Colleges and Universities take Advantage of Students to keep that Tuition Money flowing into Big Education

Posted by PITHOCRATES - February 16th, 2014

Week in Review

Getting a college degree is expensive.  Because the greedy rich people running our colleges and universities keep raising the cost of tuition, forcing students to take out bigger and bigger student loans to satiate their greed.  And to make matters worse they often sell them worthless degrees for the current marketplace.  Often giving students poor advice.  Getting them to commit to those big student loans by hook or crook.  Taking advantage of these young students’ trust in them.  Anything to keep that money flowing into Big Education (see What you wish you’d known about college ahead of time by Caitlin Moran posted 2/14/2014 on The Seattle Times).

We received several thoughtful responses to our most recent reader question, which asked: “What do you wish you had known about college ahead of time..?”

Here are a few examples of what our readers said they wish they had known about college when they were younger. Some responses have been edited for length and grammar.

I wish I had known to do more research about my major and what it would actually do for me job-wise. I don’t use my degree for my job now, and I keep hearing about many people who take out huge school loans and graduate with few job skills. I worked my way through school, which was not fun, but at least I got out of college debt free. With recent tuition hikes, getting out debt free is much harder, and students need to make sure the loans will be worth it…

I wish I’d known I should know more about the world before going to college, so I had some idea why I was going. Had I known more about careers, skills and background for careers, and myself, I would have made different choices in college. I wish I had worked for a year or two, known what it was like, and known more about what I wanted.

Of course Big Education is not all that concerned about giving you the skills and background you need for a successful career.  They just want your money.  And to turn you into Democrat voters.  While keeping you Democrat voters as long as possible.  And being indebted by a degree that doesn’t help you make any more money than you could have without that degree goes a long way of making you dependent on Democrats in government.  Because rich and successful people need no help from the government.  Ergo the selling of so many worthless degrees.  To keep these people from becoming rich and successful.  Where they might do something harmful to Big Education.  Like voting Republican.

www.PITHOCRATES.com

Share

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

Democrat Greed increases the Gap between Rich and Poor in the America’s Greediest Areas

Posted by PITHOCRATES - December 22nd, 2013

Week in Review

The Democrats are about redistributing income.  From those according to ability to those according to need.  To reduce the gap between the rich and poor.  Making the world a better place.  Which is why we have high taxes today.  And if you live in a predominantly Democrat area the taxes are even higher.  To reduce poverty and give those greedy fat cats what they deserve for being lucky enough to win life’s lotto (see Repent now. Geographers map 7 deadly sins by Mike Krumboltz posted 12/17/2013 on Yahoo! News).

The seven deadly sins (for those who don’t concern themselves with such things and/or have never seen that creepy Brad Pitt movie) are, in no particular order: wrath, envy, greed, gluttony, sloth, lust and pride.

Seeking to discover where in America those sins are most prevalent, a group of geographers from Kansas State University did some research using data on things such as number of fast food restaurants per capita (gluttony), number of thefts and robberies (envy), and average incomes compared with the number of inhabitants living beneath the poverty line (greed).

Those areas with the most greed are those areas with the greatest income gap between rich and poor.  So you would expect those predominantly Democrat areas would be the least greedy of all places in the United States.  Funny thing, though, they’re not.

If you follow the link you will see a map showing the greediest areas in red.  And where are these red areas?  The greater Seattle area.  The West Coast from San Francisco down to San Diego.  The Las Vegas area.  The greater Phoenix and Tucson areas.  The greater Denver area.  The greater Dallas and Houston areas.  A large swathe of the Mid West from the Greater Chicago area to Gary Indiana to the greater Detroit area/southeast Michigan and Cleveland.  Central and south Florida.  And the East Coast from the greater Washington D.C. area to Philadelphia, New Jersey, the greater New York City area to the greater Boston area.  Now what is the common characteristic that these the greediest areas of the United States share?  That’s right, they are predominantly Democrat.

It appears the Marxist saying “from those according to ability to those according to need” needs to be modified slightly.  “From those outside the Democrat elite to those inside the Democrat elite.  And call Republicans greedy to get working people to vote Democrat.  Allowing the Democrat elite to remain in power.  So they can live the good life while those they purportedly champion pay for it.”  Or perhaps something simpler.  “Screw the poor.”  Because that’s what the Democrats are doing.  Which is why their areas are the greediest areas.

www.PITHOCRATES.com

Share

Tags: , , , , , , ,

Detroit may mark the Beginning of the End of Generational Theft by Public Sector Unions

Posted by PITHOCRATES - August 4th, 2013

Week in Review

So who’s to blame for Detroit?  The greedy.  The greed of the public sector.  Who stole as much as they thought possible from future generations.  Laughing all the way to the bank.  But never did they think that their greed would eclipse the paying-ability of those they were stealing from.  Future taxpayers.  Which is what happened in Detroit.  And will probably happen elsewhere throughout the nation (see The Unsteady States of America posted 7/27/2013 on the Economist).

Nearly half of Detroit’s liabilities stem from promises of pensions and health care to its workers when they retire. American states and cities typically offer their employees defined-benefit pensions based on years of service and final salary. These are supposed to be covered by funds set aside for the purpose. By the states’ own estimates, their pension pots are only 73% funded. That is bad enough, but nearly all states apply an optimistic discount rate to their obligations, making the liabilities seem smaller than they are. If a more sober one is applied, the true ratio is a terrifying 48% (see article). And many states are much worse. The hole in Illinois’s pension pot is equivalent to 241% of its annual tax revenues: for Connecticut, the figure is 190%; for Kentucky, 141%; for New Jersey, 137%.

By one recent estimate, the total pension gap for the states is $2.7 trillion, or 17% of GDP. That understates the mess, because it omits both the unfunded pension figure for cities and the health-care promises made to retired government workers of all sorts. In Detroit’s case, the bill for their medical benefits ($5.7 billion) was even larger than its pension hole ($3.5 billion).

Some of this is the unfortunate side-effect of a happy trend: Americans are living longer, even in Detroit, so promises to pensioners are costlier to keep. But the problem is also political. Governors and mayors have long offered fat pensions to public servants, thus buying votes today and sending the bill to future taxpayers. They have also allowed some startling abuses. Some bureaucrats are promoted just before retirement or allowed to rack up lots of overtime, raising their final-salary pension for the rest of their lives. Or their unions win annual cost-of-living adjustments far above inflation. A watchdog in Rhode Island calculated that a retired local fire chief would be pulling in $800,000 a year if he lived to 100, for example. More than 20,000 retired public servants in California receive pensions of over $100,000.

This is an important point.  People say that we must honor these lavish pension and retiree health care benefits because they made a deal.  A contract with the city.  Or the state.  But did they?  No.  The public sector unions and the cities and states colluded together to steal money from future generations.  Who were not a party to those agreements.  This amounts to generational theft.  And the generous size of those benefits just makes that theft worse.  Transforming the public sector into an aristocracy.  That cares little for the future taxpayers that they will be bled dry to pay for their long and comfortable retirements.

Detroit is just the first domino to fall.  This generational theft is just unsustainable.  Something has to be done.  But what?

Public employees should retire later. States should accelerate the shift to defined-contribution pension schemes, where what you get out depends on what you put in. (These are the norm in the private sector.) Benefits already accrued should be honoured, but future accruals should be curtailed, where legally possible. The earlier you grapple with the problem, the easier it will be to fix. Nebraska, which stopped offering final-salary pensions to new hires in 1967, is sitting pretty.

In other words our public servants should not live a better life than their masters.  Those people paying the bill.  There should be no aristocracy in the United States.  People in the public sector shouldn’t be able to retire young and live a long life in retirement while someone else is paying the bill.  The taxpayer.  People who have to work until they drop dead to save for their own retirement.  That just isn’t right.  If our servants in the public sector want that long and comfortable retirement then they must do what people in the private sector do.  Save for it.  Make sacrifices.  And live more frugally.  Because there shouldn’t be two Americas.  Where one enslaves the other.  While setting up a string of municipal and state bankruptcies because of their greed that threatens the financial wellbeing of the nation.

www.PITHOCRATES.com

Share

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

Big Government in Europe is worried about Glencore cornering the Zinc Market

Posted by PITHOCRATES - November 24th, 2012

Week in Review

With the price of natural gas falling some providers are capping their wells until prices go up.  During the Eighties the price of oil soared, pulling oil producers into the oil business left and right.  Resulting with the oil glut of the Eighties as supply greatly outpaced demand.  OPEC tried to set the price of oil by limiting production.  But they sometimes fail as member states often cheat, selling a little more than their quota to profit from those high prices.  In America, when John D. Rockefeller was selling refined oil products cheaper than any of his competitors it was his competitors who urged the government to bring antitrust actions against him.  Not the people buying his products at low prices.  President Obama has shut down most drilling on federal lands.  But because of demand drilling on private lands is soaring.

Trying to maintain monopoly control is difficult.  And rarely can be done without the help of government (even with the help of government it’s not that easy).  Or by selling at a price below your competition.  Which rarely hurts consumers.  No, low prices hurt those who can’t sell at low prices.  Those who want consumers to pay their higher prices.  This is the power of market forces.  And greed.  For when prices go up greed lures others into the market place to cash in on those high prices.  Which brings prices down.  Supply and demand.  It’s how we have pretty much whatever we want in a complex economy.  Even just the right amount of zinc (see EU steelmakers unhappy with EU conditions on Glenstrata deal by Silvia Antonioli posted 11/22/2012 on Reuters).

EU steelmakers said Europe’s antitrust conditions for Glencore (GLEN.L) to go ahead with its $33 billion takeover of Xstrata (XTA.L) are not sufficient to prevent the dominant influence of one zinc supplier…

“The European steel industry, which uses the lion’s share of zinc metal traded in Europe, will still have to face a leading provider effectively controlling the zinc supply chain from mining to warehousing operations,” Eurofer said in a statement.

Post-merger, the parties will still have a share of around 35 per cent of the European zinc market and the vertical integration of the new entity, which includes mining, smelting, trading, logistics and warehousing, is also concerning according to Eurofer.

What’s really of concern here?  Economies of scale.  The bigger Glencore gets the lower its production costs per unit become.  And the lower their selling price can be.   This is what economies of scales get you.  Not monopoly power.  And who is hurt by lower selling prices?  Glencore’s competition.  And those supplying the other 65% of the European zinc market.

Of course, the argument always goes once someone corners the market (by driving their competition out of business with low prices) they’ll then start raising their prices.  A lot.  Oh my.  Imagine what would happen if zinc prices soared.  It would pull zinc suppliers into the European zinc market left and right to cash in on those high prices.  Can anyone name a supplier who cornered the market with low prices and now is selling at high prices that isn’t propped up by the government?

No.  Because it doesn’t happen.  Because it can’t happen.  Not with free markets.  Because of greed.  For if prices go up more people enter the market out of greed.  And the greater this greed the greater the supply brought onto market.  And the greater prices fall.

www.PITHOCRATES.com

Share

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

Universities are more Interested in Government Grant Money than Teaching their Pesky Students

Posted by PITHOCRATES - May 6th, 2012

Week in Review

Education is sacred.  For in all the budget debates.  In all the class warfare.  One field is exempt from that one most disparaging label.  Greedy.  Everyone is greedy in Western Civilization.  Except the universities and the professors.  Who make more and more while working less and less.  And hand out degrees that have little value in the modern economy.  No.  Their greed is never called out.  These people who add little to our economic wellbeing.  While those who do are called every filthy and vile name in the book.  Because education is sacred.  Apparently.  No matter how substandard it is (see Professors should teach more classes: Experts by Antonella Artuso posted 5/6/2012 on the Toronto Sun).

Ontario’s post-secondary system could improve the quality of students’ education and save money by sending more professors back to class, some experts say.

There is rising concern that hundreds of thousands of Ontario undergraduate students are being short changed by a university system that values research ahead of teaching…

Ontario undergraduate university students learn in ever larger classes and often emerge from their pricey education without the skills they need to find work in a modern economy, he said…

There has long been an informal working ratio for professors — 40% of their time spent on research, 40% on teaching and 20% on administrative duties.

Economist Don Drummond, who chaired the Dalton McGuinty government’s Commission on the Reform of Ontario’s Public Services, concluded universities — and even a few colleges — now aggressively chase provincial and federal research grants with some institutions using undergraduate tuition fees to pursue government funds…

University of Toronto Professor Ian Clark, co-author of Academic Reform, said the Ontario and federal governments have ramped up research grants in the hope — one that’s shared by most developed nations — that the investment will stimulate the economy.

Professors now spend more time on research, teaching an average of two courses a term, down from three courses a term about 20 years ago, Clark said.

At the same time, there’s been a strong public push to increase the number of Ontarians with a post-secondary education, leading to a 50% jump in undergraduate students over a decade.

“You’re getting less than half as much time per student per faculty member as there used to be. Inevitably, it’s leading to bigger classes and more use of teaching assistants,” said Clark, a former president of the Council of Ontario Universities. “That, we assert — and so do many, many others — is leading to a decline in the quality of the undergraduate education that Ontario students receive…”

Constance Adamson, president of the Ontario Confederation of University Faculty Associations (OCUFA), said professors are aware that class sizes are getting larger, but the fault lies not with the focus on research, but with chronic underfunding of the post-secondary system.

Really?  The problem is chronic underfunding?  It has nothing to do with universities running after all that free government money?  The professors are teaching one less course a term.  Why?  Because they’re too busy chasing all of that free government money.  No wonder these kids are graduating lacking the necessary skills to make it in the modern economy.  Their education is only a distraction to these professors.  Who spend as little time involved in it as possible.  Why?  Because that’s why God made graduate students.

This isn’t a problem unique to the Canadians.  Throughout the world a university degree is becoming a birthright.  More and more kids are going to university.  Because we tell them it’s the gateway to success and wealth.  The problem is that not only are we giving them a part-time, half-hearted education, a lot of the degrees we’re giving them are worthless in the modern economy.  Liberal arts.  Social sciences.  Women studies.  Etc.  None of which are in high demand in the modern high-tech economy.

Perhaps these are the reasons those angry unemployed university graduates are protesting capitalism in all of those occupy movements.  They borrowed a fortune for those degrees.   That were supposed to give them success and wealth.  Only to find that they got huge student loan debts.  For a worthless, part-time, half-hearted education.  Worse, these university graduates don’t even understand capitalism.  For it isn’t capitalism that failed them.  It was their leftist universities that failed them.  Who gave them a substandard education.  While charging them a premium for it.  But do these kids protest these universities or their professors?  No.  They’re protesting the businesses that can’t hire these graduates without spending a fortune on them.  To give them a useful education.  That their university was supposed to provide them.

That’s how bad our education systems have become.  Our universities draw these kids in.  These pesky students.  Selling them a useless degree.  That these kids should have known were worthless.  I mean, exactly what kind of high-paying job do these kids think their degrees in the liberal arts, social sciences, women studies, etc., will prepare them for?  Stock analyst?  Investment banker?  Research engineer?  Doctor?  The truth is that many of these degrees these kids are graduating with have very little if any value in the market place.  In fact the only thing they’re qualified for is to teach these worthless degrees to other unsuspecting students. 

And yet they protest capitalism.  Not the people who made them unfit to enter the world of capitalism.  Which is yet another sad commentary on today’s educational standards.

 www.PITHOCRATES.com

Share

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

FT101: “Unlike government a business tries to fix bad policy before it bankrupts them.” -Old Pithy

Posted by PITHOCRATES - January 20th, 2012

Fundamental Truth

If Businesses give their Employees Overly Generous Pay and Benefits they will not be able to Stay in Business

A lot of people say businesses are greedy.  That they are always trying to go on the cheap when it comes to their employees.  The fatal flaw of capitalism some even say.  That need to make a profit.  And because of the profit-incentive businesses try to use as few employees as possible.  While paying them as little in pay and benefits as possible.  Which they, of course, do.  Because that’s the only way they can stay in business when their customers are doing the same.  When we go to the store looking for the maximum value at the lowest price.

You see, a business has to earn enough sales revenue to cover all their costs.  And their sales prices include these costs.  If these costs are too high people won’t buy from them.  So this is the reason why they pay their employees as little in pay and benefits as possible.  Because of us.  And our greed.  To keep as much of our money as possible when shopping.

So businesses can’t be overly generous to their employees.  For if they are they are then faced with two choices.  Raise prices to pay for this generosity.  Thus dissuading consumers from buying from them.  Which reduces their sales revenue.  Or they can choose not to raise their prices.  Which will increase their costs greater than their sales revenue.  Either way it’s bad for business.  For if they give their employees overly generous pay and benefits they will lose money.  And not be able to stay in business.

Businesses must make these Difficult Choices if they wish to Survive in the Real World

In free market capitalism businesses have real constraints.  They can’t be overly generous.  Because they won’t be able to earn enough revenue to cover their costs.  But neither can they be too miserly with their employees.  Because they have to be generous enough to entice them to work for them.  It’s this balancing act between generosity and being too cheap that causes a business problems.  Because in good economic times employees like to demand more.  And if they don’t get it where they currently work they will leave and work for someone else.  So employers are generous.  Sometimes too generous.  Which they usually learn when the good times end and they can no longer cover their costs at the new levels of revenue during those bad economic times.

A business cannot raise revenue by simply saying ‘raise revenue’.  For it is not up to them.  It’s up to the consumer.  And during bad economic times they’re just not buying like they once were.  Which leaves a business only one choice.  They must cut costs.  Either by cutting back on pay and benefits.  Or by really cutting back on pay and benefits.  By laying off employees.  It’s either that or they will bankrupt themselves out of business.

All businesses must make these difficult choices.  If they wish to survive.  Because they live in the real world.  Capitalism.  Where there are winners and losers.  And where businesses fail because they don’t make the difficult choices when they have to.  We’ve all seen a favorite store go out of business.  It may not always be because of the cost of their employees.  But it is always because they’re not earning enough revenue to cover their costs.

Difficult Choices are Rarely Politically Expedient and don’t bring in Many Votes

Health care costs and pensions have been the biggest costs businesses have struggled with.  That’s why defined benefit pension plans are a thing of the past.  Unless you’re in a union.  Or in government.  And employees are contributing more to the cost of their health care benefits.  Why?  Because of our aging population.  People are having fewer babies and are living longer.  And consuming more health care and pension benefits in their retirement than the actuaries ever dreamed possible when they created the health care benefit and defined benefit pension plans.

It’s no different in the public sector.  In fact, it’s worse.  Government grew.  And taxes grew to pay for that growing government.  It became more expensive to have babies.  So people had fewer.  Made possible by birth control and abortion.  Now there are fewer and fewer young people entering the work force to pay the taxes to pay for the ever growing number of seniors in their retirement.  Again, something the actuaries never calculated.  And there’s no way to fix it.  It’s a failed model.  But government won’t give up on this bad policy.  Unlike businesses have.  Because government doesn’t operate in the real world.  Like those businesses.

Government can do things businesses can’t.  They can tax.  They can run deficits.  Paid by massive borrowings.  And they can print money.  So they don’t have to make the difficult choices.  And chose not to.  Because those difficult choices are rarely politically expedient.  And don’t bring in many votes.

www.PITHOCRATES.com

Share

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

British Corn Laws and Empire, the U.S. Free Trade Zone and the Eurozone

Posted by PITHOCRATES - November 29th, 2011

History 101

With the Royal Navy, the Steamship, the Railroad and the Telegraph, Great Britain Peacefully Ruled and Led the World

The British Corn Laws were on the books from 1815 to 1846.  To protect domestic cereal farmers from less expensive food imports.  By adding a tariff to these grain imports.  Increasing their price.  So they weren’t any cheaper than the domestically grown grain.  Interestingly it was the few great landowners who wanted these tariffs.  Not the people who had to buy the food.  For paying more for food meant they had less to spend on clothing and other things.

When it came to consumer prices the people were always for free trade.  Because whatever they earned it never seemed enough.  So paying more in taxes was never a good thing.  These wealthy landowners even put forth the argument that paying higher food prices meant higher wages.  In a feeble attempt to maintain these tariffs.  They said that manufacturers just wanted cheaper food so they could pay cheaper wages.  Because if food wasn’t that expensive their workers wouldn’t need as much pay.  And, of course, the greedy manufacturers would just pocket more profits.  Much like the greedy landowners were doing thanks to the Corn Laws.  But their greed was somehow different.

Well, free trade won out.  Eventually.  And they repealed the Corn Laws in 1846.  And, as expected, food prices plummeted.  Soon they imported more food than they grew.  Because it was cheaper.  And it freed up more money for use elsewhere in the economy.  Stimulating innovation and invention.  Taking the Industrial Revolution to new heights.  And raising the standard of living for all people.  Not just the wealthy landowners.  The British Empire reached its zenith in the 19th century.  After the defeat of Napoleon there was about a century of peace called the Pax Britannica.  Where Great Britain became the global policeman.  With the Royal Navy, the steamship, the railroad and the telegraph, Great Britain peacefully ruled and led the world.

The U.S. was a Large Free Trade Zone with a Common Currency, Language, People and Customs

The British were the most advanced nation in the 19th century world.  And the richest.  Her empire dominated trade.  Her rule of law and common currency made that trade efficient.  It was a giant free trade zone within her empire.  But it couldn’t last.  The cost of maintaining the empire, plus a world war, was just too much.  Her economic might faded.  While another rose.  In a former colony.  The United States.

The sun never set on the British Empire.  Because it was that big.  Reaching around the globe.  Connected by long lines of communication.  And an imperial British culture uniting different peoples.   Who knew different cultures, laws and money.  Whereas as the United States had all the advantages of empire (size and range of resources) without any of the disadvantages.  The U.S. was a large free trade zone with a common currency, language, people and customs.  The states comprising the U.S. were as big as countries in other parts of the world.  But trade could flow between any two states without custom duties, tariffs or even inspections.  It was truly free.

When the Industrial Revolution reached the United States, the economy took off and never looked back.  By the end of the 19th century she was challenging the British Empire.  And rapidly overtook her.  There was another global policeman in town.  All because of a giant free trade zone that was as big as a continent.

The ‘United States’ of Europe created the Eurozone and a Common Currency (the Euro) to Compete with the U.S.

The United States is such the perfect model of free market capitalism that Europe created the Eurozone and a common currency (the Euro) to compete with the U.S.  And it worked.  For awhile.

The ‘united states’ of Europe as a whole has a larger economy than the U.S.  But they have their problems.  For a common currency is only part of America’s success.  The U.S. is a united federation of states with one set of federal laws, language and culture for interstate commerce.  Something Europe doesn’t have.  And probably never will.  European countries have far too much history and culture.  And nationalism.  They will never unite politically.  Like the United States.  Or the British Empire, for that matter.

The key to the British Empire was that it was British.  One currency.  One language.  One set of laws.  One culture.  For interstate trade, at least.  Just like in the country that surpassed her.  The United States.  Still, there’s nothing wrong with being a smaller economic power than the U.S.  As long as you have free trade your people can enjoy a high standard of living.  Without the added responsibility of being the global policeman.

www.PITHOCRATES.com

Share

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

FT93: “Those who don’t want to pay more taxes are greedy yet those who want more free benefits are not.” -Old Pithy

Posted by PITHOCRATES - November 25th, 2011

Fundamental Truth

Income Gaps are a Bad Thing when our Own Income is at the Low End of the Gap

Greed is a tricky word.  A lot of people say it’s bad to be greedy.  And a lot of people believe that it is.  There is a level of wealth out there.  If you’re below it and you want more it’s okay.  You’re not greedy.  If you’re above it and you want more then shame on you.  Because you’re greedy.  But can you name that line of wealth?  Probably not.  Why?  Because it isn’t a fixed amount.  It moves.  And it’s relative.

You see, we judge wealth by comparing another’s wealth to our own.  Anyone wealthier than we are already has enough and should not object to paying more income taxes.  So these taxes can buy more free government benefits for those not as wealthy.  Namely ourselves.  So we can have more without having to work any harder to get it.  For we believe income gaps are a bad thing.  At least when our own income is at the low end of the gap.  And we believe the government should level the playing field.  Make things fairer.  By redistributing the income of those who already have enough.  To those of us who don’t.

At least that’s the mentality.  Because few people in the world would ever believe that they already have too much.  Even rock stars and professional athletes who have more wealth than most could ever imagine believe this.  Because neither continues to play for free after earning ‘enough’ wealth.  And neither would ever consider themselves greedy.

Wanting a Free College Education somehow isn’t Greedy

No one illustrates this better than the college student.  Fresh out of our public school system.  Where they’ve learned the evils of capitalism.  The fairness of socialism.  And the benevolence of Big Government.  These kids are all about equality.  Egalitarianism.  And sticking it to Big Business and corporate America.  All while enjoying their products.  Cell phones.  Cars.  Clothes.  iPods.  Air conditioning.  Heat.  The Internet.  Reality television.  To name but a few.

But life isn’t fair.  And favors the rich unfairly.  So they become politically active.  Vote the anti-capitalistic ticket.  And participate in the occasional protest.  Making it ever harder for Mom and Dad to foot the bill for their carefree life of self-discovery.  By voting for the party that raises their taxes.  But these kids don’t care.  Mostly because they don’t have a clue about the things they’re protesting.  But protesting is fun.  So they protest.  And, of course, because greed is bad.

But greed is relative.  And somehow their greed isn’t greed.  First of all, they’re going to college.  Why?  To make a lot of money.  Because they’re greedy and want the latest cell phone, car, style, iPod, etc.  They want all the best toys.  And party at all the best clubs.  But having that kind of money often requires a college education.  Which isn’t cheap.  And requires some sizeable student loans.  That they don’t want to repay.  Because it isn’t fair to burden new college graduates with the cost of their education.  And yet somehow this greed (wanting a free college education) isn’t greedy.

It’s Easy to Think of the Righteousness of Egalitarianism when you’re not Paying the Bills

College kids may think their parents are greedy for not wanting to pay more taxes.  For not believing in the righteousness of egalitarianism.  Like they do.  Then again, it’s easy to think that way when you’re not paying the bills.  It’s a whole different story when your bills don’t go to Mom and Dad anymore.

And if you got a high-paying job with that college degree you may lose even more of your brotherly love.  When you start paying your own bills.  You discover you can’t have everything you ever wanted simply by having a college degree.  And you make an even more startling discovery.  The more you earn the more the government takes in taxes.  And that just isn’t fair.  Now that you’re on the other side of that income gap.

www.PITHOCRATES.com

Share

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

FT90: Minimum wage jobs are entry level jobs.

Posted by PITHOCRATES - November 4th, 2011

Fundamental Truth

There is Income Disparity because it Takes a While to Get Good in Whatever you Do

Minimum wage jobs are entry level jobs.  People need to remember this.  A minimum wage job is not to raise a family on.  It’s for the children of that family to get their start in the workplace.  To help college students pay their expenses.  Or it’s simply an unskilled job for an unskilled, inexperienced worker.  So he or she can become a skilled worker.  And gain experience.

So, yes, there is income disparity.  We pay people with less skill and experience less than those with more skill and experience.  That’s why a garage band doesn’t make as much money as U2.  It takes a while to get good.  In whatever you do.

Is this income disparity bad?  No.  It provides incentive.  Because everyone wants to get rich.  U2 did.  Even became tax exiles to escape the confiscatory tax rates of their country.  Everyone wants more money.  Whether they admit it or not.  Thant’s why people buy lotto tickets.  And go to casinos.  They’re not spending money to stimulate the economy out of the goodness of their hearts.  No.  They’re trying to get rich.

If the Minimum Wage is a ‘Living Wage’ what Incentive is there to Work Harder?

So the profit motive exists.  We do things because we’re greedy.  Whatever we have we want more.  That’s why we work hard.  To earn money.  To have more.  So our kids can have more.  It’s a great system.  Because we get a lot in return for this greed.  Doctors.  Nurses.  Engineers.  Skilled trades.  And a lot of neat stuff.  Like iPads.  Smartphones.  Computers.  Cameras.  DVDs.  Buildings.  Cars.  Trains.  Airplanes.  Etc.  And we’d have none of this if the minimum wage was a ‘living wage’.  A wage to raise a family on.

If you could make, say, $75,000 a year flipping burgers at McDonalds would you go to college to become a doctor?  With massive student loan debt, the high cost of malpractice insurance, the lawsuits, the long hours, the constant reduction in Medicare reimbursements, etc., probably not.

Would you work in the skilled trades?  Spend 4 years as an apprentice?  Became a journeyman?  Then a master?  Work long and hard to master your craft only to see a kid out of high school with no skill and no experience ‘earn’ the same wage?  Probably not.  Because we just don’t voluntarily work harder if there is no financial gain.  If you don’t believe this ask some of your friends if they would work overtime without additional pay.

Raising the Minimum Wage is just a Political Ploy so Democrats can Gain Votes

You know what a higher minimum wage does?  It makes your work less valuable.  The more we pay unskilled people the smaller the income disparity gets.  And the closer skilled workers get to unskilled pay.  When there is no gap there will be no one doing the harder jobs.  Because when a janitor can earn what a doctor can earn people will want to be janitors instead of doctors.  Because it’s easier.

Raising the minimum wage is just a political ploy.  So Democrats can gain votes.  Because a higher minimum wage favors the young.  And organized labor.  Two large Democrat constituencies.  The young get more for doing less.  And have no reason NOT to stay ignorant.  Keeping them loyal Democrat voters for the indefinite future.  Whereas unions don’t have to compete against lower wages.  And without any wage competition they can enjoy the high wages the lack of competition gives.

www.PITHOCRATES.com

Share

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

LESSONS LEARNED #86: “Smug, all-knowing condescension camouflages a vacuous philosophical basis.” –Old Pithy

Posted by PITHOCRATES - October 6th, 2011

Ronald Reagan had a B.A. in Economics, Served in the Army, was President of SAG and Served Two Terms as California Governor

The Left hated Ronald Reagan.  They belittled him.  Made snarky comments like ‘he’s just an actor’.  That he wasn’t smart enough to be president.  And not qualified.  For all he could do was give a good speech.  Because he was just an actor.

Yes, he was an actor.  But he did go to college.  Had a B.A. in economics and sociology.   Enlisted in the Army and served in the cavalry.  Earned a commission in the Reserve Officer Corps just before World War II.  Served stateside during World War II making training films for the army.  Severely nearsighted, the Army classified him for limited service only.  Which meant he couldn’t serve overseas.  He served 8 years as president of the Screen Actors Guild (SAG).  During the height of the Red Scare.  Which cemented his anti-communist credentials.  (Yes, there were communists in Hollywood.  As well as in the FDR administration.)  Hosted General Electric Theater for 8 years.  He visited General Electric R&D facilities.  About 135.  Saw job creation up close during his tenure with GE.  Helping to hone his economic views.  He served two terms as California governor.  During the peak of the Vietnam anti-war protests.  When he gave his concession speak at the 1976 Republican Convention, delegates mumbled that they had nominated the wrong man (Gerald Ford).  At the age of 69, Reagan became president.  Despite snarky comments like ‘he’s too old to be president’.

So Reagan had the education.  And a long list of experience on his resume.  Experience that took him through some of the most defining moments of American history.  And spent 8 years as governor of the most populous state.  Eight years of solid executive experience.  So he was every bit qualified for office.  The people who attacked him just didn’t like his ideology.  And the fact that he was very good in elected office.  So they used smug, all-knowing condescension to belittle him.  And it worked well.  For they did not like Reagan on American college campuses.  Where kids parroted what they heard in the media.  And on their favorite shows.  But didn’t have an original thought in their heads.

Incidentally, Barack Obama got a B.S. in political science from Columbia.  And a law degree from Harvard.  He served 3 terms as Illinois state senator.  And 2/3 of a term as U.S. senator.  He had no military experience.  No executive experience.  And his only other experience was confined to academe.  Or law.  Yet those who said Ronald Reagan was not qualified to be president had no problem with Barack Obama.  Go figure.

George W. Bush had an M.B.A. from Harvard, served in the Texas ANG, ran businesses and served two terms as Texas Governor

But compared to George W. Bush, they held Ronald Reagan in great esteem.  For the Left just flat out called Bush an idiot.  And simply too stupid to be president.

For being stupid Bush was pretty well educated.  He had an B.A. in history from Yale.  A good thing for presidents to know.  History.  And he earned an M.B.A. from Harvard.  The only president to have one.  He served stateside in the Texas Air National Guard during Vietnam.  He then worked in the oil industry.  Started up some oil exploration companies.  Bush Exploration, for one.   This merged with Spectrum 7.  Where he served as chairman.  The oil glut of the Eighties hit that company hard.  It later merged with Harken Energy.   Where he served on the board.  He helped Dad run for president.  Bought a piece of the Texas Rangers after that.  Spent five years there as the managing general partner.  Built the value of the team so well that when he sold his chunk he got uber rich.  Then he served about one and a half terms as Texas governor.

This is the man the Left said was too stupid to be president.  This man who had an M.B.A. from Harvard.  One of the most pretentious Ivy League schools.  A man who worked in the energy industry.  And understood it.  Who knew how to run a business.  And did.  Even ran a Major League baseball team.  And had some 6 years of solid executive experience as the governor of the second most populous state.  So he, too, was every bit qualified for office.  The people who attacked him just didn’t like his ideology.  And the fact that he was very good in elected office.  And in the business world.  So they used smug, all-knowing condescension to belittle him.  And it worked well.  For they did not like Bush on American college campuses either.  Where kids parroted what they heard in the media.  And on their favorite shows.  But they didn’t have an original thought in their heads.  Some things just never change.

Incidentally, Barack Obama got a B.S. in political science from Columbia.  And a law degree from Harvard.  He served 3 terms as Illinois state senator.  And 2/3 of a term as U.S. senator.  He had no military experience.  No executive experience.  And his only other experience was confined to academe.  Or law.  Yet those who said George W. Bush was not qualified to be president had no problem with Barack Obama.  Go figure.

They make their Snarky Little Comments about the Greed of Corporations while Greedily Demanding more Government Benefits

And speaking of these college geniuses, you can hear a lot of them doing what they do best.  Whining.  They’re protesting up on Wall Street.  Cause they hate capitalism.  Because their tens of thousands of dollars in student loan debt hasn’t given them a high paying job.  And because they hate capitalism you know they don’t have a business degree.  Or anything that can be used in the business world.  Further, if they don’t want to be a toady to corporate America, they probably don’t have a degree that would help them gain employment with a corporation.  Like a chemistry degree.  An engineering degree.  Or a physics degree.  No.  These would have been too corporate.  And possibly too harmful to the environment.  Not to mention hard.

These protestors are living the protest life of the Sixties.  Complete with free love.  And drugs.  Which, incidentally, is why they went to college.  Not to sit in some boring-ass lectures and take exams with math on them.  And that’s why they’re so angry.  Because during difficult economic times corporations don’t have the money to waste on wasteful degrees like women’s studies.  Art.  Poetry.  French.  Anthropology.  Or some other liberal art or social science.  No.  The only high paying job opportunities for these are in academe.  Or in government.  When they are flush with taxpayer cash.  Thanks to corporations providing real jobs for taxpayers.  But when there are no real jobs, there are no tax dollars to pay for these phony baloney jobs.

So they make their snarky little comments about the greed of corporations.  About the greed of the bankers.  About the greed of Republicans.  All the while they are greedily demanding more government benefits.  Paid for by the very people they are protesting against.  While enjoying the very things these greedy corporations have given them.  They are using wireless technology to live-tweet their latest list of whines.  All technology created by the very corporations they hate.  Produced under the system they want to purge from America.  Capitalism.

If it wasn’t for Capitalism they’d be Working in a Field Somewhere for Subsistence Right Now

Look at Apple.  And Steve Jobs.  Look at what he created.  And ask yourself this.  Why Steve Jobs and not someone in Cuba?  Someone in North Korea?  Someone in the former Soviet Union?  These are three hardcore socialist regimes these protestors admire.  Who have egalitarian systems of government.  Where there is fair-shared misery.  No one lives better than anyone else.  Except those within the party apparatchik.  Which these protestors naturally assume they would be part of.  Once America became fair.  And they stripped the rich of all their wealth.  For the benefit of mankind.  And by mankind I mean these protestors.

Cuba even has a national health care system that is so impressive that Michael Moore made a movie about it.  While condemning the inferior American system.  Cuba is great.  They care about their people there.  So much so that they don’t let them leave.  For fear of the substandard love they’ll get in another nation.  Still some of these fools try to escape their utopia.  By crossing shark-infested water in some of the most unseaworthy boats.  To get to Florida.  In the USA.  To the country that the Wall Street protestors say is worse than Cuba.  If only they had iPhones in Cuba they could get their live-tweet feed from Wall Street so they would know that things are better there.  So they can stay there.  In their utopia.

Of course, it’s not better there.  And Steve Jobs wasn’t a Cuban.  He wasn’t a North Korean.  He wasn’t a Soviet.  He was an American.  An entrepreneur.  And a capitalist.  Who made Apple a rich corporation by giving us things we can’t live without.  Things we never asked for.  Things we didn’t even know about.  Until after he created them.  And he told us how cool they were.

They can make snarky, all-knowing, condescending remarks all day long about corporate greed and the evil of capitalism.  But if it wasn’t for capitalism they’d be working in a field somewhere for subsistence right now.  And the fact that they don’t know this shows how empty headed and brainwashed they are.  And what a piss-poor job our public schools and colleges are doing.

www.PITHOCRATES.com

Share

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

« Previous Entries