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.

www.PITHOCRATES.com

Share

Tags: , , , , , , , ,

The UK Economy lingers in Recession thanks to Inflation caused by High Tuition Costs and High Utility Bills

Posted by PITHOCRATES - December 23rd, 2012

Week in Review

The Democrats have attacked health insurers with a vengeance for the high prices of health care.  They blame them for these soaring prices.  As well as greedy doctors, hospitals and pharmaceutical companies.  The Left is always ready to attack some greedy business for their ‘excessive’ profits driving up their prices.  And all businesses are guilty of being greedy profit whores.  With a couple of exceptions (see No Happy New Year for UK as Gloom Worsens by Holly Ellyatt posted 12/21/2012 on CNBC).

With gloomy economic forecasts, falling consumer confidence and poor retail figures adding to concerns over talk of the U.K. leaving the European Union, 2013 is set to be a tough year for the country, analysts say…

“There’s been a lot of discounting in the high streets because the shops are trying to shift stock and it’s not working,” Jane Foley, senior currency strategist at Rabobank, told CNBC…

Foley told CNBC that growth had been disappointing mainly due to inflation and low wage growth.

“[Inflation] took money out of our pockets and made our real wages negative. Many economists were anticipating that by now we would have positive wage growth but no, again we have sticky inflation and inflation at high levels because of university fees and utility bills going up.”

Funny how universities and the utilities are never labeled as greedy profit whores.  No, they never get attacked like those in business do.  Instead they attack greedy taxpayers who don’t volunteer to pay more in taxes to help subsidize the high cost of education and utilities.  They’re the greedy profit whores.  Who oppose those in education and the utilities from living a better life than they do.  How selfish.

University professors brainwash their students into being good liberal voters.  The utilities are unionized.  Both do a lot to elect liberals to office.  And keep them in office.  Therefore those who attack health insurers, doctors, hospitals and pharmaceutical companies never attack those in education and the utilities.  Even though they are gouging consumers far more than health insurers, doctors, hospitals and pharmaceutical companies.

For all the talk about leveling the playing field and looking out for the little guy the Left sure likes taking care of their own.  In a country where there is no nobility there is an aristocracy.  Government workers.  And those who help the government gain and maintain power.  These people live the good life.  While the rest are attacked for being greedy.  Pay high tuition costs.  And pay high utility bills.  The aristocracy has to pay these things, too.  But with the generous pay and benefits package they give themselves they can easily afford these things.  Thanks to the power they have to make us pay high tuition costs and high utility bills.  As well as high taxes.

www.PITHOCRATES.com

Share

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

FT141: “Liberals are absolutely sure they’re right and you’re wrong even though they can’t explain why.” —Old Pithy

Posted by PITHOCRATES - October 26th, 2012

Fundamental Truth

Jobs are Everything in an Economy

In the movie Apollo 13 starring Tom Hanks it was a smart electrical engineer that saved the astronauts.  Who explained that nothing they did would save the astronauts unless they figured out how to make the limited remaining power last until reentry.  He said power was everything.  And if it ran out before reentry the astronauts wouldn’t make it back alive.  So heeding the advice of the smart electrical engineer they shut off all power to save what they had for reentry.  Which meant they had no heat.  And had to do some course corrections without the computer, requiring some complicated flying skills.  Because they listened to the smart electrical engineer they had just enough power left to make it to reentry.  And the astronauts made it back home alive.

An economy is similar in a way.  For it, too, has something that is everything.  And without it nothing else matters.  Jobs.  Jobs are everything in an economy.  For they are the only way we can afford things.  A house.  A car.  Food for our families.  The heating bill.  Fuel for our vehicles.  Electronic devices.  Our wireless/cable bills.  Coffee at Starbucks.  Clothing.  Shoes.  Pet food.  Etc.  None of these would be possible without a job.  And a paycheck.  Even our government benefits.  Paid for with taxes.  Deducted from our paychecks.  Without people working none of these things would be possible.  Because jobs are everything.

Money is not everything.  We use money to make it easier to trade our skills with others to get the things we want.  The more our skills are in demand by others the more we can trade them for other things.  Which is why doctors have more things than high school kids working an entry level job.  For there are a lot high school kids with entry-level job skills.  But not so many people with doctor skills.  So we pay doctors more.  And high school kids less.  Because doctors have more valuable skills than high school kids.  And therefore can trade those skills for a lot of other things.  So it’s not the money that matters.  It’s the skills that they can trade for money that matters.  Provided there is a job for them to fill.  Once again coming back to jobs.  Which are everything.

Birth Control and Abortion are the Pressing Social Issues that keep College Students Awake at Night with Worry

If the government printed money and paid everyone in the nation the equivalent of a doctor’s earnings it would not be the same thing.  Because if everyone was paid the same no matter their skill level no one would go through the costs and hard work to become a doctor.  Because working harder to acquire those skills wouldn’t provide them anything more than they can get for doing nothing.  Giving people money for skills they don’t have diminishes the values of those skills.  So people won’t work hard to get those skills.  With less skillful people in the workplace there will be fewer people to provide the goods and services we want to buy.  Leaving a lot of empty store shelves.  And high prices because the things you want will be very hard to find.

This is why high school kids go to college.  Take on a lot of student loan debt.  To get the skills that will let them get the kind of jobs that will let them earn a lot of money.  Granted, a lot of kids go to college for the fun.  First time away from home.  Binge drinking.  Casual sex.  Drugs.  But they’re also there for the big payday a college education is supposed to give you.  However, if the jobs aren’t there neither is that big paycheck.  But that student loan debt is.  Who’s to blame for the lack of jobs?  In part these college kids.  Who typically vote Democrat.  The party that favors social justice, access to birth control and abortion, gay marriage, the decriminalization of marijuana, and other pressing social issues that apparently keep college students awake at night with worry.  So the Democrats pursue these issues to get the youth vote.  Instead of making a favorable climate for business.  So they can grow and create the jobs these college students want and are going to college for.

The problem is that these kids don’t understand the fundamentals of economics.  They don’t understand business.  Or the affect of taxes and regulatory compliance costs on a business’ bottom line.  And they don’t seem to understand that they are not the only ones who want to make money.  So do business owners.  And if the tax burden and cost of regulatory compliance reduce the bottom line it makes it more difficult to meet payroll.  And pay their other bills.  So they will not grow their business.  They will not create jobs.  They will not offer pay raises and bonuses.  And may even lay off people.  When they do these things college kids call these business owners greedy.  While their desire for a high-paying job does not make them greedy.  Funny how subjective greed can be.

Liberals are Deep Critical Thinkers though they think about few things other than a Woman’s Reproductive Parts

In the current election cycle the Democrats don’t have a good record to run on.  The current economic recovery, if we can call it a recovery, is about the worst on record.  The biggest drag on the economy?  Jobs.  There are fewer of them today than when President Obama took office.  And his policies haven’t help.  Especially Obamacare.  Which has caused business owners to slam the brakes on hiring.  As they have no idea of the final total cost impact of Obamacare.  So having destroyed job creation, the Democrats have turned to other tactics.  Fear and loathing of Republican candidates.  Such as the so-called war on women.  Where the Democrats are warning women that if the Republicans win the upcoming 2012 election women will lose their birth control, their access to abortion, their cancer screening, their freedom.  Life for women under the Republicans, the Democrats say, will be little different than living under the Taliban.

Of course, this isn’t true.  For it didn’t happen under the 20 years of Republican rule of George W. Bush, George H. W. Bush and Ronald Reagan.  But it doesn’t stop the Democrats or their celebrity endorsers from warning about the horrible things that will happen to women should the Republicans win.  And they speak with such certain authority.  For they know everything.  At least, that’s what they think.  It would be interesting, though, to ask them a few questions.  So they can demonstrate their mastery of things economic.  By explaining the stages of production.  Why stimulus spending raises prices.  To explain the business cycle.  How recessions correct prices by wringing inflation out of them.  How keeping interest rates artificially low creates asset bubbles.  Like housing bubbles.  And how bubbles create recessions when they burst.  To explain what is Say’s Law.  To name an economic school besides the Keynesian school.  To explain the Keynesian school of economics.  The number of taxes a business must calculate and pay with every payroll.  How excessive government borrowing diverts investment capital from the job-creating private sector.  Or how the growth in government spending cannot increase greater than the population growth rate.

As they don’t teach any of this in today’s public schools and most universities they probably won’t be able to explain any of these things.  Yet liberals are absolutely sure they’re right and you’re wrong.  Even though they can’t explain why.  For they are smarter.  Brighter.  More progressive.  Enlightened.  And deep critical thinkers.  Though they think about few things other than a woman’s reproductive parts.  Even when the real unemployment rate (the U-6 number that counts everyone that can’t find a full-time job) currently stands at 14.7%.  Which is serious.  As jobs are everything.  And sometimes you can’t have everything you want.  Sometimes you must sacrifice.  And put in place policies that are business friendly.  Cutting back on the social spending.  At least until businesses start creating jobs again.  And the working tax base can once again support that social spending.

www.PITHOCRATES.com

Share

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

FT114: “One of the most effective ways to get privilege is to force fairness on others.” -Old Pithy

Posted by PITHOCRATES - April 20th, 2012

Fundamental Truth

Voters are so Greedy and Selfish with their Hard-Earned Money that they’re not going to Vote to be Subjugated

History is strewn with people oppressing others to gain privilege for themselves.  Kings, emperors and nobles were always a small minority of civilizations.  But they had the power.  And the wealth.  While the masses suffered abject poverty and went hungry.  Or suffered through famines.    And died.  With early civilizations this was just the way of life.  Because there was no middle class.  No free market capitalism.  And no rule of law.  Life was for the most part subsistence farming.  Where most ate only what they grew.  While the kings, emperors and nobles enjoyed lots of food and drink.  Even enjoyed having a little fun.  Unlike the impoverished masses.  Having privilege made life better.  Which is why the privileged worked hard to keep it.  By forcing others to work hard to provide that better life for them.

But times change.  Privileged ruling classes fall.  And middle classes rise.  Creating vibrant economies.  And representative government.  Then one day the privileged find that they are no longer privileged.  That wealth isn’t automatically theirs.  Instead it belongs to the people who earn that wealth.  And if the once-privileged want wealth then they, too, have to work to get it.  So they, too, can have nice things.  And that they can only have these things if they earned enough to afford them.  Which is a great problem if you don’t want to work.  Don’t have any ability to earn a high income.  Or if you have a feeling of entitlement.  Like in days of yore.  Where you didn’t need anything but a good last name to live the good life.  On the backs of those who didn’t live the good life.

Feelings of entitlement don’t die, though.  They don’t go away once the middle class starts sharing the wealth.  Well, not so much sharing it but earning it.  And keeping it.  Instead of giving it to a privileged ruling class.  Which poses a problem for those who aspire to join a ruling class.  Especially now that we have those pesky elections.  Because voters are so greedy and selfish with their hard-earned money that they’re not going to vote to be subjugated.  They’re not going to vote in a privileged ruling class so they can live like royalty.  While those who pay for that royal lifestyle don’t.  ‘Vote for me so I can live better than you’ is just not a winning political platform.  So that’s why politicians lie.

The Privileged Elite uses Class Warfare to take other People’s Wealth

What do you need to live a privileged life?  Lots of money.  No secret here.  But the secret is how to get that money.  In particular, how do those who don’t want to work or have no talent or have no ability create wealth?  Here’s the secret.  They don’t create wealth.  They take wealth.  By going into government.

Only government has the power to tax.  Which can be a great source of wealth.  Other people’s wealth.  Which is any privileged class’ second favorite kind of wealth.  Second only to the wealth they already took from others.  Because that’s what they want.  Other people’s wealth.  And they’ve found a clever way of taking it.  By making the world a fairer place.  And who’s against fairness?  They’re going to make sure that the poor and children have access to food and affordable housing.  And who’s against the poor?  The children?  You’d have to be a pretty vicious, heartless bastard to be against the children.  And the poor.  They’re going to make sure that women have access to reproductive health care.  For who hates women?  I’ll tell you who.  Anyone that opposes raising taxes.  They hate women.  Children.  The poor.  For the world is full of haters.  And just who are these haters?  Aanyone that earns a lot of money and doesn’t want to pay higher taxes.  These people hate anyone not as wealthy as they are.  Because they hate fairness.  And paying their fair share.  Because they’re greedy.  And hate women and children.  And puppies, too.

This is the way the privileged take other people’s wealth.  Class warfare.  And it’s very effective.  By being the party of the poor, disadvantaged, children, women and puppies, they’re kind and benevolent.  With other people’s money, of course.  But those people are evil so it’s okay.  People hate them.  But they like their kind government benefactors.  Who are looking out for their best interests.  Not rich people.  Or corporate profits.  No, our kind government benefactors make sure those greedy rich people and corporations pay their fair share.  Because that’s all that they want.  It’s all anyone wants.  To be fair.

North Korea is pretty much at the End of the Fairness Road

Later incarnations of the privileged ruling class used the fairness approach to give themselves a better life.  While oppressing their people.  Even killing them.  Through famine.  Or deliberate acts of violence.  All in the name of fairness.  And nothing better epitomizes this than communism.  Where everyone was equal.  Brothers.  Comrades.  There were no profits.  No capitalism.  No competitiveness.  No.  Everyone was equal.  They paid everyone the same.  They dressed everyone the same.  They housed everyone the same.  They fed everyone the same.  Very little.  For one thing you never saw in a communist country was obesity.  Instead you probably heard the rumbling of tummies as most people were hungry all of the time.  There was no income inequality.  No gender inequality.  No.  In communism they had nothing but equality.  Life was fair.  Because no one had anything more than anyone else.  As they perfectly distributed the misery and poverty equally among the impoverished masses.

That was for the masses.  It was quite a different thing for the privileged ruling elite.  Those in the party apparatchik.  And the inner party members themselves.  Who were more equal than others.  These people dressed better.  They had better housing.  Even cars.  They ate better.  Some so well that they grew obese.  North Korea suffers from recurring famines to this day but Kim Jong IL had a bit of a weight problem.  As his son does.  Kim Jong-un.  No, life is very good for the privileged ruling elite.  And hell for those living under them.  Who the ruling elite let die of hunger.  And send to concentration camps if they dare speak of their displeasure.  For only under communism is life fair.  And they just can’t risk the unhappy masses to spoil it for the privileged few.

North Korea is pretty much at the end of the fairness road.  The country is so poor and impoverished and hungry that people will risk their lives to try and escape this land of fairness.  To get somewhere that isn’t so fair.  Like South Korea.  Where they have capitalism.  And inequality.  Where someone can come with nothing, work hard and earn a better life.  Allowing them to pay for housing.  And put food in their rumbling bellies.  For a fair and oppressive government surely cannot.  All they can do is create great inequality between the people and the ruling class.  Far greater than that between the rich and poor in any capitalist country.  For the poor in countries like the UK, Canada and the United States are living far better than anyone outside the ruling elite in North Korea.  This is where the fairness road ends.  But it starts with class warfare.  Where a privileged few live the good life through high taxes.  Taxes they use to force fairness on others.  While those at the top manage that fairness.  Skimming a lot off the top of those taxes for themselves.  And what’s left they spend on the poor, disadvantaged, children, women and puppies.  Just enough to make sure the people love their very rich and wealthy government benefactors.  So they can win the next election.  At least while they still have to deal with those pesky elections.

www.PITHOCRATES.com

Share

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

FT112: “You can have liberty or equality but you can’t have both.” -Old Pithy

Posted by PITHOCRATES - April 6th, 2012

Fundamental Truth

Higher Taxes were Okay when it was Someone Else’s Money but they’re Just Plain Unfair when it’s your Money

People throw around the word ‘equality’ a lot.  Especially politicians.  To make life fair.  More egalitarian.  Where they make the rich pay their fair share.  For they won’t just voluntarily pay their fair share, will they?  Sounds fair, yes?  And just.  For no one should be ‘too rich’ when others have ‘so little’.  Of course the only people who agree with this are the ones who have ‘so little’.  Those who are ‘too rich’ are not all that supportive of using their wealth to help others be more equal.  Especially when the scale that measures what is ‘too rich’ is a sliding scale.  For someone believes a person is ‘too rich’ when they have more than he or she does.  And that holds true even if they win the lotto.

It’s open season on rich people.  Everyone attacks them.  For they are easy prey.  There are few of them.  So angering them won’t have a huge impact at the polls.  Which is why politicians whip up a fury of hate against them.  Which the people who have ‘so little’ are eager to join them in that hate.  Because they hate rich people.  They hate them a lot.  And there just isn’t anything good they can say about them.  They hate them so much that they buy lotto tickets in hopes of becoming rich people themselves.  Because that’s the only thing that can assuage their hate of rich people.  Becoming rich people.

People who have ‘so little’ will define anyone as having ‘too much’ if they have more than they do.  But if they win the lotto it’s a different story.  For rich people like them don’t have ‘too much’ then.  In fact they become downright greedy.  And become everything they once hated.  They don’t want to share their winnings.  (Even some in lotto groups who bought a winning ticket will try to keep that ticket for themselves, saying they bought THAT ticket with his or her own money and not the group’s money and therefore they don’t have to share THOSE winnings.)  And they sure don’t want to pay half of their winnings in taxes.  Higher taxes were okay when it was someone else’s money.  But they’re just plain unfair when it’s your money.  It’s just a fact of life.  People are greedy.  Even those with ‘so little’.

If there is No Incentive to Choose the Hard Jobs then Someone will have to Coerce People to ‘Choose’ Them

Consider this.  How hard would you work if you had to deposit your entire paycheck into a general fund?  Let’s call the fund the Equality Fund.  All workers everywhere on payday take their checks to the bank and deposit them into the Equality Fund.  And then they get their ‘equal share’ from that fund to live on.  So doctors and janitors earn different incomes.  But their distributions from the Equality Fund are the same.  NFL franchise players and workers in fast food earn different incomes.  But their distributions from the Equality Fund are the same.  Ditto for movie stars, rock stars, pop stars and lotto winners.  They all deposit their income into the General Fund.  And live on the same money as do hair stylists, Wal-Mart greeters, busboys and gardeners.  Even the people who don’t work.  Who love the Equality Fund.  Because with equality they don’t have to work.  Pretty sweet.  Don’t work.  And get paid the same as those who do work.  So they have no incentive ever to go to work.  And some of those who do work start asking themselves, “Why am I still working?” 

If there was an Equality Fund how hard would you work at your job?  Would you even work?  Would you choose a difficult career field that took a lot of costly education?  Would you work that hard to earn more money only to deposit those high earnings into the Equality Fund?  Instead of using those high earnings to buy a nice house?  In a nice neighborhood?  With nice schools for your kids?  Probably not.  Let’s say everyone is paid $50,000 from the Equality Fund.  Regardless of what you paid into it.  Either nothing.  Or millions of dollars.  Everyone lives on $50,000 per year.  Not too shabby.  Especially for low-income people or the unemployed.  They’re going to love the Equality Fund.  But those paying in millions will not be living in million dollar mansions.  Buying expensive cars.  Big boats.  Fly in their private jets.  Or even fly first-class.  No one will wear a Rolex watch.  Or other expensive jewelry.  Or high fashion.  No one will have these things.  Not when you’re raising a family on $50,000 per year.  Even if your work skills bring in the kind of high earnings that could afford them.  Because all of your pay will go into the Equality Fund.  Is that fair?  It’s equality.  But is it fair?

Let’s take this a little further.  Say everyone wises up and quits working.  Because they get the same amount to live on whether they work or not.  So why work?  Those who would like to tell the boss off and quit working are no doubt saying, “Sounds good to me.”  But this would cause a problem.  For what would you buy with your $50,000 annual allotment if no one worked?  For you need people to work if you want to buy a house.  A car.  A boat.  Fly.  Wear a watch.  Jewelry.  Clothing.  Sure, some will say we can just buy old homes.  And buy imported cars, boats, planes, watches, jewelry and clothing.   Sure, you could.  But you can’t import everything.  You can’t import road maintenance.  You can’t import port facilities and railroad infrastructure.  Or the people to operate them.  You can’t import restaurants complete with chefs, servers and busboys.  You can’t import emergency trauma care.  Maternity care.  Cardiac care.  A college education.  You just can’t import everything.  Someone has to work these jobs.  Even though they won’t get paid any more for working than they would for sitting at home collecting their allotment from the Equality Fund.  And when no one chooses to work at the jobs we can’t replace with imports someone will have to ‘help’ them change their mind.  To make them choose to work.  Even if it’s against their will. 

This is the problem with equality.  If we pay everyone equally no one will choose the hard jobs.  They’ll choose the easy jobs.  Worse, if we pay them equally whether they work or not they’ll simply choose not to work.  And if there is no incentive to choose the hard jobs then someone will have to coerce people to ‘choose’ them.

You can have Liberty or Equality but You can’t have Both

To choose your career you need liberty.  To choose to go to school to learn a high-paying skill you need liberty.  To work in a high-paying job you need liberty.  To keep your high-pay earnings you need liberty.  To work hard and to advance yourself to reach your personal goals you need liberty.  To play in the NFL you need liberty.  To be a movie star or rock star or pop star you need liberty.  To play the lotto and keep your winnings you need liberty.  To do all of these things you need liberty.  And one other thing that makes all of these things possible.  Inequality.

People working in fast food can’t earn the same as neurosurgeons.  Because if they paid their workers that much the cost of fast food would be prohibitive.  And no one would be neurosurgeons because it’s a lot less stressful working in fast food.  It doesn’t take years of training.  Or expensive malpractice insurance.  You don’t have to live with accidents that permanently disable or kill people.  Or deal with their aggrieved family members.  So that’s why we pay neurosurgeons so much.  It’s a very difficult profession that few choose.  Because so few choose this profession those that do are very valuable resources.  Demanding high pay.  And because they demand such high salaries it attracts the few who are willing to deal with all the things that come with being a neurosurgeon.  The high pay helps people choose this valued career despite the high personal costs.  So inequality is a good thing.  It provides incentive to choose the hard jobs.  Which is a good thing.  For who wants a low-paid person forced to be a neurosurgeon operating on his or her brain?

Everyone who has ever bought a lotto ticket agrees that inequality is a good thing.  They wouldn’t buy a ticket otherwise.  Because they buy those tickets to become rich.  To have more than other people.  That is, to be unequal.  Because everyone is greedy.  Just like football players, movie stars, rock stars, pop stars and, of course, lotto winners.  And not a one of them is going to work hard to develop their unique earning potential just to put the fruits of their labor into the Equality Fund.  They may talk the talk.  Support Democrats.  But they do that just so the people who have ‘so little’ leave them alone.  For they all still live in their million dollar mansions.  Because they like being unequal.  The more unequal the better.  They adore their pampered lives.  And when it comes to choosing liberty or equality they choose liberty.  As their comfortable lives clearly show.  For you can have liberty.  Or you can have equality.  But you can’t have both.  And that’s okay with them.

www.PITHOCRATES.com

Share

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

Obama Attacks Colleges for High Tuition Costs and Irks College Administrators

Posted by PITHOCRATES - January 28th, 2012

Week in Review

In an odd move President Obama has attacked colleges for the high tuition costs.  Odd because colleges overwhelmingly support Democrat candidates.  Colleges are like public sector unions for all intents and purposes.  And he would never ask public sectors to cut their budgets.  Democrats never attack the colleges for the high cost of tuition.  They attack people who don’t approve higher taxes for higher education.  But Obama attacks colleges.  Leaving college administrators dumbfounded (see College presidents pan Obama cost-control plan by the Associated Press posted 1/28/2012 on the New York Post).

Fuzzy math, Illinois State University’s president called it. “Political theater of the worst sort,” said the University of Washington’s head…

Illinois has lowered public support for higher education by about one-third over the past decade when adjusted for inflation. Illinois State, with 21,000 students, has raised tuition almost 47 percent since 2007, from $6,150 a year for an in-state undergraduate student to $9,030…

Bowman said the undergraduate experience can be made cheaper, but there are trade-offs.

“You could hire mostly part-time, adjunct faculty. You could teach in much larger lecture halls, but the things that would allow you achieve the greatest levels of efficiency would dilute the product and would make it something I wouldn’t be willing to be part of,” he said.

If you crunch the numbers that’s $189,630,000 ($9,030 X 21,000) Illinois State takes in each year from their undergraduate students.  That’s a lot of money.  But it excludes donations.  And federal and state aid.  Which when added all together pays for administrative workers, janitors, administrators and, of course, professors.  Which makes you wonder where all that money goes.  The $189 million.  The donations.  And the federal and state aid.

Of course, everyone knows where it all goes.  Where it always goes.  Pay and benefits.  In particular, salaries, health care and pensions.

People love to work at these colleges.  Because of all that money.  You can’t get this in the private sector.  Which is why pay and benefits in the public sector, including these colleges, are far better than in the private sector.  Because they always justify their ever increasing tuition costs on the imperative to educate students to compete in the high-tech world of tomorrow.  While those working in the high-tech world can’t make similar pleas so their customers will pay higher prices for their high-tech products.  No, they can’t do that.  For that would be greedy.  But colleges can.  While no one calls them greedy.

And if you argue against colleges you sound like you’re against winning the future.  Even though many of these students are getting degrees in art, music, sociology, anthropology, women studies, minority studies, etc.  Which really don’t help to win the future.  But they do provide a lot of jobs on campus.  And a lot of tuition revenue from students who don’t want to take the more difficult degree programs that require math.

www.PITHOCRATES.com

Share

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

FT97: “The poor may hate the rich yet that doesn’t stop them from trying to be rich.” -Old Pithy

Posted by PITHOCRATES - December 23rd, 2011

Fundamental Truth

Politicians use Class Warfare to Blame Others for their Economic Destruction

Class warfare is on the rise.  Which is typical during a presidential election season.  Especially when a president’s policies haven’t exactly improved the economy.  When your policies give Jimmy Carter’s misery index a run for its money you have to find something else to run on beside your record.  So you blame the rich.  Which tends to go over well for those who aren’t rich.  Because while they’re cutting back to stretch what little they have to last in the face of record unemployment, the rich aren’t.  It doesn’t help the un-rich.  But somehow having someone to hate brings them some comfort.

So they listen to the class warfare.  And like what they hear.  The rich aren’t paying their fair share of taxes.  Rich people paying millions in tax dollars isn’t enough.  They should pay more.  But they try not to.  Because they’re selfish.  Evil.  They hate poor people.  Hungry people.  Children.  And they really hate poor, hungry children.  For it is the rich who always oppose paying more taxes to help these people.  The poor never do.  They are always in favor of taxing the rich more to help other people.  To help themselves.  Because the poor aren’t selfish.  Or greedy.  Like the rich.  The rich have more than enough.  Everyone knows this.  So they should pay more in taxes.  After all, fair is fair.

At least, this is the thinking of class warfare.  It’s sort of like magic.  Magicians use misdirection to take your eyes away from what they’re really doing.  A little sleight of hand.  Doing something with one hand while they have you looking at the other.  You’re amazed.  And feel entertained for being fooled.  You like it.  And asked to be fooled again.  Politicians have picked up on this human desire.  And use it to their advantage.  To get us looking at something completely different.  And not the economic destruction they’re causing.  And then, like magic, we blame the rich for all the ills in our lives.

Poor People know one thing for Sure, it is Better to be Rich

So the rich are greedy, evil and selfish.  The scum of the earth.  We have nothing good to say about them.  Because money is the root of all evil.  And anyone who has money must be evil.  A classic American novel set during the Great Depression, The Grapes of Wrath, epitomized this when the mother wanted to treat her men to some sugar in their coffee but couldn’t afford it.  She asked for just a little free sugar.  The clerk said she couldn’t.  Because she wasn’t the owner.  And would get in trouble if she did.  But she gave her a little sugar anyway.  And slipped some of her own money into the till to pay for it.  A rich person wouldn’t do this.  Only a poor person would help another poor person.  Because the poor are good.  And the rich aren’t.

This is why class warfare works.  But there is a fatal flaw in it.  The poor people may say they hate the rich and want them punished, but it’s the poor people who are predominantly buying lotto tickets.  Why?  To become rich.

Rich people don’t buy lotto tickets.  Poor people do.  In hopes of a Cinderella rags to riches story.  Because poor people know one thing for sure.  It is better to be rich.  And they will spend their meager wages on lotto tickets for that gazillion in one chance of becoming rich.

More Government Benefits paid for by the Rich is the Ultimate Goal of Tax and Spend Class Warfare

Of course, a person’s definition of ‘rich’ differs from another.  And for the most part it’s relative.  To their own wealth.  Anyone who has more than them is rich.  And because someone always has more than they have they are not rich.  Simple.  So class warfare works.  Despite its fatal flaw.

But class warfare isn’t about fairness.  It’s just misdirection.  A little political sleight of hand.  To help a politician escape blame for the economic damage they’ve caused.  By tapping into a base human trait.  Greed.  That insatiable desire to get-rich-quick.  By spending their meager wages for that gazillion in one chance.

Or for more government benefits paid for by the rich.  The ultimate goal of tax and spend class warfare.  Something the poor are all for.  Because fair is fair.  Until, that is, they do win the lotto.  And these people see what it’s like to have more than others have.  As people crawl out of the woodwork to ask for some of their new found wealth.  Because they have more than enough.  And should share.  Because fair is fair.

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: , , , , , , , , , , , , , , , , , , , , ,

Estate Taxes – Washington’s Insatiable Greed

Posted by PITHOCRATES - December 13th, 2010

Taxing the Dead

Liberal Democrats like dead people.  Because when people die, there’s inheritance to tax (see Democrats not pleased with deal on estate taxes by Seth McLaughlin posted 12/12/2010 on The Washington Times).

“If someone leaves an estate of a billion dollars, under their proposal, they would gain $100 million over what the Democrats are proposing for the estate tax,” Rep. Jan Schakowsky, Illinois Democrat, said on MSNBC’s “The Rachel Maddow Show.” “Imagine, Paris Hilton will be able to get an extra $100 million under their plan. It’s obscene. It’s absolutely an offense to us and to most Americans.”

A levy on the transfers of big inheritances, the estate tax has become emblematic of philosophical differences that exist on Capitol Hill, where Mr. Sanders and other liberal-leaning lawmakers claim wealthy Americans simply can afford to contribute more to the national kitty and conservatives say the tax does not deliver the bang for the buck that Democrats claim and that the federal government shouldn’t have a financial stake in how people pass along their personal fortunes.

Yeah, but whose money is it in the first place?  And how many times do the rich have to pay taxes on their money?  They tax their income at the highest rates.  They tax their capital gains from Interest and dividends.  And if they’re business owners, they pay a corporate income tax, payroll taxes and other business taxes before they get to pay further taxes on the personal income their businesses pay them.  Tax, tax and tax. 

And they call the rich greedy?

There’s One for You, Nineteen for Me

All right, just how greedy are these rich? 

The first Bush cuts began phasing the estate tax out in 2001 from a top rate of 55 percent to 45 percent in 2009 and then to zero in 2010, with the per-person exemption also rising from $1 million to $3.5 million.

So, if Paris Hilton’s daddy bequeaths her a billion dollars, she gets to keep $450,000,000 while the government gets $550,000,000 (at the 55% estate tax rate).  The government gets more than half of her inheritance.  Schakowsky is right.  I am offended.  I am offended that the government can take over half of anyone’s inheritance while doing nothing to earn that money.  Like the Hiltons did. 

And my advice for those who die, (taxman)
Declare the pennies on your eyes. (taxman)

(The Beatles’ Taxman).

The government wants your money.  They want it when you work.  When you retire.  And when you die.  Have you ever wondered why the government is so opposed to privatizing Social Security?  Because your Social Security ‘retirement fund’ is taxed at 100% at your death.

Public Sector Unions are Expensive

So why do they want so much of our money?  Because public sector unions are expensive (see Government Unions vs. Taxpayers by Tim Pawlenty, governor of Minnesota, posted 12/13/2010 on The Wall Street Journal).

The majority of union members today no longer work in construction, manufacturing or “strong back” jobs. They work for government, which, thanks to President Obama, has become the only booming “industry” left in our economy. Since January 2008 the private sector has lost nearly eight million jobs while local, state and federal governments added 590,000.

Federal employees receive an average of $123,049 annually in pay and benefits, twice the average of the private sector. And across the country, at every level of government, the pattern is the same: Unionized public employees are making more money, receiving more generous benefits, and enjoying greater job security than the working families forced to pay for it with ever-higher taxes, deficits and debt.

It never changes.  The politically connected always exploit the masses.  The only difference today from yesterday’s noble classes and aristocracy is that membership isn’t based on blood.  They don’t inherit title and rank these days.  Which probably explains why the ruling elite has no qualms about a confiscatory estate tax.

Public Sector Unions and Dictators

It’s not easy screwing the masses in a democracy.  You need help.  Some political muscle.  Some guns for hire.

Public employee unions contribute mightily to the campaigns of liberal politicians ($91 million in the midterm elections alone) who vote to increase government pay and workers. As more government employees join the unions and pay dues, the union bosses pour ever more money and energy into liberal campaigns. The result is that certain states are now approaching default. Decades of overpromising and fiscal malpractice by state and local officials have created unfunded public employee benefit liabilities of more than $3 trillion.

Life in Cuba and North Korea is deplorable.  And yet their rulers have held power for decades.  And how did they do this?  Well, life may suck for your run of the mill North Korean and Cuban, but life is very good for those around the dictators.  They take care of the dictators.  And the dictators take very good care of them.  One can’t survive without the other.  So they take care of each other.

Ditto for public sector unions.

Who’s Exploiting Whom?

Once upon a time factories were like Dickens novels.  So the unions organized.

The moral case for unions—protecting working families from exploitation—does not apply to public employment. Government employees today are among the most protected, well-paid employees in the country. Ironically, public-sector unions have become the exploiters, and working families once again need someone to stand up for them.

Government work.  When someone is goofing off at work, the joke is that they’re doing government work.  Because government workers get paid very well.  For phony baloney jobs.  Many of these jobs are so useless that no one would ever notice if we eliminated them.  Life would go on as before.  Well, we would probably be taxed a whole lot less.  But other than that, the elimination of these jobs wouldn’t make the slightest difference in anyone’s life.

But we’re stuck with these jobs.  And we pay for them.  With confiscatory taxes.  Even after we die.  So, like George Harrison said, you better declare those pennies on your eyes.  When they lay you in your coffin.  Because the taxman is coming for you.  And your estate.

www.PITHOCRATES.com

Share

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

FUNDAMENTAL TRUTH #43: “If business ain’t selling, business ain’t hiring.” -Old Pithy

Posted by PITHOCRATES - December 7th, 2010

The Greediest People are in Government

A lot of people don’t understand business.  No big surprise considering that most people get their education from the public school system.

Our teachers ingrain it into us from the earliest days of our schooling.  Business is bad.  And they’d be even worse.  If it wasn’t for government.

Business is all about profits.  Not people.  Business is greedy.  Government takes more of our money than business does but government is never greedy.  Just business.  Funny how that works.  The lesson we learn?  If you’re really greedy and want a lot of money, be in government.

Government Earmarks and the Airport for Nobody

We deal with business on our own free will.  We choose to buy what they’re selling.  It’s a little different with government.  They take our money.  And if we don’t cough up enough of it, they’ll seize our assets.  Even send us to jail.  A business just won’t do that.  No matter how greedy our teachers tell us they are.

And more times than not, we don’t want what government is selling.  Earmarks.  Such as the John Murtha Airport in Johnstown, Pennsylvania.  The ‘airport for nobody’.  An airport nobody needs and few use.  But dump trucks of taxpayer dollars find their way to the John Murtha Airport.  Why?  Because Murtha was a member of the U.S. House of Representatives.  And that’s what representatives do.  Raise our taxes.  And take our money home to their districts.

Yet business is bad.  And government is good.  Go figure.

Government Spending Disrupts the Free Market

During good economic times, people say business is greedy.  They’re making their employees work overtime instead of hiring more employees.  During bad economic times, people say business is greedy.  They’re causing a recession by not hiring more employees. 

Businesses hire employees.  That’s key.  The more they hire the better the economy will be.  And you just can’t say that about government.  Because when they hire more people, it doesn’t stimulate the economy.  It just increases our taxes.  Leaving us with less money to stimulate the economy with.

Some people will say that government spending does stimulate the economy.  That’s what Keynesians say.  But they’re wrong.  When government spends money, they’re just spending our money.  And when they spend more we spend less.  The spending nets out.  But it disrupts the free market.  Millions of taxpayers will spend less at millions of small businesses.  Who will then sell less.  And hire less.  Maybe even lay off some employees.

We Spend Less when We Earn Less

Are these small business owners greedy?  No more so than you are.  Consider this.  Let’s say you and your spouse both work.  You make a comfortable living.  You can afford to hire a landscaping company to cut your grass.  You can hire a lawn maintenance company to fertilize your grass.  You take your car once a week to where they hand wash it.  You and your spouse sign up for ballroom dance lessons (while a sitter watchers your kids).  Now let’s say one of you gets laid off.  What do you do?

Well, if you’re like most other people, you cut expenses.  You let your landscaping contractor go.  Your lawn maintenance company, too.  You tell the people at the carwash that they can’t wash your car anymore.  You tell your dance instructors that you don’t need them anymore for lessons.  And you let your babysitter go.

Because of you some people have lost their jobs.  Are you greedy?  Or are you just adjusting your expenses to be in line with your sales revenue (i.e., your income)?  When you go from 2 paychecks to 1, you simply can’t afford to spend money like you used to.  And it’s the same for a business.

A Business Spends Less when they Sell Less

In business cash is king.  They use it to pay their employees.  Their employee benefits.  Their suppliers.  The interest on their debt.  Even their taxes.  If a business doesn’t have enough cash to pay these, they may not be a business much longer.  To be successful, then, a business must master their cash flow.

Making this more difficult is the fact that a business has to spend cash often BEFORE they get paid.  They pay employees, employee benefits and taxes often before the customer pays for the product or service of these employees.  Of course, before a customer pays they have to buy what a business is selling first.  If the business is not a ‘cash’ business, this can add even more time between the cash going out and the cash coming in.

So when economic times aren’t good and businesses are not selling, businesses aren’t spending.  They try to get by on less.  They hold onto their cash.  As long as possible.  Because they are uncertain of what the future holds.  But one thing they do know is that the future will take cash. 

Hiring People doesn’t Stimulate anything but Costs

So why doesn’t a business just hire more people during a recession?  Wouldn’t that stimulate the economy by giving people more money to spend?  Well, let’s say a restaurant hires a new cook.  The business pays the cook a wage and a benefit package.  Let’s say it adds another $1,000 per week to the business’ cash flow.  But it’s a recession.  Hiring the new cook doesn’t change the number of people coming into the restaurant to eat.  It just costs the business more.

The new cook will have more money to go out and stimulate the economy with.  But what good does it do for the restaurant owner?  Unless the new cook spends at least $1,000 per week buying meals at the restaurant (which is not likely to happen), the owner loses money by hiring the new cook.  His or her cash flow will only get worse.

This is why businesses don’t hire people during bad economic times.  Because no one is buying what they are selling.  Hiring people will only make a bad situation worse.  It will put a greater financial burden on a business that is already struggling to get by on what little cash they have.   

 Businesses and Taxpayers Stimulate Best

But our public schools still teach us that business is bad.  And government is good.  Even though it is business that creates jobs and hires people.  And it’s government that raises taxes and kills jobs.

To create jobs you need to help business make a profit.  Tax cuts are a good way to start.  With fewer taxes to pay, a business can use that cash elsewhere. With fewer taxes to pay, a taxpayer can spend that money elsewhere.  You let businesses and taxpayers keep more of their money and they will do good things.  This is how you stimulate the economy.  And how you create jobs. 

www.PITHOCRATES.com

Share

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