, but New Jersey is coming out of this looking far, far better than California.

Hard economic times bring their own lessons. Though few have been spared the ravages of the last recession and the sluggish recovery, those in states where taxes are light, government lives within its means, and the climate is friendly to investment have learned the value of the arrangement they have. They are not likely to give it up.

Meanwhile, leaders in some struggling states have taken notice. They know the road to fiscal hell is paved with progressive intentions. The question regarding the sensible ones is whether they have the will and wherewithal to impose the reforms they know their states need on the interest groups whose political and economic clout is so closely tied with the public purse.

The same goes for the next presidential election.

Austerity Works

In Europe, it is supposedly "austerity" measures that are killing their economy. Now, let me ask you this, does this look like austerity to you?

No, me neither. And yet ballot after ballot in Europe is turning out those who pushed for fiscal responsibility. When you’re in a hole, especially a financial one, stop digging. Call Dave Ramsey and cut up your credit card. But experiments with socialism always sound like the Pied Piper, until the bill comes due. By then, everyone is addicted to the "freebies" and there’s no turning back.

Austerity is the answer, but liberal economists always seem to think that government spending is the answer, not the problem, and that austerity leads to all sorts of problems. Except that, when the United States tried it, against the liberal naysayers’ warnings, it worked.

This is what austerity looks like.

After the huge spending during World War II, the US got seriously austere, with regards to government spending. What happened?

Superstar economist and devout Keynesian Paul Samuelson—later to become the first American to win the Nobel Prize in economics—predicted such shock austerity would cause “the greatest period of unemployment and industrial dislocation which any economy has ever faced.” That dire, disastrous prediction was widely held by his fellow Keynesians, with one even predicting an “epidemic of violence.”

Except the doomsayers were wrong, even though Washington obviously ignored Samuelson’s call for gradual spending reductions. Despite cuts which dwarfed those seen in the EU today—not to mention those Republicans are calling for here at home—the U.S. economy thrived. There was no mass unemployment despite rapid demobilization of the armed forces.

(Yeah, another Keynesian, Nobel-prize-winning economist predicted doom. How much more of a parallel with Paul Krugman do you need?)

Don’t say that austerity won’t work, when you haven’t really tried it, and it’s worked in the past.

Friday Link Wrap-up

The Southern Poverty Law Center, who (supposedly) goes after hate groups, admit, “We’re not really set up to cover the extreme Left.” Once again, it’s all political with the Left. Hate is only hate if it’s right-wing hate.

Life is wasted without Jesus. That’s a pretty benign Christian aphorism. You can agree or disagree, but is it hate speech? It is in Canada.

The Post Office, supposedly, allegedly privatized, is going to cost the taxpayers $34 billion dollars. It could cut costs, but Congress won’t let it.

A 20+ year study proves conclusively that outlawing abortion does not lead to "coat hanger deaths". Bonus: NARAL co-founder admits they made up numbers to garner sympathy for their cause.

Foiled bomb plots: Occupy Wall Street – 1, Tea Party – 0. The same goes for dozens of incidents (enumerated at the link) that, had they happened at a Tea Party rally, would have headlined national news for day. (I know this because charges of racial epithets with no actual proof did just that.)

VP Joe Biden lauds NBC for moving American towards same-sex marriage. How? “I think ‘Will & Grace’ probably did more to educate the American public than almost anything anybody’s ever done so far.” The next time someone tells you "It’s just a TV show" or "Just change the channel" for complaining about TV show content, ask them to get a new writer. The old script is a lie.

And speaking of same-sex marriage, Nancy Pelosi seems to think that her religion provides the reason why she must act against her religion on the matter.

For what it’s worth, "An official from Iran has refuted claims of plans to execute imprisoned pastor Youcef Nadarkhani, who has been imprisoned for almost three years on accusations of apostasy, a crime where one disaffiliates themselves from a religion." This from a country not even holding to its own laws regarding the case.

Ask not what you can do for your country, ask what your country can do for Julia.

Extremists? I don’t think that word means what you think it means. And here’s an article I wrote in 1996 regarding another right-wing extremist you’re sure to know.

Looks like Mitt Romney’s school days will be vetted by the media more than Obama’s ever was. Too bad their first attempt failed so badly.

And finally, the recent European elections in perspective. (Click for a larger image.)

Friday Link Wrap-up

"The nation’s Social Security and Medicare programs are sliding closer to insolvency, the federal government warned Monday in a new report underscoring the fiscal challenges facing the two mammoth retirement programs as baby boomers begin to retire." (And some think that making Medicare required for everyone is the solution. Only in Washington is failing on an even larger scale considered success.)

FALSANI:
What is sin?
OBAMA:
Being out of alignment with my values.
FALSANI:
What happens if you have sin in your life?
OBAMA:
I think it’s the same thing as the question about heaven. In the same way that if I’m true to myself and my faith that that is its own reward, when I’m not true to it, it’s its own punishment.
(What brand of Christianity does this represent?  Honestly, I have no idea. Read the whole interview.)

“Nice work, occupiers,” tweeted Jeremy Tooker, owner of the popular Four Barrel Coffee. “You made me leave my sick kid at home to go clean paint bombs off my windows. That’ll show Wall Street, fellas.” (More May Day Occupy Wall Street madness at Yourish.com.)

"For activists and Christians opposed to the so-called Israeli occupation, two key votes by the United Methodists will certainly serve as a discouragement. On Wed., May 2, the denomination twice voted to reject resolutions that called for a divestment from companies accused of assisting Israel in the ongoing dispute over Middle Eastern lands." (The UMC cares for both the Jews and the Palestinians, and won’t blame one side for violence from both. Good for them.) (Oh, and on May 1st, "A Qassam rocket was fired from the Gaza Strip and exploded in an open area in Ashkelon Coast Regional Council.")

And finally, Economics 101, from Chuck Asay. (Click for a larger version.)

Friday (well, Monday) Link Wrap-up

Being on a business trip for a week makes it hard to keep up with blogging. And being on the US west coast helps with the realization that the world doesn’t revolve around Eastern time.

On with the links.

Obama is invoking Reagan a lot these days, trying to promote his agenda. But as Steven Hayward notes, Obama takes Reagan’s words out of the context of the politics and the times in which they were spoken.

Just prior to Reagan, Jimmy Carter worked with the dictatorship of North Korea to send food in return for not pursuing  nukes. In light of the recent (failed) N. Korea missile launch, you have to wonder why we thought it was a good idea to strike bargains with megalomaniacs.

The Hillary Rosen remarks, condemning Anne Romney for being a stay-at-home mom tipped the hand of the Democrats as to what they really think of women who make that choice. (Because, as with everything else from the Left, it’s not about the principle so much as it is the politics). On the Right, some were suggesting that we don’t need to worry about this because it means stooping to their level to respond to "Rosen-gate". But Ben Howe points out that, yes, this issue is worth our time and effort to respond to.

Irony Alert: For the third year in a row, Democrats punt on the budget, while at the same time accusing the Paul Ryan budget of being irresponsible.

Abortion as religion, with Planned Parenthood writing the prayer book.

Friday Link Wrap-up

It has been said that we’ve not had global warming on the scale that we have it now, and therefor this time around it must be human-induced. The Medieval Warming Period, it is said (and reiterated by the IPCC), was merely localized and therefore can’t be compared with today. New evidence, however, shows that indeed the MWP was felt as far away as Antarctica. Not exactly localized.

Taxing the rich rarely lives up to expectations of the amount it will bring in. That’s because the rich have many options of where to put their money. Cause pain in one place, the cash moves to another place. (Some on the Left will inevitably say that this makes the case for a global tax. Well, when our government can’t get by on $4 trillion a year, it’s not the fault of the rich.)

A crowd larger than any OWS gathering protested in San Francisco, but the media ignored it. Why? (Wait for it…) Because they were religious people protesting Obama. Some news is clearly more newsworthy than others. Oh, that liberal media.

Liberals were so absolutely sure that their view of the "living" Constitution was right, they were predicting a near-slam-dunk for them in the Supreme Court over ObamaCare. But exhibit A of how they simply failed to take seriously the arguments against it is Jeffrey Tubin of CNN. He was sure it would be 7-2 or even 8-1 in favor of the ACA, and was just gobsmacked after day 2. Why? The very same arguments used against ACA had been out there for months. But the news wouldn’t give it adequate coverage. Mr. Tubin, you could blame CNN for your ignorance. But then, that would mean you have no responsibility as a journalist to find it out for yourself. Oh, that liberal media.

And finally, something for the "separation of church and state" crowd. A US Army issued New Testament with a letter from the President recommending that soldiers should read it.

The "Buffett Rule" is a Ruse

Even with Warren Buffett’s new tax policy idea, wherein he’d pay a higher tax rate, the continuing deficit dwarfs it.

Once again, the issue is not that we’re taking in too little in taxes. We can’t take in enough to cover the deficits. We must start cutting spending in a serious way.

Friday Link Wrap-up

[FYI, Part 2 of my "after-birth abortion" article will appear Monday, for both of you waiting for it. Smile ]

Obama: ‘Drill Drill Drill won’t work. And you can thank Me that it did.’

America’s per capita debt is worse than Greece. And Greece’s credit rating is in the basement.

BBC: We’ll Mock Jesus But Never Mohammed. (Because Christians won’t cut off their head or burn things.)

For all the talk about crude names called at Sandra Fluke, the war on conservative women goes merrily unreported. Meryl Yourish refers to this as the new Exception Clause.

No wonder liberals think their unconstitutional ideas are constitutional. They don’t understand the document’s intent.

Like all generalizations, it’s not true of every single case, but James Q. Wilson asks an interesting question: Why Don’t Jews Like the Christians Who Like Them?

Just as Jews were once expelled from Arab lands, Christians are now being forced from countries they have long inhabited.

And finally, the return of the political cartoon to Friday Link Wrap-ups.

Posted Image

The UK’s Bank Account is Empty

So says two high-ranking government officials who would know.

In a stark warning ahead of next month’s Budget, the Chancellor said there was little the Coalition could do to stimulate the economy.

Mr Osborne made it clear that due to the parlous state of the public finances the best hope for economic growth was to encourage businesses to flourish and hire more workers.

“The British Government has run out of money because all the money was spent in the good years,” the Chancellor said. “The money and the investment and the jobs need to come from the private sector.”

What should George Osborne do to provide a tax cut?

Tax the rich more to allow the income tax rate to be lifted to £10,000Borrow more and worry about reducing national debt in future yearsWe can’t afford any tax cuts

Mr Osborne’s bleak assessment echoes that of Liam Byrne, the former chief secretary to the Treasury, who bluntly joked that Labour had left Britain broke when he exited the Government in 2010.

He left David Laws, his successor, a one-line note saying: “Dear Chief Secretary, I’m afraid to tell you there’s no money left”.

Mr Osborne is under severe pressure to boost growth, amid signs the economy is slipping back into a recession.

Conservatives have been saying this for a generation. Government spending bankrupts us all. The private sector is where economic growth comes from. Government spending may give us something of a jolt (if any), but the cost associated with it is far more than if the government would just get out of the way and let the engine run.

Friday Link Wrap-Up

If Samuel L. Jackson voted for Obama because he’s black –  using as his reasoning, "’Cuz that’s why other folks vote for other people — because they look like them … That’s American politics, pure and simple." — then is it OK for white folks to vote for white guys just because they’re white? Could those white folks expect the non-reaction to their reasoning as Jackson got for his?

Albert Mohler takes Nicholas Kristof to civics class.  The Constitution protect freedom of religion as a basic right, not only when it’s convenient.

"Actor Sean Penn criticized Republican presidential candidates during a visit to Venezuela on Thursday, saying that right-wing policies in the United States aim to benefit the wealthy." No, we want to make as many people as possible wealthy, as opposed to Venezuela’s socialism, which is making as many people as possible poor.

Stoning Christians on the Temple Mount. No, not Jews. One more guess.

Germans are discovering that, when they need their solar energy most, during December and January, it doesn’t help that they don’t get much sunshine then.

Sign of the Times: "For Women Under 30, Most Births Occur Outside Marriage" Perhaps Rick Santorum isn’t as kooky as some are making him out to be.

Spending Watch

A couple of items related to spending and our national debt.

Obama called Bush’s increase in the debt "irresponsible" and "unpatriotic". What does he think about his own contribution to the debt?

Obama signed an agreement to fund the DC-area incredibly successful school voucher program. Yet with all the new spending he added, he didn’t fund this. Does he really care about education, or just teacher unions?

The "Occupy Wall Street" of Greece

Some Greeks are not willing to do what it takes to bring government spending in line with what is needed to get out of its crushing debt. They’d rather keep getting their government perks. Instead, they’d rather leave this debt to be paid by their grandchildren, and they’d rather burn things.

The Greek parliament approved a deeply unpopular austerity bill to secure a second EU/IMF bailout and avoid national bankruptcy, as buildings burned across central Athens and violence spread around the country.

Cinemas, cafes, shops and banks were set ablaze in central Athens as black-masked protesters fought riot police outside parliament.

State television reported the violence spread to the tourist islands of Corfu and Crete, the northern city of Thessaloniki and towns in central Greece. Shops were looted in the capital where police said 34 buildings were ablaze.

This is just a very angry OWS protest. They think the government is the answer to all their problems, and when the find it isn’t, they protest. They want the government to keep its power of confiscating wealth and spreading it around, in spite of the fact that they are, indeed, running out of other people’s money with which to maintain the lifestyle they’re accustomed to.

This is the problem with socialization, even a little bit of it. People begin to expect it, but the economics of the situation simply don’t allow it to be sustainable over the long-term. So when it has to be scaled back, this is what you get.

And we’re, for some insane reason, trying to replicate this "success" here. Then, this, too, is in our future.

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