(source)
Wednesday, April 25, 2012
US States are in a Heap of Debt Trouble: $8 Trillion Worth
In a less than $2 trillion budget world at the state level.
Because of promises to pay for pensions and healthcare for retired public employees out of future tax revenues, the big squeeze is on, according to Steven Malanga, here:
From 2008 through 2010 (the latest year data are available), state spending rose to $1.9 trillion, from $1.7 trillion. ...
Several years ago, for instance, the treasurer of Cook County, Ill., Maria Pappas, demanded that all of Cook's municipalities report their debt to her. It wasn't easy. They began with bonded debt, then totaled up pension liabilities, then found they had lots more they'd promised to workers for health care. ...
We couldn't get a handle on just how much debt states and their municipalities have accumulated unless every county treasurer does what Pappas did. But just what we can estimate in bonded debt and unfunded pension and health care promises for retirees now totals about $8 trillion. That's a lot of future state and municipal tax revenues already accounted for.
What's that familiar refrain we keep hearing at the federal level, that a present Congress can't bind a future one?
So how can present municipal and county governments bind the taxpayers to pay in future for unfunded promises in the present, huh?
The UK is in a Depression, Not a Double-Dip Recession
The fact is, UK GDP has not recovered since the onset of troubles in 2008, despite the happy talk of "recovery" in Newspeak which must not call things what they really are, for example, here, at CNBC.com:
"Britain's economy contracted by 7.1 percent during its 2008-2009 recession and recovery since has been slow, with headwinds from the euro zone debt crisis, government spending cuts, high inflation and a damaged banking sector.
"Wednesday's data showed that output was still 4.3 percent below its peak in the first quarter of 2008, and the economy has only grown by 0.4 percent since the government came to power in the second quarter of 2010."
For the chart, the dark blue line in which shows the current decline in the UK since 2008 still 4 percent down more than three years on, see the UK Guardian here.
It's not a paler shade of gray, dammit. It's a faker form of black . . . on the Firth of effing Forth.
It's not a paler shade of gray, dammit. It's a faker form of black . . . on the Firth of effing Forth.
The United States of Moronica
We're even dumber than we look, and our stupid party is the smart one of the two.
From John Carney for NetNet:
"A recent study from the Pew Research Center found that 47 percent of Americans didn’t know which political party supports reducing the size and scope of the federal government. Forty-two percent didn’t know which party usually supports reducing military spending. Thirty-nine percent didn’t know which party generally favors restrictions on abortion. ...
"There’s a substantial ignorant minority on almost every issue. ...
"Forty-four percent of women, for example, did not know Nancy Pelosi is a Democrat (fewer men, 33 percent, got this wrong). Fifty percent of women didn’t know ... John Boehner’s party. ...
"People ages 50 and up are engaged by taxes and partisanship (70 percent correctly identified the party affiliation of Pelosi, 72 percent correctly identified which party is known as the G.O.P.). ..."
Read the rest HERE, if you're smart enough to find the link.
Tuesday, April 24, 2012
Jeffrey Goldberg Likes One Thing About Newt Gingrich
He wants to go "out there":
All at once, the passengers contorted themselves to get a view out of the starboard windows.
And there it was. The actual shuttle, the space shuttle Discovery, piggybacking a ride atop a Boeing 747, on the way to the Steven F. Udvar-Hazy Center at the Smithsonian’s National Air and Space Museum, where it would be retired. A ripple of excitement -- boyish, unvarnished excitement -- moved through the cabin.
It was an entrancing sight, and completely improbable, especially to people like me, who still don’t quite understand how a 747 gets into the air, even without a space shuttle as carry-on luggage.
The 747 and the space shuttle made a pass over the Washington Monument and the capital’s other grand marble temples, all consecrated to the American idea. They gleamed in the sun as they received a salute from a spacecraft that represented the physical manifestation of American ingenuity and confidence.
Then the 747 left our view. We settled back into our seats, having been elevated for a moment by a magnificent and elegiac vision -- elegiac, because the end of the shuttle program marks the first time since the dawn of the Space Age that the U.S. government has no immediate plan to launch humans into space.
A few minutes later, while we were still parked on the tarmac, ... the plane’s steering seemed to be malfunctioning. ...
We returned to the terminal, and I watched on CNN as Discovery finished the journey to its nursing home in the Virginia countryside. Only then did the obvious thought cross my mind: Newt is right.
This isn’t a thought that has often crossed my mind, especially over the past several months, but on the matter of space exploration and the role it has played in teaching Americans that they are capable of performing exceptional acts of creativity and bravery, Newt Gingrich is exactly right.
Read the whole thing, here.
KIRK: Ahead Warp One, Mr. Sulu.
DIFALCO: Heading, sir?
KIRK: Out there. Thataway.
Domestic Drone Authorizations Are Set To Explode
Locations on this map in red are active.
Get the map here.
Government will soon have total information awareness about YOU.
The decision was bipartisan and sailed through the so-called Tea Party US House of Representatives.
Thanks, Republicans. What good are you?
Monday, April 23, 2012
The New York Times Discusses Bipartisan Culpability For The Imperial Presidency
Mr. Obama's new approach puts him in the company of his recent predecessors. Mr. Bush, for example, failed to persuade Congress to pass a bill allowing religiously affiliated groups to receive taxpayer grants -- and then issued an executive order making the change.
President Bill Clinton increased White House involvement in agency rule making, using regulations and executive orders to show that he was getting things done despite opposition from a Republican Congress on matters like land conservation, gun control, tobacco advertising and treaties. (He was assisted by a White House lawyer, Elena Kagan, who later won tenure at Harvard based on scholarship analyzing such efforts and who is now on the Supreme Court.)
And both the Reagan and George Bush administrations increased their control over executive agencies to advance a deregulatory agenda, despite opposition from Democratic lawmakers, while also developing legal theories and tactics to increase executive power, like issuing signing statements more frequently.
The bipartisan history of executive aggrandizement in recent decades complicates Republican criticism.
Global Response To Debt Was To Triple Down On It
The amount of money thrown at rescuing the world economy since the Great Recession began is truly staggering, probably more than $14 trillion, and the financial spigots are still open. ...
In 2009, the IMF calculated that official rescue efforts totaled nearly $12 trillion, and since then the Fed and the ECB have pumped more cash into the economies they oversee.
Sunday, April 22, 2012
The Most Important Thing About The Norway Terrorist
From Barry Rubin in The Jerusalem Post, here:
IF TERRORIST murders by Hamas and Islamists did not stop well-intentioned future leaders of Norway from considering them heroic underdogs, an evil local man could think his act of terrorism would gain sympathy and change Europe’s politics.
After all, it has already changed the Middle East, and even been sanctified by Western media, intellectuals and governments.
When Norway’s ambassador to Israel tries to distinguish between “bad” terrorism in Norway and “understandable” terrorism against Israelis, that opens the door to a man who thinks his country is “occupied” by leftists and Muslims.
In this sense, the most important thing about the Norway terrorist is not that he is right-wing or anti-Islam. The most important thing is that he believed terrorism would work on behalf of his cause.
Had he held all of the same beliefs but didn’t think murder was a good tactic, nobody would be dead from his actions.
Of course, he was mentally unbalanced, but had a material basis for his imaginings.
What he didn’t understand is that many Europeans will accept terrorism against Israelis or even Americans; very few will applaud terrorism against fellow Europeans.
Nevertheless, many people gave him the idea that terrorism would change minds, and bring victory. They weren’t those whose blogs he quoted a few times in a 1,500-page manifesto, and who explicitly rejected violence. It was the successful terrorists and their Western enablers who gave him the tactic he implemented.
The Atlantic's Lies About Tax Loss Expenditures
"The three largest expenditures in the tax code are all things many middle-class Americans take advantage of -- tax-free employer-provided health insurance, the home mortgage interest deduction and tax-free 401(k) retirement accounts. ... The tax exemptions for home mortgage interest cost the government more than the entire budget of the Department of Housing and Urban Development according to Steuerle [an Urban Institute economist]."
These are NOT the three largest. They rank 1, 3 and 6, not 1, 2 and 3.
If Linda Killian had bothered to read the Joint Committee on Taxation's latest report on the subject, she would have known that.
Here are the top ten tax loss expenditures for 2011, according to this committee of the US Congress:
$109.3 billion Employer provided health insurance and related
$ 90.5 billion Reduced tax rates on dividends and capital gains
$ 77.6 billion Owner-occupied mortgage interest deduction
$ 59.5 billion Earned income credit
$ 56.4 billion Credit for children under 17 aka Child Tax Credit
$ 48.4 billion 401K-type plans
$ 42.7 billion Pension plans aka union retirement plans
$ 42.4 billion State/local income, sales and property tax deduct.
$ 38.0 billion Exclusion of capital gains at death
$ 31.0 billion Exclusion of benefits under cafeteria plans
$ 31.0 billion Exclusion of untaxed Social Security and RR benes.
Who benefits from the top three? It's hardly a middle class phenomenon . . . today.
Rich and poor and everyone in between gets health insurance when they are employed by an employer, not just the middle class. And they don't pay tax on that "income." But the size of this break is bound to decline dramatically in coming years, if ObamaCare is not struck down or repealed. Fewer employers will be providing coverage, choosing to pay lower fines instead. Other companies will deliberately downsize in order to escape the requirements under the law, making employer-provided insurance less common than it is today. The net effect may very well be that employer-provided health insurance becomes more and more an upper class phenomenon.
Reduced rates of taxation on dividends and capital gains primarily benefit the rich in America. Could that be why Killian overlooked it entirely? It certainly doesn't fit her narrative against the middle class, does it? But this category is the real number 2 in the list of tax loss expenditures.
Working class and middle class people who are lucky enough to have joined the investor class are investing primarily through tax-deferring vehicles like union pension plans and 401K plans, which rank number 7 and 6 in Congress' accounting of tax loss expenditures. It is questionable, however, for pensions and 401Ks to appear in this list of tax loss expenditures at all. Eventually the deferred money will become income, and it will be taxed.
But the more important point is that everyone in this bottom 66 percent of wage earners by definition makes less than $100,000 per year and by and large very few of them are playing around in the stock market, where fat cats like Bill Gates and Warren Buffett and Mitt Romney derive their unearned income, taxed at the non-permanent lower rates under the Bush tax legislation of 2001-2003. Were these rates permanent, however, this tax loss expenditure wouldn't even make the list.
Contrast that with something which is more or less permanent: the exclusion of income from Social Security taxation. The current income ceiling after which income is not so taxed is almost $107,000 per year. In 2010 just under $2 trillion in ordinary wages and salaries made by the rich escaped the Social Security tax. The tax loss expenditure of that? $125 billion, higher than anything in the Joint Commission's report. And it all went to the rich.
But the more important point is that everyone in this bottom 66 percent of wage earners by definition makes less than $100,000 per year and by and large very few of them are playing around in the stock market, where fat cats like Bill Gates and Warren Buffett and Mitt Romney derive their unearned income, taxed at the non-permanent lower rates under the Bush tax legislation of 2001-2003. Were these rates permanent, however, this tax loss expenditure wouldn't even make the list.
Contrast that with something which is more or less permanent: the exclusion of income from Social Security taxation. The current income ceiling after which income is not so taxed is almost $107,000 per year. In 2010 just under $2 trillion in ordinary wages and salaries made by the rich escaped the Social Security tax. The tax loss expenditure of that? $125 billion, higher than anything in the Joint Commission's report. And it all went to the rich.
Third is the ever popular whipping boy of the tax reform crowd, the mortgage interest deduction. It should worry average Americans who struggle on the crumbs which fall from their masters' tables that our betters want to make it harder for us to own four walls and a little garden and a tree. 100 million out of 150 million wage earners in 2010 made less than $40,000 per year. Try buying a house on that.
Democrats and Republicans have successfully conspired to attack Social Security for the first time by de-funding it temporarily and haven't yet been electrocuted by the once-feared third rail of politics, so I fully expect them to keep trying on mortgage interest.
Four years ago the mortgage interest deduction was more like $88 billion, so with the collapse of housing we have witnessed a decline in the amount of mortgage interest being paid, and so deducted. $10 billion less. The reason for this is two-fold. One, fewer homeowners. Two, refinanced mortgages at lower rates. With home ownership already under severe stress, it is astonishing that liberals of both parties continue to attack it under the guise of tax fairness. What it really is, is statists greedily looking for more revenue.
I say they can all go to hell.
Saturday, April 21, 2012
The Banker Inmates Are Running The Central Bank Asylum
"[W]hat we see unfolding is the latest chapter in the tug of war between inflationary and deflationary forces. During the “goldilocks” economy of the last decade, investors levered themselves up. Homeowners treated their homes as if they were ATMs; banks set up off-balance sheet Special Investment Vehicles (SIVs); governments engaging in arrangements to get cheap loans that may cost future generations dearly. Cumulatively, it was an amazing money generation process; yet, central banks remained on the sidelines, as inflation – according to the metrics focused on - appeared contained. Indeed, we have argued in the past that central banks lost control of the money creation process, as they could not keep up with the plethora of “financial innovation” that justified greater leverage. It was only a matter of time before the world no longer appeared quite so risk-free. Rational investors thus reduced their exposure: de-levered. When de-leveraging spreads, however, massive deflationary forces may be put in motion. The financial system itself was at risk, as institutions did not hold sufficiently liquid assets to de-lever in an orderly way. Without intervention, deflationary forces might have thrown the global economy into a depression.
"The trouble occurs when the money creation process takes on a life of its own, because the money destruction process is rather difficult to stop. However, it hasn’t stopped policy makers from trying: in an effort to fight what may have been a disorderly collapse of the financial system, unprecedented monetary and fiscal initiatives were undertaken to stem against market forces. Trillion dollar deficits, trillions in securities purchased by the Fed with money created out of thin air (when the Fed buys securities, it merely credits the account of the bank with an accounting entry – while no physical dollar bills are printed, many – including us – refer to this process as the printing of money)."
-- Axel Merk (for the rest, go here)
Friday, April 20, 2012
See Eskil Pedersen Demand Norway Boycott Israel One Day Before Breivik Came To Kill
Everything about Norway's AUF and its leader Eskil Pedersen has to do with a fanatical program of political action against the State of Israel, as shown in this photograph taken the day before Breivik's massacre, and in this story. The AUF's program is so extreme that even the already extreme position of the Norwegian Labour government against Israel isn't good enough for it.
An insane preoccupation with a country eleven days distant from Norway by sea by the children of the ruling political party doesn't come out of nowhere. It is a symptom of a wider mental disorder at work in Norway, indeed, it is the prevailing mindset.
Why should anyone be surprised that such a disease of the mind should also produce a deranged maniac like Anders Breivik?
Breivik's trial will not examine that, nor will much of the world ever examine it, because those who share in this irrational hatred of the Jews will not let it happen.
Sarah Palin: "I’ve had enough of these men being dogs"
Quoted here:
On Fox News Thursday night, Palin responded to the Post’s revelations about Chaney’s comments by saying she was disgusted that a Secret Service agent would make jokes about checking out her “backside” and called his behavior “pretty embarrassing.”
“This agent . . . was kind of ridiculous posting pictures and comments,” she said. “Well check this out, bodyguard. You’re fired! And I hope his wife . . . kicks him into the dog house.”
Palin stressed she viewed the scandal as emblematic of Obama’s poor management. “Look who’s running the show,” she said. “People will say its boys being boys. I’ve had enough of these men being dogs and not being responsible for the taxpayer’s dollars.”
Fox News host Greta Van Susteren told Palin she agreed Obama should be held accountable for how he reacted to the incident but stressed that the agent made his comments about Palin under the Bush administration.
Thursday, April 19, 2012
Giant Snake Fossil Proves Temps 10 Degrees Hotter Than Today AFTER Dinosaur Extinction
The snake has been dubbed "Titanoboa" in the story here:
Partial skeletons of a new giant, boa constrictor-like snake named “Titanoboa” found in Colombia by an international team of scientists and now at the University of Florida are estimated to be 42 to 45 feet long, the length of the T-Rex “Sue” displayed at Chicago’s Field Museum, said Jonathan Bloch, a UF vertebrate paleontologist who co-led the expedition with Carlos Jaramillo, a paleobotanist from the Smithsonian Tropical Research Institute in Panama. ...
Based on the snake’s size, the team was able to calculate that the mean annual temperature at equatorial South America 60 million years ago would have been about 91 degrees Fahrenheit, about 10 degrees warmer than today, Bloch said.
No word on what evil fossil fuel was responsible for the global warming.
The Washington Post story here cuts off the story, leaving out the part about temperature: "It would have to have been so warm . . .."
So warm what?
Gee, I wonder why they cut him off?
Wednesday, April 18, 2012
Eskil Pedersen, 7 Others, Fled Utoya on Ferry Leaving the Rest to Face Death
This is the extremist responsible for radicalizing the youth on Utoya with the Marxist doctrines of democratic socialism, doctrines which include virulent anti-Semitism. The day on the island before the attacks had been devoted to a Boycott Israel rally. Note Pedersen's defense of himself in fleeing the island where Breivik was busy picking off the kids one by one, a defense which is itself characteristic of a radicalized mind: "I thought the entire country was under attack."
From the Wikipedia entry here:
On 22 July, the day of the 2011 Norway attacks, Eskil Pedersen was present at the annual AUF summer camp on Utøya. As the leader of the organization, he was one of the assailant's stated targets along with the Labour Party politician Gro Harlem Brundtland, who was scheduled to be there that day but left the island before he arrived. Breivik would later state that he had studied Pedersen's physical appearance and facial attributes to be able to recognize him during the attack.
Very soon after the shooting erupted, Pedersen along with his political aide sought refuge on the ferry MS Thorbjørn, and along with seven other people decided to make their escape from the island. Pedersen later stated that while being at the Hønefoss police headquarters he feared a coup d'etat had taken place, and could not trust any member of the police. In an interview with TV2 he states: "I thought the entire country was under attack [..] if we docked anywhere we would be killed."
There has been widespread speculation in forums and independent blogs about the conduct on the ferry, but most professional media outlets initially refused to participate in the criticism. News website Nettavisen published a story raising questions a day after the massacre, but dropped the case shortly after claiming huge pressure from "central Labour Party politicians", as well as the AUF.
More recently, one prominent survivor who himself was wounded has publicly questioned why the ferry chose to depart, saying that i[t] was "unbelievable" adding that they felt "helpless and abandoned" after watching it disappear. The survivor, 22-year old Adrian Pracon from Telemark later published a book detailing his ordeal, which AUF attempted unsuccessfully to block, drawing criticism. Another survivor, 20-year old Bjørn Ihler from Oslo said of Pedersen: "This was the leader of the group, it was as if the Captain abandons ship". Pedersen later defended himself in an interview with BBC saying: "I think I acted normally given the situation. I acted according to instinct. I did what I was told and boarded the boat".
Jah, just following orders. Like a Quisling.
The country's preoccupation with and hatred for Israel demonstrate that it is a fertile environment for insanity which now grows from the seedbed of revolutionary socialism instead of the national socialism of Adolf Hitler and his many sympathizers in Norway.
To Romney Obama's Bitter Clingers Are The True Believers Who Watch Fox
The candidate said he didn't expect a fair fight in the media, saying he believed many commentators on television were liberals. He also said CNN reporter and host Wolf Blitzer was a good interviewer, and said Fox News had been good to him. Fox News is owned by News Corp., which also owns The Wall Street Journal.
"Fox is watched by the true believers," Mr. Romney said. "We need to get the independents and the women."
Tuesday, April 17, 2012
Norwegian Judges Deviated From Standard Practice To Make Sure Breivik Declared 'Sane'
"Perhaps the most lucid and succinct summary I’ve seen of the ensuing developments appeared this weekend in the Danish newspaper Weekendavisen. Klaus Wivel began by noting two ways in which Norway singles itself out: first, in no nation in the world are more defendants declared insane; second, in Norway, as opposed to many other countries, if a defendant is declared insane, that’s it: he’s put into the care of mental-health authorities, and the legal and penal systems no longer have any say in his future.
In the case of Breivik, this well-established state of affairs outraged many Norwegians, who, understandably, wanted to see him put behind bars forever. It also disappointed many on the Left, for whom the idea of Breivik as a madman was of no use at all; they wanted him put on trial, so that they could also try, as it were, their own enemies on the Right whose criticism of Islam, they insisted, had led to Breivik’s actions. Breivik, for his part, also hated the diagnosis. 'He claims to have rational arguments for his murder,' wrote Wivel. 'He wants to be declared guilty, not insane.'
Most important, as it turned out, the judges, too, were unhappy with the first psychiatric report. So in December, in a remarkable deviation from standard practice, they asked for a whole new report by two different doctors. Wivel quotes Norwegian journalist Jon Hustad, who wrote bluntly that 'the judges gave in to political pressure.' That second report, whose conclusions were made public last week, gave the Left, Breivik, and the judges exactly what they wanted: a declaration of sanity. On, then, to the trial, which begins today."
Norway: A Bulwark of Global Anti-Semitism
To quote psychiatrist Zvi Rex: 'Europe will never forgive the Jews for Auschwitz.' Europe doesn’t want to live under the psychological burden of Auschwitz forever. The Jews are living reminders of the moral failure of Europe. This leads to the projection of guilt on Israel and the remaining European Jews.
Indeed, it’s a tragic but unavoidable process: the New Europe will be a Jews-free continent."
-- Giulio Meotti, quoted here
The Oxymoron of the Day
Umbday in any language.
Monday, April 16, 2012
If You Lost Your Job During the Crisis and Started a Business, You've Got Company
The easiest way for people who've lost a job to start a business is to keep doing the same kind of work they've always done, but no longer as an employee of a company.
Call it miscellaneous work income, freelance income, sub-contracting or consulting, you're most likely filing Schedule C as a sole proprietor who works for competitors of your former firm, or maybe even still for your former firm.
Believe it or not, it's the single largest category of "company" in America. In 2009 22.7 million sole proprietor returns were filed with the IRS representing total business receipts of $1.2 trillion. This is a relatively small sum as you'll soon see, but this category of Mom and Pop small business easily outnumbers the others.
Partnerships in 2008, for example, numbered just 3.1 million returns, and represented 19.3 million partners and total business receipts of $5.9 trillion. A close second for numbers of individuals represented.
S Corporations came in at nearly 4 million returns in 2007, representing $6.1 trillion in total business receipts.
Rounding out the picture are the corporation heavy hitters most Americans still work for, which filed 5.8 million returns in 2008 accounting for total business receipts of $28.6 trillion. That's a lot of moolah. These are the companies which provided you with such things as workmen's compensation and unemployment coverage as a matter of the law.
When they fired you in 2008, 2009 and 2010 and you started your own "business", you learned that you had to fly without that net under you. You also got to learn about the true cost of such things as Social Security, for which you only used to pay half. Now you get to pay it all, but of course you also get an adjustment to income for it, just like a real business.
If you're in misery about it all as tomorrow's tax deadline looms, you've got lots of company. Around 22,699,999 strong.
Sunday, April 15, 2012
Over 2 Years After the Depression, US States Still Collect Less Than Peak Revenue
[T]he Rockefeller Institute of Government noted on Friday that overall tax collections were still 2.1 percent below peak levels, and personal income tax collections were still 6.8 percent below the high reached in fiscal 2008. ...
The Rockefeller report noted that in fiscal 2010, total tax collections were down from the peaks by a much steeper 10 percent and in fiscal 2009 by 8.4 percent.
The Rockefeller report noted that in fiscal 2010, total tax collections were down from the peaks by a much steeper 10 percent and in fiscal 2009 by 8.4 percent.
Saturday, April 14, 2012
Brian Wesbury Attacks the VAT Because the Problem is Spending, not Taxation
"[T]here have only been eight years of balanced or surplus budgets in the 61 years since 1950; spending as a share of GDP averaged just 18.1% in those years. In other words, the more the government spends, the harder it is to balance the budget.
"[N]o matter the rate on the income tax, tax receipts are rarely above 19.5% of GDP. The top individual income tax rate has been as high as 90% and as low as 28% in the past 60 years, but revenues have remained in a fairly narrow range. ...
"In 2011, government spending was 24.1% of GDP, and under President Obama’s budget proposal it is never going to fall below 23% of GDP. In other words, there is no tax regime in the history of the United States that has generated enough tax revenue as a share of GDP to balance the budget today, or in the future."
But the problem with this analysis, of course, is that Wesbury is comparing income tax "apples" with value added tax "oranges." The latter have never been on the menu here. They have been elsewhere, as he discusses, but not as stand alone systems. Like Christianity, a VAT isn't a failure. It just hasn't been tried.
While there is every reason to be as skeptical as Wesbury is that a VAT would replace the income tax and wouldn't instead be layered on top of it and contribute to an even more onerous spiral of taxation and spending, Wesbury leaves out of account the moral virtue of a VAT as a tax on consumption and a spur to saving and investment.
Historically conservatism has too rarely taken a stand critical of materialism, especially of the American kind where 70 percent of the economy has depended on consumption. From this perspective, taxing consumption is a much more commendable idea than taxing income, which we say we want to encourage. "If you want less of something, tax it." Is it any surprise that incomes are declining?
Instead what Wesbury is unintentionally demonstrating is that our civilization has reached the limits of the income tax regime instituted in 1913, just as the limitations of the tariff and excise regime for financing mass democracy had been reached at the end of the 19th century.
Perhaps the even more fundamental point is whether mass democracy itself is viable anymore, whether in fact "mass democracy" is not an oxymoron. After all, once the people vote themselves goodies picked from their fellows' pockets, it can't help but implode.
Aristotle even longer ago understood the affinities between extreme democracy and tyranny. The rich do what they can, and exile themselves. The rest do what they must.
The Size of Obama's Base Puts Him at a Disadvantage to Romney
Scott Rasmussen provides some insight about the size of Obama's base, here:
"Economic concerns dominate the voters’ agenda, and here the numbers for the president are more troubling.
"Some 49 percent of the voters trust Romney more than Obama when it comes to the economy. Just 39 percent trust Obama more.
"Middle-income voters are especially likely to have more confidence in Romney. Obama does best among those who earn less than $20,000 a year and those who earn more than $100,000 annually. Especially troubling for the White House is the fact that 20 percent of Democrats trust Romney more than Obama on this core issue.
"On other issues, however, Romney and Obama are essentially even. This includes health care, taxes, national security and energy."
The under $20K and over $100K wage earners favoring Obama numbered 71 million in 2010, according to Social Security. That leaves 79 million in the in-between category which tends to favor Romney.
Hence Romney's (inelegant) pitch to the middle class during the early primary season:
“I’m in this race because I care about Americans,” Romney told CNN’s Soledad O’Brien this morning after his resounding victory in Florida on Tuesday. “I’m not concerned about the very poor. We have a safety net there. If it needs repair, I’ll fix it.”
“I’m not concerned about the very rich, they’re doing just fine. I’m concerned about the very heart of the America, the 90, 95 percent of Americans who right now are struggling and I’ll continue to take that message across the nation.”
This statement notwithstanding, it's going to be a 52-48 type of fight, with the economy center stage right now.
Safely Out of the Way, John Tamny Decides to Attack Rick Santorum
"Santorum’s candidacy should have horrified conservatives."
Here, in Forbes.
The problem with libertarianism as argued by Tamny ("as human beings our natural rights are infinite and extend right up to when our freedom of action hurts others") is that both reason and nature tell us that it is not true.
Reason tells us that rights which extend only up to a certain point cannot be infinite.
And Nature teaches us that rights are not infinite. Otherwise the right to life would not end with the grave.
Thus the basic insight of conservatism is metaphysical: life has its limits, a man's got to know his limitations, government which governs least governs best, life is a mixture, into every life a little rain must fall, if it's got tits or testicles it's going to cause you trouble, simul justus et peccator.
Thus the basic insight of conservatism is metaphysical: life has its limits, a man's got to know his limitations, government which governs least governs best, life is a mixture, into every life a little rain must fall, if it's got tits or testicles it's going to cause you trouble, simul justus et peccator.
Friday, April 13, 2012
115 Million Working Age Americans Have No Unemployment Coverage
According to the figures posted by Mish, here. That's roughly 126 million with such coverage.
Why no coverage? Either because these 115 million people have no job, have jobs which do not require the employer to provide such coverage, or are self-employed. With 88 million "not in the labor force," the part-time and self-employed in this category would come to 27 million workers.
Obama keeps boasting that 30 million people without health insurance are going to get it under ObamaCare. By 2020. How are they going to survive until then without jobs to get it?
Obama keeps boasting that 30 million people without health insurance are going to get it under ObamaCare. By 2020. How are they going to survive until then without jobs to get it?
Hope. Change. 2012.
Massive Numbers of Americans Go Without Benefit of Unemployment Coverage
Mish has the charts and details here:
"[W]e need to add 17,598,279 to the work force with unemployment benefits coverage just to get back to equivalent coverage of 2001! ...
"[T]he number of people eligible for benefits is actually 911,000 lower than in 2001. ...
"This does not imply an improving labor market but rather clearly demonstrates the continued deterioration of [the] workforce in the USA and probable pressure on those working to provide even greater amounts of their income to those not working.
"This 52.2% is a very scary number. It says 47.8% of those of working age are either not working or they are self-employed with no benefits."
Sweden Cuts Taxes and Spending, Wipes out Deficit, Achieves Highest Growth in Europe
All thanks to a conservative government with a libertarian finance minister with an earring and a ponytail:
‘Look at Spain, Portugal or the UK, whose governments were arguing for large temporary stimulus,’ [Anders Borg] says. ‘Well, we can see that very little of the stimulus went to the economy. But they are stuck with the debt.’ Tax-cutting Sweden, by contrast, had the fastest growth in Europe last year, when it also celebrated the abolition of its deficit. The recovery started just in time for the 2010 Swedish election, in which the Conservatives were re-elected for the first time in history. ...
His main advice to [the UK] is: ‘Keep on dealing with the deficit, because deficits destroy everything else.’
[O]n Reinfeldt’s 45th birthday, Borg presented him with a graph showing Sweden’s tax-to-GDP ratio dipping under the 45 per cent mark for the first time in decades.
Read the whole story here at the UK Spectator.
"We’re the best horse in the glue factory"
So says Gary Shilling, quoted here.
But he understands the fundamental fact that there's really no there there:
"Consumers have a lot of reasons to save as opposed to spend. They need to rebuild their assets, save for retirement. A lot of reasons suggest that they should be saving to work down debt as opposed to going the other way, which they have done in recent months. So if consumers retrench, there is not really anything else in the U.S. economy that can hold things up.”
Thursday, April 12, 2012
Maybe Obama Owes America The Results Of An MRI Of Joe Biden's Brain
“I am an internist by training. I believe that years ago Biden suffered a ruptured cerebral aneurysm. His life was saved by modern medicine. When aneurysms rupture they frequently lead to brain damage. Biden’s behavior suggests to me that he may have suffered frontal-lobe damage. The frontal lobe is sort of our censor — it allows us to inhibit our impulses so that we do not immediately utter everything we think. Biden behaves as if his cannot successfully carry out this function. An MRI might very well show residual damage to his frontal lobe which might explain his inability to control his mouth. Alternatively, he may just be a typical liberal idiot."
-- Peter Welch, MD, quoted here
Wednesday, April 11, 2012
Two Years Later, Incompetent FBI Can't Return Acquitted Hutaree Property Yet Because It's Not Finished Doing The Inventory
The story is here, in The Detroit News:
Stone asked a federal judge to force the government to immediately return the wedding ring and other property, including the title to his vehicle. The FBI told Stone's lawyer, William Swor, the agency was still inventorying the property, which was seized in March 2010, according to the court filing.
These are the folks who want to run healthcare.
Yeah right. Into the ground.
Tuesday, April 10, 2012
Seven Days After Wisconsin Primary Loss, Santorum Packs It In
See the primary results to date here.
The New York Times here suggests that pressure was mounting from evangelicals for Santorum to quit in order to unite the party.
Newt Gingrich and Ron Paul remain in the race but cannot muster enough delegates in the remaining contests to deprive Romney of the nomination.
Folding like this before the contest in his home state of Pennsylvania suggests that Santorum knew he would suffer an embarrassing loss there. One can imagine not wanting to have to explain why Pennsylvania voters decided to reject him like they did in 2006 and have to quit the race in the wake of that anyway.
Breivik Ruled Not Insane by Court in Norway, But What About the AUF?
The UK Telegraph reports here:
"The experts' main conclusion is that the accused, Anders Behring Breivik, is not considered to have been psychotic at the time of the actions on July 22, 2011," the Oslo district court said in a statement which reopens the debate on whether the self-confessed killer can be sent to prison.
The real unanswered question in this case is not whether Breivik is or was nuts. He's confessed to his crime and should be punished.
No, the real question is whether the rabidly anti-Semitic AUF, which he attacked, and the rest of the Norwegian left, is nuts.
Why else would an isolated, low-population, prosperous and frozen country of the north go out of its way to befriend Muslims and the PLO, and send ships to invade the sovereign waters of a Mediterranean country hated by them thousands of miles away?
Romney's Uphill Battle to Presidency: Must Win Over 70 Percent of Toss Up States
Based on the map and analysis here.
Pretty grim.
This is the legacy of George W. Bush: unable to repudiate his past, unable to pick up the torch of the possible bright future signaled by the Tea Party revolution of November 2010.
They deserve what's coming to them, but the country doesn't.
Monday, April 9, 2012
Full-Time Jobs Still 6.6 Million Below 2007 Peak
See the data here.
The level in the range of 115 million full-time jobs last prevailed in 2004-2005.
Saturday, April 7, 2012
AIG, GM and Ally Financial Still Owe TARP Repayments to Feds
CNBC.com has the story here from Reuters:
The government pumped $68 billion into AIG . . . $50 billion in[to] GM . . . and $17 billion in[to] Ally Financial to save them from collapse during the 2007-2009 crisis. ...
 |
| Don't look at me. I just work here. |
AIG has reduced its obligations to the U.S. government by more than 75 percent, while Treasury has recovered nearly half the TARP funds it put into GM and close to one-third of the money that went to Ally Financial.
Friday, April 6, 2012
Labor Force Participation Rate at 63.8 Was Last Matched in April 1983
The data are available here.
The percentage of people working relative to the total population has consistently and decisively fallen under Obama:
Headline Unemployment Falls to 8.2 Percent, Forecast Jobs Miss By 40 Percent
The report is here.
Jobs fell short of the forecast 200,000 by only 80,000.
Oops.
Markets are closed for Good Friday. Futures are sharply lower:
Markets are closed for Good Friday. Futures are sharply lower:
Thursday, April 5, 2012
Prof. Stephen Presser Says Obama Should Be Ashamed Of Himself About Activism Charge
For CNN.com no less, here:
"[I]t is the task of the Supreme Court to rein in majoritarian legislatures when they go beyond what the Constitution permits.
"This is not, as Obama implies, judicial activism, or political activity on the part of the justices. This is simply, as Hamilton explained, fidelity to the Constitution itself, fidelity to the highest expression of "We the People of the United States," the body whose representatives ratified that Constitution. ...
"Judicial review is not usurpation -- it is the manner in which the rule of law is preserved in this nation. It is certainly true that sometimes courts, and even the Supreme Court, have erred in their interpretation of the Constitution, and some legislative acts that clearly were permitted by the Constitution have been struck down. But if the ACA's individual mandate is rejected, this will be fully within the legitimate exercise of judicial powers. ...
"If, as it should, the Supreme Court declares the individual mandate unconstitutional, it will be reaffirming our traditions, and not usurping them. The president, a former constitutional law teacher, should be ashamed of himself."
Wednesday, April 4, 2012
Yuval Levin Notices Obama Suffers From Liberal Projection Syndrome
Here:
"[Obama] speaks as though the problem—our unsustainable entitlement state—were the solution, and as though the solution—a budget that restrains the growth of spending, modernizes and reforms our collapsing entitlement and welfare programs to avert their collapse, and charts a path toward economic growth—were the problem. In this upside-down, inside-out world, Barack Obama accuses Paul Ryan of putting the future of America’s younger generation in danger and inviting American decline.
"A psychologist might call this projection."
There Is No Lie Obama Will Not Tell
"Franklin Roosevelt called the [National Recovery Act of 1933] 'the most important and far-reaching ever enacted by the American Congress.' But that didn’t stop the Supreme Court from overturning it in May 1935, by a vote of 9-0.
"The National Recovery Act passed the House by a large majority and the Senate by 46-39. The “strong majority” mentioned by Obama in the passage of Obamacare did not exist. . . . It garnered not a single Republican vote in either house, the first time so important a piece of legislation was passed on a totally partisan basis.
"As I said, one can only admire his chutzpah. It seems there is simply no lie President Obama will not tell in pursuit of his agenda. He can count on the mainstream media buying it, but will anyone else?"
-- John Steele Gordon, "Presidential Chutzpah"
Don't miss the full opinion, here.
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