Category Archives: Fiscal Policy

Watch A Couple Of Millennials Talk About Barack Obama’s Policies Have Harmed Their Generation

A couple of young Millennial women, Alyssa Lafage and Elly Mae, appeared on “The Rick Amato Show” on the One America News Network (don’t worry, you probably don’t even get the channel). Amato had both young ladies on to talk about how the policies of President Obama and progressives have harmed the Millennial generation.

Some reports show that Millennial unemployment remains high at 15% in September. This summer, it was estimated that Millennials are 40% of the overall unemployed in this country. Millennials still cannot afford health insurance, despite Obamacare’s promises.  Finally, Millennials are trapped by high amounts of student loan debt, which cannot be discharged in bankruptcy, in order to obtain near worthless degrees.

Watch these two Millennial women describe how the polices of President Obama and progressives have harmed their generation and made their generation worse off than ever. Also, check out our own Quincy’s takedown of Obama drone Paul Krugman’s proclamation of Obama as one of the greatest presidents ever which touches on some of these same issues.

h/t: Wayne Dupree

I’m one of the original co-founders of The Liberty Papers all the way back in 2005. Since then, I wound up doing this blogging thing professionally. Now I’m running the site now. You can find my other work at IJ Review.com and Rare. You can also find me over at the R Street Institute.

Cost is NOT Price, and Neither Cost, nor Price, are Value

Prices Provide a Misleading Measure of Dollar Devaluation
Forbes Magazine Online – Keith Weiner

There’s not a human being alive who doesn’t know the dollar is falling. Everyone over 25 has stories of what prices were like, way back when (and younger people have heard them). I remember when gasoline was 60 cents a gallon, and my mom remembers when it was 20 cents.

Federal Reserve Chair Janet Yellen acknowledges the official objective to push the dollar down by 2 percent per year. This intention is behind the Fed’s ill-conceived loose money policy.

It’s important to measure each drop. This is not just to keep a scorecard on the Fed, but because a change in the dollar skews historical comparisons and distorts business decisions, like giving increases to workers and pensioners….

Read the whole piece, and then come back…

The thesis statement of the piece is correct, in that prices provide a misleading indicator of currency valuation (and that our weak dollar policy, as pursued by every administration since Bush 1 to some degree or another, is fundamentally wrong and destructive for that matter).

Unfortunately the author suggests that simply using a different price denomination and comparison (to gold) is a less misleading indicator… In this, he’s absolutely incorrect.

What you really want to compare is purchasing power parity (PPP) as measured by equivalent standard of living, expressed as a dollar cost in constant dollars normalized to average labor hour wage or compensation.

i.e. this item costs 5 minutes of average labor, this costs 8 hours, this costs 20 years; the cost to maintain this equivalent normalized standard of living across an aggregate population is 1940 hours of median labor wage etc… etc…

Note, this is NOT an expression of the fallacious labor theory of value, it is an explicit measure of purchasing power parity as actual cost, INCLUDING opportunity cost (in terms of time), not currency denomination.

The critical function isn’t price, and it isn’t wage… it’s cost, in this case expressed as a cost to value ratio as a normalized dollar (to make it easy to relate to wages and prices).

Cost is not price; it’s a totalized measure of inputs including resources, time, and opportunity.

I am a cynically romantic optimistic pessimist. I am neither liberal, nor conservative. I am a (somewhat disgruntled) muscular minarchist… something like a constructive anarchist.

Basically what that means, is that I believe, all things being equal, responsible adults should be able to do whatever the hell they want to do, so long as nobody’s getting hurt, who isn’t paying extra

Tax Hike Mike Threatens To Take His Toys And Go Home

Former Arkansas Governor “Tax Hike Mike” Huckabee was a guest on the American Family Association’s “Today’s Issues” program where he ripped into the Supreme Court’s decision this week to not hear gay marriage cases, which essentially increased the number of states in which gay marriage became legal to 30 plus the District of Columbia.

Here’s a video of Tax Hike Mike threatening to leave the GOP over gay marriage:

For those of you who prefer to not watch the Huckster, Rare has transcribed what he said:

“If the Republicans want to lose guys like me and a whole bunch of still God-fearing Bible-believing people, go ahead and just abdicate on this issue,” Huckabee said.

“And go ahead and say abortion doesn’t matter, either, because at that point, you lose me, I’m gone, I’ll become an independent, I’ll start finding people that have guts to stand. I’m tired of this,” he said.

Poor Tax Hike Mike is not getting his way so he’s going to take his toys and go home. Well, the problem for Tax Hike Mike is that the Republican Party and the country are changing and it’s not to his liking.

Young Republicans are overwhelmingly in support of gay marriage for example. Pew Research Center found that 61% of young Republicans support gay marriage.

Gay marriage isn’t the only issue where young Republicans are bucking social conservatives. Young Republicans are also bucking social conservatives on marijuana as the AP reported back in May.

Beyond being a generational issue, young Republicans say their positions stem from the party’s belief that government shouldn’t intrude on people’s lives. Ron Paul’s 2012 presidential campaign got most of its following from younger Republicans attracted by his libertarian message that allowed for gay marriage and the legalization of marijuana.

It’s not just Tax Hike Mike’s increasingly out of date positions on social issues that should stop anyone who loves liberty from shedding tears over his departure from the GOP, it’s his terrible positions on just about everything. Here’s a brief summary:

  • There’s a reason why we call him Tax Hike Mike around here, because as Governor of Arkansas, he loved to raise taxes
  • Tax Hike Mike increased spending by 65% as Arkansas governor and Cato gave his overall reign a “D” on their grade for fiscal policy.
  • Tax Hike Mike continues to defend his fiscal progressivism.
  • Tax Hike Mike has supported cap and trade in the past and says “God wants us to fight global warming.
  • Who can forget Tax Hike Mike’s support of Common Core
  • Oh social conservatives, do you know that Tax Hike Mike signed a law in 2005 that mandated contraception coverage, even for religious organizations?
  • For more goodies about Tax Hike Mike, please visit this blog that has compiled a list of the numerous times Mike Huckabee has supported big government.

    After the disaster that was the presidency of George W. Bush and “big-government conservatism”, the last thing the Republican Party and the country needs is for that banner to be carried to victory in an election. It’s time to show Tax Hike Mike and those who support the big government nanny state the left does, except their own version of it, the door.

    I’m one of the original co-founders of The Liberty Papers all the way back in 2005. Since then, I wound up doing this blogging thing professionally. Now I’m running the site now. You can find my other work at IJ Review.com and Rare. You can also find me over at the R Street Institute.

    As Painful As Possible, For As Many As Possible

    I haven’t blogged about the shutdown, because, well, I haven’t blogged much about anything. Mea culpa.

    I haven’t had time because I’m, quite frankly, not personally or professionally affected. Warren Meyer of Coyote Blog, however, is very personally AND professionally affected. Warren operates private concession operations that handle all on-site activities at parks, with a good portion of his business based upon federal parks.

    These parks use no federal employees. They don’t require any federal dollars to operate. In fact, they pay rent to the federal government as part of the terms of their lease. So of all things, you’d think that the Feds would want them to remain open. In fact, in all previous shutdowns (including 1995 & 1996), they have remained open.

    Not this time. They’ve been ordered to close.

    I can’t do justice to all the coverage that already exists for this. While I assume many of my readers are also daily readers at Coyote Blog (and Popehat), I can’t be sure.

    All of Warren’s post on this topic can be found here. Check them out, please. You will not be disappointed.

    As it pertains to the shutdown, I have little patience for the Republicans here. The Republicans are playing a gambit they can’t win. The Dems are NOT going to defund or delay Obamacare. This is stupid on strategic and tactical levels. You can’t win and you’re going to damage your brand in the process. WTF are you thinking?!

    But what I see from the Obama administration is wrong on many more levels. It seems that the administration’s tactic here is to screw as many people as possible, to make this as painful as possible, and then hope the blame rests only on the Republicans for what the administration has done. There is no reason to close these privately-operated parks. There’s no reason to throw people out of their homes because they rest on federal land. There’s no reason to close open-air memorials that don’t require human workers to operate. While I’m not sympathetic to Republican partisans, I have to say that naming the barriers that closed the World War II memorial “Barrycades” is quite smart.

    I’m still filled with nothing but disgust for everyone in Washington. Both sides are angling for a “win”. I want to see both sides lose, dammit!

    Unfortunately, I know that in Nov. 2014, lawmakers from both parties will probably enjoy >90% re-election rates. And people wonder why I say that democracy doesn’t work?

    It isn’t, wasn’t, aint ever gonna be…

    I mentioned Social Security as an entitlement payment in my post on the government shutdown, and it raised a fairly common objection in several who read it:

    They don’t think of Social Security as an entitlement, or a welfare payment; they view it as their right, by virtue of having contributed to the system for their entire working life.

    So, time to correct a very major, and unfortunately common, misconception.

    Social Security, is NOT a pension, nor is it insurance.

    Now, I realize that the majority of the American public believe this is so, because they have been deliberately defrauded by our government…

    First read this to understand the scope and scale of the fraud, and the problem it (now only vestigially) masks:

    The Greatest Fraud in the History of the Human Race

    Ok… so, by now, most people understand that Social Security, as it is, is essentially a legal Ponzi scheme (whether they accept that, or admit it… if they can do basic match, they at least understand it).

    What I really didn’t fully appreciate until recently, is that often, even people who understand this is true, don’t understand why or how it got that way.

    There is a very common misconception, even among otherwise economically, historically, and legally well informed and educated people, that the current state of Social Security is somehow a twisting of what it was intended to be, or taking advantage of loopholes etc…

    Many people believe that Social Security was set up to be an annuity based insurance and pension plan. That paying FICA contributions was supposed to buy you into a long term annuity, or investment plan, and that your Social Security payments were intended to be the product of that investment.

    They think that the “trust fund” exists, and was set up to collect and invest the contributions of the workers who paid into it, so that the investments would fund the workers retirements.

    They believe that the problem with Social Security is that congress has been raiding the trust fund since 1958 (most don’t know it was since ’58, but they are sure that’s why Social Security is broke).

    Unfortunately, every bit of this idea is entirely incorrect… and people who hold that idea generally do so, because they were deliberately misled.

    I’s simply not true… though many… perhaps most… people believe it is; but in fact, Social Security was always nothing more than a pyramid scheme, and an entitlement.

    They misunderstand entirely… Because they have been deliberately deceived; as has been the majority of the population.

    Social Security was NEVER, EVER, an annuity, pension, or insurance.

    Actual insurance, annuities, pensions etc… were not part of the legislation that created it, or anything thereafter.

    Also, there never was an actual “trust fund” as such… simply an accounting of surplus contributions which were, in theory, to be placed into low yield “no risk” treasury bonds.

    Note, I said “surplus contributions”… this means contributions in excess of payouts to existing recipients. Because benefit payments are not made from the proceeds of investment, they are made using the payroll taxes of those currently paying in today (this is why we call Social Security a ponzi scheme… When Bernie Madoff does it, it’s fraud and he goes to jail. When the government does it, it’s… well it’s still fraud, even worse fraud… but no-one goes to jail sadly).

    The sham of it, particularly the sham of the accounting trick they called the “trust fund” was publicly proclaimed as early as 1936 (by Alf Landon in his presidential campaign).

    Social Security is, and always has been, a tax and entitlement distribution scheme.

    The government lied, and called it insurance, but in fact it has never been anything other than a payments and distributions pool, funded by taxes.

    You can look it up, in 42usc (the section of U.S. code defining the various programs known as Social Security).

    The programs collectively known as Social Security are referred to as insurance several times, but in fact they very clearly are not. The legal definitions and descriptions make this very clear. Social Security is a tax and entitlement disbursement scheme, by act of congress.

    There is no individual ownership, no accrued value, no capital gain, it cannot be transferred, and it can be changed (or removed), at will, by congress; without being construed as a taking without due process.

    It is NOT INSURANCE.

    Perhaps I am not explaining this properly…

    It’s not that congress went against the intent, or written provisions of the law, and changed Social Security from what it was supposed to be, to what it is…

    It’s that in fact, the law was NEVER what they told the American people it was.

    In fact, if the law HAD been what they sold it as, then that law would have been declared unconstitutional by the supreme court (as had the earlier railroad pensions act, which actually DID created a property based pension scheme). It was specifically because it WAS a tax and distribution, that congress had the power to do it; and was argued thus before the court in 1937.

    Helvering v. Davis clearly defines Social Security “Contributions” as a tax, and social security “benefits” as welfare payments. This is the basis for it’s constitutionality.

    Fleming v. Nestor in 1960, reaffirmed that FICA is a tax, and that the “contributions” are government property, to be done with as the government sees fit; and that “contribution” through FICA did not cause one to accrue a property right to any asset, pension, or insurance scheme, nor did it create a contract consideration, right, or obligation on the part of the government. Further, it affirmed that “benefits” were NOT insurance or pension disbursements, but entitlements by act of congress, and that congress could change them at any time in any way they chose, without being construed as a taking under the 5th amendment (though they did say that they must have cause and due process to do so… but any legitimate cause within their purview would do).

    Justices Black and Reich, specifically dissented from the majority opinion, explicitly and expressly addressing the issue of property rights. They believed that such contributions, to such a program, SHOULD as a matter of moral and public good, be considered property, and have property rights attached. They acknowledged however that the law as written did not, and that by strict interpretation the majority was correct… They just thought it was better to make it property anyway.

    Unfortunately, it’s not… It is neither a pension or insurance, and never has been, from the very beginning.

    However, almost every explanation ever given the public, and in most documentation, it is referred to as insurance, or even a pension.

    All as part of the greatest fraud in the history of the human race.

    I am a cynically romantic optimistic pessimist. I am neither liberal, nor conservative. I am a (somewhat disgruntled) muscular minarchist… something like a constructive anarchist.

    Basically what that means, is that I believe, all things being equal, responsible adults should be able to do whatever the hell they want to do, so long as nobody’s getting hurt, who isn’t paying extra

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