Germany to offer State-Funded Childcare to turn Mothers into Something more Useful – Taxpayers

Posted by PITHOCRATES - March 3rd, 2012

Week in Review

The social democracies of Europe are going broke.  Why?  Growing government benefits.  And an aging population.  Which means there are fewer people entering the work force than leaving it.  Which, of course, means fewer and fewer people have to support more and more people in retirement.  And how did this happen?  Europeans stopped having babies.  Fewer babies means fewer taxpayers.  And fewer taxpayers means each taxpayer has to pay a large share of the total tax burden.  Which spells one BIG problem.  And Germany’s solution to all of this?  Make it even less appealing to have and raise children (see Germany is healthy, could be healthier posted 2/24/2012 on The Economist).

Another interesting aspect of the German economy, and one of its major weaknesses, is often overlooked (though not by Matthew Yglesias)—low participation of (married) women and mothers in the (paid) labour force. There are two economic reasons for this shortfall: taxes and child care…

Progress has been made, though: from 2013 on, there will be a legal entitlement to child care when the child turns one, and all states are busy expanding supply…

With its ageing population—only in South Korea will the dependency ratio increase faster, says the OECD—Germany may be forced to speed up the reform process in order to raise the employment of women.

The social democracies of Europe have destroyed the family.  The more the state provides the less children need parents.  Even children as young as one will be put into the cold world of state-funded child care .  So the mother can be freed of providing a loving and nurturing home for her children.  And, instead, enter the work force and do something more useful for the state.  Like paying taxes.

If they didn’t stop having babies they wouldn’t be in this mess.  For even the greatest of all Ponzi schemes will work if there are always more people entering the scheme than there are collecting benefits from it.  So the best way for Europe to save their welfare state is to nurture the family.  Let mothers stay at home and mother their children.  Stop making being a mom a four-letter word.  Bring back the family and you start reversing the trend in 20 years.  If you don’t and you provide more state-funded child care  it will only require more taxes.  Making it ever harder to raise a family (someone ultimately pays for ‘free’ child care ).  Thus further discouraging women from being mothers.  Which will never reverse the downward trend in birthrates.  Or the downward trend in new taxpayers entering the workforce.

www.PITHOCRATES.com

Share

Tags: , , , , , , , , , , , , , , , , ,

Chinese Women outperforming American Women in the Corporate World

Posted by PITHOCRATES - August 28th, 2011

Women are Thriving in Emerging Markets because things don’t Cost that Much

Corporations are the big bad in today’s world.  Everyone hates them.  They’re evil inhuman pariahs sucking the marrow of humanity.  They should be punished.  Taxed to the hilt and then taxed some more.  Those filthy, rotten, greedy corporations.  You just can’t say anything good about them.  Never.  Except, of course, when women climb the corporate ladder (see The daughter also rises posted 8/27/2011 on The Economist).

The emerging world is home to many businesswomen like Ms Zhang. Seven of the 14 women identified on Forbes magazine’s list of self-made billionaires are Chinese. Many firms in emerging markets do a better job of promoting women than their Western rivals, some surveys suggest. In China, 32% of senior managers are female, compared with 23% in America and 19% in Britain. In India, 11% of chief executives of large companies are female, compared with 3% of Fortune 500 bosses in America and 3% of FTSE 100 bosses in Britain. Turkey and Brazil come third and joint fourth (behind Finland and Norway) in the World Economic Forum’s ranking of countries by the proportion of CEOs who are women. In Brazil, 11% of chief executives and 30% of senior executives are women.

I wonder if these women are the ones Mitt Romney was referring to when he said corporations are people.  Or are these women just soulless scum of the earth, too?

Funny.  Corporations are evil.  But women climbing the corporate ladder is good.  Even though they’re climbing the ladder of evil.  As if there was something good about being in high places in these evil inhuman pariahs.  Perhaps people think that women will do away with the profit motive in business once they’re in charge.  Instead paying everything they earn beyond the cost of sales as income taxes.  They could.  But they will fall off of that ladder pretty darn quick if they do.

So why China?  Why is it there that feminism is flourishing?  Where women can bring home the bacon?  And fry it in the pan?  Is it because of the one-child policy giving them more time to work in a corporation?  Is it a greater drive due to all of the girls aborted because parents wanted their one child to be a son?  Or is child care just cheaper in China?

Living in emerging markets offers many advantages for female professionals. Most obviously, there are plenty of cheap hands to cook and take care of children.

So in other words women are thriving in emerging markets because things don’t cost that much.  Child care.  Parent care (it’s the daughters who take care of aging parents in China).  There’s a lesson here.  If you want a smoking hot economy with opportunity for everyone, don’t make it so expensive to live there.  And that’s what high taxes and costly regulatory compliance costs do. 

Democrats feel our Pain and want to do Everything they can do to Help Us

A lot of women vote Democrat.  For they feel that Democrats care about women’s issues.  Unlike the out of touch old white men in the Republican Party who just care about profits.  Everything is just too logical with them.  They don’t feel.  Democrats feel.  They feel our pain.  And want to do everything they can do to help us.  Give us that which we crave.  Love.  Understanding.  And a job.  So you’d think they hit the mother lode with Obama.  The media loved him.  But it’s been almost three years and he hasn’t really done anything substantial to help us in the here and now (see Obama’s Enablers by Fred Barnes posted 8/28/2011 from the 9/5/2011 issue of the weekly Standard).

It’s counterintuitive, but Obama has been hurt by the media’s leniency. Both his presidency and reelection prospects have suffered. He’s grown lazy and complacent. The media have encouraged him to believe his speeches are irresistible political catnip, though they aren’t. His overreliance on words hasn’t helped.

The kind of media pressure that can cause a president to sharpen his game, act with urgency, or take bolder steps—that has never been applied to Obama. If it had, I suspect he’d be a more effective, disciplined, energetic, and popular president today. Ronald Reagan is a good role model in this regard. When the media attacked him over gaffes in the 1980 campaign, “Reagan responded like all competitive men by working to improve himself,” says Reagan historian Craig Shirley. “Experience taught him to be better and try harder.” He took this lesson into the White House…

Absent pushing and prodding by the press, the Obama presidency has atrophied. His speeches are defensive and repetitive and filled with excuses. He passes the buck. With persistently high unemployment and a weak economy, Obama recently declared, in effect, “I have a plan. See you after my vacation.” The press doesn’t goad him to lead.

Three years.  Almost.  And we still have high unemployment.  And a weak economy.  Despite all those speeches about focusing on jobs.  With a laser-like focus.  Instead we get higher taxes.  And more costly regulations.  Nothing like those women in China have to deal with.

“Private sector job growth is good,” he said in Alpha, Illinois. In reality, it’s bad and getting worse. “The economy is now growing again,” he said. Barely. Obama said trade deals and patent reform would promote hiring, if only Congress would approve them. But it’s the president who has delayed the trade treaties, and both houses of Congress have passed patent reform measures.

The media routinely give Obama a pass on such stuff. On the tour, Obama insisted, as he has many times before, that he saved the nation from a “Great Depression.” So far as I know, the press has never challenged this dubious claim. But it is belied by the fact the recession came to an official end in June 2009, months before Obama’s policies could have played more than a minimal role.

This reminds me of an episode of Scrubs.  The Janitor was making some ridiculous claims.  So Carla asked the janitor if he is familiar with the term ‘delusions of grandeur’.  He replied, “I believe I coined that term.”

If you can’t Raise Revenue via Income Taxes because of a Bad Economy, go after Wealth

So what if anything is the Obama administration doing to address the problems of this nation?  Well, for one, they’re doing a pretty good job of transferring wealth from the private sector to the public sector (see Banks seeking relief from regulators as deposits swell by Bradley Keoun, Dakin Campbell and Dawn Kopecki posted 8/26/2011 on The Washington Post).

Deposits are flooding into the biggest U.S. banks as customers seek shelter from Europe’s debt crisis and falling stock prices. That forces lenders to raise capital for a growing balance sheet and saddles them with the higher deposit insurance payments. With short-term interest rates so low, it’s hard for financial firms to reinvest the new money profitably…

The extra deposits are problematic because they’re subject to withdrawal, so banks have to park the money in low-yielding short-term investments, Litan said. With few other choices available, banks have stashed their excess deposits at the Fed, which means the cash gets counted as assets.

Do you have a 401(k)?  If so, how did you pick your funds?  Well, if you’re young you probably leaned towards high-yield risky growth funds.  If you’re close to retirement, you probably leaned towards low-yield ‘safe’ income preservation funds.  Young people can ride a few boom and bust cycles and not lose money in the long run.  When you’re close to retirement you can’t.  So you park that money where it’s safe.  Knowing it will be there when you need to withdraw it.

In a volatile world, people and corporations with money act like people who are close to retirement.  They will sacrifice yield to keep their money safe.  Even pay a small fee.  For they don’t want to see their wealth disappear in a crashing stock market.  Or a collapsing bond market.

Now Keynesians attack this ‘hoarding’ of money.  This is the reason why there is no demand.  Which is keeping the economy weak.  Because no one is taking any chances with their money.  So what is a government to do?  Get rich.

If the FDIC agreed to forgive some fees, it would have to give up some of the extra premiums that it’s counting upon to rebuild the Deposit Insurance Fund, which covers customers for $250,000 per account in the event of a failure. That makes the agency unlikely to grant a waiver, one of the people said, adding that the existence of the insurance is one of the reasons banks are able to attract the deposits.

The FDIC’s fund, which fell into a deficit of almost $21 billion after a wave of bank failures, turned positive during the second quarter for the first time in two years, the agency reported this week. On April 1, the FDIC changed its formula for assessing premiums, increasing the cost for most large banks and adding to their deposit expenses.

Yes.  They saw all that money and said I’ll take some of that.  They increased their FDIC fees.  Which is ridiculous because the money is just sitting in the bank.  As if there was no such thing as fractional reserve banking.  Which is the very reason why they created FDIC.  In case banks loaned out too much money when faced with a lot of depositors demanding their money back.  At the same time. 

FDIC was a way to prevent a bank run.  If you know your money is insured even if a bank is going under, you won’t run to the bank to get your money.  But with virtually 100% of these deposits held in reserve, everyone could run to the bank and demand their money back.  And the bank could repay every depositor. 

So why raise the FDIC fee?  Why not?  If you can’t raise revenue via income taxes because of a bad economy, go after wealth.  Especially if it’s just sitting there.  For all intents and purposes, the FDIC fee on funds that a bank does not lend out is little more than a wealth tax.

A Growing Public Sector Oppresses Women whereas Capitalism Unleashes their Potential 

So women are climbing the corporate ladder in emerging countries.  While the world’s number one economy sputters and spits along.  Despite nearly three years of applying a laser-like focus on job creation.  Which in Washington-speak means writing more job-killing regulations.  And thinking of creative new ways to transfer wealth from the private sector to the public sector.

So what’s the big difference between the U.S. and these emerging markets?  Legacy costs.  The U.S. was once an emerging country.  But now it’s a Big Government social democracy like in Europe.  China doesn’t have long established entitlements growing greater than the government can ever hope to fund.  And it doesn’t have an established environmentalist movement choking the life out of free enterprise.  China doesn’t have these.  And their economy is booming.  And women are shattering the glass ceiling.

The lesson is a simple one.  A growing public sector oppresses women.  Whereas capitalism unleashes their potential.  And that is the lesson of the booming emerging markets.

www.PITHOCRATES.com

Share

Tags: , , , , , , , , , , , , , , , , , , , , , , , ,

LESSONS LEARNED #26: “If we need Big Government to protect us from ourselves, then our public schools can’t be the best place to learn.” -Old Pithy

Posted by PITHOCRATES - August 12th, 2010

WE ARE WHAT they teach us.  And here is a little of what our teachers taught us.  And a little of what we learned by observation.

WHEN I WAS in grade school, our teachers went on strike.  It was great.  Another week or so of summer vacation.  But I saw a curious thing.  Some of my classmates were carrying picket signs.  And there they were, walking with the teachers.  I could not understand why anyone would want to help to end an extended summer vacation.  That’s all I knew about a teacher’s strike.  I had no idea why they didn’t want to go back to work.  I just knew it meant I didn’t have to go back to school yet.

The signs my fellow students carried said something about making our schools better.  As kids typically don’t like being in school, I couldn’t imagine they thought much about improving the educational system.  Other than greatly shortening the school day.  And school year.  But giving a pay raise to our teachers?  Giving them more benefits?  How, exactly, was that going to make school better?  I mean, if they got more pay and benefits, our education would get worse, not better.  They would just transfer money from the classroom to the teachers.  Unless the city raised property taxes to replace the classroom money that was given to the teachers.  And that would only increase the household costs of these kids’ parents.  Meaning less presents at Christmas.  Couldn’t these kids see the folly of their ways?

Of course they couldn’t.  They were just useful pawns.  They hadn’t the foggiest idea why teachers go on strike.  The teachers told them what to say.  What to think.  And they lied to these kids.  They weren’t striking because they wanted more money and better benefits.  Which they were.  No.  They told these innocent children that they were striking so they could have a better art department.  A better music department.  Better field trips.  That’s why these teachers were on the picket lines.  For the children.  And that every time there were cuts in the classroom, it was because of the greed of their parents who didn’t approve a millage.  Or who bitched about rising property taxes.  It was never their OWN greed.  Never that.

WE HAD A mock election when I was in 7th grade.  It was an ‘exercise in democracy’.  I remember voting for the Democrat candidate.  I don’t know why.  I knew nothing about politics.  I had only recently quit playing with my toy cars.  I was still reading The Hardy Boys mystery novels.  And thinking about the pretty girls in class.  What I don’t remember was spending much time thinking about the presidential election.  But there I was, voting for the Democrat candidate.  Who won in our little mock election.  But how did I, as well as my fellow students, know enough about politics to vote for the Democrat candidate?

Obviously, they taught us what to think.  That the Democrat candidate was the better candidate.  Because he was for the working man.  And cared about the little people.  That the Democrats cared about education.  Not profits.  All these touchy feely things.  Which was about all a kid could understand.  A kid can’t understand monetary or fiscal policy.  The intricacies of foreign policy.  They don’t have a clue about those things.  But kids do know that they should play nice.  And that’s what the Democrats are all about.  Playing nice.  And providing political muscle for the teachers’ unions in exchange for votes.  And obedient little minds of mush that will one day become voters.

I HAD A speech/debate class in high school.  Our teacher used the latest in progressive teaching methods.  A lot of touchy feely stuff.  Feel more than think.  We often did these exercises where the class as a whole debated the pros and cons of a particular position.  One day we went through a list of five or so.  I found the last one interesting.  It was about a ‘death ray’.

I had recently watched a program about nuclear weapons.  I learned that the size of their warheads was a function of the accuracy of the weapons.  They needed a big radius of destruction to guarantee the destruction of the target.  This is true for all weapon systems, conventional or nuclear.  The less accurate they are, the bigger the destructive force required.  (Whereas smart weapons today can have smaller warheads because they can be steered onto target.)  The more accurate the weapon, the less destructive it can be.  The less collateral damage there would be.  Less civilian dead.  The lesson described the ‘death ray’ as a weapon of pinpoint accuracy.  Based on what I just recently learned, I thought that it would be very interesting to discuss the pros of such a weapon.

When we finished discussing the position before the ‘death ray’, he said something like it was obvious that no one would argue for such a weapon system.  So there was no point in discussing it.  And then, as an afterthought, he said “unless someone does” with a condescending smirk.  I raised my hand.  I began to make some positive points.  He cut me off.  There was to be no discussion in favor of any weapon system in his class.  Turns out he was anti-war.  Free speech was one thing but not when you disagree with the program.

TWO BOOKS THAT that stand out from high school that were required reading are The Grapes of Wrath and Johnny Got His Gun.  You couldn’t find a couple of more depressing books if you tried.  The Grapes of Wrath was about the plight of a family who lost the farm during the dust bowl of the Great Depression.  In it you learned that bankers were evil.  Rich people were evil.  That Big Business was evil and exploited the poor.  Whereas poor people were virtuous.  And only poor people helped other poor people.  That Big Government was good and helped the poor people.  That FDR’s New Deal was good and helped the poor people.  That unions are good and protect those who Big Business exploits.  You get the picture?  Democrats good.  Republicans bad.  Because the Democrats take care of the little guy.  And evil bankers and fat cats are all Republicans.  Or so we were taught.

Johnny Got His Gun is an anti-war book.  It’s about a U.S. veteran of World War I.  Joe Bonham.  He lost about every part of the human body you could.  And yet they kept him alive.  I read it in the 10th grade.  Young and impressionable, I saw the folly of war.  War hurt good, young men like poor Joe Bonham.  (Incidentally, the name ‘Bonham’?  It’s from the French ‘bon homme’, good man.)  A pity only the anti-war crowd read it.  Apparently no one read it in Germany or Italy or the Soviet Union.  Maybe if their citizens did read it World War II would not have broken out.  Thankfully for the free world, though, men did serve in the armed forces despite what happened to poor Joe Bonham.  And they saved liberty.  And the burning of books did not spread further.  And books like this, because of men who did pick up a gun, remain in the public school curriculum.

Of course, you know why they (the public school teachers) are anti-war, don’t you?  It’s simple.  Any money spent on the military is money not spent on them.

I HAD AN electronics teacher in high school who was really cool.  He let us drink coffee in class (or, should I say, cream and sugar with some coffee).  He’d send a student across the street to buy donuts to eat with our coffee.  And he taught us how to build little black boxes that could unscramble scrambled television.  He was also a pretty good teacher.  A PNP transistor symbol?  The arrow was P-N (peein’) on the base.  (An NPN transistor symbol pointed away from the base.)  The resistor color code?  Bad boys rape our young girls but Violet gives willingly.  The whore.  (Hey, this stuff was funny when you’re only 16 years old.)  He even set up an interview for me at an electronic repair shop.  He liked being a teacher.  But he enjoyed doing concrete flatwork, too.  One of those things he did to pay the bills while in college.  And kept doing after college.  And that’s what he did during the summer, the peak of the construction season.  And made good money doing it.

MY MOM WORKED as a volunteer at my grade school.  She got to know the teachers pretty well.  She even went to their homes.  One lived not too far away from us.  I went with her once or twice.  Talk about surreal.  Seeing your teacher outside the school.  Acting so un-teacher-like.  Wearing something she doesn’t wear to school.  Having fun.  Laughing and joking.  And seeing her being a mom to her own kids.  That was weird.  We treated her politely and with respect in school.  Her kids whined “maaaa” at home just like I did when I was at home.  My teacher was just a normal person.  Human, almost.

But what really struck me then was that though they lived in the same general area as we did, they had more.  Bigger house.  With nicer stuff.  A newer car in the driveway.  More presents under their Christmas tree.  And in bigger boxes.  It was a ‘blue-collar’ neighborhood.  Her husband was a ‘blue-collar’ worker.  Just like my dad.  But my mom volunteered.  My teacher was, well, a teacher.  The ultimate second income in a two income family.  Good pay and benefits.  And no child care to worry about.  Teachers are off when their kids are off.  Holidays.  Breaks.  Snow days.  And, of course, summer vacation.  It just didn’t get better for a working mom.

IT IS INTERESTING that people become more conservative with age.  They may start out Democrat.  But after working awhile or raising a family, they often become Republican.  Not all of them.  But a lot.  The net number of people changing from Democrat to Republican far exceeds those changing from Republican to Democrat.  If there are any.  Other than for political reasons (in a desperate attempt to get reelected by switching parties).  That’s why the Democrats depend on the youth vote.  Because the youth vote is an uninformed voted.  They haven’t been deprogrammed yet.  They still toe the party line.  Because they don’t know any better.  Yet.

As we work and live in the real world, though, away from the insulated life of home or the college campus, things change.  We get older.  And wiser.  Less naive.  Less idealistic.  Less ignorant.  That’s why there is a net change from Democrat to Republican.  We grow up.  And start thinking for ourselves.  And try as they might during our public school indoctrination, we stop being sheep.  Eventually.  We strop bleating their mantra.  ‘Big Government good.  Private sector bad’.  Why?  Because we see that public school teachers and government workers live a lot better than we do.  This privileged few, this ruling elite, continue to take from us and respond with condescending arrogance when we complain.  Angry that we don’t mind our place in the lower strata of society.  Where we belong.

And they are nervous.  They can only maintain their elite status as long as we pay for it.  The more we learn, though, the less we are willing to support this aristocracy.  And they know it.  So they try to keep us dumbed down.  For an educated constituency is the greatest threat to Big Government.  And the public school system.  This self-proclaimed aristocracy.

www.PITHOCRATES.com

Share

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,