ECONOMICS: Axiom — Rent control makes everyone poor except politicians!

Saturday, February 4, 2023

https://jeffjacoby.com/26719/as-any-economist-can-tell-mayor-wu-rent-control

As any economist can tell Mayor Wu, rent control never works
by Jeff Jacoby
The Boston Globe
January 29, 2023

*** begin quote ***

From the other side of the aisle, the renowned conservative economist Thomas Sowell agrees. Rent control policies, he said in a 2019 interview, turn everyone into losers:

“The tenants lose because they can’t find a place to stay. Landlords lose because they don’t make the profit they would have made otherwise. The builders lose because there’s no demand for apartment buildings if no one can make a profit on them.” By and large, observed Sowell, politicians are the only class of people who come out ahead. “They get the reputation of being for the poor and the downtrodden [and] preventing the evil landlords from raising the rent.”

As if that isn’t enough, rent control is infamous among economists for other negative impacts. It exacerbates racial discrimination in housing. It multiplies bureaucracy. It disproportionately hurts those it is intended to help. And what is true in America is true everywhere. When rent control has been tried in other countries, from Canada to Germany to Sweden, the outcomes have been dismal. Even communist Vietnam abandoned rent control after its destructive impact became apparent.

*** end quote ***

Why do “we” have to keep reinventing the wheel?  “We, The Sheeple” should immediately give any politician or bureaucrat that mentions “rent control” the pitchfork and torches treatment.

Argh!

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ECONOMICS: Recongize reality and change the retirement age to 75 or 85?

Monday, January 30, 2023

https://www.zerohedge.com/personal-finance/raise-social-security-age-least-75

Raise The Social Security Age To (At Least) 75
by Tyler Durden
Sunday, Jan 29, 2023 – 06:30 PM
Authored by Ryan McMaken via The Mises Institute

  • On January 10, the French government announced plans to raise the retirement age from 62 to 64.

*** begin quote ***

One thing raising the age has going for it is that it’s been done before. A 1983 change very gradually increased the full-benefits age from 65 to 67. That’s much too little, and even an increase to age 75 would be a mild reform. Other reforms, up to and including abolition, should include means-testing pensions and totally defederalizing and decentralizing the program. But it’s also easy to imagine the tidal wave of opposition from activists who vehemently oppose even a very mild reduction in Social Security payouts. Raising the age won’t make Social Security just, prudent, or wise. But cutting federal spending is always the right thing to do.

*** end quote ***

As horrific this change wood be, it’s needed to prevent economic catastrophe.

Time to unwind the Ponzi scheme.  Those, that are close to their retirement age (i.e., 55), don’t have enough working time to adjust to the loss or reduction in Social Security benefits.  And, don’t forget that there is a terrible age discrimination problem when workers turn 40, 50, or 55. So evidently, those under 40 are going to take a real haircut.

I doubt the current crop od politicians and bureaucrats have any stomach for the pain to be inflicted on themselves and the general population.

One thing is for sure, “they” can’t print their way out of this one.

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On Mon, Jan 30, 2023 at 10:39 AM Luddite wrote:

“Back in the day” when I was making some decent coin, I was always pleased each year when I reached the maximum income required on SS withdrawals each month. I remember a couple of years when I received some big January bonuses that they stopped taking out SS in April! In my opinion, the easiest solution to preserving SS is to remove the cap on income. I understand that the reason we even have a problem is because the crooks raided the fund years ago and have never paid it back, but given the current situation I believe removing the cap is the easiest and least painful solution. What say you? (Also understanding that I just poked the libertarian’s cage!)

# – # – # – # – # 

Taxation is theft. 

Starting from that basic principle, “eliminating the cap” merely allows the current plundering to continue. 

A radical reform is required to truly correct the problem.  Will some get hurt, yup. 

To minimize the pain, the young should be excluded, the old exempted, and the middle get the full retirement age adjusted. 

Say a 40 goes from 69 to 80, 50 goes from 68 to 75, 55 from 68 to 70. 

Then in 40 years social security goes away.

It’s only fair way to unwind the ponzi scheme.

Yes, fiscal reality sucks.  Economics is the dismal science. And, TANSTAAFL (“There Ain’t No Such Thing As A Free Lunch” From Robert Heinlein’s classic)!

Sigh.

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ECONOMICS: Maybe I have to start looking at price per ounce?

Monday, January 2, 2023

https://www.zerohedge.com/markets/whats-your-line-sand-25-burger

What’s Your Line In The Sand? The $25 Burger?
by Tyler Durden
Thursday, Dec 22, 2022 – 09:22 AM

  • Authored by Charles Hugh Smith via OfTwoMinds blog,
  • The gag reflex kicks in at some point and we walk away because it is no longer worth the price.

*** begin quote ***

Everyone has a line in the sand when it comes to inflated prices they refuse to pay. For one Walmart shopper I observed, it was a carton of eggs for close to $10. She announced her line in the sand verbally, with great force and sincerity.

What’s your line in the sand, the point at which you simply refuse to pay the asking price? Is it the $25 burger? Or is it the $50 for two burritos and two beverages?

Each person’s line in the sand reflects their income, wealth, budget, social status and value system–what’s important to them. For some higher income folks, it might be the ridiculous “resort fee” that’s tacked onto the already overpriced resort room, hotel tax, excise tax, parking fees and the extra-special charge for Internet service.

For others, it might be the outrageous estimate for repairing a system failure in a nearly-new vehicle that is (surprise!) no longer covered by the manufacturer’s warranty. Hundreds of dollars for what?

*** end quote ***

Hmmm, now that’s an interesting pot question.

For me, it has to be the $9 “craft beer”.  I switched at my local bar from draft to bottles when the price was 7$ for a draft and 3$ for a bottle.  Maybe I have to start looking at price per ounce?  Or, milliliter!

Dining out has become a $100 proposition.  Isn’t that far beyond the average working stiff?  It certainly is getting there for the senior citizens and people with rug rats.

Sad. 

And it’s all caused by the politicians and bureaucrats “printing” money.

Where does the merry-go-round stop?

Soon I think.

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ECONOMICS: All pensions, IRAs, and 401Ks — as well as Social Security — many not be there to “retire” on

Saturday, November 19, 2022

https://www.realclearinvestigations.com/articles/2022/11/15/lost_retirement_horizon_why_401ks_are_not_ok_and_not_just_because_of_to_the_lousy_economy_864500.html#

Lost Retirement Horizon: Why 401(k)s Are Not OK (and Not Just Because of the Lousy Economy)
By John F. Wasik, RealClearInvestigations
November 15, 2022

*** begin quote ***

Fretting over your 401(k) lately? For all the current turbulence in these retirement plans – from their rocky recent market performance to asset managers’ politicization of their investments through the “environment, social and governance” agenda – the main problem lies in their flawed design decades ago, a range of retirement experts say.

They say many retirees – particularly the less well-off – are losing out because the tax-advantaged accounts favor the well-compensated who are better able to save; also, because of the plans’ temptingly relaxed borrowing rules, typically high fees, complexity, and a presumption of investing competence on the part of ordinary workers.

*** end quote ***

Let’s not overlook the fact that “social security”, in addition to being a racist wealth transfer program from poor minority men to rich white women, is un- or at least very under-funded. It seems unlikely that, at even the best rate of inflation of 2%, the “benefits” payment will be in “shrunken purchasing power’. In the case of “social security”, it’s likely to be reformulated as a “welfare” program with all sorts of income limits and regulations. The “golden rule” (i.e., he who has the gold makes the rules” means that the Gooferment will be making the rules. When the “can” (i.e., deficit, debt, interest expense) can no longer “be kicked down the road”, then Joe-SixPack will suffer. If I was young, I’d store my “wealth” in things the Gooferment can’t tax (i.e., precious metals in my backyard) or touch (i.e., all pensions, IRAs, and 401Ks are seized in exchange for “enhanced” social security “benefits”). It can happen here (i.e., FDR’s gold recall). Argh!

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ECONOMICS: Social Security is a Ponzi scheme that is a national disaster and getting worse

Thursday, November 3, 2022

https://www.dailysignal.com/2022/11/02/7-facts-biden-ignored-about-social-security-in-his-speech-to-florida-retirees/?utm_source=TDS_Email&utm_medium=email&utm_campaign=MorningBell&mkt_tok=ODI0LU1IVC0zMDQAAAGH2-4XvReNlf-88oulRzrqa4RzRxEmWEZbT5rnJoS1tumDrnI9892TnNi09M5trdns5w9_APQOfhNXa47MWqPTZVlYwUJcobrXBm7-PtbXZWG3ovRJ

7 Facts Biden Ignored About Social Security in His Speech to Florida Retirees
Rachel Greszler / November 02, 2022

  • Rachel Greszler is a research fellow in economics, budget, and entitlements in the Grover M. Hermann Center for the Federal Budget, of the Institute for Economic Freedom, at The Heritage Foundation. Read her research.

*** begin quote ***

Social Security is a bad deal for current and future workers. Social Security may have been a good deal for Biden’s generation, but it’s not a good deal for current and future workers. A Heritage Foundation analysis showed that the average younger worker could receive nearly three times as much as Social Security can provide if they were instead able to save Social Security taxes in their own retirement accounts. (The Daily Signal is the news outlet of The Heritage Foundation.) Even low-wage workers making about $20,000 a year could have 40% larger incomes in retirement as a result of saving on their own. And personal savings can be passed on to family members or friends, something that’s especially important for lower-income Americans, who are less likely to be able to save outside of Social Security and also for individuals with shorter life expectancies. One in five black men will die between the ages of 45 and 65, meaning they will pay tens or even hundreds of thousands of dollars into Social Security and could get little or nothing in return.

*** end quote ***

It’s often been asserted and proved that Social Security is a racist program that transfers wealth from poor minority men to rich white women.

If for no other reason, it needs to be eliminated.  I’m sure the financial gurus can transform the unfunded liabilities fairly.  Yes, it will be painful and not pretty.  I can foresee the under 40 participants getting a 25+ year bonds for their “benefit”.  The 40 to 67 get a similar but non-transferable bond ladder.  Current recipients will have to be paid out of the current budget.  It’s going to require pain, but it’s better than future financial disaster when all the politicians and bureaucrats who created the mess are long dead.

Argh!

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ECONOMICS: Are “knowledge workers” next on the obsolesce curve?

Friday, October 14, 2022

https://www.bworldonline.com/opinion/2022/10/11/479904/five-ideas-that-will-reshape-capitalisms-next-century-2/

Opinion
Five ideas that will reshape Capitalism’s next century
October 11, 2022 | 5:38 pm

*** begin quote ***

THE GREAT KNOWLEDGE-WORKER CULL
First, they came for the agricultural workers. Then they came for the industrial workers. Now they are coming for the knowledge workers

THE RISE OF THE TRILLION-DOLLAR TRUST FUND BABY
In the next decade or so we will see the birth of a new kind of baby: trillion-dollar trust fund babies who are destined to inherit fortunes that are bigger than the GDPs of small countries or the stock-market valuations of large companies.

THE NEXT FRONTIER OF COMPETITIVE ADVANTAGE: GENETICS
The West has understandably remained nervous about exploiting the potential of genetic science since the horrors of the Holocaust. That is likely to change in the coming decades — indeed genetic science may be for the next 40 years what computer science was for the past 40 years.

THE NEW ROAD TO SERFDOM
The great clarion call of market societies is freedom: freedom to exchange the fruits of our labor in the marketplace for goods and freedom to express our views in the marketplace of ideas. Yet there is a growing risk that we are losing our freedoms not only to a new generation of intellectual censors but to watchers who monitor our every move.

*** end quote ***

I couldn’t find the fifth idea.  

But the first one is stunning. 

If I was a “knowledge worker”, then I’d be very concerened.

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ECONOMICS: Energy is critical to life as we know it and it’s not “free”

Wednesday, October 12, 2022

https://www.realclearenergy.org/articles/2022/10/03/joe_bidens_energy_crisis_856943.html

Joe Biden’s Energy Crisis
By Rupert Darwall
October 03, 2022

*** begin quote ***

The West is experiencing its third energy crisis.

*** and ***

This time is different. The third energy crisis was not sparked by Saudi Arabia and its Gulf allies or by Iranian ayatollahs. It was self-inflicted, a foreseeable outcome of policy choices made by the West: Germany’s disastrous Energiewende that empowered Vladimir Putin to launch an energy war against Europe; Britain’s self-regarding and self-destructive policy of “powering past coal” and its decision to ban fracking; and, as Joseph Toomey shows in his powerful essay, President Biden’s war on the American oil and gas industry.

*** end quote ***

The USA went from a net exporter to a net importer all to be “green”.  Like “climate change” is a real thing!  And, if it was, that it’s not driven by China and India.

We have not built a gasoline refinery in the USA since the 70’s (or so I’m told).

This “electric car” stupidity is just beyond comprehension.

Hopefully the voters can start taking back control.

31T$ of debt should be a huge wake up call.

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ECONOMICS: Cryptocurrency — no regulation needed — Caveat Emptor

Sunday, October 9, 2022

https://www.zerohedge.com/crypto/secs-reckless-crusade-crush-cryptocurrency-market

The SEC’s Reckless Crusade To Crush The Cryptocurrency Market
by Tyler Durden
Wednesday, Sep 28, 2022 – 08:20 PM

Authored by Gerard Scimeca via RealClearMarkets.com

*** begin quote ***

The outcome of the SEC case against Ripple is critical in not just establishing a fair and just baseline for the protection of crypto investors, but as a test case in setting boundaries to stop overreach by federal agencies seeking to advance their power at the expense of efficiency. Crypto is popular and growing precisely because of its efficiency, flexibility, and vast utility in financial markets, benefits that can easily be quashed through intrusive and heavy-handed regulation. The ultimate arbiter of these issues is Congress, who must act, and soon, to help establish a clear framework to regulate crypto, and to limit the SEC’s power to occupy spaces where it simply does not belong.

*** end quote ***

Sorry, but all the Gooferment ever does is impede progress.

Is an “unregulated” market “dangerous”?

No, let the buyer beware and let the “invisible hand” of the free market quickly and efficiently discipline bad actors.

No bureaucrats required.

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ECONOMICS: Biden buys votes with student loan forgiveness

Wednesday, August 31, 2022

https://schiffgold.com/key-gold-news/somebody-has-to-pay-for-student-loan-forgiveness/

Somebody Has to Pay for Student Loan Forgiveness
August 24, 2022 by Michael Maharrey

*** begin quote ***

President Biden is expected to announce student loan forgiveness on Wednesday (Aug. 24). The plan will reportedly cancel $10,000 in student loan debt for anybody making less than $125,000 per year.

A lot of people think this is like waving a magic wand — poof — the debt is gone. But somebody has to pay and that somebody is the American taxpayer.

Nothing the government does is free. Ultimately, student loan debt forgiveness will add to the already massive budget deficit. That means Uncle Sam will have to borrow more money that taxpayers will have to repay, either in higher taxes or the inflation tax.

*** end quote ***

And we know who all pay — the Taxpayers.

The economy will have more inflation to deal with and the moral hazards keep piling up!

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ECONOMICS: Here’s at least on good idea to save “Mother Earth”

Wednesday, August 17, 2022

https://www.dailymail.co.uk/femail/article-11105347/People-share-clever-zero-waste-tips-including-brothers-sent-birthday-card-1973.html

Waste not, want not! Social media users share their genius ideas for reducing, reusing and recycling – from resending the same birthday card to making an ice cream cone out of a banana leaf

  • People around the world are re-thinking what can be reused or recycled
  • Many people are becoming more aware of their environmental impact
  • Bored Panda collated some people’s very clever yet unusual zero waste tips

By Ellen Coughlan For Mailonline
Published: 04:02 EDT, 13 August 2022 | Updated: 04:09 EDT, 13 August 2022

*** begin quote ***

With two billion tons of waste dumped every year around the world, people have started to re-think what can be reused or recycled.

Many are becoming more aware of their environmental impact as rubbish sent to landfill represents a significant amount of greenhouse gases which have contributed to climate change.

People from around the world have shared their best zero waste ideas on social media, with Bored Panda collating some in an eye-opening online gallery.

*** end quote ***

As you know, I’m not a big believer in the “Mother Earth” Galia worship. But as an fat old white guy injineer, waste indicates that a better process exists and should be deployed.

A banana leaf is a good substitute for that paper wrapped around the ice cream cone.  But I like the cones.

Only serving coffee in the patron’s own cup seems to be a substantial saving.

My personal favorite is the reused birthday card.  Not that I send paper cards, I use e-cards from Jacqueline Lawson. https://www.jacquielawson.com/ which are really beautiful and completely “recyclable”. Laugh!

—30—

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