Economics Archives

Friday Link Wrap-up

When you politicize health care, you get government-style efficiency. "NHS budget squeeze to blame for longer waiting times, say doctors."  And for those already in hospitals, doctors are having to prescribe water to make sure the elderly stay hydrated.

If the liberals are to be believed, poverty causes crime. And yet, in this tough economic time, the FBI reports a 5.5% drop in violent crime.

In economic news, Democrats are dead set against voting for any 2011 budget. There’s been a lot of hoopla surrounding the "repayment" of the General Motors loan from the auto bailout, except that it’s just a lot of smoke and mirrors. Indeed, GM has a sweetheart tax deal that is saving it $14 billion, not to mention another $14 billion is being lost in general on those bailouts.

The Obama economic "recovery" turned 2 years old in May. Upwards of a trillion dollars spent, for what? The number of people with jobs hasn’t changed, unemployment is far worse than they said it would be if we did nothing, median incomes are down, housing prices are down 10%, and I don’t need to tell you about gas prices. If George W. Bush were President, you just know he’d be personally blamed for this, but Obama gets a pass.

Canada, by the way, has been leading the US out of this mire by reducing debt and spending, even with a socialized medicine albatross around its neck.

Immigrants are turning to that "racist" Tea Party.

When we elected Obama, that was when "the rise of the oceans began to slow and our planet began to heal", right? So why does he not get slammed for not signing the updated Kyoto Protocol? Bush got criticized for it, even though it was Clinton who originally didn’t sign it. Nah, couldn’t be the double-standard, liberal media.

When you make entitlements untouchable, you risk hurting those you purport to be concerned about because economic collapse hurts us all, including and especially the poor. The idea that it couldn’t happen here is severely myopic.

And finally, "smart" diplomacy". (Click for a larger version.)

Friday Link Wrap-up

When the minimum wage goes up, low-wage jobs are lost. This isn’t a prediction, it’s an observation. The Wall St. Journal notes it’s happening again, at the worst time for it, and mostly for minorities.

Syria pulled out of the running for a seat on the UN Human Rights Council. The problem is that they pulled out rather than being pushed. Given the number of human rights violators on that council, they could have easily been approved.

"I am a scientist who was on the carbon gravy train, understands the evidence, was once an alarmist, but am now a skeptic." Read why here.

The headline says it all: "WikiLeaks Threatens Its Own Leakers With $20 Million Penalty If They Leak Elsewhere". Transparency for thee but not for me.

Green energy losing green: A solar farm in Texas is losing money because the property taxes are so high.

High-speed rail losing speed: "California’s much-vaunted high-speed rail project is, to put it bluntly, a train wreck." Of course, the solution, according to the LA Times, is do it over, throwing good money after bad ($43 billion of bad money).

What a shock! "Autotrader survey shows most motorists go green to ‘save money, not the environment’." Make green energy affordable, and the world will beat a path to your door.

A big reason health care costs are rising so fast is because of central planning (aka Medicare, Medicaid). The Democrats solution? More central planning.

Civility Watch: Wisconsin Attorney General releases 100 pages of threats against lawmakers during the budget battle.

The White House shut out a reporter from the Boston Herald because of a critical editorial that the Herald put on their front page. The issue with Obama is not Fox News; it’s anyone who disagrees with him. But if you didn’t know about this, it’s not your fault. The rest of the media, who you’d think would be all over this treatment of colleagues, were virtually silent on the matter.

The anti-war crowd has seemingly melted away into the woodwork with the election of President Obama. I mean, if George W. Bush had violated federal law by invading a country without, within 60 days, getting congressional approval, how loud would the outcry have been, from the Left and the Media? Instead, a collective yawn.

(Sorry, no cartoon this week.)

Other People’s Money

Socialism works as long as you have plenty of it. But when you run out of other people’s money to pay for it, look out.

Social Security will run a permanent yearly deficit when looking at the program’s tax revenues compared to what it must pay out in benefits, the program’s trustees said Friday in a report that found both the outlook for Social Security and Medicare, the two major federal social safety-net programs, have worsened over the last year.

Medicare’s hospital insurance trust fund is now slated to run out of money in 2024, or five years earlier than last year’s projection, while Social Security’s trust fund will be exhausted by 2036, a year earlier than the prior projection.

The trustees stressed that exhaustion of the trust funds doesn’t mean the programs will stop paying all benefits. Social Security could fund about three-fourths of benefits past 2036, and Medicare could pay 90 percent of benefits past 2024 under current trends.

And assuming no other financial surprises in the meantime. We could keep raising taxes in a down economy, but raising taxes has always been the way out of the problem of the day, but with no thought for the impact down the road. Well, here we are, down the road, with the same problem.

Friday Link Wrap-up, (Really) Late Edition

In addition to the doctor shortage the US is going to have when us Baby-Boomers hit retirement, Obamacare is going to make the problem even worse, based on current trends, how socialized medicine "works" elsewhere, and the government’s own numbers.

In 2005, when the press was enamored with Cindy Sheehan, Chris Matthews suggested she run for Congress. Yeah, how about now? Cue the crickets chirping.

Seal Team Six was an evil, secret, assassination squad manipulated by Dick Cheney. At least, that’s what it was when a Republican was President. Today, under a Democrat, they’re heroes, and not associated with Obama or Biden in the slightest. What a difference a "D" makes.

And speaking of contrasts, we have Nancy Pelosi on bin Laden, then and now.

Michael Barone notes that, to get bin Laden, Obama relied on policies he decried.

You know that kids that had George W. Bush in their classroom on 9/11? This is a good TIME magazine article on what they were thinking at the time when Bush was given the news, and what their reaction is now.

Over half of the country pays no income tax. But "the rich" still don’t pay "their fair share", eh?

While the bin Laden story stole the front page, the Conservatives in Canada won historic victories. Later, the Liberal Democrats in England suffered their worst losses in 30 years.

The conventional wisdom on salt intake may not be right after all.

Civility Watch: "So when does Seal Unit 6, or whatever it’s called, drop in on George Bush?"

"Democrats blame Bush for high gas prices"? No, not now; back in 2006. And in 2008, Nancy Pelosi blamed the "oil men" in the White House. They’re much quieter now.

A reform to watch: Indiana lawmakers OK broadest voucher plan in US.

It’s so very sci-fi-sounding, but some physicists believe that something from emanating from the sun is now causing radioactive decay to occur faster.

Worst of all, if the decay rates of matter are being mutated then all matter on Earth is being affected including the matter that makes up life.

The mutation may go so far as to change the underlying reality of the quantum universe—and by extrapolation-the nature of life, the principles of physics, perhaps even the uniform flow of time.

In fact, some evidence of time dilation has been gleaned from close observation of the decay rate. If particles interacting with the matter are not the cause—and matter is being affected by a new force of nature-then time itself may be speeding up and there’s no way to stop it.

And finally, a history lesson from Tom McMahon. (Click for the blog entry.)

Earthquake in the Great, White North

With all the talk about the bin Laden story yesterday, it would be understandable that Americans might have missed this story. If you felt the ground lurch to the right yesterday, it’s because Conservatives in Canada were handed a huge victory.

OTTAWA (Reuters) – Canada’s Conservatives stormed to a decisive victory in Monday’s federal election, winning 54 percent of the seats in Parliament and securing a stable four-year term in power after vowing to focus on the economy.

The Conservatives grabbed 167 seats in Canada’s Parliament, well above the 155 they needed to transform their minority government into a majority, according to provisional results. They won about 40 percent of the vote, beating expectations.

The victory, a relief for Canadian financial markets, left support for the separatist Bloc Quebecois in tatters and the party’s leader without a seat. Bloc Quebecois advocates independence for the province of Quebec.

The Liberals, who have ruled Canada for more years than any other party, were reduced to a dismal third place showing with their worst ever seat haul.

The global financial crisis has apparently made Canadians very tired of liberal solutions. The financial markets echoed this new-found optimism.

The market’s nightmare scenario of an unstable minority government headed by the pro-labor New Democratic Party never came to pass. Harper now has free rein to keep corporate taxes low in the nation of more than 34 million people and bring in a string of tax breaks once he balances the budget, projected within four years.

"It’s going to reinforce quite a bit of stability and confidence, and Canada is going to continue to be very attractive for foreign investors," said Youssef Zohny, portfolio manager at Van Arbor Asset Management in Vancouver.

"With a Conservative majority, you’re essentially assured a fairly business-friendly platform, low taxes, continued investment in energy and potential future energy projects. In terms of investment it’s definitely got a bullish bias."

Pro-business is pro-worker, because pro-business is pro-jobs. The liberal "solutions" have only made the problems worse by taxing the job-creators or pushing them out to look for greener pastures. Canadians have had enough of this, and it’s very possible they will beat the US out of the recession.

If they do, will Americans learn that lesson?

Friday Link Wrap-up

Question: What government program costs us 7 times what NASA does?
Answer: The department of Improper Payments.

Question: In a study looking at data from over 50 years, towards which political party does the NY Times lean? 
Answer: Well, do you really have to ask? And it’s more about what stories are covered than about bias within stories.

Question: Why do movements like pro-democracy or the Tea Party seem to balloon overnight?
Answer: The "Preference Cascade".

Question: What are 5 truths about Planned Parenthood that you’re not likely to hear in the media?
Answer: Read them here.

Question: How could you defend the use of sola Scriptura, "Scripture alone", to someone who objects on the basis that humans are fallible, so you just can’t be sure what is Scripture?
Answer: C. Michael Patton has a good response.

Question: Has Paul Krugman ever flip-flopped on an issue for politics’ sake? Not a little quibble, but on really substantial stuff?
Answer: Oh yeah, he has.

Question: Has Nancy Pelosi ever flip-flopped on an issue for politics’ sake?
Answer: Well, she blamed high gas prices on "two oil men in the White House" before. Wonder who she’s blaming now.

Question: Is Syria, a country that is killing its own citizens for protesting the government, really being considered for a seat on the UN Human Rights Council?
Answer: Oh yeah, it is. And the UN is divided on whether it should even investigate their recent human rights abuses.

Question: Was Stanley Ann Dunham punished with a baby.
Answer: No, the baby (Barack Obama) was not a punishment, even though Barack’s campaign rhetoric would tend to suggest otherwise.

Question: Has Hamas moderated, since it had to take on political leadership and run the Palestinians?
Answer: Oh no, it hasn’t.

Question: Did Fox News push the whole "birther" issue the most?
Answer: Oh no, they didn’t.

Question: Does Europe want us Yanks, with our neo-con aggression, out of their backyard?
Answer: According to this Norwegian liberal, oh no, they don’t.

Question: Shouldn’t the federal government be a limited one?
Answer: Click for a larger image.

Taking Note of Europe

Social benefits, long thought untouchable there, are now getting a second look. The combination of huge taxes with a financial crisis, makes that sort of spending unsustainable.

PARIS — From blanket health insurance to long vacations and early retirement, the cozy social benefits that have been a way of life in Western Europe since World War II increasingly appear to be luxuries the continent can no longer afford.

Particularly since the global economic crisis erupted in 2008, benefits have begun to stagnate or shrink in the face of exploding government deficits. In effect, the continent has reversed a half-century history of continual improvements that made Western Europe the envy of many and attracted millions of immigrants from less fortunate societies.

The envy of many only because it was made to look better than it was by borrowing from the next generation. Well, the next generation’s here, and it’s time to finally pay the bills.

In the new reality, workers have been forced to accept salary freezes, decreased hours, postponed retirements and health-care reductions. Employees at Fiat’s historic Mirafiori plant in Turin, rolling back a tradition of union privileges, even pledged to cut back on the number of workers who call in sick when the local soccer team has a match.

Unions have been a party to this deal with the devil, no doubt under the guise of "worker’s rights", including the right to watch soccer on company time.

Unlike in the United States, where conservatives are so resolved to cut spending that they threatened a government shutdown, Western Europe’s generous welfare programs had generally been embraced by the right as well as the left. Against that background, the new wave of cutbacks seems to signal a dramatic shift in attitude toward benefits that many Europeans had come to see as a birthright and that politicians of any stripe could challenge only at the risk of their careers.

Apparently, "conservatives" over there found, too, how easy it was to buy votes with promises of wealth redistribution. The politician who robs Peter to pay Paul can count on Paul’s vote.

The social welfare system no longer plays its role, said Claude Bernard, a union organizer at Renault’s struggling car factory in Sandouville, a suburb of Le Havre in western France. The very system of redistributing wealth through taxes and welfare programs has been called into question.

In a measure of the shift, Manuel Valls, a presidential hopeful in France’s Socialist Party, challenged party doctrine recently by declaring that it should not make an issue of preserving the 35-hour workweek if French factories have to compete with Chinese factories where the workweek starts at 60 hours and goes up from there. In Denmark, Prime Minister Lars Loekke Rasmussen rattled many in that icon of Scandinavian cradle-to-grave welfare by suggesting Danes should work longer before retiring, to peel back the deficit by $2.8 billion.

Britain’s Conservative-led government decided in the fall to attack deficits by cutting more than $130 billion over the next five years, hitting welfare benefits hard and setting off protests by raising university fees.

But deficit pressures have forced leftist governments to seek savings as well. Some of the most painful cuts — pensions reduced, wages stalled and retirements pushed back — have been imposed by two Socialist prime ministers, George Papandreou in Greece and Jose Luis Rodriguez Zapatero in Spain.

If even socialists are calling their founding principles into question, why, then, are we trying to run off the same cliff, and at one of the worst possible financial moments in our history? Let’s learn from their mistakes instead of repeating their failed history.

The American Poor

For perspective, as budget issues continue to take center stage in Washington, and welfare programs are considered sacrosanct by Democrats, here is information from a US Census Bureau report in 1990:

* 38 percent of the persons whom the Census Bureau identifies as "poor" own their own homes with a median value of $39,200.

* 62 percent of "poor" households own a car; 14 percent own two or more cars.

* Nearly half of all "poor" households have air-conditioning; 31 percent have microwave ovens.

* Nationwide, some 22,000 "poor" households have heated swimming pools or Jacuzzis.

"Poor" Americans today are better housed, better fed, and own more property than did the average U.S. citizen throughout much of the 20th Century. In 1988, the per capita expenditures of the lowest income fifth of the U.S. population exceeded the per capita expenditures of the median American household in 1955, after adjusting for inflation.

Emphasis mine.  Now, 14% isn’t a whole lot, and 22,000 even less so, but when Democrats talk about not paying for tax cuts or programs "on the backs of the poor", just realize what "poor" means in the US. I’m sorry, but if you have a swimming pool or Jacuzzi, you aren’t poor, and money can be saved on these programs. This was 20 years ago, and spending has only risen.

As an aside, I’ll bet that people getting assistance from, say, The Salvation Army, don’t get hot tubs from them.

Friday Link Wrap-up

Kenyans have been winning marathons all over the world. The Dutch have decided to try and keep them out by only giving 1% of the prize money to any foreigners who win the Utrech Marathon. I don’t think that’s racism, but I do believe it’s wrong anyway.

Don’t bet your life on outrageous claims by proponents of embryonic stem cell research. Someone  has, though.

Civility Watch: The Left has been sending death threats to the eeevil Koch brothers. The wrong Koch brothers.

Civility Watch 2: Who said, "Civility is the last refuge of scoundrels" and "Let’s not be civil"? (And said it in the same paper that blamed the Giffords shooting on incivility from Republicans.)

Civility Watch 3: If a Republican had said this, he would have been called "racist" or "Islamophobic". But a member of the Obama administration said it, so no outcry.

Do iPads cause unemployment? Does Jesse Jackson, Jr. think we should have banned cars to keep the buggy builders in business?

Hanging a small cross inside your company van is a firing offense in the UK, apparently.

A death panel in Canada pronounced their sentence on a baby in Ontario by saying that life support should be removed, against the parents’ wishes. Instead, they brought him to a country that, so far, does not have a fully socialized system (that would be America), and the child did so well that he was weaned off the ventilator and is now back home.  It’s still touch and go, I imagine, but critics said he’d never get off mechanical breathing. Way to go, baby Joseph! (Which begs the question; if the US goes fully socialized, where will Canadians go for good health care?)

And finally, the same old song. (Click for a larger image.)

The Standard & Poors Downgrade

If this doesn’t wake up Democrats, and the Americans that vote for them, to the real, actual unsustainability of more and more spending, what will? If the last remaining superpower can’t keep its financial house in order, then what comes next? Are we "spreading the wealth around" so much now, that too many are unwilling to give up their government dependence?

Should the rich pay more? If so, please say how much more, specifically? Should we go back to 91% rates? The problem is, when more that is taxed, it isn’t used to pay for existing debt and spending; it instead spurs on new spending. Our problem is not how much revenue the government is getting; it’s the amount of spending going on.

This is a bi-partisan problem; both parties have contributed to this. The Republicans, however, spurred on by the Tea Party, are making the first real effort in decades to do something about the problem. Nothing was done on this until Republicans won a majority in the House, and even now, Obama and the Democrats are making only token gestures.

Man oh man, I hope the independents are watching, and will remember in 2012. I hope some fiscally responsible Democrats are, too.

OK, lots of questions above. I would love to hear any answers in the comments.

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