The Dow Jones Industrial Average and the Labor Force Participation Rate from Ronald Reagan to Barack Obama

Posted by PITHOCRATES - February 10th, 2014

Economics 101

(Originally published May 21st, 2013)

The DJIA and the Labor Force Participation Rate tell us how both Wall Street and Main Street are Doing

Rich people don’t need jobs.  They can make money with money.  Investing in the stock market.  When you see the Dow Jones Industrial Average (DJIA) increasing you know rich people are getting richer.  Whereas the middle class, the working people, aren’t getting rich.  But they may be building a retirement nest egg.  Which is good.  So they benefit, too, from a rising DJIA.  But that’s for later.  What they need now is a job.  Unlike rich people.  The middle class typically lives from paycheck to paycheck.  So more important to them is a growing job market.  Not so much a growing stock market.  For the middle class needs a day job to be able to invest in the stock market.  Whereas rich people don’t.  For a rich person’s money works enough for the both of them.

So the Dow Jones Industrial Average shows how well rich people are doing.   And how well the working class’ retirement nest eggs are growing for their retirement.  But it doesn’t really show how well the middle class is living.  For they need a job to pay their bills.  To put food on their tables.  And to raise their families.  So the DJIA doesn’t necessarily show how well the middle class is doing.  But there is an economic indicator that does.  The labor force participation rate.  Which shows the percentage of people who could be working that are working.  So if the labor force participation rate (LFPR) is increasing it means more people looking for a job can find a job.  Allowing more people to be able to pay their bills, put food on their tables and raise their families.

These two economic indicators (the DJIA and the LFPR) can give us an idea of how both Wall Street and Main Street are doing.  Ideally you’d want to see both increasing.  A rising DJIA shows businesses are growing.  Allowing Wall Street to profit from rising stock prices.  While those growing businesses create jobs for Main Street.   If we look at these economic indicators over time we can even see which ‘street’ an administration’s policies favor.   Interestingly, it’s not the one you would think based on the political rhetoric.

Wall Street grew 75% Richer under Clinton than it did under Reagan while Main Street grew 65% Poorer

Those going through our public schools and universities are taught that capitalism is unfair.  Corporations are evil.  And government is good.  The Democrats favor a growing welfare state.  Funded by a highly progressive tax code.  That taxes rich people at higher tax rates.  While Republicans favor a limited government.  A minimum of government spending and regulation.  And lower tax rates.  Therefore the Republicans are for rich people and evil corporations.  While the Democrats are for the working man.  Our schools and universities teach our kids this.  The mainstream media reinforces this view.  As does Hollywood, television and the music industry.  But one thing doesn’t.  The historical record (see Civilian Labor Force Participation Rate and Recessions 1950-Present and Dow Jones Industrial Average Index: Historical Data).

DJIA vs Labor Force Participation Rate - Reagan

The Democrats hated Ronald Reagan.  Because he believed in classical economics.  Which is what made this country great.  Before Keynesian economics came along in the early 20th Century.  And ushered in the era of Big Government.  Reagan reversed a lot of the damage the Keynesians caused.  He tamed inflation.  Cut taxes.  Reduced regulation.  And made a business-friendly environment.  Where the government intervened little into the private sector economy.  And during his 8 years in office we see that BOTH Wall Street (the Dow Jones Industrial Average) and Main Street (the labor force participation rate) did well.  Contrary to everything the left says.  The DJIA increased about 129%.  And the LFPR increased about 3.4%.  Indicating a huge increase of jobs for the working class.  Showing that it wasn’t only the rich doing well under Reaganomics.  The policies of his successor, though, changed that.  As Wall Street did better under Bill Clinton than Main Street.

DJIA vs Labor Force Participation Rate - Clinton

Despite the Democrats being for the working man and Bill Clinton’s numerous statements about going back to work to help the middle class (especially during his impeachment) Wall Street clearly did better than Main Street under Bill Clinton.  During his 8 years in office the LFPR increased 1.2%.  While the DJIA increased 226%.  Which means Wall Street grew 75% richer under Clinton than it did under Reagan.  While Main Street grew 65% poorer under Clinton than it did under Reagan.  Which means the gap between the rich and the middle class grew greater under Clinton than it did under Reagan.  Clearly showing that Reagan’s policies favored the Middle Class more than Clinton’s policies did.  And that Clinton’s policies favored Wall Street more than Regan’s did.  Which is the complete opposite of the Democrat narrative.  But it gets worse.

The Historical Record shows the Rich do Better under Democrats and the Middle Class does Better under Republicans

The great economy of the Nineties the Democrats love to talk about was nothing more than a bubble.  A bubble of irrational exuberance.  As investors borrowed boatloads of cheap money thanks to artificially low interest rates.  And poured it into dot-com companies that had nothing to sell.  After these dot-coms spent that start-up capital they had no revenue to replace it.  And went belly-up in droves.  Giving George W. Bush a nasty recession at the beginning of his presidency.  Compounded by the 9/11 terrorist attacks.

DJIA vs Labor Force Participation Rate - Bush

The LFPR fell throughout Bush’s first term as all those dot-com jobs went away in the dot-com crash.  Made worse by the 9/11 attacks.  As all the malinvestments of the Clinton presidency were wrung out of the economy things started to get better.  The LFPR leveled off and the DJIA began to rise.  But then the specter of Bill Clinton cast another pall over the Bush presidency.  Clinton’s Policy Statement on Discrimination in Lending forced lenders to lower their lending standards to qualify more of the unqualified.  Which they did under fear of the full force and fury of the federal government.  Using the subprime mortgage to put the unqualified into homes they couldn’t afford.  This policy also pressured Fannie Mae and Freddie Mac to buy these toxic subprime mortgages from these lenders.  Freeing them up to make more toxic loans.  This house of cards came crashing down at the end of the Bush presidency.  Which is why the DJIA fell 19.4%.  And the LFPR fell 2.1%.  Even though the economy tanked thanks to those artificially low interest rates that brought on the subprime mortgage crisis and Great Recession both Wall Street and Main Street took this rocky ride together.  They fell together in his first term.  Rose then fell together in his second term.  Something that didn’t happen in the Obama presidency.

DJIA vs Labor Force Participation Rate - Obama

During the Obama presidency Wall Street has done better over time.  Just as Main Street has done worse over time.  This despite hearing nothing about how President Obama cares for the middle class.  When it is clear he doesn’t.  As his policies have clearly benefited rich people.  Wall Street.  While Main Street suffers the worst economic recovery since that following the Great Depression.  So far during his presidency the LFPR has fallen 3.7%.  While the DJIA has risen by 86%.  Creating one of the largest gaps between the rich and the middle class.  This despite President Obama being the champion of the middle class.  Which he isn’t.  In fact, one should always be suspect about anyone claiming to be the champion of the middle class.  As the middle class always suffers more than the rich when these people come to power.  Just look at Venezuela under Hugo Chaves.  Where the rich got richer.  And the middle class today can’t find any toilet paper to buy.  This is what the historical record tells us.  The rich do better under Democrats.  And the middle class does better under Republicans.  Despite what our schools and universities teach our kids.  Or what they say in movies and television.

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Debt, Jobs and Criticism—Carter, Reagan, Clinton, Bush and Obama

Posted by PITHOCRATES - November 19th, 2013

History 101

The Democrats used the Power of the Purse to oppose the Reagan Agenda wherever they Could

The left hated President Reagan.  They called him just a “B” movie actor.  With many references to Bedtime for Bonzo.   With the implication that Reagan was a chimpanzee.  He was called stupid.  Senile.  And they said he hated the poor.  The usual stuff when it comes to Democrats calling the opposition names.  But as about as demeaning as it gets.  For the Democrats hated Ronald Reagan with a passion.  They may have hated him even more than George W. Bush.  Another president they called stupid.  Even making similar chimpanzee references.

They fought Reagan tooth and nail.  The Democrats held the House and they used the power of the purse to oppose the Reagan agenda wherever they could.  So Reagan had to compromise on some things.  Especially tax hikes.  But for the most part he kept his word to the American people.  And maintained high approval ratings.  Making it harder for the Democrats to block all of the Reagan agenda.  Which just made the left hate him more.

It’s funny the short memories Democrats have.  For any criticism of President Obama is met with charges of racism.  And because of that few criticize him.  Because no one wants to be called a racist.  Giving President Obama a free pass for most if his presidency.  Something neither George W. Bush nor Ronald Reagan ever enjoyed.  Yet the left says the right says the most vile things about President Obama.  Unprecedented things.  Like calling him a liar when he lied during the State of the Union Address.  Which must be different from saying ‘Bush lied people died’ over and over again.

President Obama is on Pace to add more Debt than Ronald Reagan

Among the terrible things the left said Ronald Reagan was doing was running up the debt to unsustainable levels.  And he did run up the debt.  About 99.4% during his 8 years.  Or about 12.4% a year.  Much of that spending, though, was to reverse the damage Jimmy Carter did to national defense.  He had gutted defense spending so much (cancelling bombers and missile programs) that the Soviet Union thought for the first time that they could win a nuclear war against the United States.  At least with Jimmy Carter as president.  They actually started drafting nuclear first-strike plans to replace the deterrence of mutually assured destruction (MAD).  Anyway, that spending led to the collapse of the Soviet Union.  Allowing the U.S. to win the Cold War.  Giving Bill Clinton a huge peace dividend during his presidency.

Bill Clinton wanted to nationalize health care.  And it didn’t go over well.  His big spending liberal agenda got neutered at the midterm elections.  As he angered the people so much the Republicans won both the House and Senate.  Forcing Clinton to the center.  Dropping any thoughts of national health care.  With Republicans even forcing welfare reform on him.  The Republican Revolution kept spending down.  And the debt only grew 13.6% during Clinton’s 8 years.  Or about 1.7% a year.

After the 9/11 terrorist attacks George W. Bush ramped up military spending.  For national security.  And two wars.  He also ramped up domestic spending.  Giving us Medicare Part D.  A program to subsidize the prescription drugs for Medicare recipients.  In the 8 years of the Bush presidency he added about 41.4% to the national debt.  About 5.2% a year.  Which sounded like a lot until President Obama came along.  A near trillion dollar stimulus bill that stimulated little.  Investments into failed solar power companies and electric car companies.  Automotive (i.e., union pension fund) bailouts.  In his 5 years in office Obama has raised the debt by 53.8%.  Or 10.8% each of his 5 years.  A little more than twice the rate of George W. Bush.  At this pace he will even add more debt than Ronald Reagan.  Adding up to 18.3% per year (over 8 years) if no one stops his spending.

Under President Obama the Gap between Black and White Unemployment grew Greater

President Obama said those ‘wise’ investments and higher taxes on those who could afford to pay a little more would generate economic activity.  His income redistribution would balance the playing field.  And raise the poor out of poverty.  While people everywhere celebrated the first black president.  For it would bring the races together.  This is why some on the right joked that President Obama was the messiah.  Because he was going to do all of that.  As well as make the ocean levels fall.  Black America especially loved the nation’s first black president.  As 95% of the black vote went to Obama in 2008.  Though the enthusiasm waned a bit in 2012.  As only 93% of the black vote went to Obama.  And how has black American done under the Obama economic policies.  Well, not as good as they did under the Bush economic policies (see archived data from Table A-2. Employment status of the civilian population by race, sex, and age in the Employment Situation Archived News Releases by the Bureau of Labor Statistics).

Unemplyment Rates by Race Age Sex 2003-2013 R2

The Great Recession officially ran from December 2007 to June 2009.  Which corresponds to the transition from George W. Bush to Barack Obama.  People often call the Great Recession the worst recession since the Great Depression.  Of course they say that primarily because the current economic recovery is the worst since that following the Great Depression.  And the reason for that is President Obama’s economic policies.

Unemployment was lower for everyone under Bush.  On average the unemployment rate for white/black men, women and 16-19 year olds under Bush was 4.2%/9.3%, 4.0%/8.2% and 14.7%/31.1%, respectively.  Under President Obama these numbers jumped to 7.8%/15.7%, 6.7%/12.2% and 21.8%/40.3%.  Which should give black America cause for concern.  For under President Obama the gap between black and white unemployment grew greater.  The gap between black and white men went from 5.1 to 7.9.  An increase of 55.6%.  The gap between black and white women went from 4.2 to 5.5.  An increase of 32.9%.  And the gap between black and white 16 to 19 year olds went from 16.5 to 18.5.  An increase of 12.7%.  So whatever President Obama is doing it isn’t helping America find work.  Especially black America.

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Bush didn’t Lie but President Obama Did

Posted by PITHOCRATES - October 31st, 2013

 Politics 101

Bill Clinton said in a 2005 Interview that the 1981 Israeli Bombing of an Iraqi Nuke Plant was a Good Thing

“Bush lied people died.”  You heard that a lot all during President Bush’s presidency.  The left was shouting it from the mountain top.  “Bush lied people died!”  Saying that the dumbest man ever to occupy the White House fooled the most brilliant people in the world—liberal Democrats—into voting for the invasion of Iraq.  Because Saddam Hussein had weapons of mass destruction (WMD).

Saddam Hussein used WMDs on March 16, 1988.  It was the closing days of the Iran-Iraq War.  In the Kurdish town of Halabja in Northern Iraq.  Hussein was no friend of the Kurds.  And the Kurds had no love for Hussein.  Which is why Kurdish guerillas fought with the Iranians against Saddam Hussein.  And after the Iranians took this Kurdish town in northern Iraq Hussein had no problem with committing an act of genocide in Halabja.  Which he did on March 16, 1988.  The largest chemical attack against a civilian population in history.

On June 7, 1981, Israel carried out a surprise bombing of an Iraqi nuclear reactor under construction.  For they feared a Saddam Hussein with nuclear weapons.  During the Persian Gulf War the Americans bombed what was left of that nuclear reactor.  For they, too, feared a Saddam Hussein with nuclear weapons.  Though publicly condemned by pretty much everyone at the time of the bombing most were probably happy the Israelis did that unpleasant task for them.  Even Bill Clinton said in a 2005 interview that the bombing was a good thing.

Saddam Hussein violated the Terms of the Gulf War Cease Fire by not Documenting the Destruction of his WMDs

The Congress saw the same intelligence the Bush administration saw in the run-up to the Iraq War.  It was so convincing that Joe Biden, Hillary Clinton, John Kerry and Harry Reid voted to give George W. Bush the authority to invade Iraq.  Who all feared a Saddam Hussein with WMDs.  For as bad as 9/11 was it could have been worse if the terrorists had WMDs.  Hussein had WMDs.  And he had no moral compunction against using them.  As proven by Halabja.  Making him a very dangerous man in a world where terrorists who hate America are in the market for WMDs.

So there was a very strong case against Saddam Hussein.  Especially when you throw in his violation of the terms of the Gulf War cease fire agreement.  In particular the documentation of his destruction of his WMDs that he agreed to do.  Which was a tantamount admission of having them.  WMDs.  But he didn’t document the destruction of his WMD stockpiles.  Because he did not destroy them.  Which meant one thing.  He still had weapons of mass destruction.  Which is probably why Joe Biden, Hillary Clinton, John Kerry and Harry Reid voted to give George W. Bush the authority to invade Iraq.  For they were terrified…of being on the wrong side of history when those WMDs they knew he had were found.

Well, we found no WMDs in Iraq.  Probably because Hussein shipped them off to Syria for safekeeping.  Assuming he would remain in power after the Iraq War.  Just as he remained in power after the Gulf War.  After the invasion nonsense was done he could go to Syria and take his WMDs back.  And perhaps get them into the hands of a terrorist for use against an American city.  To retaliate for the big headache George W. Bush gave him.  Of course his subsequent capture and execution put a wrench into all future plans he may have had.

Liberals play Fast and Loose with the Truth as Telling the Truth rarely helps the Liberal Agenda

President Obama made some promises about Obamacare during the Affordable Care Act debate.  Because the people were against it.  They didn’t want anything near quasi national health care.  So he kept saying that Obamacare wasn’t a government takeover of our health care system.  And that it would actually make the private health insurance industry better.  It would cover more.  While costing less.  And the best thing about the Affordable Care Act was this (see Obama’s pledge that ‘no one will take away’ your health plan by Glenn Kessler posted 10/30/2013 on The Washington Post).

“That means that no matter how we reform health care, we will keep this promise to the American people: If you like your doctor, you will be able to keep your doctor, period. If you like your health-care plan, you’ll be able to keep your health-care plan, period. No one will take it away, no matter what.”

The Fact Checker on The Washington Post gave this statement Four Pinocchios.  Their highest level of dishonesty.   Or ‘whoppers’.  As About The Fact Checker calls Four Pinocchios.  Basically saying the president lied about Obamacare to get the Affordable Care Act passed into law.  And lied again to win reelection.  For the election results may have been different if he had told the truth.  If he had said that some will lose their doctors and some will lose their health-care plan.  If he had said that premiums and deductibles would rise.  If he had would the people who had insurance and doctors they liked vote for him?  No.  Probably not. 

So President Obama and the Democrats told lies that deceived a great many people to get what he couldn’t get by telling the truth.  Obamacare.  One of the most divisive pieces of legislation ever passed in Congress.  Passed on purely partisan lines.  No Republicans voted for the Affordable Care Act.  Unlike the legislation that gave George W. Bush the authority to invade Iraq.  Which had bipartisan support.  With both Republicans and Democrats voting for it.  Yet the left said, “Bush lied people died.”  But when it comes to President Obama’s flagrant lies about the Affordable Care Act all you hear are crickets from the left.  Because for them the truth is whatever they say it is.  And a lie is whatever they say it is.  For the only way to pass their liberal agenda is to play fast and loose with the truth.  As telling the truth rarely helps the liberal agenda.

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FT192: “One of the worst things about being conservative is enduring the unfunny comedy on liberal television.” —Old Pithy

Posted by PITHOCRATES - October 18th, 2013

Fundamental Truth

Marijuana and Youth make Juvenile Humor Funny

When I was a wee little one I used to read Mad Magazine.  Granted, most of the political humor was over my head.  But there was a lot of stuff in that magazine that made me laugh.  Many years later I can still remember some of that humor.  Including a piece about two sober people attending a George Carlin standup comedy show.

Marijuana had just migrated from the counterculture to the general population.  And into our schools.  A lot of school kids were getting high.  Which is what people did back then at concerts.  Rock concerts.  And standup comedy.  Especially with a counterculture icon like George Carlin.  With his seven dirty words you can’t say on television.  And all his trouble with ‘the man’ because of those seven dirty words.

At a George Carlin comedy show in that Mad Magazine piece they showed a crowd laughing their behinds off.  While the two sober people aren’t even cracking a smile.  Finding nothing funny.  What they hear is juvenile humor that might make a child laugh.  But not a mature adult.  Then the punch-line is something like this.  One of the two sober people says, “This is the last time we come to one of these concerts without getting stoned first.”

Liberal Audiences are like Children in Grade School who will laugh if someone calls their Teacher a Poopy Head

Smoking marijuana tends to make people laugh.  Almost without being able to stop laughing.  For everything is funny when high.  The more juvenile the funnier.  Where poopies and passing gas are just plain hilarious.  As their state of mind is not exactly at its sharpest level.  Regressing back to childhood.  And laughing at the same things they laughed at as a child.  Among other things.  Kids will always laugh when someone rips a loud one.  While adults are typically disgusted and just want to move away.

The young typically vote liberal.  And enjoy the liberal television shows.  The people laughing in the audiences of Saturday Night Live and The Daily Show are either young or liberal.  Or both.  Who don’t need to be stoned to laugh.  As long as it’s juvenile.  And it attacks conservatives.  Which they find funny.  Or know the proper thing for a liberal to do is to laugh whenever anyone makes fun of a conservative.

Liberal audiences are like those stoned people watching George Carlin in that Mad Magazine.  While conservatives are like those two sober people trying to figure out what’s so funny.  Those liberal audiences are like children in grade school who will laugh if someone calls their teacher a poopy head.  Only on liberal television they’re calling conservatives poopy heads.  While the grownups find little humor in this or being the butt of a joke.  And a bad joke at that.

It was really only in the Last Year that Liberal Late-Night Television made fun of President Obama

One of the worst things about being conservative is enduring the unfunny comedy on liberal television.  A lot of us grew up watching Saturday Night Live.  And laughed our asses off when Dan Aykroyd called Jane Curtain an ignorant slut on Point Counterpoint.  When poor Mr. Bill got squashed by Mr. Hand.  When Phil Hartman did Frank Sinatra in the Sinatra Group (I got chunks of guys like you in my stool).  Christopher Walken saying he needed more cowbell.  And so many more classic moments.  Over time, though, the show wasn’t as funny as it once was.  Especially for conservatives.

During the George W. Bush administration SNL was brutal.  They hated Bush.  And the writing showed it.  It was funny if you hated Bush, too.  But if you were a conservative you basically were insulted for 90 minutes of television.  And then there was Tina Fey.  And her Sarah Palin impersonation.  Where all the SNL viewers heard Fey say as Palin that she knew all about foreign policy because she could see Russia from her porch in Alaska.  Something Sarah Palin never said.  But the world believed she did after watching SNL.

Parody is one thing.  And SNL did it better than most.  With cast members like Phil Hartman, Will Ferrell and Darrell Hammond giving us some of the most memorable impersonations.  But through the years those parodies got ruder and meaner when it came to skewering those on the right.  But treaded lightly when it came to those on the left.  It was really only in the last year that liberal late-night television made fun of President Obama.  Causing those on the right to laugh their asses off.  Because for once liberals are not mean and rude but truly funny.  For it no doubt pains them to even lampoon those on the left.  And they only will do it when the comic material is just too good to pass up.  Unlike their attacks on the right.  Where Jon Stewart on The Daily Show calls those on the right the most vulgar of names.  While his audience laughs their asses off.  Just as if some kid called their teacher a poopy head.

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Human Rights Violations are Worse in North Korea but Liberals would rather punish Syria for Theirs

Posted by PITHOCRATES - September 7th, 2013

Week in Review

The Syrian civil war began in March of 2011.  And is still ongoing.  Some two and a half years later.  And over 100,000 killed.  While displacing close to 3 million refugees.  It is a devastating conflict.  But President Obama made no attempt to help the opposition topple the Assad government.  Despite it being a close ally of Iran.  No, President Obama did nothing to intervene just as he chose to sit out Iran’s Green Revolution.  Another regime that can be pretty cruel to its people.  Yet President Obama told Hosni Mubarak that he had to leave Egypt.  And he used U.S. airpower to help topple Colonel Gaddafi from power in Libya.  Both men were U.S. allies at the time when President Obama helped unseat them from power.  Yet two countries that can’t be considered friends of the United States in any way (Iran and Syria) he does nothing.  Odd.

The Syrian civil war has been going on for so long that al Qaeda joined in.  Looking to fill that power vacuum should the Assad regime fall.  As the civil war intensified and the opposition begged for foreign aid President Obama stood firm.  Not wishing to get involved.  Unless the Syrians crossed the red line.  And used chemical weapons.  Well, someone used chemical weapons.  We’re not sure who did.  It may well have been the opposition to get the U.S. to bomb a stubborn Assad government out of power.  But people died from the use of chemical weapons.  Perhaps as many as 1,500.  Of which about 500 have been children.  A tragedy too great to even contemplate.  And one that made President Obama go to Congress to get permission to wage war on those responsible.  With many on the left supporting his call for a military response.  Which is highly unusual to say the least.

Now chemical weapons are horrible and frightening.  But an additional 1,500 dead after 100,000 already lost their lives?  Those chemical deaths are only about 1.5% of the total dead.  When Saddam Hussein killed 3,200-5,000 Kurds and Iranians in a Chemical attack on the town of Halabja there wasn’t quite the same response from the left.  In fact, when Saddam Hussein failed to document the destruction of his chemical stock piles per the treaty that ended the Gulf War they still showed little concern.  Though they did vote to give George W. Bush permission to wage war against Iraq as the polls showed they were on the wrong side of the issue when they at first opposed the measure.  Even calling for a second vote to get their vote on the record.  But when no weapons of mass destruction were found they were both embarrassed and elated.  Saying that Bush lied to get the country into war.  Due to flawed intelligence reports.  And a strong desire to go to war.  To finish what his dad started in the Gulf War.  They have attacked Bush mercilessly ever since.  But now the shoe is on the other foot.  And here they are wanting to go to war because of weapons of mass destruction.  Many of which could be from Iraq.  Delivered on trucks seen leaving Iraqi weapons dumps on the eve of war.  Or flown to Syria (see Syria’s Chemical Weapons Came From Saddam’s Iraq posted 7/19/2013 on IBD).

But none of that matters now.  What does is that someone in Syria crossed the red line.  And because innocent men, women and children died from poison gas we have to do something.  Even though we haven’t done a damn thing to help people suffering under worse tyrants for about half a century in North Korea (see Up to 20,000 North Korean prison camp inmates have ‘disappeared’ says human rights group by Julian Ryall posted 9/5/2013 on The Telegraph).

There are fears that up to 20,000 may have been allowed to die of disease or starvation in the run-up to the closure of the camp at the end of last year…

The report, North Korea’s Hidden Gulag: Interpreting Reports of Changes in the Prison Camps, reveals that two camps have been shut down in the last year but that 130,000 individuals are still being held in penal labour colonies across the country.

“Through this vast system of unlawful imprisonment, the North Korean regime isolates, banishes, punishes and executes those suspected of being disloyal to the regime,” the report states.

“They are deemed ‘wrong-thinkers’, ‘wrong-doers’, or those who have acquired ‘wrong-knowledge’ or have engaged in ‘wrong-associations’…”

Reports suggest that a severe food shortage meant that little was passed on to inmates and that numbers dwindled rapidly from 30,000 to 3,000…

“North Korea’s 2009 currency devaluation (whereby camp authorities were reportedly unable to purchase food in markets to supplement the crops grown in the camps), combined with bad harvests, resulted in the death of large numbers of prisoners after 2010,” the report states…

Inmates – who can be imprisoned for life, along with three generations of their families, for anything deemed to be critical of the regime – are forced to survive by eating frogs, rats and picking corn kernels out of animal waste.

Activists say that as many as 40 percent of inmates die of malnutrition, while others succumb to disease, sexual violence, torture, abuse by the guards or are worked to death. Men, women and children are required to work for up to 16 hours a day in dangerous conditions, often in mines or logging camps.

Things are bad in Syria.  But North Korea has just about the poorest record on humans rights in the world.  And this has been going on for decades.  You almost have to go back to Nazi Germany to see oppression on this scale.  But do we attack North Korea?  More women and children have suffered and died in North Korea than they have in Syria.  So why Syria and not North Korea?

North Korea does have nuclear weapons.  And a border with China.  Are these the things that eliminate principles?  Killing women and children is wrong in Syria but it’s okay in North Korea?  Is this all it takes to devalue the lives of women and children?  If so God help the women and children of the Middle East when Iran gets their nuclear weapons.

A lot of liberals hate the military.  And jocks.  As these people bullied a lot of liberals back in high school.  Which is why a lot of them go into government.  To have power over other people that they never had before.  But they’re still that kid in high school.  They’ll push around Egypt and Libya when it seems everyone in the area is against them.  Nations they feel they can bully without any repercussions.  But an Iran or a North Korea?  That’s like walking up to and punching the big bully in high school.  Something they were too frightened to do in High School.  And are still too frightened to do now.

Except in Syria.  Which is now more of a religious conflict along the great Sunni-Shia divide of Islam.  With the extreme elements of both sides fighting it out in Syria.  Perhaps this is why the president and the left are willing to intervene now.  Because whoever wins now in Syria will likely be anti-American.  Just like Libya turned out with four dead Americans in Benghazi.  And just like Egypt fell to the Muslim Brotherhood after President Obama told Hosni Mubarak he had to go.  Perhaps they’ll feel safer because they helped our enemies a little.  And because of that our enemies will now like us.  And they will stop giving us wedgies and noogies.  Figuratively, of course.

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The Dow Jones Industrial Average and the Labor Force Participation Rate from Ronald Reagan to Barack Obama

Posted by PITHOCRATES - May 21st, 2013

History 101

The DJIA and the Labor Force Participation Rate tell us how both Wall Street and Main Street are Doing

Rich people don’t need jobs.  They can make money with money.  Investing in the stock market.  When you see the Dow Jones Industrial Average (DJIA) increasing you know rich people are getting richer.  Whereas the middle class, the working people, aren’t getting rich.  But they may be building a retirement nest egg.  Which is good.  So they benefit, too, from a rising DJIA.  But that’s for later.  What they need now is a job.  Unlike rich people.  The middle class typically lives from paycheck to paycheck.  So more important to them is a growing job market.  Not so much a growing stock market.  For the middle class needs a day job to be able to invest in the stock market.  Whereas rich people don’t.  For a rich person’s money works enough for the both of them.

So the Dow Jones Industrial Average shows how well rich people are doing.   And how well the working class’ retirement nest eggs are growing for their retirement.  But it doesn’t really show how well the middle class is living.  For they need a job to pay their bills.  To put food on their tables.  And to raise their families.  So the DJIA doesn’t necessarily show how well the middle class is doing.  But there is an economic indicator that does.  The labor force participation rate.  Which shows the percentage of people who could be working that are working.  So if the labor force participation rate (LFPR) is increasing it means more people looking for a job can find a job.  Allowing more people to be able to pay their bills, put food on their tables and raise their families.

These two economic indicators (the DJIA and the LFPR) can give us an idea of how both Wall Street and Main Street are doing.  Ideally you’d want to see both increasing.  A rising DJIA shows businesses are growing.  Allowing Wall Street to profit from rising stock prices.  While those growing businesses create jobs for Main Street.   If we look at these economic indicators over time we can even see which ‘street’ an administration’s policies favor.   Interestingly, it’s not the one you would think based on the political rhetoric.

Wall Street grew 75% Richer under Clinton than it did under Reagan while Main Street grew 65% Poorer

Those going through our public schools and universities are taught that capitalism is unfair.  Corporations are evil.  And government is good.  The Democrats favor a growing welfare state.  Funded by a highly progressive tax code.  That taxes rich people at higher tax rates.  While Republicans favor a limited government.  A minimum of government spending and regulation.  And lower tax rates.  Therefore the Republicans are for rich people and evil corporations.  While the Democrats are for the working man.  Our schools and universities teach our kids this.  The mainstream media reinforces this view.  As does Hollywood, television and the music industry.  But one thing doesn’t.  The historical record (see Civilian Labor Force Participation Rate and Recessions 1950-Present and Dow Jones Industrial Average Index: Historical Data).

DJIA vs Labor Force Participation Rate - Reagan

The Democrats hated Ronald Reagan.  Because he believed in classical economics.  Which is what made this country great.  Before Keynesian economics came along in the early 20th Century.  And ushered in the era of Big Government.  Reagan reversed a lot of the damage the Keynesians caused.  He tamed inflation.  Cut taxes.  Reduced regulation.  And made a business-friendly environment.  Where the government intervened little into the private sector economy.  And during his 8 years in office we see that BOTH Wall Street (the Dow Jones Industrial Average) and Main Street (the labor force participation rate) did well.  Contrary to everything the left says.  The DJIA increased about 129%.  And the LFPR increased about 3.4%.  Indicating a huge increase of jobs for the working class.  Showing that it wasn’t only the rich doing well under Reaganomics.  The policies of his successor, though, changed that.  As Wall Street did better under Bill Clinton than Main Street.

DJIA vs Labor Force Participation Rate - Clinton

Despite the Democrats being for the working man and Bill Clinton’s numerous statements about going back to work to help the middle class (especially during his impeachment) Wall Street clearly did better than Main Street under Bill Clinton.  During his 8 years in office the LFPR increased 1.2%.  While the DJIA increased 226%.  Which means Wall Street grew 75% richer under Clinton than it did under Reagan.  While Main Street grew 65% poorer under Clinton than it did under Reagan.  Which means the gap between the rich and the middle class grew greater under Clinton than it did under Reagan.  Clearly showing that Reagan’s policies favored the Middle Class more than Clinton’s policies did.  And that Clinton’s policies favored Wall Street more than Regan’s did.  Which is the complete opposite of the Democrat narrative.  But it gets worse.

The Historical Record shows the Rich do Better under Democrats and the Middle Class does Better under Republicans

The great economy of the Nineties the Democrats love to talk about was nothing more than a bubble.  A bubble of irrational exuberance.  As investors borrowed boatloads of cheap money thanks to artificially low interest rates.  And poured it into dot-com companies that had nothing to sell.  After these dot-coms spent that start-up capital they had no revenue to replace it.  And went belly-up in droves.  Giving George W. Bush a nasty recession at the beginning of his presidency.  Compounded by the 9/11 terrorist attacks.

DJIA vs Labor Force Participation Rate - Bush

The LFPR fell throughout Bush’s first term as all those dot-com jobs went away in the dot-com crash.  Made worse by the 9/11 attacks.  As all the malinvestments of the Clinton presidency were wrung out of the economy things started to get better.  The LFPR leveled off and the DJIA began to rise.  But then the specter of Bill Clinton cast another pall over the Bush presidency.  Clinton’s Policy Statement on Discrimination in Lending forced lenders to lower their lending standards to qualify more of the unqualified.  Which they did under fear of the full force and fury of the federal government.  Using the subprime mortgage to put the unqualified into homes they couldn’t afford.  This policy also pressured Fannie Mae and Freddie Mac to buy these toxic subprime mortgages from these lenders.  Freeing them up to make more toxic loans.  This house of cards came crashing down at the end of the Bush presidency.  Which is why the DJIA fell 19.4%.  And the LFPR fell 2.1%.  Even though the economy tanked thanks to those artificially low interest rates that brought on the subprime mortgage crisis and Great Recession both Wall Street and Main Street took this rocky ride together.  They fell together in his first term.  Rose then fell together in his second term.  Something that didn’t happen in the Obama presidency.

DJIA vs Labor Force Participation Rate - Obama

During the Obama presidency Wall Street has done better over time.  Just as Main Street has done worse over time.  This despite hearing nothing about how President Obama cares for the middle class.  When it is clear he doesn’t.  As his policies have clearly benefited rich people.  Wall Street.  While Main Street suffers the worst economic recovery since that following the Great Depression.  So far during his presidency the LFPR has fallen 3.7%.  While the DJIA has risen by 86%.  Creating one of the largest gaps between the rich and the middle class.  This despite President Obama being the champion of the middle class.  Which he isn’t.  In fact, one should always be suspect about anyone claiming to be the champion of the middle class.  As the middle class always suffers more than the rich when these people come to power.  Just look at Venezuela under Hugo Chaves.  Where the rich got richer.  And the middle class today can’t find any toilet paper to buy.  This is what the historical record tells us.  The rich do better under Democrats.  And the middle class does better under Republicans.  Despite what our schools and universities teach our kids.  Or what they say in movies and television.

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FT164: “If the poor ever stopped being poor the Democrats would have trouble winning elections.” —Old Pithy

Posted by PITHOCRATES - April 5th, 2013

Fundamental Truth

There is no Greater Killer of Poverty than a Job-Creating Free Market Economy

A lot of people vote Democrat because of the perception that the Democrats are for the little guy.  The working man.  The poor.  The disenfranchised.  The sick.  The maimed.  Children.  Women.  Minorities.  Gays.  Lesbians.  Etc.  While Republicans are for rich white men, bankers, corporate executives, Wall Street investors, etc.  Democrats care about people.  While Republicans care about profits.  Democrats good.  Republicans bad.  At least, that’s the common perception in much of America.

The working man.  That’s who the Democrats are for.  The working man.  And what exactly does ‘the working man’ mean?  It means men who are working.  Obviously.  (We’re using the term ‘working man’ because it’s long been part of the lexicon of the Democrat Party.  But we include both men and women when using the expression ‘the working man’.)  The Democrats champion unions to protect the working man.  And to show their gratitude the unions put all their financial support behind Democrat candidates.  So putting people into good jobs is a very important mission for the Democrat Party.  At least that is the perception.

Jobs.  They are important.  For there is no greater killer of poverty than a job.  Countries that have advanced free market economies have plenty of good-paying jobs.  Where much of the populace lives well above poverty.  Like in Chile.  After Milton Friedman and the Chilean economists known as the ‘Chicago Boys’ ignited free market principles in Chile starting in 1973.  Countries that don’t have advanced free market economies have few good-paying jobs.  Where much of their populace lives in abject poverty.  Such as in Haiti.  And these prosperity/poverty levels impact more than just day-to-day life.

The United States has a High Standard of Living because of a Business-Friendly Environment

Chile suffered a magnitude 8.8 earthquake in 2011.  One of the largest earthquakes ever to be recorded in history.  It claimed approximately 525 lives.  Haiti suffered a magnitude 7.0 earthquake in 2010.  Less powerful than the Chilean earthquake.  Yet the Haitian earthquake claimed approximately 220,000 lives.  The difference between these two death tolls?  More people have good-paying jobs in Chile than they do in Haiti.  Giving Chile a more advanced free market economy.  And better building codes and standards.  Allowing them to survive a stronger earthquake with less loss of life.

This is what jobs give you.  Working people have money to spend.  And working people have money to pay taxes.  Which can lift people out of poverty.  And lift nations out of poverty.  Which is why the United States has such a high standard of living.  Their economy became the number one economy in the world because they had so many jobs.  Thanks to a very business-friendly environment.  The Americans encouraged entrepreneurship.  And supported it with a sound banking system that encouraged capital formation.  Thanks to all those workers saving some of their earnings for the future.  Savings that provided the capital that built America.

So jobs are good.  And providing jobs for the working man is even better.  Because that’s what a working man wants.  A job.  So the Democrats, then, should be all about job creation.  If they are for the working man.  As is the perception.  But is this perception correct?  Well, if you determine that by the number of jobs they’ve created, no.

The Obama Policies are Business Unfriendly to Keep People Poor so the Democrats have Someone to Champion

Before George W. Bush became president in 2001 there were 210,743,000 in the civilian non-institutional population (see Employment Situation Archived News Releases).  Basically those who could have a job.  Of those who could have a job there were 141,489,000 in the civilian labor force.  By the time Bush left office there were 154,587,000 in the civilian labor force.  An increase of 13,098,000 to the civilian labor force.  Which is an increase of 1,637,240 annually.  Or 136,438 monthly.  So this is what a Republican did for the working man.  Now let’s see what a Democrat did.

Before Barack Obama became president in 2009 there were 154,687,000 in the civilian labor force.  At the end of March 2013 there were 155,028,000 in the civilian labor force.  An increase of 441,000.  Which is an increase of 103,765 annually.  Or 8,647 monthly.  The Bush economy created more jobs in a month that the Obama economy created in a year.  In fact, for every job the Obama economy created the Bush economy created 15.8 jobs.  So if you determine who is for the working many by who gives the working man more of what he wants, jobs, it is clear that the Republican is for the working man.  Not the Democrat.

No, President Obama’s economic policies are not business-friendly.  They are decidedly unfriendly to business.  Even punitive.  Which is why there has been no real job creation with the Obama economic policies.  Wall Street may be doing well.  The stock market may be doing well.  But the working man sure isn’t.  In fact, those who are doing well in the Obama economy are rich white men, bankers, corporate executives, Wall Street investors, etc.  So if the Democrats are not for the working man who are they for?  Poor people.  In fact, they love poor people so much that they work hard at keeping them poor.  Giving them a meager government handout instead of a job.  Which is how they win elections.  By giving poor people free stuff.  And if the poor ever stopped being poor the Democrats would have trouble winning elections.  Which is why the Obama economic policies are so business unfriendly.  So there are always poor and impoverished people they can champion.

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Imagine what the Left would be saying if President Obama was a Republican

Posted by PITHOCRATES - February 7th, 2013

Politics 101

President Obama added more to the Federal Debt in 4 Years than Reagan and Bush did in 8 Years

The Left hated Republican Ronald Reagan.  Because his policies worked.  He cut federal income tax rates.  And those cuts in tax rates increased tax revenue coming into the federal treasury by 75.8% during his 8 years in office (see Table 1.1—Summary of Receipts, Outlays, and Surpluses or Deficits (-): 1789–2017).  Even though the Left likes spending money and loves having more money flowing into the treasury they can’t stand that this growth in tax revenue came from a cut in tax rates.  So they focus on his deficits.

They say, yes, he generated great economic activity, but at what cost?  He added $1.69 trillion to the federal debt (see A History of Debt In The United States) in his 8 years ($2.51 trillion in 2012 dollars).  The Left say he was irresponsible, reckless and was mortgaging our children’s future.  While President Obama has added $5.39 trillion to the federal debt.  In only FOUR years.  That’s just over twice what Reagan added in only half the time.  On top of that tax revenue fell 2.19% from where they were in 2008.  Yet President Obama is not irresponsible, reckless or mortgaging our children’s future.  Instead the Left blames the Republicans because they won’t increase tax rates.

Republican George W. Bush added $3.15 trillion to the federal debt over his 8 years.  President Obama’s 4 years in office outdid that by 1.7 times.  And Bush beefed up homeland security after 9/11.  Fought the War in Afghanistan.  And the Iraq War.  Bush cut taxes, too.  Not as much as Reagan.  Probably explaining why he didn’t increase tax revenues as much as Reagan.  After his 8 years in office he increased tax revenues by 24.6%.  While President Obama decreased tax revenue by 2.19% after his first 4 years in office.  Yet George W. Bush was irresponsible, reckless and mortgaging our children’s future.  While President Obama is not.

President Obama vowed to Shut Down Gitmo and try Khalid Sheikh Mohammed in a U.S. Court

The Left really hated George W. Bush.  They didn’t just want to impeach him.  They wanted to arrest him for war crimes for his invasion of Iraq.  Among other things.  They called him every dirty name in the book.  Even accused him of trying to give himself dictatorial powers.  Which is what the Patriot Act did according to the Left.  There are few things that angered the Left more.  They hated the powers it gave the president in the War on Terror.  Even allowing warrantless wiretaps on Americans.

If an American citizen was talking to someone with known terrorist connections the Bush administration didn’t need to go to a judge.  They could just listen into private phone calls like in any other dictatorship.  The Patriot Act was everything that was wrong with George W. Bush.  And his assault on personal liberties.  But when President Obama renewed the Patriot Act the Left did not call President Obama every dirty name in the book.  Or accuse him of trying to amass dictatorial powers.  After he renewed the Patriot Act all criticism of the Patriot Act just went away.  Just as the daily body count in the Iraq War and the War in Afghanistan went away from the network news broadcasts once President Obama moved into the White House.

As the War on Terror progressed the U.S. started taking terrorists into captivity.  People who wore no uniform.  Who fought for no state signatory to the Geneva Convention.  Who followed no rules.  And killed indiscriminately.  Men.  Women.  Even children.  The U.S. incarcerated these most dangerous outlaws on the island of Cuba.  At Guantanamo Bay Naval Base.  Gitmo.  Including the mastermind of 9/11.  Khalid Sheikh Mohammed.  The Left called this a travesty of justice.  They wanted to shut down Gitmo.  Transfer these men to U.S. prisons in the United States.  And give them proper trials.  They even wanted to try Khalid Sheikh Mohammed in New York City.  Not far from Ground Zero.  For these prisoners in Gitmo deserved the full protection of the American criminal justice system.  Not military tribunals.  President Obama vowed to shut down Gitmo if elected.  And give these outlaws the full protection of the U.S. legal system.

President Obama acted as Judge, Jury and Executioner when Targeting and Killing Americans Abroad

But that’s not the only thing the war criminal George W. Bush did.  He also tortured people.  He water boarded three terrorists.  And held people in foreign countries where they did who knows what to these terrorists.  To gather intelligence.  To help the U.S. interdict terrorist strikes against America.  And to ultimately lead us to Osama bin Laden.  But to the Left these things were just beyond the pale.  Crimes against humanity.  They wanted to do to Bush what Bush was doing to these terrorists.  They even applauded when foreign states issued arrest warrants for George W. Bush should he travel to their countries.  President Obama was going to reverse the damage Bush did to the reputation of the U.S.  And make America the law-abiding nation it once was.

It’s now 2013 and Gitmo is still open.  And those terrorists are still there.  Also, they’re being tried in military tribunals.  Not the American criminal justice system.  Yet the Left doesn’t call President Obama a war criminal.  Terrorist incarcerations are down, too.  Thanks to his policy of drone strikes.  And his kill list.  Instead of capturing terrorists he just kills them.  Without a trial.  Along with any innocent civilians who had the misfortune to be near these terrorists during these drone strikes.  Who are identified as terrorists after the fact.  So his drone strikes don’t kill any innocent civilians.  Not taking prisoners solves the problems of what to do with terrorists in American custody.  But dead terrorists can’t give us intelligence that can interdict future terror strikes.  While dead terrorists and dead innocent civilians incite anti-American sentiment in the Muslim world.  That has led to al Qaeda recruitment.  And attacks on U.S. embassies.

But President Obama is doing something that George W. Bush never did.  While the Left attacked the Bush administration for their legal defense of enhanced interrogation techniques (what the Left calls torture) the Obama administration had a legal defense of their own.  But it wasn’t to justify water boarding three terrorists to gain useful intelligence.  It was for killing Americans in foreign countries who MAY present a threat to the U.S.   Which he has done.  Three times.  Without due process.  Where the president acted as judge, jury and executioner.  Like someone with dictatorial powers.  Yet the Left doesn’t call President Obama a war criminal.  Despite doing a lot of the same things George W. Bush did.  And worse.  Like targeting and killing Americans abroad.

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Class Warfare

Posted by PITHOCRATES - January 3rd, 2013

Politics 101

Over 99.5% of all Rich People ARE paying Federal Income Taxes

President Obama won reelection by denigrating Mitt Romney.  He didn’t win by running on a successful record.  He did not win by running on a plan to pull the economy out of one of the worst recoveries in history.  No.  He won it by getting people to hate Mitt Romney.  And by getting people to hate Republicans.  Who they painted as evil rich people who want nothing more than tax cuts for the rich.  And to take away birth control and abortion so only rich people can have access to them.  As well as taking welfare benefits from the poor.  It’s called class warfare.  And it can be very effective.  For it won President Obama a second term despite a horrible first term by almost any metric you measure it.  At least based on the majority of the electorate that just believed the rich aren’t paying their fair share.  So let’s just see who is paying what (see Table 3.  Number of Individual Income Tax Returns, Income, Exemptions and Deductions, Tax, and Average Tax, by Size of Adjusted Gross Income, Tax Years 2001-2010).

The above chart shows who are NOT paying any federal income tax.  Approximately 40% of all taxpayers.  Are these the evil rich people like Mitt Romney?  And those rich Republicans?  No.  Contrary to the Left, it’s not the rich.  They’re paying their taxes.  It’s the poor and the middle class not paying their fair share.  Those earning $5,000 and less pay virtually no federal income taxes.  Over 80% of those earning from $5,000 to $13,000 pay no federal income taxes.  You have to get up to those earning $25,000 or more before more than half of that income group pays any federal income taxes.

We don’t see who actually pays the majority of federal income taxes until we get into the middle class.  Where those who DON’T pay any federal income taxes rapidly drop away.  Those at the low end of the middle class taking advantage of the tax code to maximize their tax credits and deductions (mortgage interest, energy tax credit, medical and dental Expenses, child and dependent care credit, etc.) to reduce their tax bill.  While those at the higher end of the middle class are likely small business owners suffering a business loss.  Or a personal or business bankruptcy.  Approximately 0.8% of those earning $100,000 – $200,000 pay no federal income taxes.  While less than half of one percent of those earning $200,000 or more pay no federal income taxes.  Perhaps this tiny sliver of income earners are not paying their fair share.  But one thing for certain is that over 99.5% of all rich people ARE paying federal income taxes.

Those earning $1,000,000 and more account for less than 1% of Tax Exemptions and Deductions

So are the rich taking advantage of the tax code to reduce their taxable income and federal tax bill?  We hear a lot about tax loopholes.  Those perfectly legal tax credits and deductions written into law by the United States Congress.  That both those on the Left and those on the Right take advantage of.  Yet those on the Left have convinced enough of the electorate that these legal credits and deductions are tax evasion.  And that only the rich on the Right are using these to evade paying their fair share.  So who is taking the biggest advantage of the tax code to reduce their tax bill?  In 2010 this totaled about $3 trillion.  Is this why those earning $100,000 or more paid no income tax?  For those few not paying any federal income tax?  Not exactly.  (The dollar amounts in the following charts are in thousands of dollars.)

In 2010 taxpayers claimed in total about $3 trillion in exemptions and deductions.  The deficit in 2010 was about $1.3 trillion dollars.  So perhaps this is the reason why we had a deficit in 2010.  This is what the Left would have us believe.  It’s those tax loopholes that the evil rich take advantage of to avoid paying their fair share of taxes.  The only problem with this is that it’s not the rich taking advantage of these tax loopholes.  It’s the poor and middle class.

Those earning $1,000 and less account for less than 1% of these exemptions and deductions.  Those earning $1,000,000 and more also account for less than 1% of these exemptions and deductions.  It’s those earning from $1,000 to $1,000,000 that are taking advantage of these tax loopholes.  Especially those earning from $50,000 to $200,000.  The only income groups claiming 10% or more of the nearly $3 trillion in exemptions and deductions claimed.  So not only are the evil rich paying federal income taxes whatever they claim as exemptions and deductions doesn’t even come close to what the poor and middle class are claiming.

Prosperous Economic Times brought about by Tax Cuts INCREASED Tax Revenues

These numbers don’t exactly support the claim that the rich aren’t paying their fair share.  They’re paying federal income taxes.  And what tax loopholes they exploit hardly makes a dent in the amount of tax revenue the IRS collects.  Which can only mean one of two things.  Either the poor and middle class need to pay more federal income taxes.  Or the federal government is just spending too much.  Well, as we just witnessed in the fiscal cliff debate, President Obama and the Left want to raise taxes.  Blaming the record Obama deficits on the Reagan and Bush tax cuts.  Their deal includes higher income tax rates on households earning $450,000 or more.  But NO spending cuts.  Which will be a problem.

In 2010 the total adjusted gross income totaled just over $8 trillion.  Most of which came from 4 income groups.  About a trillion each from those earning from $50,000 to $75,000, from $75,000 to $100,000 and from $200,000 to $500,000.  Those earning from $100,000 to $200,000 earned in total almost $2 trillion.  Which means the new higher tax rates aren’t going to bring in much new tax revenue.  Because they aren’t taxing the people with the money.  The middle class.  And with some additional spending instead of spending cuts the deficit will only grow larger.  So this whole fiscal cliff debate was nothing but theatre.  For it wasn’t about deficit reduction.  It was about politics.

The Left wants to destroy the Republican Party.  And to do that they need to turn prosperous economic times brought about by the tax cuts of the JFK, Reagan and Bush administrations into the source of all our problems.  Yes the economy boomed, goes the argument, but at what cost?  Massive deficits.  Deficits not brought about by tax cuts.  But by spending.  For those prosperous economic times brought about by tax cuts INCREASED tax revenues.  The deficits resulted from spending increases greater than the revenue increases.  But with a successful campaign of class warfare they have revised history.  Those deficits are now the result of the rich not paying their fair share.   Which helped them increase tax rates on the rich today.  Because the Left got everyone to hate the rich.  And the Republican Party.  Even though the rich are the only ones paying their fair share.  In fact, they’re paying more than their fair share.  But the majority of the electorate doesn’t know this.  Because of that successful campaign of class warfare.

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Hope, Fear and Lies

Posted by PITHOCRATES - December 13th, 2012

Politics 101

The Founding Fathers were Gentlemen of the Enlightenment with Sound Philosophical Beliefs

Politicians have to win elections.  They have to persuade and convince people to vote for them.  Once upon a time that meant vigorous debate where candidates explained why their way was the better way.  Going right back to the Founding.  Where Alexander Hamilton and Thomas Jefferson bitterly contested each other’s vision for the country.  And the debate often got dirty.  Such as when Hamilton’s political enemies exposed his extramarital affair with the con-woman Mrs. Reynolds who seduced Hamilton with the purpose of blackmailing him.  Who wanted to use this information to say he was involved in a bigger scheme with Mr. Reynolds in defrauding the federal government.

Treasury Secretary Hamilton met three gentlemen of the political opposition in private.  Admitting to his affair.  And proved beyond a shadow of doubt that all money paid to the blackmailers came from Hamilton’s private funds.  Not a penny came from the Treasury Department.  According to 18th century gentlemanly behavior the matter was closed.  The affair was a personal matter.  It would be imprudent to make it a public issue.  But upon Hamilton’s retirement a bitter political enemy leaked this information to a scandalmonger.  James Callender.  Who wrote a book exposing this private matter.  The History of the United States for the Year 1796.  Jefferson had helped to finance Callender.  And reveled in Hamilton’s scandal.  But when you lie down with dogs, you get up with fleas.  And Jefferson did.  For Callender published articles confirming rumors that Jefferson had fathered children with his slave Sally Hemings.

Politics then were just as dirty as they are today.  And often crossed the line.  But underneath all the scandals and mudslinging there were philosophical principles.  They did these things for principle.  For they feared the opposition and what their policies would do the fledgling nation.  There was political patronage and political corruption.  But above that was a battle of competing political ideology.  Waged by men well read in history.  Familiar with John Locke.  And Charles-Louis de Secondat, baron de La Brède et de Montesquieu.  Icons of the Enlightenment.  Whose philosophies can be found in the Declaration of Independence and the U.S. Constitution.  These Founding Fathers were rich propertied men.  Established in their careers.  Who had little left to prove.  These gentlemen of the Enlightenment did what they did not for money or political favor.  So they could live a more comfortable life.   They did these things out of principle.  Based on sound philosophical beliefs.

The Democrats try to Scare the Bejesus out of People to Get and Keep the Republicans out of Office

It’s not like that anymore.  Instead of rich successful people entering politics for selfless reasons people of no accomplishments enter politics to become rich and powerful.  Who have no principles.  Who will buy and sell anyone to remain in power.  Of course they don’t campaign by saying this.  Instead, their campaigns are based on hopes and fears.  And the telling a lot of lies.  With little principle.  Or sound philosophical beliefs.

In 2008 President Obama campaigned on hope and change.  To get away from the partisan politics of the past.  Democrats continue to peddle hope.  Health care for everyone.  College degrees for everyone.  High-paying green jobs and energy independence.  A return of manufacturing jobs.  Spending our way out of recession with Keynesian stimulus spending.  A bigger social safety net.  Talking to our enemies instead of going to war with them.  And making them like us by resolving all of our differences with diplomacy.  That we can have whatever we want.  If only we got the Republicans out of office.

While at the same time the Democrats try to scare the bejesus out of people if we don’t get and keep the Republicans out of office.  For the Republicans want to take away birth control and abortion from women.  And keep them from being independent and having careers.  The poor will remain poor.  The rich will get richer.  And the hungry will die.  Slavery will be reinstituted.  The Republicans will tax the middle class more so they can give tax breaks to rich corporations.  They will burden the nation with massive deficits with their tax cuts for the rich.  Global warming will continue unchecked.  Our drinking water will be polluted.  And our atmosphere will become poisonous to breathe.  All because Republicans put profit before people.

The Left tells a lot of Lies to Win Elections because all they have are Failed Keynesian Economic Policies

Republicans, on the other hand, peddle the hope that we can return to the prosperity of Ronald Reagan.  By cutting tax rates.  For throughout U.S. history whenever the government cut tax rates prosperity followed.  As well as flooded the treasury with tax dollars.  For contrary to the fear peddling of the Democrats cuts in tax rates have historically increased tax revenue.  And can again.  As Ronald Reagan campaigned in 1984, it can be Morning in America again.  We can be prouder, stronger and better.

While at the same time Republicans like to scare people with national security issues.  The Clinton administration handled terrorist attacks against America in the courts.  Which emboldened America’s enemies into an escalation of attacks resulting in 9/11.  The one in 2001.  Not the attack in 2012 on the U.S consulate in Benghazi.  While the Democrats believe our enemies hate us because George W. Bush made them hate us with his cowboy swaggering ways.  And that was the only reason.  Even though Bush had little time to swagger before the attacks on 9/11.  Those in 2001.  Not the ones in 2012.  The Republicans say our enemies hate us for who we are.  As we are too Christian.  And allow our women to have careers and use birth control and abortion.  Something our enemies won’t allow their women to have.

President Obama did not end partisan politics.  He lied about that.  For his administration has been perhaps the most partisan in U.S. history.  With no interest whatsoever in compromise.  He and the Democrats continue to lie about the Reagan tax cuts.  And the Bush tax cuts.  Blaming tax cuts for all our woes.  And our deficits.  Despite those tax cuts increasing tax revenue.  They lied about a war on women.  Having one of their cronies in the mainstream media create it by asking Mitt Romney if he wanted to take away women’s birth control.  And they continuously spread the lie that the rich aren’t paying their fair share in taxes.  When the top 10% of income earners pay about 70% of all federal income taxes.

So the Left tells a lot of lies to win elections.  Because that’s all they have.  They do not have a Morning in America they can talk about.  Just failed Keynesian economic policies.  Like the 4 years of Jimmy Carter.  The 4 years of President Obama.  And what may have been the 4 years of Bill Clinton had it not been for the Republicans taking control of Congress 2 years into his presidency.  Of course the Republicans can tell a lie, too.  The big one being their claim of being conservative like Ronald Reagan.  As they too often fall for the lies coming from the Left.  And appear more interested in living a comfortable life than sound philosophical beliefs.

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