People sign Petitions to Secede from the United States following President Obama’s Reelection

Posted by PITHOCRATES - November 15th, 2012

Politics 101

Wealth Redistribution requires High Taxes to get the Wealth from those who Create It which reduces Economic Activity

President Obama’s reelection has left the nation bitterly divided.  President Obama won only 50% of the popular vote.  Down from 53% in 2008.  So the president has become less popular with the American people.  No surprise, really, with one of the worst economic recoveries in history.  Despite the trillions in new spending to stimulate economic activity.  Which didn’t stimulate economic activity.  People concerned about this anemic economy are in the other 50%.  Those who didn’t vote for keeping Obamacare law.  Those who didn’t vote for a massive increase in regulatory powers over the private sector economy.  Those who didn’t vote to raise taxes.  Those who didn’t vote for continued record deficits.

With every contentious election some people will say they will move out of the country if their candidate loses.  Few do.  Although some rich people are doing that now.  As they feel they have a bulls-eye on their back.  With the whole Occupy Wall Street thing.  The 99% against the 1%.  The clarion call to get the wealthy to pay their fare share.  Even though the top 10% income earners are already paying some 70% of all income taxes.  So no doubt the wealthy are concerned.  Wondering where this will all end.  Higher income tax rates?  A higher capital gains tax?  A wealth tax?  Confiscation of all earnings over a ‘fair’ amount?  Who knows?  The sad thing is that these things don’t really seem farfetched.  For there is an angry mob out there.  Stirred up by those on the far Left.  Who is telling them that the only reason why they don’t have everything they want in life is because these rich people have taken it away from them.  And that these oppressed should rise up and demand egalitarianism.  Wealth redistribution.  From those according to ability to those according to need.  Which they are.  Because it’s only fair.

Of course wealth redistribution requires high taxes to get the wealth from those who create it.  Higher taxes, though, are a drag on the economy.  And leads to higher unemployment.  So it’s just not the wealthy worried about where this advance of liberal, anti-business policies will end.  Up to 50% of the population voted in favor of the wealth creators creating wealth.  And jobs.  Something most of the people want.  As already high unemployment will only get worse with another 4 years of anti-business policies.  As well as leading this country closer to a European-style social democracy.  That economic system favored by European countries currently wallowing in a sovereign debt crisis that appears to have no end.

If the Nation broke down into Two Confederacies Steve Jobs would probably have moved to Conservative America

So people are concerned about the direction the country is going.  So concerned that there are actually secessionist movements popping up across the nation.  Where people are signing petitions to advance the secession of their state from the union.  For the growth of federal power has far exceeded the limits envisioned by the Founding Fathers.  And the federal government is only going to get bigger.  European big.  So big that even Alexander Hamilton would have joined his sworn enemy, Thomas Jefferson, in opposing this federal power grab.  For Jefferson’s greatest fear appears to be coming true.  The federal government has reduced the states to little more than federal districts of a consolidated federal nation.  Where all power is consolidating in Washington.  In the hands of a few people.  Who rule over the masses.  Much like a monarchy.  The kind the Founding Fathers fought against to win their independence.  Something this other 50% understands.  Which is helping fuel these secessionist movements.

So people in some states with a historical understanding of our Founding are concerned.  And they’re signing petitions for secession.  While the Left mocks them as whiny sore losers.  When they threaten to leave the union Jon Stewart on the Daily Show mocked them with a line from Willy Wonka & the Chocolate Factory:  Stop, don’t, come back.  That Gene Wilder delivered in a tone of voice that basically said, “Go and good riddance.”  Much to the delight of the Daily Show audience.  Not fully understanding what that would mean.  For it wouldn’t just mean that they would get a country of free health care, birth control, abortion, legal marijuana, gay marriage, open borders, etc.  The Liberal utopian dream.  No, succession would probably result in regional confederacies.  The Northeast, the Midwest and the West Coast would probably join together in a liberal confederacy (Liberal America) where they pass all their liberal policies.  While the remaining states would probably join together in a conservative confederacy (Conservative America).  Which would pose a great problem for the Liberal America.  How?  In a word, egalitarianism.

Business owners who oppose excessive regulations and taxes would probably pack up shop and move to Conservative America.  If they weren’t there already.  So you would have a net movement of businesses, and jobs, from Liberal America to Conservative America.  Where government policies are less anti-business.  Even the liberals would admit this would happen.  As they blame business for outsourcing jobs to foreign countries to escape the high cost of regulatory policies and taxes.  So businesses will move.  Leaving a reduced tax base behind.  Where fewer workers would be paying all those taxes to give everyone all of those free government benefits.  And the best and brightest of our entrepreneurs would head to Conservative America, too.  For they will go where it is easier to realize their dream.  If the nation broke apart into these two confederacies it would be highly probably that if he were alive Steve Jobs would move to Conservative America.  Just as he outsourced his manufacturing to more business-friendly China.  Don’t think this would happen?  Well, it would.  Because it has always happened in the past.

If America divides into Two Confederacies People will flee the Liberal Paradise for Jobs in Conservative America

At the end of World War II the German capital, Berlin, lay in Soviet occupied Germany.  What became East Germany.  Berlin, however, was occupied by the Soviets, the French, the British and the Americans.  Giving those living in Berlin access to the West.  As long as they got to the French, British or American sectors.  Which became a real sore spot for the Soviet Union.  Because East Berlin was a communist paradise.  Located in East Germany.  Also a communist paradise.  The height of egalitarianism where the state provided everything for the people.  It was everything the American Left wanted.  But nothing those living there wanted.  East Germans headed to Berlin en masse to escape to the West.  Especially the best and brightest.  It was a brain drain of the East.  So the Soviets did the only thing they could do.  They built the Berlin Wall.  To prevent their people from escaping their Communist paradise.

West Berlin bounced back after the war quickly.  Becoming a rich and exciting city to live in.  Because they had free market capitalism.  Providing a business-friendly environment.  That created jobs.   While across the Berlin Wall people were stuck in time.  In a dark and dreary existence.  Where they waited in line for their basic needs.  Often hungry.  And cold.  With nothing to look forward to.  For the government didn’t allow anyone to leave their paradise.  Why?  Because the few who did rarely went back.  So they worked.  And sat at home.  Dreaming of how to get past that wall.  To freedom.  And a better life.

If America divides into two confederacies people will flee the Liberal paradise.  For jobs in Conservative America.  Leaving Liberal America with a reduced tax base.  Making it harder to pay for all of those government benefits.  As the benefit-consumers will flock to Liberal America for all that free stuff.  But the people who pay for all of that free stuff will be going the other way.  So fewer people will be paying for more stuff.  Which, of course, will make it impossible to provide all of that free stuff.  Unless Liberal America also builds walls to keep their people from fleeing their utopia.  Keeping the wealth creators on their side of the wall.  So they can tax them.  To pay for their Liberal paradise.  Which will have a close resemblance to East Berlin.  So the liberals should be careful what they wish for.  For if these states secede life will get worse for those dependent on government benefits.  How worse?  Behind the Iron Curtain worse.

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LESSONS LEARNED #38: “Repeating a lie doesn’t make it true.” -Old Pithy

Posted by PITHOCRATES - November 4th, 2010

Liars Lie

Lying works.  Political spin.  Poetic license.  Fibbing.  Slander.  Libel.  Call it what you’d like.  Politicians lie.  Because it works.  Especially when you can’t win in the arena of ideas.  If they can’t win the philosophical debate what do our politicians do?  Attack the messenger, not the message.  If the history doesn’t validate their policies what do they do?  Revise history.  It never changes.  The only thing that does is the people hearing the lies.

Presidents may dream, but the House of Representatives controls the purse.  That’s why there are numerous battles between Capitol Hill and the White House.  Between Speakers of the House and presidents.  Some of the big partisan battles in recent times?  Tip O’Neil and Ronald Reagan.  Tom Foley and George H.W. Bush.  Newt Gingrich and Bill Clinton.  Nancy Pelosi and George W. Bush.  When different political parties hold the White House and the Hill, the partisanship escalates.  And the lies get more brazen.  Especially on the political fringe.

Some lies bordered on the ridiculous.  Like Ronald Reagan created AIDS to kill homosexuals.  That George H. W. Bush flew to Iran on an SR-71 to meet secretly with the Iranians during the 1980 presidential campaign.  Why?  To negotiate with the Iranians to keep the American hostages until after the election.  That George W. Bush blew up the Twin Towers to start a war that would let him invade Iraq.  No doubt there was some political damage from these lies.  But the lasting damage from these ridiculous lies pale in comparison to the Big Lies that the Left perpetuates to this day.

Trickle-Down Economics

Ronald Reagan was president from 1981 until 1989.  When he entered office, the economy was in the toilet.  Double digit inflation.  Double digit interest rates.  Unemployment at 7.1%.  Reagan wanted to cut taxes and spending.  The Democrat controlled Congress wanted to increase federal spending to ‘stimulate’ the economy (ala Keynesian economics).  The Congress fought him.  But Reagan used the bully pulpit and appealed directly to the American people.  They liked his message which brought pressure down on Congress.  They gave a little.  Reagan got his tax cuts.  The top marginal rate went from 70% down to 28% by the time he left office.  The result?  The economy boomed.  They call it the Decade of Greed.  Because we were very materialistic and greedy.  And people lived well.

Yes, but at what cost?  That’s what the Left always says to refute Reaganomics.  What they deride as trickle-down economics.  They point to military spending.  They point to Reagan’s deficit spending.  And the growing federal debt.  The Left says this is what Reagan’s tax cuts have given us.  Growth and prosperity at the expense of future generations.  Which is perhaps the greatest lie of the 20th century.  But because the Left has repeated it so often, a lot of people accept it as fact.  Even though the numbers refute this grand lie.

When Reagan entered office, federal tax receipts were $517 billion.  When he left office in 1989, federal tax receipts were $991 billion.  This is an increase of 91.7%.  Or, to look at in another way, tax receipts in 1989 were 1.9 times the amount they were in 1980.  That’s almost double.  So, despite the great lie of the 20th century, Ronald Reagan’s tax cuts did NOT cause deficits or increase the debt.  Cuts in the tax rates brought MORE money into the federal treasury.  Excessive federal spending caused the deficits.  Federal spending increased from $590.9 billion in 1980 to $1,143.7 billion in 1989.  That’s a 93.6% increase.  Spending, too, almost doubled.  In other words, spending increased 1.9% more than tax receipts by the end of Reagan’s second term.  Washington was awash in money.  They just spent it faster than it came in.

Blame the excessive spending on Cold War defense spending or domestic spending.  The point is moot.  Because it doesn’t change the fundamental truth that Reagan’s tax cuts INCREASED federal tax receipts.  Or the lesson learned that tax cuts stimulate the economy.  Anyone saying otherwise is lying and trying to revise history.

Wither on the Vine

The Reagan decade ended prosperously.  Reaganomics were a success.  Which was a threat to those with a vested interest in Big Government.  But people liked Reagan.  And only agreed to vote for George H.W. Bush when he made the infamous ‘read my lips – no new taxes’ campaign pledge.  But Bush was no Reagan.  He wasn’t as conservative.  Or as charismatic.  He couldn’t sell conservative America (center-right) his less than conservative policies (center-left).  The Left, seeing he was no Reagan, maneuvered him into a position favorable to them on the deficit.  The Republicans wanted to cut spending.  The Democrats, of course, wanted to raise taxes.  And with the Democrats in control of the House, he caved.  He raised taxes.  And when he did, he became a one-term president.  The American people were so angry when he reneged on his ‘read my lips – no new taxes’ pledge, the third party candidate in the 1992 presidential campaign, Ross Perot, got 18.9% of the popular vote.  No third party candidate did better.  Exit polling shows he drew equally from both Bush and Clinton, though only 20% of his voters were liberal.  The rest were conservatives and moderates.  Perot brought a carnival atmosphere to the campaign.  Charts and props made for good TV.  This spectacle, though, drew critical attention away from Clinton’s past.  Parts of which moderates would have found objectionable.

Clinton ran as a centrist.  He lied.  As liberals are wont to do during a campaign in a center-right country.  Once in office, he swung to the left.  The American people were angry.  As people are wont to be when lied to.  At the 1994 midterm elections, the people spoke.  And gave both houses of Congress to the Republicans.  Newt Gingrich became the Speaker of the House.  He co-authored the Contract with America which was a Republican pledge to return America to a conservative path.  It appealed to the American people.  It’s what swept the Republicans into power.  And it scared the Left.  So they attacked it.  Called it the Contract on America.  And they attacked Newt Gingrich.  With a vengeance.

In 1995, Gingrich discussed an alternative to Medicare.  Number crunchers projected Medicare (and Social Security) to go into the red a decade or two out.  Medicare (and Social Security) is a big federal expenditure and a political third rail.  The Left uses the elderly as political pawns whenever they can.  Because that’s what Big Government does.  Get people dependent on Big Government and then scare the hell out of them by saying the Right wants to take their benefits away.  Gingrich was discussing high-deductible health insurance plans and tax free Medical Savings Accounts (MSAs).  The MSAs included an annual federal subsidy for seniors.  The plan would be appealing to seniors, Gingrich thought, because they could get better health care coverage with a private plan.  The MSAs and the federal subsidies would make it affordable.  Better care without paying more.  Who wouldn’t want that?  Once people made this choice voluntarily, they would move out of Medicare into a private plan.  Those comments in 1995 included this:

What do you think the Health Care Financing Administration is? It’s a centralized command bureaucracy. . . . Now, we don’t get rid of it in round one because we don’t think that that’s politically smart and we don’t think that that’s the right way to go through a transition. But we believe it’s going to wither on the vine because we think people are voluntarily going to leave it — voluntarily.

Wither on a vine?  Talk about a hanging softball.  There was no way the Democrats weren’t going to whack that one out of the park.  It quickly became ‘Medicare benefits’ and NOT the inefficient ‘centralized command bureaucracy’ that was going to wither on the vine.  The Left ran with it.  Another grand lie.  Repeated it at nauseam.  And scared the seniors.  Gingrich’s days were numbered.  And Clinton had a new enemy to demonize.  Which came in handy when no one wanted his policies.

The Lies that Keep on Giving

Big Government depends on getting as many people dependent on government as possible.  Medicare (and Social Security) is one program that does this very well.  And when Gingrich dared to threaten it, they destroyed him.  With a grand lie.  Like the grand lie that tax cuts stimulate deficits, not the economy.  Perpetuating these lies enables unsustainable government spending.  Threatens the future of all Americans.  And the longer it takes for the truth to come out, the deeper the hole we dig ourselves into.

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