ECONOMICS: Elizabeth Warren cheers AOC’s Green New Deal as she launches 2020 run | Daily Mail Online

The 69-year-old Democrat officially launched her campaign at a rally on Saturday in Lawrence, Massachusetts, one of New England’s poorest and most heavily Latino communities.

Source: Elizabeth Warren cheers AOC’s Green New Deal as she launches 2020 run | Daily Mail Online

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These SOCIALISTS are going to ruin the USA.

First, IMMORALITY “the rich” pay most of the taxes already.  How much more do they think they can pay?  If we think that tithing to God at 10% is holy, then what percentage doe the “god” of Gooferment demand.  IMHO, any tax is an immoral taking.

Second, INVESTMENT “the rich”, unlike Scrooge McDuck, don’t have a basement full of gold goins that they swim in.  They invest their wealth in productive higher order goods that improve productivity.  if the Gooferment takes that wealth, then where is the investment going to come from.

Third, WASTE the Gooferment already wastes so much.  It’s estimated, that for every dollar taken by Gooferment, more than half is wasted.  Over and above that, since the Gooferment produces little if anything of value for real people, why would anyone want to give them more wealth.

The SOCIALISTS want us to ignore the real world examples of East and West Germany, North and South Korea, Venezuela, the Stalin’s Russia, Mao’s China, Pol Pot’s Cambodia, Hitler’s Germany, and on and on through out history.  Countries that have been seduced by Socialism’s sirens song of “free stuff” have paid the price of death, poverty, starvation, and disease.  Capitalism may not be the “best system”, but it’s better than all the others that have been tried.

Argh!

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ECONOMICS: “Tax the rich” prevents “capital formation” and makes us all poorer

https://mailchi.mp/tomwoods/high-taxes?e=39307912ab

Tom Woods · PO Box 701447 · Saint Cloud, FL 34770 · USA 

FROM HIS EMAIL BLAST OF 2019-Jan-16 10:26PM

*** begin quote ***

Here’s my unfashionable opinion: I believe in tax cuts for the rich. (I believe in tax cuts for everyone.) I believe the rich are human beings with rights, and not cash cows to be milked by people who had nothing to do with the creation of their wealth.

Now what follows is just for you, and not for your social-democratic friends, who will listen to what I say and respond with, “That’s trickle down, which doesn’t work!”

Those people are anti-intellectual and can’t be reached. What I’m telling you here is for the sake of your own understanding, not theirs.

Here is how wealth is created, and why confiscating the incomes of high earners is so destructive.

When firms increase and improve the equipment and machinery at the disposal of workers, those workers’ labor becomes more productive. Imagine someone using a forklift (as my father did), as opposed to stacking pallets with his bare hands, or producing books with modern equipment as opposed to a 16th-century printing press. The amount of production the economy is capable of is thereby increased, often dramatically, and this increase in production puts corresponding downward pressure on consumer prices (relative to wage rates).

There is nothing natural or inevitable about the availability of this productivity-enhancing capital equipment. It does not fall out of the sky. It comes from the wicked capitalists’ saving, and the allocation of the unconsumed resources in capital investment.

This process is the only way the general standard of living can rise. Only in this way can the average laborer produce the tiniest fraction of what today he is accustomed to producing. It follows that only under these conditions can he expect to be able to consume the tiniest fraction of what today he is accustomed to consuming.

The increases in the productivity of labor that additional capital brings about push prices down relative to wage rates. By increasing the overall amount of output, such increases raise the ratio of consumers’ goods to the supply of labor. Put more simply, improvements in the production process that lead to an increased supply of consumer goods make those consumer goods cheaper and easier for people to acquire.

 

That’s why, in order to earn the money necessary to acquire a wide range of necessities, far fewer labor hours are necessary today than in the past. Thanks to capital investment, which is what businesses engage in when their profits aren’t seized from them and when savings are available to them to invest, our economy is far more physically productive than it used to be, and therefore consumer goods exist in far greater abundance and are correspondingly less dear than before.

*** end quote ***

And, he has a list of how productive has cut the “cost” of certain items in terms of the work hours needed to acquire them.  Very impressive.

“Tax the rich” is code for make everyone poorer by preventing “capital formation”.  Zero interest rates have wiped out savings by what’s left of the middle class.  If there is no “capital investment” because the “rich” are tax and unable to invest, then where does “capital investment” come from?  

I know “the money tree” that grows in everyone’s backyard!

Argh!

Today’s politicians and bureaucrats need to go to the figurative guillotine before the USA has its own version of the French Revolution.  Can these people possible be this stupid about economics?

I wonder.

TANSTAAFL (“There Ain’t No Such Thing As A Free Lunch” From Robert Heinlein’s classic) 

Or are they just blinded by their “power”?

Argh!

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ECONOMICS: Never thought of a cargo ship that way

http://www.economicpolicyjournal.com/2018/04/whos-we.html

SATURDAY, APRIL 14, 2018
Who’s the “We”?
Donald J. Boudreaux

*** begin quote ***

You’ll say that the “we” is Americans – to which I say that our capacity as Americans to make all these marvels has emphatically not been dismantled.  We do make them, sometimes directly and other times in a roundabout way.  But always we make them.  As the economist David Friedman points out, we Americans have an ingenious machine for transforming the corn that we grow in Iowa into automobiles that we drive.  That machine is called a “cargo ship.”  Into the ship we put corn and, a few days later, out of the ship comes automobiles.  We make cars by making corn.  This production process is akin to every other production process: mix various inputs together to produce something different and greater than the sum of its parts.

*** end quote ***

Now that’s an insight.

And the Gooferment should get out of the way of “we” filling up the outbound ships with “stuff”!

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ECONOMICS: Aren’t “tariffs” just taxes on “We, The Sheeple”?

http://www.foxnews.com/opinion/2018/03/07/john-stossel-mr-trump-if-raise-tariffs-on-steel-and-aluminum-punish-consumers.html

John Stossel: Mr. Trump, if you raise tariffs on steel and aluminum, you punish consumers
By John Stossel | Fox News

*** begin quote ***

No, President Trump, it’s not true that if you tax imported steel, we “will have protection for the first time in a long while.”

The opposite is true. If you raise tariffs on steel and aluminum, you punish consumers.

*** end quote ***

Isn’t this just a tax increase in disguise?

Maybe “We, The Sheeple” should subsidize the biggie whip makers?

Sorry, but tariffs are just stupid ekkynomics!

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ECONOMICS: Where does the minimum wage funds come from?

https://www.aei.org/publication/exposing-the-minimum-wage-fallacy-its-an-ironclad-law-of-economics-that-to-stimulate-one-group-you-have-to-un-stimulate-another-group/

Mark J. Perry@Mark_J_Perry
December 28, 2017 1:38 pm

*** begin quote ***

Exposing the minimum wage fallacy — it’s an ironclad law of economics that to stimulate one group (workers) you have to un-stimulate another group (businesses)

*** and ***

But here’s a question that never gets asked (or answered) by EPI and minimum wage supporters: Where will the $5 billion in additional wages come from? While thinking about this overlooked question that reveals an important economic fallacy, I was reminded of a similar economic fallacy illustrated by Henry Hazlitt’s famous essay on the broken window, which exposed the economic fallacy of the “blessings of destruction.” Using Henry Hazlitt’s essay as a template (which is actually based on Bastiat’s original essay on the broken window fallacy from 1850), I’ve written a new essay below to expose what might be called the “blessings of the minimum wage fallacy” on the eve of the 18 minimum wage increases schedule to take place next week.

*** and ***

Groups like EPI that support increasing the minimum wage do a great job of addressing the benefits of higher wages to low-skilled workers, but then completely ignore the costs of those artificial wage increases. That is, they never answer the most important question of all, posed above: Where will the $5 billion in additional annual wages from the 18 minimum wage hikes next year come from?

*** end quote ***

So why is raising the minimum wage different from the “broken glass fallacy”?

“We, The Sheeple” can’t think their way out of a paper bag!

Argh!

Watch the poverty increase!

For everbody.

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ECONOMICS: CVS eats AETNA?

Healthy Convergence 
CVS is in talks to buy Aetna for more than $66 billion, as the drugstore giant works to fortify itself against looming competition from Amazon while the health-care industry undergoes a reordering. In a sign of the seriousness of the talks, the companies’ chief executives have met multiple times over a period of roughly six months. CVS has made a proposal to buy the health insurer for more than $200 a share. With Aetna, CVS could lock in a huge number of members for its pharmacy-benefit management arm, as well as customers for its drugstores. That could bolster its leverage in negotiations with drugmakers, while its oversight of health insurance could improve its ability to strike new deals that tie drug prices to patient outcomes. If a deal were to be struck, it would be the year’s largest.

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Wow, pretty stunning!

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ECONOMICS: Seems like cost-savings will sweep the land of truck drivers?

https://www.theguardian.com/technology/2017/oct/10/american-trucker-automation-jobs

End of the road

*** begin quote ***

“Labor accounts for 75% of the cost of transporting shipments by truck, so adopters can begin to realize those savings. Beyond that, while truckers are prohibited from driving more than 11 hours per day without taking an eight-hour break, a driverless truck can drive for the entire day. This effectively doubles the output of the trucking network at a quarter of the cost. That’s an eight-times increase in productivity, without taking into account other benefits gained by automation,” he says.

*** end quote ***

Clearly, that efficiency will lower the prices of goods and services.

The human cost to individuals will be catastrophic.

As Jason Stapleton keeps saying: “You must invest in your own human capital.” 

The job you have today may not exist in a decade; adapt or die.

And, politicians and bureaucrats or “unions” can’t stop the “eight times increase in productivity”.

Sigh!

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ECONOMICS: Unless they are defended by the government, cartels always break down

https://www.garynorth.com/public/17188.cfm

The Economics of Assistant Coaches’ Bribery
Gary North – September 28, 2017

*** begin quote ***

There is a fundamental rule of economics: unless they are defended by the government, cartels always break down. They can be sustained only by government intervention. The government protects the cartels from members of the cartel who break the rules of the cartel in order to increase market share and thereby increase net income. The government makes cartel-busting a crime. In the case of the movie and also in the case of the latest scandals, net income is really what it is all about.

What we are seeing is the intervention of governments around the country to defend the NCAA’s cartel. If it were not for government intervention to keep coaches from paying full ticket for the valuable services of the best players, major universities would be forced to pay millions of dollars to these players, just as professional sports teams have to pay their players. A free market would prevail.

Top collegiate basketball coaches today are paid multimillion-dollar salaries. The head coaches don’t want to lose this income. In contrast, assistant coaches are not paid huge salaries. They are tempted to do under-the-table deals that are against the financial interests of the NCAA’s cartel. None of the coaches being accused of bribery is a head coach. No head coach is going to risk his $4 million annual salary for penny-ante payoffs to recruit top players.

If we had a free market in college education, there would be no legal restriction on the use of the word “college” or “university” imposed by any state on profit-seeking educational ventures. There would be no government money used to build sports stadiums. There would be open entry. Private college tuition would fall at all but the premier schools. College athletes in the top-ranked sports universities would be paid full ticket.

*** end quote ***

Ignoring for the moment that these alleged “bribery” charges may not — or should not be — considered  accurate, why do we have cartels in sports?

Why are the Taxpayers funding sports stadiums?

Why are the Team Owners (i.e., “State Universities”) allowed to keep “indentured servants” working (i.e., playing games) for them?

Argh!

We need to get the Gooferment out of all of there!

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ECONOMICS: Lessons Leaned from Kansas

https://www.bloomberg.com/view/articles/2017-06-19/the-kansas-supply-side-experiment-unravels

ECONOMICS
The Kansas Supply-Side Experiment Unravels
Tax cuts were supposed to spur growth, boost revenue and create jobs. The results were the exact opposite.
By Barry Ritholtz
June 19, 2017, 11:19 AM EDT

*** begin quote ***

When a governor announces an economic theory as a solution to a state’s fiscal problems, while challenging all comers to observe the results, that’s something I want to pay attention to. And so for the past five years, I have been watching the public-policy experiment in Kansas with great fascination.

With the state legislature now rejecting the governor’s experiment, we can move onto to the next phase: Not recrimination and blame, though there is lots of that going around. Instead, I want to look at how the experiment played out, and what lessons there are to be learned from it.

*** and ***

By just about every measure, Kansas’ economic laboratory experiment is now over, and the results are in. Supply-side tax cuts as executed in Kansas don’t generate more economic growth or create more jobs. They reduce tax revenue and forced the government to cut spending on essential goods and services like roads and schools.

*** end quote ***

I don’t think Ritholtz’s analysis goes quite far enough.

He doesn’t consider that “time” in his lessons learned.

It takes more than a generation to get folks to change. So a quick tax slashing with a large deficit spend is not how to spur the growth promised in the Laffer curve. It takes time to adapt.

Hence, the tax rate needs to be gently reduced over time with cutting waste and abuse. Then, strategic complete cuts to programs that are ineffective, and inefficient. With those savings either “banked for a rainy day” or returned to the taxpayer.

A one trick pony shot is not going to “fix” the decades of “training” that “We, The Sheeple” have in what Gooferment will do for them. 

Rigorous fiscal discipline, while not showy, will bring prosperity. 

IMHO this is needed at all layers of Gooferment.

Sad to say, but at one time, it could be found in both parties. Not any more in either.

Argh!

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ECONOMICS: Corporations do NOT pay taxes; only real people do

FROM THE WSJ

*** begin quote ***

TALKING POINTS
Tax talk. President Trump has ordered aides to draft a tax plan that slashes the corporate tax rate to 15%, even if that means a loss of revenue and exacerbating the plan’s procedural and partisan hurdles. Mr. Trump told his team to “get it done,” in time to release a plan by Wednesday.

*** end quote ***

For the life of me, I never understood that “We, The Sheeple” don’t understand what appears to me as “simple economics”.

When taxed, “corporations” have really ONLY two choices — pass them along or go out of business. 

Yes, I know that they could potentially reduce their profits, but let’s examine that concept. As Larry Kudlow says “Profits are the mother’s milk of stocks and the lifeblood of the economy.” When you reduce profits, you send signals to the economy that things are bad here. Then, the flow of capital dries up. Eventually, profits are zero and there is no incentive but to shut down.

So, taxes get passed along to the consumer. Lucky, real people get to pay MORE taxes.

What’s really bad is those taxes are HIDDEN in the priced of stuff we buy. Pick up any can of beans and tell me how much of that cost is taxes. It can’t be done. Argh! And, the politicians and bureaucrats just love it that way.

Then, want to know why corporations move overseas? The US tax rate on corporations is 30%. I think that’s the highest in the world. There’s the incentive to move. And, if you can’t move, that’s a reason to not go into business. 

Argh! Cubed!!!

Wake up people. The correct corporate tax rate is ZERO! Make the people aware of how much Gooferment really is costing us.

Argh!

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ECONOMICS: $78 trillion pension shortfall

https://www.lewrockwell.com/2017/03/no_author/worlds-first-pension-crisis/

The World’s First Pension Crisis
By Simon Black Sovereign Man
March 31, 2017

*** begin quote ***

In the late in the 5th century BC, the government of ancient Rome came up with a new idea that has lasted for thousands of years.

I’m not talking about their roads, republican form of government, or water sanitation.

Their bold idea was to start paying retirement benefits to Roman soldiers.

*** and ***

So just as the ancient Romans invented the first pensions, they also invented the first pension crisis. It wouldn’t be the last.

Most major governments find themselves in a similar position today.

According to a 2016 report from Citibank entitled “The Coming Pension Crisis,” the 35 developed nations which comprise the OECD (including the US, Canada, Japan, most of Europe, etc.) have pension shortfalls totaling $78 TRILLION.

To put this in context, $78 trillion is more than the size of the entire world economy.

*** end quote ***

Nothing like being a Gloomy Gus on a nice sunny day, but the nice thing about being a retired fat old white guy injineer who is a poor old senior citizen on a fixed income, I have the perspective to look back and forward. Past is prologue. 

I used to counsel my fat old white guys in job search. Part of that advice was to conduct the Sunday morning “board meeting”. Humorously, the jobseeker has to wear many hats. When I was one, I learned the trick at the DBM “turkey farm” of “wearing many hats”. So I, as the CEO, would turn to myself, as the CFO, and say: “How are revenue and expenses?”. Then the CFO would report. SO to with the CIO role, HR role, Sales Manager, Marketing Manager, etc. etc. At one time I think I had six or seven distinct “roles” in my job search.

One of my turkeys was so dense, I had to have him make paper hats with titles on them.

All that being said, there is a “retirement crisis” ahead. Probably not for me, but the younger you are the more positive I’m that you will hit it. “Pension shortfalls” equal to the world’s economy?

I can hear you say, but I don’t have a pension. But as taxpayers, you have to pay for public pensions, social security, and other “entitlements”. That’s even worse.

I hope that all you youngsters have a plan for when you’re my age.

Good luck.

p.s., sorry my generation has left you a mess to clean up.

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ECONOMICS: Consider “systematic externalisations of cost” by Gooferment

http://ncc-1776.org/tle2017/tle910-20170219-03.html

Traditionalism and Free Trade: An Exercise in Libertarian Outreach 
by Sean Gabb sean@libertarian.co.uk
Special to L. Neil Smith’s The Libertarian Enterprise

*** begin quote ***

What is true of national distribution networks is also true at the level of international trade. British and then American control of the seas has made shipping safe from piracy. British and American control of the Middle East has externalised many of the costs of oil drilling and movement. British and American armed interventions stabilised less powerful countries for the sale of our industrial output, and then for the development of manufacturing industry in places where the local ruling classes could be bribed and assisted into making labour both cheap and docile.

These facts go far to explaining why Chinese apples undercut Kentish apples in Kent, and why it is worth concentrating the manufacture of virtually all electronic goods in a few coastal regions of China, and why most of the clothes we buy are put together in Turkish and Bangladeshi sweatshops. It goes far to explaining why, when I drive home every summer from the family trip to Slovakia, I share fabulously expensive motorways with lorries that pay a pittance per mile, and burn diesel at prices—even allowing for taxes—far below the real cost of extraction and transport, and that are carrying goods to places like Manchester and Leeds where once whole armies were employed in their manufacture.

In short, the manufacturing side of the globalisation that traditionalists denounce proceeds from a pattern of comparative advantage that makes sense only on the basis of systematic externalisations of cost.

*** end quote ***

I read this and was literally stunned.

He makes an excellent point that the USA Rust Belt was cause by Gooferment subsidies and interference in free trade. 

While no one likes pirates — except when Johnny Depp is one in the movies — the control of them to enable long distance free trade is a cost that should be absorbed in the competitive marketplace. When Gooferment steals wealth from the USA’s taxpayers to “protect freedom of navigation”, then they are subsidizing imports and exports.

Like the gas tax is impossible to “see” in the price of a can of beans, so to this “protection of sea traffic” is NOT reflect in the market price of imported goods.

That’s a STUNNING realization to me.

So to the Gooferment subsidization of ports, airports, and highways. You can’t see that in competitive purchase decision down at Walmart. If there was a “Made in America” TV, of course it would be at an absurd cost disadvantage because all the “costs” are not in the price tag. 

That’s the realization this article brought to me. 

Argh!

Another case of Gooferment causes the problem and then causes more problems “fixing” the original problem. 

Argh!

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ECONOMICS: Janet Yellen and the “FED” should go to the trash pile of history

https://dailyreckoning.com/91851-2/

POSTED JANUARY 25, 2017
Trump Missed His Biggest Chance to Drain the Swamp
BY DAVID STOCKMAN 

*** begin quote ***

Janet Yellen insists that she would serve out her full term (until January 2018) and has rather cheekily lectured Congress about the dangers of political interference with the central bank.

Oh, my.

Before December — after the election — the Fed spent the past year sitting hard on interest rates for no plausible reason whatsoever. The main reason was to perpetuate the stock market bubble and thereby ensure the election of Hillary Clinton and a perpetuation of the current Wall Street/Washington regime.
To his credit, Donald Trump called her out on this blatant political meddling during the campaign, calling it “shameful” and designed to keep the stock averages levitated through November 8th.

He was exactly right. Yet notwithstanding his shocking victory, Yellen has the temerity of a pot calling the kettle black. Her Keynesian-statist party has been rebuked by the American public, but the terminally grating school marm who occupies the big chair in the Eccles Building petulantly insists that her right to rule has not been diminished by an iota.

*** end quote ***

The Federal Reserve Bank is a misnomer. IT ain’t “federal”. It reserves nothing. And, it ain’t a “bank”. It is a private cartel of the elite banks run for their benefit and that of the entrenched politicians.

It’s designed to corrupt Americans and the world into accepting a unbacked fiat currency.

The benefit of a real gold standard is to restrict what the Gooferment can spend. Imagine if it couldn’t borrow and spend beyond what it could steal from the taxpayers. A lot less war and welfare spending, for sure.

Argh!

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ECONOMICS: The “invisible hand of the free market” makes life better for everyone

On Thursday, January 19, 2017 8:50 PM, I wrote:

http://www.usatoday.com/story/travel/columnist/hobica/2017/01/18/jet-lag-altitude-sickness-dehydration/96677564/

*** begin quote ***

In a study entitled “Effect of Aircraft-Cabin Altitude on Passenger Discomfort” in the New England Journal of Medicine, the authors write that people who “travel to terrestrial altitudes above 6,500 feet experience acute mountain sickness, a syndrome characterized by symptoms of headache, nausea, vomiting, anorexia, lassitude, and sleep disturbance.” The researchers call this “Acute Mountain Syndrome.” The ill effects are even more pronounced the older you are.

*** end quote ***

Laugh!

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Sharing with my Luddite friend this great and interesting news.

“Jet lag” is merely misdiagnosed “Acute Mountain Syndrome”!

Wow, what a finding.

The article says planes are being reengineered to eliminate this.

Great!

To which, he responds:

*** begin quote ***

Yeah, they will end jet lag because nobody will be able to afford to fly!

*** end quote ***

No, it’s the “invisible hand of the free market”. Improve or die. Serve your fellow man or starve. 
Look at commodes. At one time only the ULTRA ULTRA rich kings could have indoor plumbing. Now virtually everyone has it.

Same with cars. Clean water. Computers.

Only in Gooferment projects does the costs escalate and the results plummet.

When entrepreneurs risk their own money, progress happens. Because no one watches the store like the owner.

Economics 201.

Laugh!

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Seems so OBVIOUS to me, Sigh!

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GOVEROTRAGEOUS: I think the SF “building department” is useless

http://www.dailymail.co.uk/news/article-3865998/The-leaning-tower-San-Francisco-350-million-luxury-high-rise-Millennium-Tower-SINKING.html

The leaning tower of San Francisco: The $350 million luxury high-rise Millennium Tower is SINKING 

  • The Millennium Tower, in San Franciso, has already sunk 16 inches since it was completed seven years ago
  • The $350 million building has also begun to tilt –  and now has a six-inch lean at the top of the tower
  • Leaked documents show the city’s Department of Building Inspection and developer Millennium Partners were aware it was sinking faster than anticipated before it opened in late 2009 but didn’t make it public 
  • Engineers hired to assess the problem have said that it shows no immediate sign of stopping

By HANNAH PARRY FOR DAILYMAIL.COMPUBLISHED: 00:54 EST, 24 October 2016 | UPDATED: 03:35 EST, 24 October 2016

*** begin quote ***

Pamela Buttery noticed something peculiar six years ago while practicing golf putting in her 57th-floor apartment at the luxurious building. The ball kept veering to the same corner of her living room.

Those were the first signs for residents of the sleek, mirrored high-rise that something was wrong. 

‘What concerns me most is the tilting,’ says Buttery, 76, a retired real estate developer. ‘Is it safe to stay here? For how long?’

*** end quote ***

Wow, there’s a “engineering blunder” as Brother Austin Barry would say.

I assume that the lawsuits will begin immediately!

Feel sorry for anyone who bought one after it was discovered but before it became public knowledge.

Argh!

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ECONOMICS: Anyone still naïve about politicians and who they serve

http://www.breitbart.com/big-government/2016/10/15/exclusive-american-worker-forced-train-foreign-replacement-reveals-how-hillary-clinton-betrayed-him/

EXCLUSIVE — American Worker Forced to Train Foreign Replacement Reveals How Hillary Clinton Betrayed Him
by JULIA HAHN
15 Oct 2016
Washington D.C.

*** begin quote ***

As Emmons watched Clinton’s office rebuff his “desperate” pleas for help–choosing, instead, to stand with a foreign corporation at the direct expense of the American workers she was elected to represent–that was the moment, “my naïveté was over,” Emmons said. “That was when I realized exactly what this was: I realized it’s the government against the people.”

“As naïve as I was then, I now know that politicians like Hillary are not out to do what’s right for the people of America; they’re out to do what’s right for the people who donate money to them,” Emmons said.

*** and ***

The story of citizens like Mike Emmons and his colleagues has become an all-too-familiar one: American tech workers are gathered together for a meeting with their executives—in this case, by Siemens in Lake Mary, Florida, in 2002. The unsuspecting workers are then informed that, despite their stellar performance record and years of service to the company, they’re all being fired and replaced by predominantly foreign-born Indian workers. However, before they are to be officially let go, they’ll be forced to train their foreign replacements. If they refuse, the American workers will not receive their severance. Companies like Siemens, Disney, Southern California Edison, Xerox, Northeast Utilities, and countless others are able to do this through forming contracts with India-based outsourcing firms like Tata that import thousands of foreign workers into the country on L-1 and H-1B visas and use them to supplant American workers who had been working there previously.

*** end quote ***

All of us in the Information Technology field have seen this type of competition.

The H-1B visa program is supposed to be for “critical skills” not available in the American marketplace.

What a joke.

The politicians have been paid off by corrupt Crony Capitalists.

And, it’s Joe and Jane Sixpack that get screwed.

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ECONOMICS: CFC — Gooferment ekkynomics that keeps on giving

http://ericpetersautos.com/2016/10/08/buy-steel-not-gold/

Buy Steel (Not Gold)
By eric – October 8, 2016

*** begin quote ***

First, it decreased supply via the infamous “Cash For Clunkers” program (a “clunker” being defined not by mechanical condition, incidentally, but by the car’s gas mileage numbers). The government paid people inflated sums of other people’s money (an estimated $3 billion) to turn in perfectly roadworthy used cars in for unwarranted, early destruction … in order to “stimulate” demand for new cars.

This was like burning down every third house in a neighborhood to create a “need” for new housing.

*** end quote ***

I like that “burn down every third house” as a short hand description.

Sorry, but how can these “RXes” possibly help the economy.

The USA would be so much better off if the Gooferment would take a long vacation!

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ECONOMICS: Four reasons for a dim employment forecast

http://larrysummers.com/2016/09/26/men-without-work/

Men Without Work
09/26/2016
Over the weekend, the FT published my review of Nicholas Eberstadt’s important new book Men Without Work.  

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I think this is likely a substantial underestimate unless something is done for a number of reasons.  First everything we hear and see regarding technology suggests the rate of job destruction will pick up.  Think of the elimination of drivers, and of those who work behind cash registers.  Second, the gains in average education and health of the workforce over the last 50 years are unlikely to be repeated.  Third, to the extent that non-work is contagious, it is likely to grow exponentially rather than at a linear rate.  Fourth, declining marriage rates are likely to raise rates of labor force withdrawal given that non-work is much more common for unmarried than married men.

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This is a really dismal view of what’s in store for the men of the future.

As well as for the uneducated, or those who can not generate value.

Sad. 

Everyone better be teaching their children to be entrepreneurial.

Argh!

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ECONOMICS: The US Military is obsolete and just misdirected

https://www.lewrockwell.com/2016/09/fred-reed/bombing-enemies-cant-fight-back/

An Obsolescent Military: Bombing Everything, Gaining Nothing
By Fred Reed
September 26, 2016  

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All of which is to say that while the US military looks formidable, it isn’t particularly useful, and aids China by bankrupting the US. Repeatedly it has demonstrated that it cannot defeat campesinos armed with those most formidable weapons, the AK, the RPG, and the IED. The US does not have the land forces to fight a major or semi-major enemy. It could bomb Iran, with unpredictable consequences, but couldn’t possibly conquer it.

The wars in the Mid-East illustrate the principle nicely. Iraq didn’t work. Libya didn’t work. Iran didn’t back down. ISIS and related curiosities? The Pentagon is again bombing an enemy that can’t fight back—its specialty—but that it seems unable to defeat.

The wrong military, wrong enemy, wrong war, wrong world.

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Wow, Fred Reed had really nailed this one.

Militaries are famous for fighting the LAST war.

The Civil War was fought as if the war didn’t have any accurate weapons. WW1 was fought with massed troops fed into machine guns. WW2 was fought similarly. Etc. Etc. Etc.

Argh!

When will we realize that the Gooferment is fat, slow, and stupid.

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ECONOMICS: EBT — the hidden soup lines

http://www.theburningplatform.com/2016/09/04/the-anti-cinderella-man-part-one/

The Burning PlatformThe Burning Platform
THE ANTI-CINDERELLA MAN (PART ONE)

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First of all, if there were soup lines, the corporate media would just ignore them. If they don’t report it, then it isn’t happening. Secondly, the soup lines are electronic, as the government downloads the “soup” onto EBT cards so JP Morgan can reap billions in fees to run the SNAP program. Just because there are no pictures of starving downtrodden Americans in shabby clothes waiting in soup lines, doesn’t mean the majority of Americans aren’t experiencing a depression.

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Long-term discouraged workers were defined out of official existence in 1994. If you stop looking for a job because there are no jobs available, the BLS pretends you no longer exist and you are dropped from their unemployment calculations. John Williams at Shadowstats rightfully adds these discouraged workers, who are willing to work, back into the calculation and surprise, surprise, the real unemployment rate in this country has been between 18% and 23% for the last seven years. Those rates are identical to the worst years of the Great Depression.

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So what will it take to “make America great again”?

Well, they always say the first step to solving a problem is to admit you have one!

And, imho, “we” have several!

(1) honest money;

(2) Crony Capitalism;

(3) the FED;

(4) the warfare / welfare state; and

(5) the Gooferment Skrules.

None are easy to solve if we don’t have any moral, ethical, or personal backbone!

Argh!

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ECONOMICS: What will trigger an “Economic Depression”?

https://www.lewrockwell.com/2016/07/no_author/america-needs-old-fashioned-depression/

America Needs a Good, Old-Fashioned Economic Depression
By Jay Zawatsky The National Interest
July 25, 2016

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Yes, central bankers can print currency units, but not food, energy or other commodities necessary for sustaining life. As basic commodities become more scarce or are priced out of the reach of average folks, wars, riots, rebellions, diseases and repressive governments will result. All of this human suffering will be the progeny of ZIRP, QE, and NIRP, which in turn are the progeny of the replacement of the gold standard by the Ph.D. standard.

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If we stipulate that this is good “economic medicine” and central banks have no incentive to stop “printing currency units”, then what is the trigger for a depression? Or what is the recognition factor that wakes up “We, The Sheeple” to the reality of one big ugly “economic” chicken coming home to roost.

In Venezuela, it had to be the unavailability of toilet paper at any price.

What will it be here in the USA? 

Since “printing the currency units” will lead to inflation, it’s important to hide that fact from “We, The Sheeple”.

But sooner of later, the inputs to production will be bid up and that has to be reflect in the price to the end consumer. At some point, the outputs can not be produced for a profit and compensate for the risk involved.

So when the shelfs begin to be missing “stuff”, that’s the trigger.

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ECONOMICS: Krugman is Obama / Clinton cheerleader

http://contrakrugman.com/ep-43-krugman-says-investors-have-given-up-hope-so-what-happened-to-that-obama-recovery-paul/

Ep. 43 Krugman Says Investors Have Given Up Hope…So, What Happened to that Obama Recovery, Paul?
16 July 2016     |     Tom Woods  

This week, Krugman considers several possible explanations for why long-term interest rates are so low around the world. The one he settles on: investors have concluded that the weak economy is the new normal, so to speak, so they’re willing to accept low yields. But this explanation contradicts Krugman’s repeated insistence that the Obama recovery is stronger than ignorant right-wingers give it credit for. Which is it?

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If “economics” is a natural science — which I believe it is, then how can it’s “laws” be ignored without consequences.

Imagine physics if the speed of light was not a constant?

Imagine chemistry if elements’ characteristics were ignored.

Imagine math if π was published as 3.14 exactly. 

Chaos!

Economics’ supply and demand is an observed logically consistent “law” (i.e., lower your price and people can buy more; raise your price and the opposite happens).

Interest rates are a reflection of people’s time preference. Not what the Gooferment says it is.

Argh!

When the FED just “prints” money, people make terrible decisions!

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ECONOMICS: $15 minimum wage

http://www.foxnews.com/politics/2016/07/09/democratic-party-platform-calls-for-15-minimum-wage-in-win-for-sanders.html

DEMOCRATIC CONVENTION
Democratic party platform calls for $15 minimum wage in win for Sanders
Published July 09, 2016  FoxNews.com

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Sen. Bernie Sanders’ effort to shape the Democratic Party’s election platform scored a major victory Friday with the approval of an amendment calling for increasing the federal minimum wage to $15 per hour.

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Haven’t heard anything this stupid since the bit about Alabama setting the value of pi to be the “Biblical value” of 3.0!

Seriously though, how can a major political party defy the LAWS of economics?

It’s as if they think that, like King Canute, they can change the laws of the physical Universe.

The Laws of Economics are as real as any of the other laws of the physical Universe like the Law of Gravity.

Argh!

How STUPID can the average American voter be to vote for them?

Argh!

http://www.snopes.com/media/notnews/pi.asp

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This wonderful bit of creative writing began circulating on the Internet in April 1998. Written by Mark Boslough as an April Fool’s parody on legislative and school board attacks on evolution in New Mexico, the author took real statements from New Mexican legislators and school board members supporting creationism and recast them into a fictional account detailing how Alabama legislators had passed a law calling for the value of pi to be set to the “Biblical value” of 3.0. 

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ECONOMICS: Social Security “Insurance” Bankrupt

http://www.economicpolicyjournal.com/2016/06/scathing-new-report-shows-just-how.html

WEDNESDAY, JUNE 29, 2016
Scathing New Report Shows Just How Bankrupt Social Security Really Is
By Simon Black

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Last week, a group of analysts published an astonishing report about the future of Social Security in the United States, and their remarks were nothing short of damning.

According to their calculations, for example, these analysts claim that Social Security is already running a huge deficit to the tune of tens of billions of dollars each year.

In fact, this Social Security funding deficit has been taking place for several years now, and it’s actually accelerating. So the problem worsens each year.

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Don’t get me wrong– I don’t mean “fix Social Security”. Oh no. That program is toast.

I’m talking about fixing this for yourself.

Retirement is one of those life events that is completely predictable. We know it’s going to happen.

And with a little bit of education, planning, discipline, and execution, we can vastly influence the outcome and prevent any major catastrophe from interfering with our goals.

You can dramatically boost your own nest egg, for example, and have much greater say over your retirement assets by setting up a structure like a solo 401(k) or a self-directed IRA.

It also makes sense to invest in your financial education; learning more about investing will clearly be beneficial in boosting your returns, and this can have a profound effect over time.

Especially if you’re younger, increasing your average return by just 1% over the course of 20-40 years can add up to hundreds of thousands of dollars in additional retirement savings.

You may also want to consider retiring abroad where you can live the lifestyle you’ve always wanted at a fraction of the price, and substantially stretch the time and value of your retirement savings.

Look, I’m convinced that Social Security will become a national emergency some day. Just remember that since its demise is conspicuously predictable, the impact on your life is completely preventable.

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Social Security Insurance is like a Ponzi scheme.

At least the Ponzi victims made a free choice to “invest” in the scheme.

Every “worker” today has no choice but to accept an “investment” with an estimated negative return of between of 2 and 15%.

Further it’s a wealth transfer from poor minority men to rich white women.

So, why do we still have this racist scam.

Set people free to save for their own retirement.

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ECONOMICS: 2% inflation = 47 cents of purchasing power after 30 years

http://contrakrugman.com/ep-35-debt-default-good-or-bad/

Ep. 35 Debt Default: Good or Bad?
15 May 2016     |     Tom Woods     |    

You’ll never guess: Krugman contradicts himself this week, but only Bob Murphy, who knows Krugman’s columns inside and out, caught him. This week the topic is whether it’s a good idea at some point to repay the national debt at less than face value. Krugman is horrified, so maybe it’s a good idea….

Krugman Column“The Making of an Ignoramus” (May 9, 2016)
“Keynesians on Treasury Default: Depends Who’s in the White House,” by Robert P. Murphy
“Trump’s Right — Paying Back the National Debt with ‘Discounts’ Is Already Official Policy,” by David Stockman
“Repudiating the National Debt,” by Murray N. Rothbard

Related EpisodeEp. 33 Krugman and Hamilton Sitting in a Tree

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Key takeaway: 

If the Fed does meet its target inflation rate of 2%, then arithmetically over thirty years your dollar’s purchasing power is down 53%.

It’s a silent theft of your wealth.

Good luck saving with that scenario. Back to the analogy — what do you want find a pirates chest full of: US “dollars”, Confederate dollars, or gold coins?

Argh!

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ECONOMICS: One great reason to raise the minimum wage

http://tomwoods.com/podcast/ep-659-afraid-of-president-trump-how-about-presidents-in-general/

Ep. 659 Afraid of President Trump? How About Presidents in General
12th May 2016
Tom Woods

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Michael Malice makes his triumphant return to the show with a discussion of a possible President Trump, and why Trump Derangement Syndrome seems to make people forget how bad the other presidents have been.

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Michael Malice hit a great reason to raise the minimum wage.

Get the stupid people who screw up your order out of the process.

Look at Wendys putting in the kiosks.

Wawa and QuickCheck has.

Feel sorry for the unemployable.

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