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The Tipping Point – a continuation…

07/12/2015

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Progressivism (read, Liberalism/Socialism) in a nutshell (although not inclusive)::

Poverty vs welfare: They go hand in hand. What Socialists don’t see is that while welfare doesn’t create poverty, in its current state in our country, it does in fact perpetuate it. This has led to generational dependency and poverty. The way to lift our fellow man out of this perpetual state is to allow the private sector to provide jobs and limit the assistance (at either the State level or via private charity) to a minimal timeframe thereby creating the requirement to accept the work that private sector provides. Considering it is ALWAYS better than the poverty level subsistence provided by the Federal government, why would you NOT take it. Oh yeah, you’d actually have to GET A JOB!
I am not alone in this, the Manhattan Institute, came to this conclusion when it studied the notion of income inequality: “The central problem facing the economy is that income growth over the past few years has been modest to nonexistent, as a result of the financial crisis, the subsequent recession, and an extremely modest recovery. Moreover, policies that aim only to redistribute wealth—rather than generate real economic growth and opportunity—are unlikely to solve, or even meaningfully address, the slow growth trajectory for wages.”

Tax rate vs government income: Proven over and over again, lowering the tax rates creates more income for the government. Makes no sense on the surface (which is as far as the Socialists look because any further would not satisfy their plan of dependency and thereby ensuring its continued power base). However, the reason it works is simple. Less money taken from the private sector by the government allows more money to be spent by individuals and companies. Money spent creates jobs. More jobs equals more income. More income creates more income tax (yes, EVEN at lower tax rates). It is NOT rocket science.
This is not only a solution for our debt, it is a solution for unemployment. It is a solution for pulling anyone and everyone that takes advantage up in social status. As the old saying goes, a rising tide lifts ALL boats. As well, any job created by the government is a cost to all taxpayers, whether you want or need the product/service. Any job created by the private sector is a cost only to those that choose to spend money on that product or service. That said, since profit is the life or death of a company, job creation is required. Without employment, there is no profit. Therefore, the private sector is much better at creating and pricing jobs. Need proof, look at history.

Debt: See comments reference Greece in previous blog (07/05/2015 – The Tipping Point).

Morality: It is a good thing we have a Supreme Court (more on this next week) to dictate morality and create laws to ensure it. I suspect if we keep going down this path (which I see no indication we won’t) we will be able to get rid of Congress (and therefore the will of the people) and just have a dictator as president (later to be renamed monarch since it is more politically correct) and a court to rubber stamp his/her prescriptions. As well, by dictating away Judeo-Christian morals, on which this country was founded and most of our overriding laws (including the Constitution itself) are based, they can ensure their voting base and therefore their power. Keep in mind however that at some point voters will no longer be needed. Subjects on the other hand will be important.

Our national borders: While I fully understand from an individual perspective the desire to improve their standard of living, entering a sovereign nation without permission is not right. From the other side of the border, helping other countries improve the standards of their people is much preferable than taking on their poverty stricken citizens. And undoubtedly less costly in the long run. Not that I am advocating the US as the banker to the world anymore than the police force of the world (although we already supply significant portions of direct and indirect “lending” to nations throughout the world). Nor do I suggest that it is easy to go into a country and presuppose we know better than them how to provide for their people. However, it is without a doubt that we have proven our past philosophies are quite able to ensure a prosperous society. That said, allowing illegal immigration is not the solution to any country’s problems. When we allow the destitute with no means of support (thereby becoming an additional drain on a society already sucked dry), criminals and terrorists to cross into our country unabated, it can only lead to a further decline and eventual destruction of our ability to help ourselves, much less that rest of the world. And it is in direct conflict with the prime raison d’être of government, its reason for existence – to protect (not PROVIDE FOR) its people. Our current policies and level of enforcement is detrimental to our national existence.

Being forced to buy what we may not want (or already have in the form we want): Yes, SCOTUS Care (not interested in using our current POTUS’s name at any time – but aka The Affordable [what a joke] Care Act – as the current major example. The Oligarchy has spoken. The Federal government, or in this case, the Dictator in Chief and his cohorts in Congress, has/have no Constitutional authority to FORCE us to purchase not only something we don’t want, but exactly what and how much it will be. Apparently individual liberty (as in Life, Liberty and the pursuit of Happiness) and the 1st Amendment no longer apply. A solution looking for a problem. Instead of allowing the private sector to solve the problem of the few, the Dictator in Chief has solved the “problem” even for those of us that didn’t have one. As well, we now have pretty much as many or more without coverage than the problem was to address and has shown no lowering in costs for those that are forced to get a new version of something they already had. The numbers for 2012 (prior to “Affordable” Care Act (ACA)) show an uninsured rate of 16.7% with an average family annual premium of $15,745. In 2013 the uninsured rate was 20.8%. Today the uninsured rate is approximately 15.5% with an average family annual premium of $16,800. These numbers are of course from the government that brought you the product you did not need. Honesty? – I don’t think so. In addition, other than forcing people to purchase something they may or may not want, from somewhere they may or may not want purchase it, what has it accomplished? Since, contrary to what was portrayed, there is no indication that the ACA was the cause of the minimal reduction (a theoretical 1.2%) in number of insured. All that said, and contrary to the ruling of the SCOTUS (now a political body vice the intended legal one), there is nothing Constitutionally allowing the Federal government to get involved in health care.

Another long one. The wife hates that. But it needs to be said. And luckily I’m not the only one saying it. If you believe this country needs to get back to prosperity and the moral values upon which it was based, it is time to standup and in whatever way available to you (within the context of those values) do SOMETHING to turn it around.

Again, welcome to the New Dark Ages…

Maybe I’ll try some less depressing topics in the near future.

>>> The day is at a close, the night is drawing in and my cigar awaits – ’til next time…

Parable of the Broken Window

04/14/2013

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Bastiat’s original parable of the broken window from Ce qu’on voit et ce qu’on ne voit pas [That Which is Seen, and That Which is Not Seen] (1850) – translated by Patrick James Stirling

Have you ever witnessed the anger of the good shopkeeper, James Goodfellow, when his careless son has happened to break a pane of glass? If you have been present at such a scene, you will most assuredly bear witness to the fact that every one of the spectators, were there even thirty of them, by common consent apparently, offered the unfortunate owner this invariable consolation – “It is an ill wind that blows nobody good. Everybody must live, and what would become of the glaziers if panes of glass were never broken?”

Now, this form of condolence contains an entire theory, which it will be well to show up in this simple case, seeing that it is precisely the same as that which, unhappily, regulates the greater part of our economical institutions.

Suppose it cost six francs to repair the damage, and you say that the accident brings six francs to the glazier’s trade – that it encourages that trade to the amount of six francs – I grant it; I have not a word to say against it; you reason justly. The glazier comes, performs his task, receives his six francs, rubs his hands, and, in his heart, blesses the careless child. All this is that which is seen.

But if, on the other hand, you come to the conclusion, as is too often the case, that it is a good thing to break windows, that it causes money to circulate, and that the encouragement of industry in general will be the result of it, you will oblige me to call out, “Stop there! Your theory is confined to that which is seen; it takes no account of that which is not seen.”

It is not seen that as our shopkeeper has spent six francs upon one thing, he cannot spend them upon another. It is not seen that if he had not had a window to replace, he would, perhaps, have replaced his old shoes, or added another book to his library. In short, he would have employed his six francs in some way, which this accident has prevented.

The key here is that each of us only has so much money.  Relative to my post on 31 March 2013 – giving my wife’s money to the Federal Government so they may distribute it at will to whomever they please may sound good on the surface.  All those “poor” people so in “need” of our help. However, this creates problems on two fronts.  One, we have less money to give to charities of OUR choice.  Individuals that would benefit from our contributions must now look elsewhere – the consequence therefrom means there are even MORE people that look to the government for assistance.  This is not to mention the expensive bureaucracy created to redistribute all this wealth.  Bureaucracies without which most charities seem to be able to operate just fine.  Second, we have less to spend on those things WE may need or want.  Lacking things we need creates problems for others (grocers, power company employees, etc.), but even more of a problem for us (food, water, lights, heat, etc. are important to us… go figure).  Lacking those things we want creates problems for others as well.  Just as in the parable above, the six francs that went to the glazier are six francs we cannot give to the carpenter for a new chair or table, or the shopkeeper for a new lamp or television or whatnot.  I don’t care if it is of the yacht builder we speak.  Billionaires that own yachts contribute significantly to the economy.  Yachts are expensive to buy (not to mention to operate).  Consider all those men and women that build and operate yachts and support systems therefore, they have families too!

I could go on and on about this concern.  Suffice it to say, from a total economic picture, money is NOT limited (as some would have you believe).  Yet, on an individual level it is.  The more government takes from its people the less they have to support their fellow citizens.  Allowing us to spend according to our individual need/want creates an economy that will support all.  Taking and creating a dependent underclass only depresses the economy and our country that much further.  It is your choice.  Consider it next time you have a decision to make regarding who will run your country.

>>> The day is at a close, the night is drawing in and my cigar awaits – ’til next time…