FT189: “The problem with lying is that you can’t keep everyone ignorant forever.” —Old Pithy

Posted by PITHOCRATES - September 27th, 2013

Fundamental Truth

Global Warming Activists are Anti-Capitalists who want the US to be a European Social Democracy

Democrats lie.  It’s the only way they can advance a liberal agenda the people don’t want.  In the Nineties they warned us about impending doom from manmade global warming.  They said their science told them that within a decade global temperatures would rise so much that the polar icecaps would melt.  And the rising oceans would flood our coastlines.  While the hotter temperatures would turn our fertile farmland into desert.  The left wasn’t saying this could happen.  They were saying it was going to happen.

Well, it didn’t.  Every dire prediction they made didn’t happen.  The polar icecaps are still there.  Our coastlines are still there.  Our farmlands are still fertile.  In fact, they’re so fertile that America has an obesity problem.  Because we’re eating too much food.  And we’re eating too much food because we are growing so much food thanks to those fertile farmlands.  Why, we’re growing so much food that we’re using a large portion of our corn crop to make ethanol to burn in our cars.

So either the global warming crowd was so very wrong.  Or they were lying the whole time.  Why would they lie?  Well, who exactly are the global warming activists?  They’re not Republicans.  They’re not conservatives.  They’re liberals.  And it just so happens that they want the same thing liberal democrats want.  An ever growing regulatory environment strangling our businesses.  For these people are, generally, anti-capitalists.  Who want the United States to become a European social democracy.  Where there is fairness.  Egalitarianism.  And no rich people.  Other than those in government.

The Climate Scientists were wrong about Manmade Global Warming and their Hurricane Predictions

Hurricane Katrina was the deadliest and costliest hurricane to hit the United States.  And the left said, “See?  Global warming.”  Not only that they said this was only the beginning.  And because of manmade global warming we could expect a lot more Hurricane Katrinas.  In fact, it was a sure thing.  Manmade global warming was going to fill the hurricane season with a lot more hurricanes.  And a lot of them would be Hurricane Katrina bad.  Or worse.  And you could take that to the bank.  Because their mathematical models proved this.

Well, it turned out these mathematical models were wrong.  Since Katrina we’ve had nothing but mild hurricane seasons.  Exactly the opposite of what the climate scientists said we would have.  In fact, it took 7 years before we experienced another storm nearly as destructive as Katrina.  Hurricane Sandy.  Or Superstorm Sandy.  As it wasn’t quite a hurricane.  Though it was destructive.  It wasn’t Hurricane Katrina destructive.  Like the climate scientists said most hurricanes would be like following Katrina.

So either the climate scientists were just very bad at science.  Or they’ve been lying.  Or both.  During the Seventies these same brilliant scientists were upset that the world’s governments wouldn’t heed their warnings and start storing food for the coming ice age.  For they said it was a sure thing.  And there was nothing we could do about it. Then another decade or so later these same climate scientists were warning us about global warming.  Which was then a sure thing.  As global cooling and ice ages was so yesterday’s climate.

The Left is Good at Lying because they keep the People Ignorant and Gullible

Today business is strangled by environmental regulations.  The government is waging war against inexpensive and reliable coal-fired power plants.  While spending our tax dollars on costly and unreliable renewable energy.  Australia has a carbon tax.  And Europe has an emissions trading scheme.  To charge power plants, businesses, airlines, etc., for the carbon they exhaust into the atmosphere.  Adding layers and layers of costs to everything we buy.  All because the climate scientists said we were causing global warming.  Warming the same planet they said was cooling a few decades earlier.

They were wrong.  As they are on most things.  In fact, they are some of the most ignorant smart people in the world.  The political left.  Who want to run our lives because they are so much smarter than we are.  Yet their track record shows that they are not smarter than us.  Or that they’re just very good liars.  Who can tell the same lie over and over again and people will believe it.  Like global warming.  Or their Keynesian economic policies.  Policies that have given us the Great Depression.  The stagflation of the Seventies.  Japan’s Lost Decade.  The dot-com bubble and recession.  The subprime mortgage crisis.  And, of course, the European sovereign debt crisis.

Yet the left is very good at winning elections.  And that’s because they are such good liars.  For all of their policies are politically driven.  They don’t care about manmade global warming.  They just want to control the economy.  So they can pick winners and losers.  And enrich themselves.  Which is why they will tell the same lie over and over again.  Because they are so good at lying.  And the people are so gullible.  Because they are so ignorant.  Thanks to our public schools.  Which are controlled by the left (the teacher unions aren’t filling Republican campaign coffers).  The problem with lying to advance your agenda, though, is that you can’t keep everyone ignorant forever.  Eventually people grow up.  They raise families and feel the direct result of the left’s costly policies.  They live through 2 decades where there was no warming.  They see few hurricanes despite predictions of record hurricane seasons.  That’s why the left works so hard for the youth vote.  Because they are just too young to have experienced these things.  Young and dumb.  The ideal Democrat voter.  Who vote for the party that says sex is okay.  And drugs aren’t that bad.  Unlike their parents.  Who are old enough to have experienced the left being so wrong for so long.

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Entrepreneurs Fail not because they are Stupid but because of an Anti-Business Environment

Posted by PITHOCRATES - June 16th, 2013

Week in Review

The ‘capitalism’ we have today isn’t our Founding Father’s capitalism.  Yet critics of today’s ‘capitalism’ act as if it is.  And point to the inherent flaws of this ‘capitalism’.  As an excuse to bring in more governmental regulations to fix the problems of ‘capitalism’.  Which is the reason why today’s ‘capitalism’ isn’t capitalism.  It’s not the same economic system that made the United States the number one economic power in the world.  No.  It’s moved more towards European social democracy.  The system that gave the European nations their sovereign debt crises.  But those learned intellectuals speaking from their ivory towers still talk about fixing the problems of ‘capitalism’.  Without really understanding what the real problem is.  And it ain’t capitalism.  It’s the interference of capitalism and free markets.  This is the source of all our problems today.  And unless you address these problems you’re just wasting your time (see How to Reduce ‘Infant Entrepreneur Mortality’ by Sramana Mitra posted 6/10/2013 on the Harvard Business Review Blog).

Ever since the 2008 financial crisis, intellectuals have had to ask themselves, ‘Does Capitalism Still Work..?’

Two particular problems stand out. First, Capitalism has been hijacked by speculators. Second, the system enables amassing wealth at the tip of the pyramid, leaving most of society high and dry. Both problems have resulted in a highly unstable, volatile world order that jitters and shocks markets periodically, leaving financial carnage and mass scale human suffering.

The first problem with ‘capitalism’ today is that intellectuals are trying to fix it.  There isn’t anything wrong with capitalism.  The problems we have today have nothing to do with capitalism.  Because what we have today is state capitalism.  Crony capitalism.  European social democracy.  We have too much government in capitalism.  Who are favoring their big corporate friends in exchange for big corporate campaign donations.  And the only reason we have these speculators is because of the government.  Who is pumping so much cheap money into the economy for the speculators to speculate with.  And when their crony capitalist friends fail the government bails them out with tax dollars.  Because there is no downside to speculation when you have friends in government speculators will speculate.

People like to blame the banks and Wall Street for the subprime mortgage crisis.  But they didn’t create that crisis.  They just played their part.  The government created it.  By pumping cheap money into the economy to keep interest rates artificially low.  To encourage people to buy houses.  Even those who weren’t even considering buying a house.  Or those who simply couldn’t afford to buy a house.  These people changed their behavior based on the government’s manipulation of the interest rates.  As the government intended to do.  And they made everything worse with policies to encourage more and more home ownership.  The big one being Bill Clinton’s Policy Statement on Discrimination in Lending.  Where the government threatened lenders to lend to the unqualified or else.  So they did.  Using the subprime mortgage to qualify the unqualified.  And then the government-sponsored enterprises, Fannie May and Freddie Mac, bought those toxic subprime mortgages from these lenders, chopped and diced them into investments called collateralized debt obligations.  And sold them to unsuspecting investors as high-yield, low-risk investments.  Because they were backed by the safest investment of all time.  The home mortgage.  Only they didn’t tell these investors that these mortgages were toxic subprime mortgages being paid by people who couldn’t qualify for a conventional mortgage.  The safest investment of all time.  The conventional home mortgage.  So these lenders were able to clear these toxic mortgages off of their balance sheets.  Allowing them to issue more toxic subprime mortgages.  They were making money by writing these risky subprime mortgages.  But incurred no risk.  So they kept qualifying the unqualified for more and more mortgages.  Which was profitable.  Safe.  And kept the government off of their backs as threatened in Bill Clinton’s Policy Statement on Discrimination in Lending.

This isn’t capitalism.  This is government and their crony capitalist friends using their power, privilege and influence to game the system.  To enrich themselves.  This is what caused the mess we have today.  Where speculators and those in government get richer.  While Main Street America sees its median income fall.  And entrepreneurs struggle to stay in business.

Everybody talks about the role small businesses play in growing economies and creating jobs. However, as it stands, in America alone, 600,000 businesses die in the vine every year. This colossal infant entrepreneur mortality is a product of colossal levels of ignorance about how to build and sustain businesses.

And a myriad of governmental regulations, taxes and a litigious society.  Entrepreneurs today have to spend a lot of money and time protecting their money and time.  They need accountants and tax lawyers to help them comply with an ever growing regulatory environment.  And a boatload of insurances to keep the sharks at bay who all want a piece of their wealth and will sue if given the least opportunity.  It’s so complex that if they try to navigate their own way through these enormous burdens places on business they often make mistakes.  Or simply overlook something that they shouldn’t have.  Often times they just don’t charge enough to cover all of these costs they never expected when starting their businesses.  So when, say, a tax bill comes due they simply don’t have the cash on hand to pay it.  And then the downward death spiral begins.  This is why restaurants and construction companies are the number one and number two business to fail.  Where we have brilliant chefs and trades people who can cook or build something better than anyone else.  But are so out of their element when dealing with the business side of their trade.  The regulatory costs, taxes, insurance, etc.  And find they spend more of their time not doing what they love—cooking or building—but pushing paper through a labyrinth of red tape.  And often don’t find out they are not charging enough to cover all of the regulatory costs, taxes, insurance, etc., until it’s too late.

There is actually a method to the madness of entrepreneurship. And while the ‘character traits’ that support entrepreneurship — courage, tolerance for risk, resilience, persistence — cannot be taught, the method of building businesses can and should be taught.

In fact, it should be taught not just at elite institutions, but at every level of society, en masse.

If we can democratize the education and incubation of entrepreneurs on a global scale, I believe that it would not only check the infant entrepreneur mortality, it would create a much more stable economic system.

No.  That’s not the answer.  The reason why a lot of people remain employees instead of going into business themselves is that these people don’t want to deal with all the regulatory headaches their bosses have to deal with.  A tradesperson would rather work their 8-hour shift and go home.  They don’t want to deal with payroll taxes, workers’ compensation insurance, liability insurance, vehicular insurances, health insurance, real property taxes, personal property taxes, quarterly tax filings, business income tax, use tax, OSHA requirements, environmental requirements, city and state inspections, permits and licenses, etc.  If a tradesperson could just throw his or her tools in a truck and go into business they would.  But they can’t.  So they won’t.  Because it’s just so much easier being an employee than an employer.  Who are always guaranteed a paycheck if they work.  While an employer only gets paid after everyone, and everything, else gets paid.

You want to reduce infant entrepreneur mortality rates?  Get the government out of the private sector.  And give these entrepreneurs a chance.  You’d be surprised at what they can do if the government just leaves them alone.  Just like Andrew Carnegie, John Rockefeller, Henry Ford, etc., did.  Who probably couldn’t do what they did today.  Not in today’s anti-business environment.

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