Energy and Low Taxes reduce Unemployment Rates

Posted by PITHOCRATES - April 20th, 2014

Week in Review

The Democrats have little good economic news during the worst economic recovery since that following the Great Depression.  To create more economic activity they argue to raise the minimum wage.  And to provide a pathway to citizenship for those illegally in the country.  But will these help the employment picture?  Well, we don’t have them now and employment is doing very well in parts of the country (see Tight Job Market in U.S. Cities Prompts Higher Pay by Steve Matthews posted 4/16/2014 on Bloomberg).

To hire 10 to 15 project coordinators this year, Sabre Commercial Inc. has boosted pay 10 percent and added a 401(k) retirement plan.

“It is an employee’s market,” said John Cyrier, co-founder and president of the 48-employee Austin, Texas-based builder. “We are definitely seeing a labor shortage in Austin and central Texas. I see it only getting worse.”

Companies across the U.S. from Texas to Virginia and Nebraska are struggling to fill positions with metropolitan jobless rates below the 5.2 percent to 5.6 percent level the Federal Reserve regards as full employment nationally. Competition for workers is prompting businesses to raise wages, increase hours for current employees, add benefits and recruit from other regions…

In New Orleans, where unemployment is 4.2 percent, “we are getting killed on overtime,” said Ti Martin, co-owner of Commander’s Palace, SoBou and Café Adelaide, which employ a total of more than 350 people. “We are doubling up and working extra hours,” and managers are filing in as cooks. The restaurants have a dozen or more openings, mainly for experienced chefs and servers, she said…

In Omaha, with a 4.5 percent unemployment rate, the Greater Omaha Chamber is coordinating a program that will increase the number of internships to more than 300 this year from 135 in 2012 at employers including Mutual of Omaha Insurance Co., Union Pacific Corp. (UNP) and ConAgra Foods Inc. (CAG) Exposing young people to the city has been an “excellent recruitment tool,” said Sarah A. Johnson, director of talent and workforce initiatives for the chamber…

The labor shortage is expected to worsen in some regions. In Houston and the surrounding area, construction for the oil, gas and petrochemical industries on the Gulf Coast will require about 36,000 more workers in 2016 than in 2013, according to Industrial Info Resources Inc., a Houston-area based research company.

Even with hot labor markets in some cities, twenty-nine metro areas still have unemployment rates of at least the October 2009 post-recession peak of 10 percent, including Atlantic City, New Jersey, and Fresno, California.

Virginia is doing well in the Washington area thanks to lobbyists and those getting fat on the largess of government.  Nebraska is doing well because of some big national companies there.  Which attract people there even though their taxes are a little on the high side.  But the balance of good economic activity is in low-tax states.  Such as Texas.  Which has no state income tax.  And the energy business is keeping the Gulf States doing well.  Thanks to the energy boom in North Dakota.  Which has the nation’s lowest unemployment rate.

So it is clear what is driving the economy.  Energy.  And low taxes.  Put these together and you have low unemployment.  Which is why Atlantic City and Fresno still have unemployment rates of at least 10%.  Because these are in Democrat states.  Which have high tax rates (California and New Jersey are the two of the highest taxed states in the nation).  And prefer green energy over oil and gas.

A higher minimum wage won’t reduce unemployment.  For California and New Jersey have some of the highest minimum wages in the nation.  So a higher minimum wage is not helping their economies.  But energy and low taxes will.  As proven by the healthy economies in areas with them.  And bad economies in areas without them.

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New York Mayor Bill de Blasio paid a lower effective tax rate than Mitt Romney and Warren Buffett

Posted by PITHOCRATES - April 16th, 2014

Week in Review

The problem with Republicans is that they are so greedy that they put money before people.  That’s why they oppose taxes.  Because they don’t want to give up any of their money.  At least, this is what Democrats say about Republicans.  Along with the ‘tax cuts for the rich’ mantra.  In fact, they castigated Mitt Romney for only paying an effective tax rate of 14% in 2011.  Even Warren Buffet decried the unfairness of the tax code where rich guys like him pay an effective tax rate of 17.4% while the poorer classes working beneath him paid on average 35%.  Even his secretary paid a higher tax rate.  And that just wasn’t fair.  Of course Buffet’s 17.4% in actual dollar amounts dwarfed the tax dollars of everyone working for him combined.  But that’s not the point.  No, the point is that Republicans are all a bunch of greedy, vicious, heartless bastards.

New York’s new mayor is a Democrat.  And he isn’t a greedy, vicious, heartless bastard.  In fact, he promised to raise taxes on those rich fat cats who pay as little as a 14% effective tax rate.  Something he would never do himself.  Because he’s not a greedy, vicious, heartless bastard.  He’s a Democrat (see New York Mayor Bill De Blasio Pays A Lower Tax Rate Than Mitt Romney by Hunter Walker posted 4/16/2014 on Business Insider).

Democratic New York City Mayor Bill de Blasio became a prominent proponent of progressive tax policy when he made raising taxes on city residents who make over $500,000 a year a cornerstone of his platform during his underdog campaign last year.

That’s why it raised eyebrows and drew some initial national coverage when The Wall Street Journal reported Tuesday that de Blasio had paid an “effective tax rate” of 8.3%.

That would put de Blasio’s tax rate substantially lower than the approximately 14% tax rate multimillionaire former Republican presidential nominee Mitt Romney was attacked by Democrats for paying in 2011.

Well, somehow it works out that a Republican paying a 14% effective tax rate is a greedy, vicious, heartless bastard but a Democrat paying 8.3% is not.  Go figure.

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California Insurance Exchange uses Tax Dollars for Health Care to help Obamacare Applicants register to Vote

Posted by PITHOCRATES - March 30th, 2014

Week in Review

Some see amnesty as a Democrat voter registration drive.  Because people will remember who helped them become legal citizens.  The Democrats.  And will vote Democrat.  Some have also said the Affordable Care Act is another Democrat voter registration drive.  As Obamacare gave enormous sums of money to people running the insurance exchanges.  To set up and maintain those exchanges.  And to do something with all of that data they collected.  Such as making sure these people signing up for these ‘Democrat’ benefits (the Affordable Care Act was passed along purely partisan lines) register to vote (see California to Send Voter Registration Cards to Obamacare Applicants by McClatchy News posted 3/25/2014 on Governing).

Heading off a lawsuit over compliance with a federal voting rights law, California officials have agreed to help millions of state residents register to vote.

Under a deal announced Monday by several voting-rights groups, the state will send voter registration cards to nearly 3.8 million Californians who have applied for health insurance under the Affordable Care Act…

The Department of Motor Vehicles and state offices that aid low-income mothers and the disabled are also among the agencies required to provide registration services…

A spokeswoman for the state health insurance exchange, Covered California, said the network had already taken “some interim steps,” including providing voter registration information and links to the secretary of State’s office on its website.

It’s probable that these people would not have voted in the next election had they not signed up for mandatory health insurance.  But they did.  And now are receiving voter registration information.  From the good people who signed them up for their health insurance.  No doubt Democrat supporters.  Will they coach these people on how to vote as well as registering them to vote?  Will someone explain to them that if they want more free benefits they need to vote Democrat?  Perhaps.

It’s how you buy votes.  You give people something.  And keep giving them something as long as they keep voting for you.  At least, that’s what they say at election time.  “I fought to increase Social Security funding while the Republicans wanted to privatize it and make you risk your retirement in the stock market.”  “I fought to increase Medicare spending while the Republicans wanted to privatize it and make it wither on a vine.”  Etc.  So is it improbable to think someone is telling them to be sure to vote Democrat so the Republicans can’t take away your health insurance?  To use tax dollars for health care to register Democrat voters?  Not really.

The Democrats ran an ad showing a Republican pushing Granny off a cliff in a wheelchair.  ‘Rogue’ IRS agents took it upon themselves (or so the Obama administration claims) to harass Tea Party groups to prevent their fund raising, suppressing their free speech in the 2012 election.   And, of course, the Democrats lied to the American people to pass the Affordable Care Act into law.  If you like your health insurance and doctor, they said, you could keep your health insurance and doctor.  So when it comes to getting what they want they appear to be rather pragmatic.  Where the ends justify the means.  No matter how unsavory, or legally questionable, those means are.  Which would make the insurance exchanges the perfect voter registration mechanism.  At least for one not bothered by the unsavory or legally questionable.

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FT215: “Of course the Republicans are the party of ‘no’ because that’s what grownups say to children.” —Old Pithy

Posted by PITHOCRATES - March 28th, 2014

Fundamental Truth

Children only care about the Here and Now and Instant Gratification

“Mom, can I eat this whole birthday cake?”  “No.”  “Dad, can I stay up past my bed time?”  “No.”  “Mom, can I go out and play instead of cleaning my room?”  “No.”  “Dad, can I skip my homework and play football with the guys?”  “No.”  “Mom, can I go to the concert with Billy and his big brother?”  “No.”  “Dad, can I use your table saw?”  “No.”  “Mom, will you buy me this micro dress for the dance?”  “No.”  “Dad, can I borrow the car this Friday to drive to a party?”  “No.”  “Mom, can I have boys in my bedroom?”  “Hell no.”  “Dad, can I have $50?”  “For what?”  “Stuff?”  “What kind of stuff?”  “You know, stuff.”  “Oh, in that case, no.”

“No.”  It is the most important word in a parent’s vocabulary.  For kids want to do a lot of things that aren’t good for them.  Things that will get them into trouble.  Things that might hurt them.  Things that may leave them with unpleasant and/or long-lasting consequences.  Parents have to say ‘no’ because kids just don’t know any better.  They only think about the here and now.  Not about the future.  They want instant gratification.  They want to have fun.  They don’t want to wait.  They don’t want to work.  And the last thing they want to do is to delay gratification.

So parents have to keep saying ‘no’ for their children’s own good.  At least, responsible parents do.  Because parents are older and wiser than their children.  Contrary to popular belief children have about their parents.  Children like to say that their parents “don’t know anything.”  But they do.  In fact, they know a lot.  Because they were once impulsive children having the same arguments with their parents.  And now that they are parents they see the world differently than they did as children.  They see it as their parents saw it.  And realize that their parents were right all along.  Thanks to a lot more education, a lot more work experience and a lot more life experience.  The things that makes one wiser as one gets older.

Children who never Grow Up as Adults tend to Remain Liberal and Vote Democrat

Children that grow up into responsible adults tend to be more conservative.  They get jobs.  Straight out of high school.  Or after college.  And party less.  They cut back on reckless behavior.  Such as drinking and driving.  Because they realized they could get a DUI.  They could hurt themselves.  Or, worse, hurt someone else.  If they used drugs they cut back.  Some stop using them completely.  They stop having  casual sex with random people.  In part to avoid an STD.  In part because they want something more than just a good time.  So they, instead, get married.  And settle down.  Raise a family.  And it’s about this time that these one-time wild liberals start voting Republican.  As they see there is a lot more to life than partying with booze and drugs.  And having sex.  Especially when they become parents.

Becoming a parent changes a person.  Single coworkers may still want to go out and get a drink after work.  They may look forward to the weekend so they can drink themselves into a stupor.  But not a married person.  At least, not a married responsible grownup.  They want to go straight home to their wife.  Or husband.  They want to spend time with their kids.  And they don’t want to do anything that could harm their kids.  Like risking their job by coming in late hung over after a night of excessive drinking.  They’d rather get to work early.  Do their job.  And build a successful career.  That is both personally satisfying.  And takes care of their family.  Something sobriety helps.  And our days tend to be easier when they don’t start with a hangover.

Children who never grow up as adults, on the other hand, tend to remain liberal.  Focused on the here and now.  Without a thought about the future.  For them gratification is all that matters.  These people tend to keep the wild ways of their youth.  And those who go on to college take it up a notch.  Away from their parents incessant ‘no’s they can finally say ‘yes’ to everything.  And a lot of them do. They’ll get drunk and video things with their smartphones.  And upload them to the Internet.   The kind of things you once had to go to a pornography store to buy.  But they and their friends will post these videos for all the world to see.  And these things will still be floating around the Internet years later when they’re saying ‘no’ to their own children.  Or interviewing for a job.  Jessie Watters on The O’Reilly Factor has interviewed some of these young college students on spring break.   Asking them questions about history.  International events.  Current events at home.  And if they could identify members of the Federal government.  Few could.  Very few.  Because they have more pressing things in their lives apparently than getting an education.  At least based on what they’re doing with their smartphones.

Democrats only care about the Here and Now and Instant Gratification

Liberal Democrats love these kids.  For they know all they want is to have fun.  So they become the party of fun.  Free birth control.  Access to abortion.  Decriminalizing marijuana.  Anti-religion.  No moral absolutes.  Anything goes.  Even encouraging reckless behavior (they’re going to have sex anyway so we might as well make it easier for them).  Veritable anti-parents.  Who tell these kids that they (these kids) know what’s best for them.  Not their parents.  And if they want instant gratification that’s okay.  You don’t have to worry about the future because if you vote Democrat that’s something else we’ll do for you besides the birth control, abortion, marijuana and the lack of moral constraints.  If you vote Democrat we’ll take care of you from cradle to grave.  Just like that The Life of Julia slideshow promised.  With so little education, work experience and life experience these kids don’t know any better and say, “Okay.  Where do I vote.”

So the Democrats use these kids to stay in office.  They know little so it is easy to lie to them.  About the ‘evil Republicans’ that are as big a killjoy as their parents.  And about how much better the Democrats are going to make their lives.  If only they keep voting Democrat.  So they do.  Because the Democrats offer everything an irresponsible adult could want.  Which is a shame as a lot of what the Democrats offer is bad for the rest of us.  And the country.  Their Keynesian economics fails over and over yet they keep using these failed policies of the past.  Putting the country further into debt.  And further depreciating the dollar.  They lie to these kids about global warming.  Allowing the Democrats to remain in power and pass crippling regulations.  Threatening the coal industry.  As well as increasing our energy costs.  They want to raise the minimum wage for unskilled, entry-level jobs.  Reducing the number of entry level jobs available for those looking to enter the workforce.  And they want to take over our health care.  The best health care system in the world.  Replacing it with something not as good and more costly.

But these grand domestic plans require a lot of money.  Which they often get from gutting the defense budget.  Weakening our military (something they never liked to begin with) to free up money for buying votes (i.e., spending) elsewhere.  They help justify this with a horrible foreign policy.  Instead of peace through (costly) strength they choose a ‘please like us’ foreign policy.  Marginalizing American Exceptionalism.  Being kind to our enemies.  And leaving our allies doubting our commitments.  But if our enemies like us we won’t need a large military anymore.  Allowing them to use those defense dollars elsewhere.  And how has that been working out?  Not good.  Since the ‘please like us’ foreign policy juggernaut Egypt is in chaos.  Syria is in a bitter civil war.  Iran is developing a nuclear bomb.  Israel is feeling abandoned.  Al Qaeda is taking over Libya and Iraq.  The Taliban will return to Afghanistan once the U.S. leaves.    North Korea is test-firing ballistic missiles.  And Vladimir Putin is restoring the Soviet Union.  Because he can.  Thanks to America’s new ‘please like us’ foreign policy.  Instead of the peace through strength of previous presidents.  Like Ronald Reagan.  And JFK.

There’s something else children who never grow up do.  Go into politics.  Into the Democrat Party.  Not the Republican Party.  The party the Democrats derisively call the party of ‘no’.  They join the Democrat Party.  And do all of the things that give us the worst economic recovery since that following the Great Depression.  And a more dangerous world.   Despite this they still want to do more.  Without caring what their actions may do to our future.  Just like children.  All they care about is the here and now.  And instant gratification.  So of course the Republicans are the party of ‘no’ because that’s what grownups say to children.  ‘No’.

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The Democrat War on our 401(k) Plans

Posted by PITHOCRATES - March 22nd, 2014

Week in Review

Retirees can’t get by on Social Security alone.  And we can’t raise Social Security payments because the program will be insolvent in a few years.  Because of our aging population.  More people are leaving the workforce than are entering it.  So fewer people are paying taxes to support those in retirement.  And those in retirement are living a lot longer into retirement than the Social Security actuaries thought they would.  Which is why Social Security is going bust.  And people need other sources of retirement income.  And a big source of that retirement income has been our 401(k) plans.  Which President Obama wants to take away (see Obama’s budget bad for 401(k) savers by Scott Hanson posted 3/19/2014 on CNBC).

President Obama’s proposed budget for 2015 would be a disaster for the millions of Americans who are underprepared for retirement. This plan would reduce the tax incentives for employers to offer retirement plans to their employees…

Under Obama’s budget plan, higher-income earners would be limited to a tax deduction at the 28 percent level, even if their current income-tax bracket is much higher…

This means they would not only pay taxes on some of their contributions today, they are fully taxed when they withdraw the money in the future. This, of course, is double taxation.

The Social Security Trust Fund doesn’t have any money in it.  All the money we’re paying into Social Security is going right out to pay for someone else’s retirement.  And what’s left over the government spends to buy votes.  Replacing our money in the Social Security Trust Fund with IOUs.  Promises to repay the money when we need it.  How?  By either borrowing more money.  Printing money.  Or taking a portion of our other retirement money we’re setting aside.  Our 401(k) plans.

It’s no secret that the Democrats hate these 401(k) plans.  For that’s a lot of money people are NOT spending.  And money they can’t tax.  The government is full of Keynesians.  They believe the only healthy economy is an economy where people spend everything they earn.  Keynesians see savings as leaks from the economy.  And they don’t like that.  For them consumption is everything.  And saving is for chumps.  They want our 401(k) plans.  Some have even been thinking about just taking that money and replacing it with some government program.  Like Social Security.  So they can get that money now.  And spend it.  For there are so many votes to buy and so little money to buy them with.  So the Democrats will wage their war on our 401(k) plans.  And then move on to something else.  For they have an insatiable appetite to spend.

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FT214: “The far left has been and always will be an aristocratic-thinking, privilege-seeking people.” —Old Pithy

Posted by PITHOCRATES - March 21st, 2014

Fundamental Truth

Lawyers make a lot of Money without Contributing anything Tangible to Society

An attorney was sitting in his office late one night when Satan appeared before him.  Satan said, “I have a proposition for you.  You can win every case you try for the rest of your life.  Your clients will adore you, your colleagues will stand in awe of you and you will make embarrassing sums of money.  All I want in exchange is your soul, your wife’s soul, your children’s souls, the souls of your parents, grandparents, parents-in-law, the souls of all your friends and law partners.”  The lawyer thought about this for a moment then asked, “So, what’s the catch?”

That’s funny, isn’t it?  Lawyers.  Ambulance chasers.  The butt of so many jokes.  Why?  Well, some will say they deserve it.  Because they do chase ambulances.  And will pass out their business cards if they’re on a sinking ship.  Because sinking ships are good for lawsuits.  And lawyers love to sue.  For they can make a lot of money without contributing anything tangible to society.  All they do is get between two parties when large sums of money change hands.  And put a portion of that money into their pockets.  That’s how they earn their living.  Taking money away from others.  They’re parasites.  Just to get rich.  And the big tort lawyers (those who sue people and businesses) get really rich.  Allowing them to live very privileged lives.

Take a class action lawsuit.  Where they bring a lot of wronged people together to sue a large corporation.  The old David and Goliath thing.  A little person can never take on a big corporation.  But a whole class of them can.  When represented by a tort lawyer.  Who liken themselves as heroes of the little guy.  Taking the big corporation on to make them pay for all the horrible things they’ve done to their clients.  But who do they really help?  Let’s say they win a judgment from a big corporation of $250,000,000.  That’s a lot of money.  From that sum they take their cut.  Let’s say 50%.  Leaving $125 million for the people the corporation wronged.  That’s a lot of money.  So the people won, too, right?  Not really.  For there are a lot of people represented in these class actions.  Let’s say 5 million in our example.  So if you divide the $125 million by 5 million that comes to $25 per person.  So, again, who did the lawyers really help?  The lawyers.  Which is why there are so many lawyer jokes.

In the Private Sector if you want to spend Half of your Life Retired you have to Pay for It

Lawyers vote Democrat.  Because they like being privileged people.  They don’t want the laws changing that allow them to get so rich when money exchanges hands.  Which is why they donate heavily to the Democrat Party.  And don’t donate to the Republicans.  Who complain about the high costs of frivolous lawsuits to businesses in an overly litigious society.  It’s so bad that a footnote in the financial statements of a corporation about a lawsuit is not that big of a deal.  Why?  Because so many corporations are sued that investors are more surprised to see one that isn’t being sued.  This is why Republicans want tort reform.  And pass ‘loser-pays’ into law.  Like many other countries have.  Where the loser in court pays for the attorney fees for the side that wins.  Which would greatly cut down on frivolous lawsuits.  And cut the costs businesses incur from these frivolous lawsuits that they pass on to their customers.  So the lawyers donate to Democrats.  To prevent any tort reform that would change the easy way lawyers have of getting rich.

It’s the world’s oldest profession.  Screwing people for money.  But lawyers aren’t the only ones seeking privilege.  There are a lot of others, too.  Interestingly, they, too, support the Democrat Party.  Such as the United Autoworkers.  They donate heavily to the Democrat Party to keep labor laws favorable to unions.  To make it more difficult for their nonunion competition.  And to use the power of government to force people to pay may for a union-made car.  Allowing their union members to live better lives than those outside of the UAW.  And when even that doesn’t allow General Motors to pay its bills when selling a record number of cars the UAW goes to government for a bailout of their woefully underfunded pension fund.  So their union members can continue to have a more generous retirement at an earlier age than those outside of the UAW.

Teacher unions seek privilege, too.  You hear a lot about how the teachers don’t earn that much.  But then again, they don’t work that much.  Getting 3 months off in the summer.  So you can’t compare their wages to people who don’t get the 3 summer months off.  But for teachers it’s not so much about the paycheck.  It’s the benefits.  Very generous health insurance coverage.  And pensions.  Which have gone the way of the dodo in the private sector.  Because people are just living too long into retirement.  When they first set up these pensions people were dying in their sixties.  The actuaries never saw people living into their eighties as common.  So in the private sector if you want to spend half of your life retired you have to pay for it.  And you work as long as necessary to fund the retirement you want.  The union pensions just can’t work these days as they once did.  Which is why teacher unions like the United Autoworkers and lawyers support the Democrat Party.  They want to keep their privileged lives.

The Wealth Transfers of the Welfare State give Democrats Money and Privilege

Of course privilege is nothing new to the Democrat Party.  They have long stood for privilege.  Even now.  As the Democrats provide themselves all kinds of exceptions from the Affordable Care Act.  For more expensive and lower quality health insurance is good for the masses.  But not for the privileged elite.  Or their special friends who support them so generously with campaign donations.  Congress has had a history of exempting themselves from the laws they pass for us.  It took the Republican winning of the House in the 1994 midterm elections to change that.  The first Republican-controlled House since 1952 required Congress to be held to the same laws as the rest of us.  A bitter pill for Democrats to swallow.  For their feelings of privilege go way back.

The Democrat Party can trace its pedigree back to Thomas Jefferson’s Democratic-Republican Party.  The party of the slave-owning planter elite.  Who from day one fought for their privilege starting with the Three-Fifths Compromise.  To give them a greater say in the new national government than their voting population allowed.  The planter elite’s South turned into an Old World aristocracy.  With great manors for the landed aristocracy.  And vast lands worked by slaves.  Very similar to feudalism in the Old World.  And something they fought hard to keep.  Their privilege.  The Southern Democrats used the power of the national government (such as the Fugitive Slave Act) to interfere with state laws in the North.  To protect their feudalism by keeping slavery legal as long as they could while the north was industrializing and modernizing.  With paid laborers.  When they lost control of the House due to the growing population in the North they turned to war.  Saying that the national government was interfering with state laws in the South.  And getting poor southern farmers who owned no slaves to fight and die so the southern aristocracy could live on.

When the Southern Democrats lost the American Civil War they scrambled to maintain their privilege.  They unleashed a terror on the freed slaves and Republicans with the KKK.  The Democrats then wrote Jim Crowe Laws.  Separate but equal.  Government-enforced racial segregation.  During debate of the Civil Rights Act of 1964 Democrat and former Exalted Cyclops of the KKK Robert Byrd filibustered for 14 hours.  To keep the South segregated.  With power and privilege in a new aristocracy.  Centered not on land but political power and cronyism.  Even becoming the party for blacks as ironic as that is.  Trading government programs for votes.  And destroying the black family in the process.  Aid to Families with Dependent Children (AFDC) replaced black fathers with government.  And moved single mothers and their children into housing projects that became infested with drugs and crime.  But this large (and failed) welfare state transferred a lot of wealth to the Democrats.  Giving them money and privilege.   That they can use to maintain their power.  By taking care of those who take care of them.  Lawyers, the UAW, teacher unions and other privilege seekers.  For nothing has changed on the left.  They have been and always will be an aristocratic-thinking, privilege-seeking people who want to live better than the rest of us.  While we pay for their privileged lives.

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People seeking Privilege destroyed the City of Detroit

Posted by PITHOCRATES - March 16th, 2014

Week in Review

The history of the world is not pleasant.  It is one where brutal oppression has been the rule.  Where a king or a lord or a chieftain used brute force to establish a leadership position in a tribe.  Then that tribe followed that leader to conquer other people.  To rape and pillage those around them.  As these groups grew larger power concentrated in the few hands at the top.  Who lived very well.  As did the people who protected them.  But the people beyond this inner circle?  They were expendable.   And lived nowhere near as well.  For there just wasn’t enough for everyone to live like that.  Which is why people want power.  So they don’t have to live the miserable lives of the masses.

Times have changed.  But one thing hasn’t.  There is always a group of people that wants to live better than the masses.  Today some use politics to give themselves privilege.  Like the United Auto Workers.  And public sector unions.  Two things that led to the bankruptcy of Detroit.  See how people seeking privilege destroyed one of the greatest cities in the world.  The Motor City.  The city that won World War II.  See how it fell from glorious heights into the shell that it is today in this documentary (see BANKRUPT…. How Cronyism And Corruption Brought Down Detroit by FTR Media in conjunction with Ben Howe and Mister Smith Media posted 2/1/2014 on FTR Radio).

The message is clear.  And a clarion call for the elections this fall.  Detroit is a Democrat city.  And it has been a Democrat city for decades.  Detroit was a model of Democrat Party rule.  And that model failed.  As it is failing—or will fail—in other large Democrat cities.  And, perhaps, a Democrat-controlled United States.  Something we may be able to avoid if we stop voting for the party of privilege.  The Democrat Party.

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Russia’s Annexation of Crimea is similar to the Democrat’s annexation of the American Health Care System

Posted by PITHOCRATES - March 9th, 2014

Week in Review

In the movie Yellowbeard there was a scene at the docks where a guy was asking who wanted to join them on a well-paid, well-fed, adventure holiday on a modern rat-free, leak-proof ship.  Any volunteers were to just lie down on the ground with their eyes shut.  Then a guy hit them over the head.  Knocking them unconscious.  At which point they volunteered for that adventure holiday.  That’s one type of ‘democracy’.  Here’s another (see Ukraine Secession Referendum Does Not Have a ‘No’ Option by Noah Rayman posted 3/7/2014 on Time).

Crimea, which voted to put the question of secession from Ukraine to a referendum, has released a ballot with severely limited choices, and all of the options come with strings attached

“No” is not an option in the upcoming referendum in Crimea on whether to split from Ukraine…

The two questions, written in Russian, Ukrainian, and Crimean Tatar, ask:

•“Do you support joining Crimea with the Russian Federation as a citizen of the Russian Federation?”’

•“Do you support restoration of 1992 Crimean Constitution and Crimea’s status as a part of Ukraine?”

The current constitution states that the Crimean Constitution must be approved by the Ukrainian Parliament.  Meaning that any secession of the Crimean peninsula must be approved by the Ukrainian Parliament.  Which is why the second question, though it appears as a vote to stay a part of Ukraine, is basically the same as the first question.  For the 1992 Crimean Constitution removes the clause about any Crimean constitution having to be approved by the Ukrainian Parliament.

So what does this mean?  It basically means anyone who opposes the annexation of Crimea by Russia should just lie down on the ground with their eyes closed.  Forever.  Because however you vote (option 1, option 2 or no vote) Russia will annex the Crimea.  Even though current Ukrainian and Crimean law forbid this.  But that’s the advantage of being a former KGB dictator.  If you don’t like a law you just re-write it so you do.  Sort of like President Obama rewriting the Affordable Care Act some 29 times so it doesn’t harm the Democrats in the upcoming midterm elections.  So they can complete their annexation of the American health care system before the people can do something about it in the next election.

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Guns, Butter and Abortion

Posted by PITHOCRATES - February 24th, 2014

Economics 101

Democrats will cut Defense but not Entitlements because fewer People in Defense vote Democrat

A cornerstone of the Obama presidency is social justice.  Primarily through redistribution of wealth.  Raising taxes to fund a growing welfare state.  To help those not lucky enough to have won life’s lottery.  Such as expanding the food stamp program (Supplemental Nutrition Assistance Program).  Which has grown over 70% under President Obama.

Of course, this costs money.  A lot of it.  Added on top of an already costly welfare state.  Driven by entitlement spending.  Social Security.  And Medicare.  The biggest portions of federal spending.  And it only keeps growing.  Making the welfare state unsustainable without entitlement reform.  But the politicians won’t touch entitlements.  The third rail of politics.  Because they’re afraid of losing votes in the next election.  So they’d rather the country implode instead of reforming entitlements.  And hope that implosion comes after they’re dead and buried.  For as long as they get to enjoy their lives they could give a rat’s behind about future generations.

But they will touch defense spending.  And often do when they are looking for more money for the welfare state.  Even now.  The Obama administration is proposing spending cuts in defense spending.  That will shrink the size of the military.  And cut pay and benefits for some of the lowest paid people in the country.  The people who go in harm’s way for their country.  They won’t touch entitlement spending because it may hurt people that typically vote Democrat.  But they have no problem doing just that to those who wear a uniform to serve their country.  Who don’t always vote Democrat.  Just so they can have a generous welfare state like the European social democracies they so admire have.  Who can have them because they don’t have large defense budgets.  For the United States has been protecting them since World War II.

People can’t pay Taxes to fund a Welfare State without a Job that Provides an Income to Tax

If you watch television you’ve probably heard New York State’s commercials to attract new businesses to New York.  Where the state is promising that businesses will be “100% tax-free for 10 years.  No income tax, business, corporate, state or local taxes, sales and property taxes, or franchise fees.”  Which is a clear admission from the state with the second highest tax burden in the country that high taxes hurt business.

The tax burden is so great in New York that some businesses have moved their operations out of state.  And people with vacation homes in New York who only visit them a couple of weeks out of the year are selling them.  As the state is taxing their incomes as if they are permanent New York residents.  But despite these high taxes New York has suffered great budget deficits.

New York City is a Democrat city.  Their high taxes pay for a large welfare state.  A large public sector.  And the enormous costs of their public sector benefits.  In particular, health care and pension costs.  But their high tax rates have shrunk the tax base.  Because people can pack up and move out of state.  Just as businesses can.  Which is why they are doing a 180-degree turn on taxes.  In a desperate attempt to get businesses to come to New York.  For even if these businesses aren’t paying taxes their employees will.  Income taxes.  Sales taxes.  Property taxes.  Liquor taxes.  Cigarette taxes.  Etc.  None of which they can pay if there are no jobs to give them an income the state can tax.

The Number of Abortions is having a Direct Impact on the Economy and Tax Revenue

New York City released its SUMMARY OF VITAL STATISTICS 2012 THE CITY OF NEW YORK PREGNANCY OUTCOMES this month.  In it you can find why New York City, New York State and the federal government are having such a difficult time paying for their welfare states.  It’s because of liberal Democrat policies.  Not on the spending side of the equation.  But on the revenue side of the equation.

In 2012 there were 73,815 abortions.  Which are future taxpayers that weren’t allowed to be born.  That’s right, before anyone pays the high tax rates of a welfare state they have to be born first.  And when they are not born that’s future tax revenue the government cannot collect.  If we look at a 20 year period (about a generation) and assume 73,815 abortions each of those 20 years that’s 1,476,300 people that never will pay taxes.  If they earned on average $30,000 each that’s $44,289,000,000 of economic activity they never created.  And at a New York State tax rate of 11.7% that’s $5,181,813,000 in lost tax revenue for the state.

But it gets worse.  If you divide this number by two you get the total number of couples (a man and a woman) that could have started a family.  If each couple had 3 children this lost generation could have brought in another 2,214,450 taxpayers into New York City.  Adding them to their parent’s generation and assuming a median family income of $53,046 (an older generation established in their career earning more and a younger generation just starting their career earning less) brings the total lost economic activity for these two generations of possible New Yorkers to $195,779,524,500.  And lost tax revenue for the state of $22,906,204,367.  So the number of abortions is having a direct impact on the economy.  And tax revenue.  Making it necessary to cut guns to pay for more butter.  Whereas if these taxpayers were born we could have both our guns and butter.  And live in a world made safe by the most powerful military in the world.  Peace through strength.  The Ronald Reagan way.  And not a world where our enemies are constantly testing our resolve.  The Jimmy Carter and President Obama way.

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New York City Abortions changing the Color of the City

Posted by PITHOCRATES - February 23rd, 2014

Week in Review

The Democrat’s most sacred issue is abortion.  Any attempts to restrict abortion and the left immediately starts bleating that the Republicans have a war on women.   As if the only thing women care about is having an abortion.  But could there be another reason behind their defense of abortion rights?  Perhaps.

New York City (NYC) requires that all abortions are reported.  They just released a report summarizing abortions in 2012 (see SUMMARY OF VITAL STATISTICS 2012 THE CITY OF NEW YORK PREGNANCY OUTCOMES released in February 2014).

All pregnancy outcomes, whether a live birth or a spontaneous or induced termination of pregnancy, are required by law to be reported to the Department of Health and Mental Hygiene.  This report compiles the information reported about these events to monitor the health of women and their infants in New York City.  For additional tables, technical notes and samples of NYC certificates of birth, please see the Bureau of Vital Statistics website at www.nyc.gov/vitalstats.

In Table 1. Pregnancy Outcomes, Pregnancy Outcome Rates*, and Pregnancy Rates* by Mother’s Age Group, Racial/Ethnic Group, and Borough of Residence, New York City, 2012 we see the information summarized here.

 NYC Live Births and Abortions R1

According to the U.S. census the demographic breakouts are approximately non-Hispanic white (63%), Hispanic (16.9%), non-Hispanic black (13.1%) and Asian and Pacific Islander (5.3%).  Which agrees with the order of the percentage of live births in the table above.  But things are different on the abortion side.  Where non-Hispanic blacks top the list of abortions.  With Hispanics a close second.  While non-Hispanic whites only come in third.   Despite their making up the largest percentage of the population.

If you look at the ratio of live births to abortions we see some startling statistics.  For every Asian and Pacific Islander abortion there were 4.71 live births.  For every non-Hispanic white abortion there were 4.03 live births.  But for every Hispanic abortion there were only 1.60 live births.  While for every non-Hispanic black abortion there were only 0.79 live births.  Or for every 10 abortions there were approximately 8 live births.  Meaning that more non-Hispanic black women are having abortions than having a live birth.

So what does this tell us about abortions?  That non-Hispanic blacks are more likely to have an abortion than any other group in NYC.  With Hispanics a close second.  Interesting.  For Hispanics and non-Hispanic blacks typically vote Democrat.  As the Democrats constantly tell them that Republicans hate them.  Even though Republicans oppose abortion.  So if Republicans had their way there would be more black and Hispanics babies being born.  Which would suggest that it’s not the Republicans that don’t like blacks and Hispanics.  But the Democrats.  Because keeping abortion legal is making NYC whiter.

For the sake of argument let’s change the title from ‘Abortions” to ‘Infant Mortality’ in the table above.  What do you think people would be saying then?  Probably not what they’re saying now about these abortion numbers.  Which is nothing.

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