Posts Tagged With: economics

Obama’s Economic Policy in a Nutshell


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Americans, Have We Become Failures When We Were Once Successful?


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Obama: “Read My Lips, No New Taxes on the Middle Class”


When passed, the CBO estimated that Obamacare would raise taxes on 4 million individuals. Now it is estimated that 6 million individuals will have their taxes raised and the bulk of them will be the middle class who Obama made a solemn promise not to raise taxes. Given Congress’s notorious history of underestimating the costs of any program it enacts I can only imagine what the actual number will be in 2016 when the penalty will be enforced. Is anyone reading Obama’s lips?

“The new estimate amounts to an inconvenient fact for the administration, a reminder of what critics see as broken promises.

The numbers from the nonpartisan Congressional Budget Office are 50 percent higher than a previous projection by the same office in 2010, shortly after the law passed. The earlier estimate found 4 million people would be affected in 2016, when the penalty is fully in effect.

And the budget office analysis found that nearly 80 percent of those who’ll face the penalty would be making up to or less than five times the federal poverty level. Currently that would work out to $55,850 or less for an individual and $115,250 or less for a family of four.

Average penalty: about $1,200 in 2016.”

Watch the lips of Obama’s promises on the video below and Then read the rest of what the CBO says here

Still like the promises of socialistic programs? Funny thing, Socialism, it paints a pretty picture of what society will be like under its system but it never seems to be able to keep its promises when people are convinced to accept them.

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Socialism, A Scientific Economic Theory (Part IV)


Foolish Thoughts?

Now, with everything I have said about socialism and about liberalism I will only add that our nation is in a fiscal crisis at this time. And when I speak of this I speak of more than our national government. I speak of our State and local governments as well. The debt that these governments have accumulated stagger the mind and politicians are now beginning to understand that they need to get it under control.

Sitting back and watching them struggle with this problem is interesting. We see all kinds of solutions put forth. We see those governments controlled by the left address it from a revenue point of view and those governments that are controlled by the right trying to deal with it from the expenses point of view. Then there are those who are attempting to use both. Which faction will succeed is anybody’s guess.

You can see this same situation on the international scene also. Whole nations, like Greece, seeking a bailout from other nations. And the bailout nations like Germany demanding that Greece address the problem by cutting expenses. Many other nations are facing this same dilemma. France is talking about placing a 75% income tax on some of their citizens.

I will go even farther by asking if it is possible to succeed anymore? Has anyone ever sat down and figured out just how long it would take to pay down the 16 trillion dollar debt of the U.S. national government? Regardless of how you approach this problem all of the people are going to feel the effects in a very real and a very harsh way. Even if you passed a law holding expenses at its present level and raised revenues each year by 10% it still would take generations to pay off the debt. In fact, it would take generations just to get that debt down to a manageable amount in my opinion.

And the thing is we are not even talking of nations that can be said as totally socialistic. We are speaking of nations that believed that socialistic solutions could be used to solve the perceived problems of a Capitalistic society. We are speaking of nations that attempted to augment an recognized imperfect system with programs of another historically recognized failed system with the idea that doing so would result in a more perfect system.

Any unbiased scientist would have to come to the conclusion that this experiment of a mixed society has resulted in a failed experiment. A good scientist would have to come to a conclusion that we live in an universe governed by natural laws. A good scientist would have to come to the conclusion that man cannot bend or break those laws to fit his own philosophy of how life should be.

People need to realize that to be successful in fiscal matters one needs to have control over revenues or over expenses. One or the other is always determined for you regardless if you are a government, business or just a person or family. The nature of economics declares that revenues are always determined for you. That only leaves expenses that are controllable. The problem is that in a socialistic form of an economy expenses are also determined.

Debt is the determinant factor of whether or not you have expenses under control. Lack of control over expenses will always lead to bankruptcy. In a socialistic society bankruptcy will ever be the end result. That is the economic reality of any society.

The idea of a society succeeding in any form of the liberal or socialist mindset is an economic impossibility. The laws of the nature of life will never allow it. And those laws were determined for us. We can only choose whether or not to live in accordance to them. Failure is guaranteed either way. The only difference is the scale of the failures. Only the opportunity to succeed exists. Whether or not a person accepts the opportunities that come his way is up to him.

We haven’t gotten to the point of no return yet but we are close. We as a nation are going to have to make some hard decisions sooner or later and those decisions are going to hurt. It is just a matter of whether we are strong enough to make those decisions and spare future generations of the pain or whether we are to be seen as cowards and leave those hard decisions up to future generations. Either we make those decisions voluntarily or the laws of life and economics will force us to make them. See me for the fool that I am but of this I have no doubts.

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A Businessman or a Community Organizer, You decide What Obama Is


Obama’s Electric Car

Nearly two years after the introduction of the path-breaking plug-in hybrid, GM is still losing as much as $49,000 on each Volt it builds, according to estimates provided to Reuters by industry analysts and manufacturing experts.

Cheap Volt lease offers meant to drive more customers to Chevy showrooms this summer may have pushed that loss even higher. There are some Americans paying just $5,050 to drive around for two years in a vehicle that cost as much as $89,000 to produce.
Read more here

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Socialism, A Scientific Economic Theory (Part III)


Foolish Thoughts?

I may have hurt the feelings of some of my visitors by associating modern liberalism with socialism. This cannot be helped because it is a fact of politics. In the following video you will hear individuals advocate the most basic concept of socialism. And in their advocation affirm everything I described about socialism in part II of this series. Most important is the fact that they reveal their ignorance about the most basic fact of an economic system.
1. You cannot eliminate profits or put a cap on profits without bankrupting that business in time.
2. The paychecks of every person working in that business is derived out of the profits of that business not just the owner’s paycheck.
3. No business can grow if you place a cap on the profitability of that business.
4. All taxes are a dirivative of the profits of a business.


A h/t to Bruce over at the “Gay Patriot” for the video lead.

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Socialism, A Scientific Economic Theory (Part II)


Foolish Thoughts?

As argued in the first part of this essay, socialists and liberals continue to have faith in the theory of socialism despite its history of failure so how can this faith be explained? One way to ascertain the explanation is to examine those societies that are either applying this theory or have tried to apply it for common attributes.

First of all Socialism is an economic system that is imposed upon a people by the enactment of laws. The socialist would argue that this was necessary in order to assure the equality of economic outcome. Fairness is the virtue that a socialist would use to declare its morality. Marx described fairness when he declared his famous quote, “From each in accordance to his ability, to each in accordance to his needs.”

1. This would imply the need of it being accepted by the people on a universal level. It is a concept that requires self-sacrifice for the needs of others in the name of fairness. Self-interest and greed would not be allowed and those who sought to satisfy their self-interest would have to be eliminated from that society for they would be seen as someone who would take unfair advantage of others. They would also identify themselves as being a greedy person.

2. This would also imply that justice be defined along these same lines. It assumes equality exists among all individuals. Therefore where inequality is seen then that proves a biased or prejudicial cause. And when this occurs an injustice has been committed and laws need to be enacted to address this injustice.

3. It is a theory of collectivism which declares that the collective is responsible for the success of the individuals of that collective. This would implicitly declare that individuals are not responsible for what they be or do. This, in turn, would implicitly declare that any individual who holds to a position of status should consider himself a privileged person because it was the collective that has the right to determine who holds that position. Thus, this makes the individual a servant of the collective by the terms of this theory.

4. It is, by the nature of the premises explicitly used, a positive sum economic theory. Its advocates would argue that any other form of economics is a zero sum type of economics theory. It is a theory that places value upon a person’s being rather than upon his abilities.

5. Since it is an altruistic theory then it must be declared that the collective can do no wrong. And any individual who holds to this theory must be looked upon as being a righteous person. For what collective could be declared as being wrong in seeking to satisfy of the needs of each and every individual within that collective? And how could you define any individual as being anything but righteous who adheres to and seeks to implement this theory?

6. It is a theory that views any collective as being a homogeneous collective. Thus, in a society of multiple collectives inequality will exist and one collective will be the dominant collective and the other/s will be the victims of that inequality.

7. Rights are an attribute of the collective not of the individual thus if an injustice is perceived as being done to one of the collective then it is assumed that same unjust act would be done to each and every other member of that collective. It is also assumed that every member of the offending collective is just as guilty of that injustice as the individual who actually did the injustice for all members of any collective are of one mindset.

So, in closing, I can only add one thing. Keep that quote of Marx in mind whenever you hear the word fairness in the political argument of a person. That word alone will declare implicitly that you are hearing the argument of socialism. It is the common thread of every form of a socialism and the economics that is used to support it.

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High Taxes Does Effect Behavior, Mr. President, and Treats People in a Punative Manner, Especially the Rich


Raising the tax rate is always argued from the point of view of increasing revenues for governments. What is very seldom heard is how high tax rates effect the behavior of people. As my regular readers know I have written many posts on some of the effects taxes has on the behavior of people. And as this story in the Wall Street Journal reveals it not only effects the behavior of people but it also has a negative effect on the revenues of the taxing governments.
Another case for self-interest over the altruistic viewpoint of a Socialized government.
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‘As the post-Olympics glow fades, U.K. policy makers are trying to figure out how to keep the flame of British sports burning. They could start by changing Her Majesty’s tax laws. After Jamaican sprinter Usain Bolt won his third gold in London last week, reporters asked him why he doesn’t compete in the U.K. more often. “As soon as the law changes I’ll be here all the time,” he said.

Punitive tax policy had kept the world’s fastest man from competing in Blighty for the past three years. Explaining Mr. Bolt’s decision to skip a 2010 race in London, his agent told reporters: “He will earn a lot less by competing in Britain if he maintains his current endorsement level.” Mr. Bolt competed in Paris that August instead.

The lesson is that taxes influence behavior, and punitive taxation hurts everyone, not least the punitive nation.’

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A Third California City Goes Bankrupt, Another Promised Land Brought to Its Knees


Welcome to Jerry Brown country. The left tries to blame Geo Bush and his wars for the financial problems of the nation but how many of the troubled States and cities went to war? And why do all of these cities and States seem to have the same or similar reasons for not being able to pay their bills? Grandpa always said that if you want to solve a problem you must address the cause of that problem. Is this further evidence of a socialistic program gone wrong? When will we, the people, realize that there is no such thing as a free lunch? And when will politicians learn that government does not have unlimited resources to pay for their promises?
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“San Bernardino, California, filed for municipal bankruptcy after disclosing a $46 million shortfall in the city’s budget, the third California city to seek court protection from creditors since June 28.

California cities from the Mexican border to San Francisco Bay are confronting rising pension costs as they contend with growing unemployment and declining property- and sales-tax revenue. The costs stem from decisions made when stock markets were soaring and retirement funds were running surpluses.”
San Bernardino is Bankrupt
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UPDATE:
IRS Is Missing Billions
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Here is some more bad news about how the government spends your hard-earned dollars. And Obama wants to raise taxes and spend more of it? Not only that, remember, the IRS will be in charge of Obamacare too. You still trust the government spend your money better than you can?
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” The Internal Revenue Service may have delivered more than $5 billion in refund checks to identity thieves who filed fraudulent tax returns for 2011, Treasury Department investigators said Thursday. They estimate another $21 billion could make its way to ID thieves’ pockets over the next five years.

The IRS is detecting far fewer fraudulent tax refund claims than actually occur, according to a government audit that warned the widespread problem could undermine public trust in the U.S. tax system. Although the IRS detected about 940,000 fraudulent returns for last year claiming $6.5 billion in refunds, there were potentially another 1.5 million undetected cases of thieves seeking refunds after assuming the identity of a dead person, child or someone else who normally wouldn’t file a tax return.

In one example, investigators found a single address in Lansing, Mich., that was used to file 2,137 separate tax returns. The IRS issued more than $3.3 million in refunds to that address. Three addresses in Florida, the epicenter of the identity theft crisis, filed more than 500 returns totaling more than $1 million in refunds for each address.”
IRS is helping to bankrupt this nation

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The Fallacies of Racism


A very interesting 10 minute discussion on racism by Thomas Sowell as well as the history behind it. It is a clip for thought for those who are open minded enough to listen to. And words that when applied to the political atmosphere of today debunks all of the charges or racism that you hear so much of.

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