The Left may no longer Love the Pope now that he went from Anti-Capitalist to Pro-Life

Posted by PITHOCRATES - January 18th, 2014

Week in Review

Awhile back the left was loving the new Pope.  Because he sounded like an anti-capitalist.  Now they no doubt love the Pope about as much as Sinead O’Conner.  Who once tore up a picture of the Pope on SNL can called him the real enemy  (see Pope Francis Calls Abortion ‘Horrific’ by Eliana Dockterman posted 1/13/2014 on Time).

Pope Francis called abortion “horrific” on Monday…

“It is horrific even to think that there are children, victims of abortion, who will never see the light of day,” he said in his toughest remarks to date on abortion in his “State of the World” address, Reuters reports.

If the left had their choice they’d probably taken a pro-choice Pope over a capitalist Pope.  For even though those on the far left despise capitalism they just worship abortion more.  Because it helps with their war on women argument.  Which gets women and young people to vote Democrat.  And once they do then they can wage a war on capitalism unencumbered.  Which is their real enemy.

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FT200: “Only force can make people live in a world without choice.” —Old Pithy

Posted by PITHOCRATES - December 13th, 2013

Fundamental Truth

College Students and Hippies of Yesteryear have a Soft Spot for their Communist Heroes

The hippies in the Sixties saw a brotherhood of man.  They wanted to link arms and sing Kumbaya.  Live in their communes.  Get high.  Have unprotected sex with multiple partners who bathed infrequently.  While being one with nature.  And poop and pee in the great outdoors.  Like the animals.  Only with less grooming.  For they hated the Man.  And didn’t want anything to do with their parent’s generation.  They protested any figure of authority.  Protested the Vietnam War.  And protested against their government.  Speaking truth to power.  And yearned to bring the Marxist-Leninist revolution to America.

The hippies were rabid anti-capitalists.  Which is why they loved communism.  Where there were no possessions.  No religion.  Or greed or hunger.  Just imagine all the people sharing all the world.  Words from John Lennon’s song Imagine).  Former Beatle.  And one of the leaders of the counterrevolution.  Not to be confused with the other Lenin.  Vladimir Ilich Lenin.  Of Soviet Marxism-Leninism fame.  Or, rather, infamy.  One of many icons of the counterrevolution.  Along with Mao Zedong.  Ho Chi Minh.  Fidel Castro.  And, of course, Che Guevara.  Whose bearded and beret-wearing image adorns many a university dorm room wall and student t-shirt to this day.

College students today, just as the hippies of yesteryear, still have a soft spot for their communist heroes.  Thanks to many of these hippies of yesteryear having joined the establishment.  And are now teaching our kids in college the evils of capitalism and the goodness of government.  Despite their one-time fierce opposition to the Man.  Guess things change once you get money.  Like someone in the rock band The Who said when asked if he still hopes to die before he gets old (a line from My Generation-a song about youthful angry rebellion against their parent’s generation).  The reply was that being old wasn’t all that bad when you were rich.  Something the old hippies of the Sixties no doubt discovered.  And best of all they got rich by taking money from the capitalist pigs.  Their students’ rich parents.  Or the taxpayers who worked in that detested capitalist system.

Nations with the Marxist Brotherhood of Man with No Possessions have been the Worst Places to Live

It is ironic that without capitalism these communist-loving parasites could not be parasites.  For if no one was creating economic activity there would be no income to tax.  Or to pay for the one thing growing more expensive than health care.  College tuition.  Interestingly, there is no ‘Obamacare’ for our colleges and universities.  No.  They never label them greedy despite their being the greediest of them all.  But you know who they do label as greedy?  The taxpayers who oppose higher taxes to pay for the ever higher cost of higher education.  They’re the greedy ones.  Not the old hippies of the Sixties.  And their fellow anti-capitalists.

Another interesting thing about these anti-capitalists?  They yearn for one-party rule.  Which is why public education teaches our kids to distrust capitalism and to trust government.  And our colleges and universities teach our kids to be ashamed of their nation’s past.  And the importance of diversity.  Which is code for anything that isn’t American.  For America was founded by rich white slave-owners who stole the land from the Native Americans.  And America’s imperialist aggression is the only source of strife in the world today.  While ignoring the expanding communist revolution that was spreading out from the Soviet Union into the Eastern Europe, Asia, the Middle East, Africa and the Americas.  The one ideology that has killed more people than any other.  Through state oppression, wars and famine.

Yes, this brotherhood of man where there are no possessions have been in fact the worst places to live.  The Soviet Union, Eastern Europe, Mao’s Peoples Republic of China, North Korea, Vietnam, Cambodia, Cuba, etc.  These are all nations that had gulags or reeducation camps for political prisoners.  Those people who spoke—or thought—truth to power.  They all had police states where the people lived in fear of their government.  They suffered for the want of the most basic items (soap, toilet paper, etc.).  There was state censorship.  They persecuted anyone practicing any religion.  The people suffered from constant hunger.  And the occasional famine.  They killed anyone trying to escape their communist utopia.  Or sent them off to hard labor and torture.  If they escaped successfully then the state punished any family remaining behind.  To warn others what would happen if they escaped their communist utopia.

The Great Flaw of Socialism is being unable to Determine What is the Greater Good

Why did these communist states have police states and brutally oppress their people?  Because they had to.  When the communists built the Berlin Wall it wasn’t to keep people from West Berlin out of East Berlin.  It was to stop people escaping from East Berlin to West Berlin.  For the East Germans were suffering a terrific brain drain.  Capitalists believe in liberty.  The freedom to do what they want.  And to get paid for their services.  A highly skilled doctor expects a higher salary than a janitor.  And that just isn’t going to happen in a communist state.  You get what the state gives you.  No more.  Creating a heck of a free rider problem.  When your economic system works based on the Marxist premise from each according to ability to each according to need what you get is a lot of people showing little ability and a lot of need.  For the more ability you had the harder they forced you to work.  While the greater your need the more you got.  Such a system encourages people to do the minimum and not be extraordinary.  Which is why Sony, Samsung, Microsoft, Apple, The Beatles, etc., did not come from communist countries.

A communist state has a planned economy.  Instead of a free market economy.  Communist state planners manage the economy from top down.  Telling the raw material industry what materials to extract.  They tell what factories get these raw materials and what they are to build.  Etc.  Whereas in a free market economy the economy is driven bottom up by the consumers.  When consumers start buying a lot of one thing the price for that one thing rises.  Attracting other businesses into the market to meet that rising demand.  Who place orders with their wholesalers.  Who place orders with their manufacturers.  Who place orders with their industrial processors.  Who place orders with their raw material extractors.  Hundreds of thousands of decisions happen as this consumer demand travels up the stages of production in a free market economy.  Giving the people what they want.  And not what a state planner decides to give to the people.

This is why communist (and socialist) states are oppressive dictatorships.  Because state planners decide for the people.  Which must start with the supreme decision maker.  The Joseph Stalin, the Mao Zedong, the Ho Chi Minh, the Kim Jong Un, the Raul Castro, the Hugo Chávez, etc.  And these people don’t take polls or hold elections.  Well, at least elections that are legitimate.  Kim Jong Un continues the state policy of his predecessors.  No economic reform.  Money goes to the military first (especially for his nuclear toys) and whatever is left over may go to the people.  And anyone who disagrees with him or thinks wrong goes to the gulag.  Or is executed.  Like his uncle.  While the people suffer the want of the most basic things.  Like food.  North Korea to this day still suffers the occasional famine because of its economic policies.  But one problem the North Koreans don’t have?  Deciding where to go for lunch.

“Where do you want to eat?  I don’t know, where do you want to eat?”  This can go on until someone forceful makes the decision for the group.  Often making no one happy.  But it will end the endless “where do you want to eat?”  This is the great flaw of socialism.  Being unable to determine what is the greater good.  Because people rarely agree on what’s best for other people.  Just look at the recent budget agreement that made few people happy.  They were unhappy because they disagreed on what was the greater good.  People are different.  One size does not fit all.  You just can’t please all of the people all of the time.  So you have to force your will on the people.  The only mechanism that makes socialism work.  Force.  Because people can rarely agree on where to go to lunch let alone national policy.  And this is why all communist/socialist states end in brutal dictatorships.  Because only force can make people live in a world without choice.

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Venezuela’s Socialist Policies cause Runaway Inflation and High Prices

Posted by PITHOCRATES - November 24th, 2013

Week in Review

Socialists who attack capitalism say they are the champion of the poor.  And yet the poorest of the poor are in socialist countries.  Where some live without indoor plumbing or electric power.  While the poor in capitalist countries can suffer from obesity.  And most if not all have indoor plumbing and electric power.  As well as refrigerators, microwaves and televisions.

Venezuela is an anti-capitalist, socialist country.  So you would think it’s a poor person’s paradise there.  But because of runaway inflation only the rich do well in this socialist paradise.  While the poor can barely afford to live (see Venezuela jails 100 ‘bourgeois’ businessmen in crackdown by Andrew Cawthorne and Deisy Buitrago, Reuters, posted 11/14/2013 on Yahoo! News).

Venezuela’s socialist government has arrested more than 100 “bourgeois” businessmen in a crackdown on alleged price-gouging at hundreds of shops and companies since the weekend, President Nicolas Maduro said on Thursday.

“They are barbaric, these capitalist parasites!” Maduro thundered in the latest of his lengthy daily speeches. “We have more than 100 of the bourgeoisie behind bars at the moment.”

The successor to the late Hugo Chavez also said his government was preparing a law to limit Venezuelan businesses’ profits to between 15 percent and 30 percent.

Officials say unscrupulous companies have been hiking prices of electronics and other goods more than 1,000 percent. Critics say failed socialist economic policies and restricted access to foreign currency are behind Venezuela’s runaway inflation.

So what’s to blame for these high prices?  Capitalism?  Or socialism?  Well, if you blame a devalued currency and a scarcity of basic goods, you have to blame socialism.

Venezuela’s official inflation, 54 percent annually, is the highest in the Americas…

Given Venezuelans’ anxiety over inflation, and scarcities of basic goods from toilet paper to milk, Maduro was risking a backlash at the December 8 nationwide municipal elections…

Critics say the moves do not tackle the roots of Venezuela’s economic malaise, like an overvalued bolivar that forces many importers to buy black-market dollars and then pass those costs on to consumers.

The government has ordered local telecom companies to block various websites showing the bolivar at 10 times the official rate of 6.3 to the greenback on the illegal market.

The socialist economy of Venezuela can’t provide the basic necessities.  So they have to import a lot of goods.  But before you buy a country’s exports you have to exchange your currency first.  And when you’ve devalued your currency by printing money to pay for a welfare state you don’t get a lot of foreign currency in exchange.  Because your money is worthless.  And no one outside the country wants it.  For what are they going to spend it on?  It’s not like Venezuela has a booming export market to shop at.  So when you can’t exchange bolivars for US dollars you have to get US dollars some other way.  On the black market.  So you have a currency that has some purchasing power to pay for those US exports.

So inflation, scarcity and the cost of black market US dollars adds a lot of costs to businesses.  Which they have to recover somehow.  And the only way they can is through higher prices.  Which hurt the poor the most.  For they’re not getting big pay raises to keep pace with rising prices.  In fact, Venezuelans don’t even want to hold on to their own currency.  Because it’s losing purchasing power at such a great rate that the longer they hold on to it the less it will buy.  Which is why they want those imports.  Because you can’t inflate manufactured goods.  So they hold their value.  Unlike a savings account full of bolivars.

It’s not the bourgeois capitalist parasites making life miserable for the poor.  It’s Venezuela’s socialist policies.  Just as similar policies caused people to flee Cuba on rickety boats to get to America.  And East Germans risked their lives to climb over the Berlin Wall.  If you put two societies close together, one socialist and one capitalist, the flow of people between the two will be from the socialist state to the capitalist state.  Which is why socialist states are often police states.  So they can prevent their people from escaping their socialist paradise.

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Nero, Hitler and Obama and the Lies they Told

Posted by PITHOCRATES - October 29th, 2013

History 101

Nero used the Great Fire of Rome to rebuild Rome to his Liking and to Persecute Christians

Roman emperor Nero does not have the greatest of reputations.  For instance, a popular story about him is that he fiddled while Rome burned.  Of course he didn’t fiddle.  For the fiddle didn’t exist yet.  But the lyre did.  And he could play the lyre.  In fact, he even composed music for the lyre.  But the historical record is a little sparse to say definitely what happened when Rome burned.

That said Nero was not all that dismayed that Rome burnt.  Because he didn’t like the way the city looked.  And he wanted to rebuild Rome into a glorious city befitting him.  And the fire allowed him do just that.  For to build the city Nero envisioned required that he first destroy the city that was there.  And the fire conveniently did that for him.

But it did more.  The year was 64 anno Domini.  In the year of our Lord.  Being that Jesus of Nazareth lived temporally until His thirties that puts the Great Fire of Rome about 30 years after His death.  And during the rise of those pesky Christians that Nero really didn’t like.  Who worshipped Jesus as God.  And not him.  Nero.  Putting crazy thoughts into people’s heads.  That Nero wasn’t God.  So Nero blamed the Great Fire of Rome on the Christians.  Allowing him to torture them.  And execute them.  Earning the moniker of the first persecutor of Christians.  So Nero profited well from the Great Fire of Rome.  He got his new city.  And he suppressed the ascendancy of those pesky Christians.

Adolf Hitler used the Reichstag Fire to make the way Clear for the New Nazi Germany

After World War I Germany was reeling.  Reparations were crippling her.  There was hyperinflation.  Germans were struggling for food and heat.  Creating the perfect political climate for a guy like Adolf Hitler to rise in politics.  After a failed attempt to seize power—the Beer Hall Putsch—he turned to legal channels to secure power.  Winning elections.  In time the Nazi Party rose in prominence.  But it could not win a majority in the German Parliament.  Until, that is, the Reichstag fire.

Following World War I Europe was being pulled between two political ideologies.  Fascism.  And communism.  Both were brutal dictatorships.  While both proclaimed to be for the people.  Well, Adolf Hitler’s Nazis were fascists.  Who were sharing power with the communists.  But they didn’t want to share power with the communists.  Which they didn’t have to do after the Reichstag fire.

Hitler blamed the communists for the fire.  He persuaded President Hindenburg to pass an emergency decree.  Suspending civil liberties.  And then turned the power of the state against the Communist Party.  Clearing the way for the rise of the Nazis to power.  Historians still debate who set that fire today.  But one thing it did was clear the last obstacle in the way of the Nazis.  The communists.  With the Communist Party outlawed the Nazis no longer had to share power with them.  Allowing them to rise to a majority in Parliament.  And from there it was but a short path to Hitler’s absolute power.  Thanks to a fire that got rid of the old.  And made way for the new.

President Obama is On the Record saying that he is a Proponent of Single-Payer Universal Health Care

The American left has longed wanted national health care.  For it is the Holy Grail of socialist/communist states.  As it touches everyone.  And makes everyone dependent on the state.  All brutal dictatorships have/had national health care.  Cuba.  North Korea.  The Soviet Union.  Nazi Germany.  These states also were/are anti-capitalist.  So anti-capitalism and national health care go hand-in-hand.  That is, the only way to have national health care is to give up some capitalism.

Which is a problem for the proponents of national health care.  For people like their capitalism.  And the liberty and high standards of living it gives them.  So proponents of national health care can’t be honest when they’re trying to take away people’s health insurance.  So they lie (see ‘Keep Your Plan’ Vow False; Media Knew It by Investor’s Business Daily posted 10/29/2013 on Yahoo! Finance included here in its entirety).

NBC News on Monday claimed to have uncovered evidence that President Obama knew all along that his promise that “you can keep your health plan” under ObamaCare wasn’t true. The story came out just as millions across the country are getting cancellation notices from their insurance companies.

“Buried in ObamaCare regulations from July 2010,” NBC said, is an estimate that shows “the administration knew that more than 40% to 67% of those in the individual market would not be able to keep their plans, even if they liked them.

Although ObamaCare included a provision meant to grandfather health plans sold before 2010, regulators defined what “grandfathered” meant so narrowly that most plans wouldn’t qualify.

Yet Obama went on repeating this promise, saying, as he did in June 2012, that “if you’re one of the 250 million Americans who already (has) health insurance, you will keep your health insurance.

That the administration knew this wasn’t true is troubling.

But the mainstream press also knew — or should have known — that Obama’s “you can keep your plan” promise was phony. It just didn’t bother to report on it at the time.

As far back as early 2010, health reform experts, Republican lawmakers and conservative policy analysts had been citing the same 40% to 67% figure that NBC News claims to have unearthed: The Commonwealth Fund, a favorite source for health care reporters, pointed out in a June 22, 2010, blog post that the administration “estimated that between 40% and 67% of health plans will relinquish grandfathered status” by 2013, meaning that millions of plans would get canceled.

An October 2010 article in the widely read Health Affairs said that, in addition to those losses, “the Obama administration has projected that between 39% and 69% of employer group plans” and “up to 80%” of small business plans would be canceled.

On Sept. 22, 2010, Sen. Mike Enzi , R-Wyo., said forcing 80% of small firms to change plans “breaks the president’s promise” about keeping your health plan.

In May 2011, a PricewaterhouseCoopers survey found that 51% of employers said they would have to drop plans and buy new ones because of ObamaCare.

An Aug. 29, 2011, memo by House Majority Leader Eric Cantor noted that “by the administration’s own estimates, 40% to 67% of individual insurance plans” will be canceled.

In a December 2011 paper, the Galen Institute’s Grace-Marie Turner noted that “millions of people are losing the coverage they have now, and tens of millions more will surely follow.

(IBD also covered this extensively at the time.) In addition, the Congressional Budget Office had reported in March 2010 that ObamaCare could cause 4 million to lose their employer-provided health insurance. It later raised that to 7 million, and admitted the number could be 20 million.

And years ago, Republicans like Enzi and Cantor pushed ObamaCare changes that would have prevented the massive cancellations going on today.

But with a few rare exceptions, the mainstream press completely ignored evidence that millions would be forced to drop their current insurance.

Now news reports are rife with stories of angry families getting insurance cancellation notices, learning that ObamaCare-approved plans will cost far more, and wondering why they didn’t know this was coming.

On Monday, Rep. Fred Upton, R-Mich., introduced a bill aimed at preventing these cancellations. The one-page bill, “The Keep Your Health Plan Act,” states simply that any health plan sold this year to the individual can also be sold next year.

Sen. Ron Johnson, R-Wis., has a similar bill in the Senate.

The question is whether Senate Democrats will block this bill — as they have almost every other GOP-sponsored ObamaCare bill — in the face of rising public anger about Obama’s misleading and now broken promise.

President Obama doesn’t like the existing health care system.  And is on the record saying that he is a proponent of single-payer universal health care.

So to get what he wants he first has to destroy the old.  Private health insurance.  And then set up the new.  Obamacare.  His pathway to single-payer universal health care.  Something the American people don’t want.  So he lied to the American people.  And created Obamacare to destroy the one obstacle in his way.  The private health insurance industry.  Then he can act against the will of the people.  And get what HE wants.  Power.  Through legal means.  Just like Hitler.  Who was also a good liar.  And, thankfully, that’s where the similarities end.  Well, that.  And destroying their countries.  For awhile, at least.

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FT190: “The children are our future. God help us.” —Old Pithy

Posted by PITHOCRATES - October 4th, 2013

Fundamental Truth

Our Universities praise Government Intervention, Vilify Capitalism and Denigrate US History

I recently saw some students on television from our most prestigious universities.  I won’t say who or where they were because it doesn’t matter.  For they all pretty much think the same.  There were liberal Democrats.  And conservative Republicans.  Young people.  Just into their twenties.  They spoke of economics, health care, free markets, investing in education, etc.  Kids too young to have experienced life.  In fact, most were still on their parent’s health insurance policies.  But they knew everything there was to know.  Particularly the liberal Democrats.

In college kids don’t know anything.  That’s why they are there.  So someone can tell them all those things they don’t know.  The problem is this.  The people telling them what to think have a liberal bias.  It’s no secret.  The teachers’ unions demand pay and benefit packages well beyond what most people can get in the private sector.  The government let’s them gouge taxpayers.  And in return they teach our kids in public schools to become Democrat voters.  Then it’s on to college.  Where the anti-capitalist hippies of the Sixties went on to become college professors.  Who talked about the fairness in the former Soviet Union and the former East Germany.  Where they put people before profits.  Admiring their love of people.  And hatred of profits.  While glossing over on their oppressive police states, thought crimes, prisons for political dissidents, torture and wholesale executions.

These radical hippies took over higher education.  And wrote the curriculum.  Which praised government intervention into the free market economy.  Vilified capitalism.  And denigrated the United State’s role in history.  Programming our children to hate whatever they hate.  And to love what they love.  Even when the facts get in the way.  Which they can fix with a little history revisionism.

The Arts did Very Well during the Eighty thanks to the Generosity of Gainfully Employed People

They call the Eighties the decade of greed.  While at the same time calling President Reagan’s economic policies a failure.  Supply-side economics.  Of the Austrian school.  Everyone did well.  Everyone made money.  Which is why they were so materialistic.  Because they had good-paying jobs that allowed them to be materialistic.  Allowing them to buy Sony Walkmans and CD players.  Which everyone had to have.  Even though no one knew what they were before they hit the stores.  Proving Say’s law.

Say’s law is a part of supply-side economics.  In general it states that supply creates its own demand.  No one was clamoring for Sony Walkmans or CD players in the Eighties.  But when these companies explained how great they were all of a sudden we were demanding them.  Supply created demand.  Just as PC supply created PC demand.  PCs were on the market long before they were in everyone’s home.  It was a tough sell in the beginning.  Because no one knew what they would use them for.  But they have them now.  Just like the Internet.  For a generation who had just mastered the recording functions on their VCRs (video cassette recorders—what we used to record TV programs on before DVRs) the Internet was a confusing thing.  And many said “thank you, but no thanks.”  Then people began creating content and putting it on the World Wide Web.  Today, people can’t live without their Internet connection.  Again, supply created demand.

This is Say’s law in action.  Supply creates demand.  You make it easier for people to be creative and bring things to market and they will.  Two ways to do this is to lower tax rates and reduce the regulatory climate.  So people are more willing to take risks.  Which they will do if there is sufficient reward for taking that risk.  Reagan did both during the Eighties.  The economy exploded.  Everybody was working.  The jobs were so good that we had money for material comforts.  And generous donations.  The arts did very well during the Eighties thanks to the generosity of gainfully employed people.

Obamacare will take Money from the Young and Healthy to pay for the Old and Sick

But this isn’t what they’re teaching in our universities.  They say that Reagan did cut taxes and created an economic boom.  But at what cost?  For he had record deficits.  Because of those tax cuts.  Which is where that history revisionism comes in.  Yes, he cut tax rates.  And when he did tax receipts (actual money flowing into the treasury) nearly doubled.  But our universities don’t teach that.  As demonstrated whenever a liberal talks about Reaganomics.  Instead they attack Reagan.  Capitalism.  And Republicans in general.  Because they all believe that limited government is best.  Which threatens a ruling class.

Our universities teach our kids the economics school that benefits the ruling class.  By supporting an ever expanding government.  Keynesian economics.  Which has a proven track record of failure whenever we’ve tried it.  John Maynard Keynes himself advised FDR during the Great Depression.  FDR didn’t think much of Keynes.  But he liked his idea about government spending during times of recession.  Even though it only delayed the correction—and prolonged the recession—by interfering with market forces trying to correct market prices.  Giving us the Great Depression.  Keynesian economics also gave us the stagflation of the Seventies.  Japan’s Lost Decade in the Nineties.  The American dot-com bubble and recession in the Nineties/early 2000s.  The 2008 subprime mortgage crisis.  And the ongoing European sovereign debt crisis.  All of these crises have their roots in Keynesian economics.  The school of economics of the ruling class.  But what do they teach in college?  Free market capitalism is bad.  And Keynesian economics is gospel.

These twenty somethings were anxious to show how smart they were.  How in a mere 2-4 years of college they had learned everything there was to learn.  And could regurgitate the party line.  Rolling their eyes at the idiots around them.  Laughing with all-knowing condescension.  Praising President Obama.  Obamacare.  Believing that it will provide more for less.  When nothing in the world works that way.  More costs more.  Yet they naïvely bleat what they were taught.  These kids who haven’t opened up a letter from their private health insurer advising them that their premiums will rise by 50%, 75%, 100%, or more, to comply with Obamacare.  Because it costs more to have more.  And people now have to pay more even if they don’t want more.  In particular young people.  For Obamacare is a transfer program.  Where Obamacare will take money from the young and healthy (like these college students once they graduate) to pay for the old and sick.

These kids, of course, blame the Republicans for the government shutdown.  And that their concern for our deficits is silly.  For they believe we don’t have a deficit problem.  Yet the smaller Reagan deficits were the end of the world as we knew it.  And they don’t have a problem with members of Congress and their staff getting subsidies to pay for their Obamacare.  As paying for their Cadillac health care plans with their six-figure salaries would have been too much of a burden for them.  And beneath them.  So we should pity them while record numbers of Americans have disappeared from the labor force.  Especially during the government shutdown.  Where the grooms of the stool may not be there for them.  Forcing the ruling class to wipe their own bottoms after they go potty.

This is what government and the political left is turning into.  A ruling class.  The very thing we fought our independence from.  And they are getting away with this because they control education.  And because they do they can revise history.  And change their failures to successes.  And change conservative successes to failures.  All you need are fresh young minds to corrupt.  And corrupt they do.  These kids talk like they know everything.  But they know nothing.  Which is sad.  For the children are our future.  God help us.

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FT169: “College is more about making Democrat voters than giving students marketable skills.” —Old Pithy

Posted by PITHOCRATES - May 10th, 2013

Fundamental Truth

Another Big Reason why College Tuition has been Soaring is because of Public Sector Unions

College tuition is rising.  With increases greater than the rate of inflation.  With some tuition costs growing greater than costs in health care.  There are many reasons for this.  Unlike private sector business colleges cannot produce more with less.  That is, they cannot use productivity gains to educate more students with fewer professors.  Auto manufacturers can use robots to replace people on the assembly line.  Reducing wage, pension and health care costs.  The biggest costs that go into a car.

Universities are big campuses with lots of buildings that basically do one thing.  Sit students down in front of a professor.  This hasn’t change since the first days of higher education.  The only things that have changed are the buildings are a lot nicer.  And university employees all have better pay, pensions and health care than they used to have.  Which is why tuition costs keep rising.  For universities, unlike auto manufacturers, can’t speed up their assembly lines by using robots instead of people.  But it’s not only the auto manufacturers and the universities that have high labor, pension and health care costs.

Another big reason why university tuition has been soaring is because of public sector unions.  Who have negotiated some extremely generous union contracts.  Cities and states everywhere are drowning under the costs of their labor, pension and health care costs.  Forcing them to cut back spending elsewhere to pay for those generous public sector union contracts.  So they’re cutting back on their subsidies for higher education.  And what the state cuts the universities just tack on to the student’s tuition bill.

Universities lure High School Kids into College with Promises of a Big Paycheck for an Easy Degree

Today’s tuition costs will saddle a student with the kind of debt that can pay for a house.  A very big house.  One of those McMansions.  Depending on where you go to college.  Which is all well and fine if a student gets a high-paying job after graduating.  Sadly, though, a lot aren’t.  A lot are taking jobs that they could have gotten out of high school.  Without that massive student loan debt.  Debt they will be paying for a long, long time.  Making it very difficult for them to buy a house and start a family.  And the reason for this is too many students are taking degrees with no market value in a high-tech economy.

Today’s businesses are looking for people with a strong science and math background.  For this is what businesses in a high-tech economy need.  Not people with degrees in anthropology.  Philosophy.  Women’s studies.  Art history.  Comparative literature.  Communication.  Or a myriad of other degrees that a business just can’t use.  Yet our universities are selling these degrees.  Telling their prospective students who don’t want the heavy math load a science and engineering degree requires that these other degrees are just as good.  And that they, too, can have that big paycheck.  Just like engineers and chemists and doctors and physicists.  All they need is a student loan.  And the world can be their oyster.

So these kids starting their adult lives start that life by making one of the worst decisions of their lives.  Because they really want to go to college.  For the fun.  Universities lure these high school kids into higher education.  Appealing to them as adults.  Who can live away from home out from under the judgmental eyes of their parents.  For on a college campus there is a lot of fun to be had.  Sex.  Drugs.  Alcohol.  And health services.  Such as birth control and access to abortion services.  For all the consequence-free fun a high school graduate could ever ask for.  This is the bait.  And all they have to do to have all of that grownup fun is to borrow enormous sums of money that they will probably never be able to pay back.

Liberals say You should Never Rush to Judgment, Especially if we can’t Blame Conservatives

For the universities, though, it’s not just the money.  For their curriculum is the product of those Sixties’ radicals.  Who tried to overthrow capitalism.  And replace it with communism.  As they were never able to incite the workers’ revolt in the United States they changed tack.  And continued their revolution from the inside.  By becoming college professors.  Who eventually got tenure.  And went on to write the curriculum.  Basically an anti-capitalist, America is responsible for all the world’s problems and an anti-religious/anti-tradition curriculum.  Hence the socially liberal campus where anything goes.  And those college degrees that have no market value.  That advanced a relentless attack on capitalism and business.  And made their students eschew American greatness.

This curriculum has helped President Obama win reelection despite a horrific economic record.  And a brutal attack on the American mission in Benghazi.  The result of a failed foreign policy that tried to make nice with America’s enemies.  Who have been trying—and at times succeeding—to kill Americans.  The Fort Hood shooting by a radical Islamist.  The underwear bomber (failed Islamist plot).  The Times Square bomber (failed Islamist plot).  As well as other smaller and lesser known incidents.  Both successful and failed Islamist plots.  Then Benghazi.  And the death of 4 Americans.  Despite earlier witnessing an increase of anti-Western violence in the city.  A resurgent al Qaeda.  And an anniversary date holy to radical Islam.  9/11.  The U.S. mission in Benghazi requested additional security.  The Obama administration denied it as it would not fit the 2012 campaign meme.  ‘Osama bin Laden is dead.  And General Motors is alive.’  President Obama had won the War on Terror with the killing of bin Laden.  Therefore, they couldn’t have a terrorist attack in Benghazi before the 2012 election.  So the Obama administration made up the story about an anti-Islamic YouTube video that led to a spontaneous protest in front of the U.S. mission.  A protest that naturally got out of hand when the people pulled RPGs and mortars out of their pockets and started a military assault on the American compound.

The Obama administration then started to disseminate the lie.  They sent Secretary Rice to the Sunday morning television shows with severely edited talking points to downplay any role of radical Islam.  Then President Obama and Secretary Clinton made numerous public statements denouncing that YouTube video.  Even made a video to air in Pakistan.  And the mainstream media, the product of that anti-capitalist, America is responsible for all the world’s problems and anti-religious/anti-tradition curriculum never questioned anything.  They just dutifully carried the administration’s water.  And now that signs of a cover-up are coming out the administration is saying the only reason why they made any edits to those talking points was to prevent anyone from rushing to judgment.  Something they say we should never do.  Especially if we can’t blame conservatives.  Or Christians.  Like they did with the YouTube video that proved to be a red herring.  And as they—and their friends in the mainstream media—have rushed to judgment in the past.  By quickly blaming radical conservatives for every other massacre.  Only to see it turn out to be someone who wasn’t a conservative.  But a radical Islamist(s) instead.  Or someone suffering from mental illness.

Of course this wouldn’t be possible without higher education.  Where college is more about making Democrat voters than giving students marketable skills.  One could even blame those deaths in Benghazi on that anti-capitalist, America is responsible for all the world’s problems and anti-religious/anti-tradition curriculum.  (As well as being the reason why these kids can’t find any high-paying jobs; the vote for anti-business Democrat candidates whose policies discourage economic growth.)  Because protecting Americans in Benghazi would have been bad for the Democrats in 2012.  So perhaps we should be addressing the high cost of higher education.  And follow the example of the automotive industry.  By producing more graduates with fewer professors.  And put an end to the liberal Shangri la of the college campus.  By replacing the bulk of higher education with online studies.  For if a 15-year old girl can make medical decisions about the morning after pill by reading the contents of the packaging without consulting a doctor or parent then she can get her higher education online.  Without all the fun.  Or student loan debt.

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2012 Endorsements: Adolf Hitler and Osama bin Laden

Posted by PITHOCRATES - November 1st, 2012

2012 Election

Workers Enthusiastically Supported the Nazi Party because it had the Word ‘Workers’ in It

Adolf Hitler joined the German Workers’ Party (DAP) in 1919.  The party platform included nationalist, anti-capitalist and anti-Marxist policy positions.  As well as being anti-Semitic.  A socialist party where everyone was equal.  Unless you were a Jew.  Something Hitler could wrap his arms around.  As he would blame the Jews for Germany’s loss in World War I.  A war in which Hitler served as a messenger.  Even got awarded for bravery.  And he would later blame the bad German economy on the Jews as well.  Having a scapegoat is very important if you want dictatorial powers.  For you have to attack someone as you really can’t run on a platform of wanting dictatorial power so you can oppress your people.  The DAP became the National Socialist German Workers Party (NSDAP).  And Hitler designed the party banner.  Creating the swastika.  And the Nazi Party.

Now there isn’t a whole lot of difference between socialism and Marxism.  They are both about sharing the wealth and both are anti-capitalist.  The real reason Hitler hated Marxism is that they were a strong contender for power in Germany.  Power that Hitler wanted for his National Socialists.  And for him.  Which he consolidated by scapegoating, lying and using his personal charisma.  Another important quality for one aspiring to be a dictator.  To create a cult of personality.  Hero worship.  You have to be able to charm the masses so they don’t look that close at your policies.  Or your record.  Germans voted Hitler into office.  He didn’t seize power.  They fell in love with him.  But they had no idea what they were voting for.  World War.  Genocide.  He just moved them so much that they were willing to trust him fully.  Even when some began to learn about what was happening at the death camps or what the Einsatzgruppen (mobile killing squads) were doing on the Eastern Front they told themselves that the Führer was doing what he had to do to protect the German people.  Or, at the least, they blamed these atrocities on excesses of the SS and not their beloved Fuehrer.  Or simply chose not to believe these reports.

The Nazis created an employment boom coming off of the Great Depression.  With massive public works projects.  And an aggressive rearmament program to prepare for World War II.   The war economy made industry hum.  Paid for with funds confiscated from enemies of the state.  And through massive monetary expansion.  That is, they printed a lot of money.  Causing a lot of price inflation which raised the cost of living for the working German.  Businesses were buried in red tape.  The Nazi state controlled everything.  Including the private sector.  Complying with Nazi regulations took up about half of all communications for those in business.  As one task could require up to 40 forms.  Probably in triplicate.  The Nazis shut down small businesses and small corporations.  Wanting to deal only with big industry.  So they could better control the businesses.  And the workers.  Business people once warmly supported Hitler during the ascent of his power only to discover later that Hitler was ruining German industry.  Making them to regret their previous support.  As did the workers.  Who enthusiastically supported a party that had the word ‘workers’ in it.  Only to see higher prices.  Lower wages.  Longer hours.  No collective bargaining.  No right to strike.  High income taxes.  Compulsory contributions for sickness, unemployment and disability insurance.  Union dues (for a union that represented the state, not the worker).  As time passed they even lost the ability to quit their job.  Or change jobs.  Being forever chained to the job the state chose for them.  Which worked well to maximize industrial output.  And to prepare for war.

After 9/11 George W. Bush kept America Safe from another al Qaeda Attack while he was in Office

America’s problem with radical Islam probably dates back to the Iranian Hostage Crisis (1979).  Then came the United States Embassy Bombing (1983) in Beirut.  And then the Beirut Barracks Bombing (1983) that killed 241 Americans.  Who were there in a peace-keeping mission during the Lebanese Civil War.  To be neutral referees between the warring Muslim and Christian sides.  Where the Muslims felt that although the Americans claimed neutrality in the conflict they leaned Christian.  Hence the bombing of the Barracks.  There was no real American retaliation for the attack.  As they weren’t certain who was responsible.  With other threats to American forces President Reagan eventually abandoned the mission and pulled out US forces.  One person took great interest in this American response to terror.  Osama bin Laden.  Who learned the following lesson.  When Americans suffer casualties they quit.

Islamist attacks (and plans for attacks) against American targets increased during the Nineties.  Perhaps the most shocking being the 1993 World Trade Center Bombing.  An attempt to topple the Twin Towers that failed.  Then came the New York City Landmark Bomb Plot (1993).  The Khobar Towers Bombing (1996).  The United States Embassy Bombings (1998).  The Millennium Attack Plots (2000).  The USS Cole Bombing (2000).  Then 9/11.  An attempt to topple the Twin Towers that succeeded.  Until 9/11 we treated all of these events as criminal offences.  Not acts of war.  We talked about bringing these people to justice.  In a court of law.  Despite bin Laden having declared war against the United States back in 1996.  Well, after 9/11 George W. Bush declared war against Osama bin Laden.  And his terrorist organization.  Al Qaeda.

Bush attacked bin Laden’s safe haven in Afghanistan.  Chasing him underground.  Bush invaded Iraq.  In part to pressure Saudi Arabia to crack down on the Wahhabi in their kingdom financing al Qaeda as the Saudis feared Iran filling any power void in Iraq.  Which made American success in Iraq important to the Saudis.  (The Wahhabi hated the Saudi Royal family as much as they hated America.  While the Saudis had to tread lightly around the Wahhabi lest they provoke a civil war in the kingdom).  It worked.  Bush captured Islamist terrorists and sent them to a detention center at the US Naval facility at Guantanamo Bay, Cuba.  Interrogating them for intelligence.  As enemy combatants.  Not as people with American Constitutional protections.  Which helped to thwart future terrorist plots.  Causing the Islamist world to hate George W. Bush with a passion.  But he kept America safe from another al Qaeda attack while he was in office.

If Adolf Hitler and Osama bin Laden were Alive Today they would likely Endorse Barack Obama and Joe Biden

Things changed under President Obama.  Who also hated George W. Bush.  Blaming him for the Muslim hatred against America.  So he tried to offer a softer, friendly face to the Muslim world.  He stopped using the term ‘War on Terror’.  He wanted to try some 9/11 terrorists in the civilian court system in New York City.  Instead of by military tribunal.  He said the US would no longer torture people.  And promised to close the detention center at Guantanamo Bay.  When a radical Muslim in the US Army killed fellow soldiers on an Army base because of America’s ‘crimes against Islam’ the president called that workplace violence.  Not terrorism.  A lot of these things the Islamists liked.  But President Obama also killed indiscriminately with unmanned drones.  Anyone killed that wasn’t on the kill-list was deemed an enemy combatant.  So collateral damage of innocents was greatly reduced.  By simply calling everyone killed an enemy combatant.  And by killing all terrorist and terrorist-adjacent people there were no prisoners to house.  But there was also no intelligence to gather.  Which had its drawbacks.

Years of interrogations and intelligence gathering eventually located Osama bin Laden in Pakistan.  When advised President Obama gave the ‘go’ order to kill him.  So in one day the president killed bin Laden.  Defeated al Qaeda.  And ended the War on Terror.  Something the president likes to say over and over again.  A never ending spiking of the football.  This relentless bragging and the unmanned drone attacks inflamed the Islamist world.  Providing a great recruiting tool for al Qaeda.  Possibly being the impetus for the attacks on the American embassy in Benghazi.  Which was left poorly protected.  Even after the American ambassador requested additional protection.  Especially around the anniversary of 9/11.  But someone in the Obama administration denied the request because President Obama had killed Osama bin Laden.  And defeated al Qaeda.  And having to beef up security in Benghazi would have gone against that narrative.  So they didn’t.

So if Adolf Hitler and Osama bin Laden were alive today who would they endorse in the 2012 election?  Well, Hitler would have liked the Democrat attacks on rich people.  Seeing that as good scapegoating.  He would be impressed by the cult of personality around President Obama.  Though it wasn’t as good as his.  He would like the attack on capitalists and the massive government interference into the private sector.  And the high income taxes and regulations.  As well as those public works projects.  Those roads and bridges.  No doubt Hitler would have liked a lot of what he saw in the Obama administration.  Though, perhaps, he would be confused as the ultimate purpose of this massive power grab.  And Osama bin Laden?  Well, he hated George W. Bush.  President Obama may have killed him but it was all that War on Terror stuff that brought the Americans to him in Pakistan.  He would prefer the Obama light touch over the Bush hammer.  And he’d probably prefer his people getting killed by drones instead of being captured and pumped for information.  Like the guy that gave up a name that eventually led the SEALs to his hiding place.  And he would just love the opportunity to speak in a US court.  Something that just wouldn’t have happened under Bush.  Finally he would have liked the naïveté and arrogance of President Obama.  Which would have given him a target-rich environment.  Like Benghazi.  If Adolf Hitler and Osama bin Laden were alive today they would likely endorse the Democrat candidates Barack Obama and Joe Biden.

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UK Budget Cuts Ignite Riots, Gives Glimpse of USA Future

Posted by PITHOCRATES - March 26th, 2011

Unruly Mobs Attack the Police…in London

The riots in the Middle East were ignited by high unemployment, high food prices and little government relief for either.  Some countries have all but degenerated into civil war.  But violent unrest is not limited to the Middle East.  Even some of the most advanced Western economies are having their problems (see TUC protest march: anarchists on the rampage in London by Patrick Sawer and David Barrett posted 3/26/2011 The Telegraph).

Police fought mobs of masked thugs who pelted officers with ammonia and fireworks loaded with coins.

The anti-capitalists started fires, smashed their way into banks, hotels and shops, bringing chaos to Britain’s busiest shopping street.

The violence began as Ed Miliband, the Labour leader, addressed a TUC rally of at least 250,000 peaceful protesters in Hyde Park who had marched from Westminster to demonstrate against government spending cuts.

Yeah, you read that right.  London, England.  Unbelievable, isn’t it?  The violence against the police?  And property?  Wow.  And look who’s doing it.  Bloody anti-capitalist anarchist thugs. 

After five hours of running battles, there were 75 arrests. At least 30 people, including five police officers, were injured. Police said the anti-capitalists threw lightbulbs filled with ammonia at them…

They ordered limited use of “kettling” to contain the rioters but admitted that such was the scale of the violence, they could not protect property.

The UK has big time budget problems.  High taxes are hurting the economy.  Ever increasing public benefits require more and more tax revenue.  And increases the debt.  They cannot sustain this spending without crashing the economy.  Or bankrupting the nation.  But the anarchists don’t care.  Because they’re anti-capitalists.  And simply don’t understand rudimentary economics.  Or numbers with a ‘£’ in front of them.

From Rich Empire to Bankrupt Nanny State

So just how bad are things in the UK?  Bad.  The country is at a crossroads.  It may forever change if it doesn’t change course.  During World War II it was the Nazis threatening their survival.  Today it’s their own spending (see Britain’s leaders should come clean on the true depth of the fiscal crisis by Liam Halligan posted 3/26/2011 on The Telegraph).

The UK’s fiscal crisis is of monumental historic importance. The future of the free world may not be at stake as it was in Churchill’s day. What is in the balance, though, is the prosperity of the British people for at least the next few decades and our status as a top-ranking nation.

This is a common theme among great nations that fall from greatness.  Out of control government spending.  It brought down the Roman Empire.  And the British Empire.  But the great nation that built it remains.  For now, at least.  But the government spending is burdening Britain more than her empire ever did.

Over the last 12 months, then, this country’s “on-balance-sheet” liabilities have risen by £147bn. That’s roughly what we spent on the NHS and defence combined in 2010 – and that was merely, during this last year of “austerity”, the incremental increase in what Britain has put “on tick”.

That’s my point – and I will keep making it until it fully enters the public discourse. It is the total debt numbers that Osborne, the Tories and our politicians in general should focus on, not the size of the annual deficit.

This is another common theme with great nations.  They have big military forces.  To protect what is theirs.  And to maintain the peace.  The Royal Navy built the British Empire.  And maintained world peace.  As did the Roman Legions.  That’s why there was a Pax Romana.  And a Pax Britannica.  These empires ushered in great periods of peace.  And their rule of law and free markets provided great prosperity.  But the prosperity led to entitlement.  And state benefits.  Such as the NHS (National Health Service).  State spending increases to meet the desires of voters.  And that spending is now unsustainable.  They have to cut something.  Because they just can’t borrow anymore.

In 2009, the UK spent £31bn – around 6pc of total tax receipts – on debt interest payments. That’s money down the drain. By 2015, we won’t have reached, in Churchill’s words, some “broad sunlit upland”. After four more years of deficits, debt services costs, according to last week’s Budget, will by then be £67bn a year – or almost 10pc of total tax receipts. These shocking numbers are also likely to be under-estimates, given the UK’s massive “off-balance-sheet” liabilities and the Treasury’s benign assumption of future gilt rates.

These interest costs are staggering.  Any meaningful cuts will have to be greater than the annual debt cost if they have any hope of bringing down deficits.  Or the debt.  And they were trying to make some meaningful cuts.  Almost £100bn.  And we saw what happened.  People took to the streets in violent protest.

All of us – politicians, commentators and voters – should compare the quality of our current national debate, its utter detachment from reality, with the statesmanship and candour of Churchill’s “blood, toil, tears and sweat“. For such hard truths inspired a nation, while winning Churchill untold respect.

Of course, during Churchill’s time, there wasn’t a nanny state.  After enduring World War I and the Great Depression, austerity was an all too familiar way of life.  It isn’t like that today.  Today students protest if they don’t get a free college education.  It is questionable even if Winston Churchill himself could inspire today’s entitlement culture.  They’re just too spoiled, lazy and greedy.

A Look into America’s Future

All right, so that’s what’s happening in the UK.  How about the USA?  We have our problems.  But we’re not as bad off.  Obamacare is not quite the NHS.  Yet.  But we have the same entitlement culture.  Out of control state spending is plunging us into record deficits and debt.  High taxes and regulatory compliance has drawn out the Great Recession.  And when some governors start cutting their budgets to balance their budgets, the people protested.  Our day of reckoning is coming.  And N. Gregory Mankiw wrote how a future president might inspire the American people ala Churchill in 2026.  It’s an interesting look at what could very well be our future (see It’s 2026, and the Debt Is Due by N. Gregory Mankiw posted 3/26/2011 on The New York Times).

The seeds of this crisis were planted long ago, by previous generations. Our parents and grandparents had noble aims. They saw poverty among the elderly and created Social Security. They saw sickness and created Medicare and Medicaid. They saw Americans struggle to afford health insurance and embraced health care reform with subsidies for middle-class families.

But this expansion in government did not come cheap. Government spending has taken up an increasing share of our national income.

Today, most of the large baby-boom generation is retired. They are no longer working and paying taxes, but they are eligible for the many government benefits we offer the elderly.

Our efforts to control health care costs have failed. We must now acknowledge that rising costs are driven largely by technological advances in saving lives. These advances are welcome, but they are expensive nonetheless.

If we had chosen to tax ourselves to pay for this spending, our current problems could have been avoided. But no one likes paying taxes. Taxes not only take money out of our pockets, but they also distort incentives and reduce economic growth. So, instead, we borrowed increasing amounts to pay for these programs.

This part of the story we know.  It’s how we got here.  Or there, as it were, in this tale from the future.  Now comes the debt spiral.  Which will force us to act.  And make decisions no one wants to, or is willing to, now.  Which will be even more painful hence.

For years, the United States government borrowed on good terms. Investors both at home and abroad were confident that we would honor our debts. They were sure that when the time came, we would do the right thing and bring spending and taxes into line.

But over the last several years, as the ratio of our debt to gross domestic product reached ever-higher levels, investors started getting nervous. They demanded higher interest rates to compensate for the perceived risk. Higher interest rates increased the cost of servicing our debt, adding to the upward pressure on spending. We found ourselves in a vicious circle of rising budget deficits and falling investor confidence.

When the treasury tried to auction off some bonds in this tale there were few takers.  So this future president secured a loan from the International Monetary Fund (IMF) with some draconian strings.  The IMF required big cuts in spending (Social Security, Medicare, Medicaid, Obamacare and subsidies – farming, ethanol production, public broadcasting, energy conservation and trade promotion).  And big tax increases. 

We will raise taxes on all but the poorest Americans. We will do this primarily by broadening the tax base, eliminating deductions for mortgage interest and state and local taxes. Employer-provided health insurance will hereafter be taxable compensation.

We will increase the gasoline tax by $2 a gallon. This will not only increase revenue, but will also address various social ills, from global climate change to local traffic congestion.

AS I have said, these changes are repellant to me. When you elected me, I promised to preserve the social safety net. I assured you that the budget deficit could be fixed by eliminating waste, fraud and abuse, and by increasing taxes on only the richest Americans. But now we have little choice in the matter.

If only we had faced up to this problem a generation ago. The choices then would not have been easy, but they would have been less draconian than the sudden, nonnegotiable demands we now face. Americans would have come to rely less on government and more on themselves, and so would be better prepared today.

Even in the future presidents will be making the same promises that they cannot keep.  And make the same lament.  If only we continued the policies of Ronald Reagan.  Kept government small.  And relied on ourselves.  Had we, we’d never be in this financial mess now.  Or hence.

Dead People haven’t a Care in the World

Our own greed will do us in.  Insatiable want of government benefits kills great nations.  Even the UK and the USA are not immune from this.  But the easy political road is to pander to the people.  Give them what they want.  To get their votes.  They do this knowing full well they are destroying the future.  So why do they do it?  Because most of those in government are old.  And when it comes time to pay the piper, it will be a moot point.  Because they will be dead.  And dead people haven’t a care in the world.

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FUNDAMENTAL TRUTH #45: “The bluest of cities in the bluest of states have the most activist governments, the deepest recessions and the most abject poverty.” -Old Pithy

Posted by PITHOCRATES - December 21st, 2010

Blue States Bleeding Red

We call it the Great Recession.  It started with the subprime mortgage crisis.  Then the dominoes started falling.  And unemployment rates started to climb.  So many people lost their jobs that it wasn’t only banks and auto companies staring into the abyss of bankruptcy.  Our city and states were, too.

But not all our cities and states.  Some were hanging in there during the Great Recession.  There was a pattern.  Sure, it was a rule with some exceptions, but a general rule all the same.  And if you looked at one of those red/blue electoral maps, you could see the states (and the cities) having the biggest financial troubles.  You just looked for the blue.

The blue states are the ‘Democrat’ states.  The red states are ‘Republican’.  And the states that are in the news with financial troubles tend to be the blue states.  The New England States.  The Mid-West states.  And the West Coast states.  The rate of business failures and high unemployment rates have hammered these states.  Taxable income plummeted.  Without the income to tax, tax revenue plummeted.  And these blue states are bleeding red.

Blue States and Unionized Public Sector Employees

These are the Big Government states.  Home for most of the nation’s liberal democrats.  Although liberal democrats make up only about 20% of the national population, most of them live in these states.  And when you pack a lot of this 20% into these small areas, their influence can reach a majority.  And they can control these cities and states.  And do.

These liberals are the guilty rich (anti-capitalist inheritors of great wealth).  Crony-capitalists (anti-capitalists who eschew the free market and bribe politicians in exchange for governmental favoritism).  Big Union (anti-capitalists who eschew the free market and seek legislation that favors them).  The celebrity rich (anti-capitalist movie stars, musicians, painters, artists, etc., who don’t live in the real world).  University professors (anti-capitalists who still have posters of Che Guevara up in their classrooms).  The mainstream media (anti-capitalists who want to shape opinion instead of practicing journalism).  And, of course, the poor and government-dependent.

And then you have public sector employees.  Unionized public sector employees.  And their ranks are growing.  They don’t work very hard.  But boy are they paid well.  And talk about fat benefits.  Pension plans that most can’t even imagine.  They have made themselves a privileged class.  And with their boss having the power to tax, that privileged class will be remaining privileged for a long time to come.  Unless a Great Recession comes along.

Much of Flyover Country not having any Budget Crises

What is flyover country?  It’s that are area of the country liberals fly over when traveling between the West Coast, the Big Union Mid-West, New England and, of course, Washington D.C.  It’s that area in between.  The red states.  You see, liberals fly over the red states because they don’t like them.  Or Republicans.

Because America is a center-right nation, and the liberals have concentrated in the blue states, that has left most of ‘fly over’ country conservative.  And what do conservatives NOT like?  Big Government.  So liberals don’t go where they’ve not welcomed.  For Big Government is the heart and soul of liberalism.

So the red states don’t have Big Government.  They don’t have masses of government-dependent people.  And they don’t have large public sectors.  Or public sector union employees.  Which means they don’t have huge Big Government budgets.  Or budget crises.

The Public Sector Out Paces the Private Sector in the Blue States

But the blue states do.  Their Big Cities are packed with government-dependent people.  And they have a huge public sector to cater to these people.  And a public sector union that pays this public sector very well.  They have pay and benefit packages that are to die for.

Of course, a public sector doesn’t make anything.  They have no goods or services that they can sell in the free market.  They have but one source of income.  Taxes.  And when times are good, taxes are good.  But when times are poor, so are taxes.

Part of the liberal democrat’s strategy to remain in power is to get as many people as possible dependent on government.  This helps make Democrat voters (people who vote Democrat because they are afraid of losing their government benefits).  And justifies their huge government budgets.  So they keep adding people to the public dole.  And keep growing their budgets.  It’s a foolproof plan.  As long as the private sector grows along with the public sector.  So the private sector can keep paying the taxes to support the public sector.  And the privileged class.

Big Government – The Road to Bankruptcy

But it doesn’t always work.  When businesses fail they don’t have any income.  So they can’t pay any income taxes.  And when a business fails people lose their jobs.  And their incomes.  So they don’t pay any income taxes either.  But it doesn’t end there.  Without any income, they can’t buy anything in the free market.  So other businesses see their sales decline.  And have to lay off employees.  And these laid-off people can’t buy anything in the free market.  So more businesses see their sales decline.  And they lay off people.  And on and on it goes.  Where does it stop?  Usually in a bad recession.  Or even a great one.

You add all of this up and what do you get?  Big cities with growing budgets (and growing pension obligations).  And shrinking tax revenue to pay for it.  Costs exceed revenues.  Ergo, bankruptcy.

And some of the states with the most generous public sector pay and benefits are California, Illinois and New York.   Some of the bluest of blue states.  And coincidentally, these are the states facing some of the biggest budget crises.  Actually, it’s no coincidence.  It’s the ultimate consequence of Big Government.  Bankruptcy.

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