Liberals don’t Win Elections in the Arena of Ideas

Posted by PITHOCRATES - June 20th, 2013

Politics 101

Public Schools teach Kids that Republicans are Racist Homophobes who hate Children, Poor People and Immigrants

Americans are historically conservative.  Gallup shows that approximately 40% +/- of the people call themselves conservative.  While only approximately 20% +/- call themselves liberal.  Most of the rest call themselves moderates.  Gallup shows this as a general trend from 1992 through 2011 (see Conservatives Remain the Largest Ideological Group in U.S. by Lydia Saad posted 1/12/2012 on Gallup).  Yet President Obama is a liberal pushing liberal policies.  So how did a conservative nation vote in such a liberal president?

Well, there are the usual suspects.  The public schools are teaching our children to be liberal.  Thanks to teacher unions.  Who contribute generously via their union dues to the Democrat Party in return for favorable policies from the Department of Education.  So our public schools work to ‘free’ our children’s minds from the influence of their parents.  The push for public-funded childcare is just a way to get our children away from their parents sooner.  For the younger they start the longer their education/indoctrination will last.

While our kids are in our public schools they learn the ‘important’ things.  Global warming is a reason to tax and regulate business.  Capitalism is unfair and evil.  Government is good.  While glossing over the Founding Fathers and their creation of a government based on the assumption that government is bad.  And the less of it the better the people were.  No.  Our kids don’t learn that.  Instead they learn worthless things and come out of our schools knowing very little about their country.  Or their government.  Just watch Watters’ World on The Factor.  And listen to how little our young people know when Jesse Watters asks some basic questions.  You’ll get the ‘deer in the headlights’ look when asked a question school children could have answered a generation or two earlier.  But despite their lack of knowledge on anything that isn’t trending in social media they will tell you that Fox News is biased.  And that Republicans are racist homophobes who hate children, poor people and immigrants.  Which is why they vote Democrat.

Democrats expand the Welfare State to get People Dependent on Government Benefits

So there’s public education.  And for those who go on to college our public universities will pull these kids even further left.  Then there’s the mainstream media.  Which is liberal.  Reinforcing everything our kids heard in school.  And all the people they look up to in the entertainment world tend to be liberal.  Further reinforcing what these young people heard in school.  Even though only 20% call themselves liberal that 20% is a young person’s world.  So a liberal view does not seem like the minority view it is to them.  Which is why they vote Democrat.

Then there are public sector unions.  And labor unions.  Who have a vested interest in keeping Democrats in office.  These unions collect dues from their members.  And spend a large portion of those dues to help Democrats win elections.  In return these Democrats implement union-favorable policies.  Also, these union members will act as foot soldiers during elections.  Helping to get out the vote.  Making phone calls.  Going door to door.  And helping to get people to the polls to vote Democrat.

Democrats also try to expand the welfare state.  To get people dependent on the government.  So these people look to government as their sole provider.  And after awhile being dependent on the government these people become completely dependent on the government.  And fear losing their government benefits.  For after being out of work for so long the thought of reentering the workforce is frightening.  Which Democrats tell them Republicans want to do.  They want to take away their benefits.  And force them into hamburger-flipper jobs.  Which Democrats point out are beneath them.  Even if they have no education or jobs skills beyond entry level employment.  So they vote Democrat.  To protect their benefits.

Liberals win Elections by Indoctrination, Quid Pro Quo, Dependency, Fear, Patronage and Abuse of Power

But it doesn’t end with simply getting people dependent on government benefits.  They implement policies that attack and destroy conservative institutions that encourage people to stand on their own two feet.  So they just don’t have to rely on people’s desires and wants.  But can tap into their fears.  Which is why FDR passed Social Security into Law.  And why LBJ expanded Medicare.  For these two great liberals knew they could make the elderly permanent Democrat voters by putting the fear of God in them that Republicans will cut their Social Security and Medicare benefits.  So a large percentage of seniors vote Democrat.  As they won’t be able to pay their bills or see a doctor if they lose their Social Security and Medicare benefits.  Because they trusted the government to provide for them in retirement.

And then there’s Obamacare.  Which will do to all non-seniors what Social Security and Medicare did to seniors.  Put the fear of God into them that Republicans will kill them by cutting their Obamacare benefits.  But it’s more than just the fear.  Obamacare will require a massive bureaucracy.  Layers of new government jobs.  Public sector union jobs.  Which will do what public sector unions and labor unions do on a grand scale.  But the big way Obamacare can help Democrats win elections is having the IRS enforce it.  Having the IRS determining who is eligible for a subsidy.  Determining how much someone can afford to pay for their Obamacare.  And determining how much to fine someone.  Allowing the IRS to ‘Tea Party’ the political opposition.

This is how liberals win elections.  Not by winning in the arena of ideas.  But by indoctrination, quid pro quo, dependency, fear, patronage and using the power of the executive branch for political ends.  They’ve become everything the Founding Fathers feared.  Who wrote the Constitution specifically to prevent things like this from happening.  Who didn’t believe the Constitution was a living document for future generations to interpret and adjust for the times.  Because they didn’t write it to give people stuff.  They wrote it to restrict the powers of the federal government as much as possible.  Because it is government’s nature to oppress and abuse her people.  So you don’t want them to have a lot of power.  For Lord Acton’s words are just as true today.  Power corrupts.  And absolute power corrupts absolutely.  Something at least 40% of the American people understand.

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Great Depression, FDR, New Deal, John Maynard Keynes, Labor Unions, Collusion, Unemployment, Lend-Lease and Stages of Production

Posted by PITHOCRATES - September 11th, 2012

History 101

FDR increased the Power of Labor Unions and allowed Big Corporations to Collude with Each Other

Those in mainstream economics (i.e., Keynesian economics) studied the Great Depression and determined that the problem was a lack of spending.  Which is why they cheer FDR and his New Deal programs.  Because the New Deal spent enormous amounts of money.  And according to prevailing Keynesian thought that was all that was needed to end the Great Depression.  Spending.  And if the private sector wasn’t going to spend money then the government could.  And the government’s spending could replace all that economic activity that disappeared when the private sector stopped spending.  So the government spent.  But in those 10 to 15 years they failed to pull the nation out of the Great Depression.

According to Keynesian thought, and John Maynard Keynes himself who visited FDR in the White House, the government needed to spend money.  Even money they didn’t have.  Keynes urged the president to deficit spend.  To run huge deficits in the short term to kick-start the economy.  Keynes showed that it was the only way with a lot of figures and math.  FDR later said Keynes was more a mathematician than an economist.  Still, FDR spent.  But he did even more.  Believing part of the reason for the lack of spending was the evils of capitalism.  There was just too much competition keeping prices low.  And businesses selling at low prices couldn’t pay high wages.  Ergo to stimulate economic activity FDR wanted to increase the cost of doing business.

FDR increased the power of labor unions to help them negotiate higher wage packages.  And he allowed big corporations to collude with each other so they could raise their prices so they could afford to pay those higher union wages.  These two things really helped workers get better pay.  Some 25% higher they otherwise would have had.  This was a big win for labor.  And for the socialists and communists in America who hated capitalism.  (The 1930s were a time of nationalist, socialist, fascist and communist movements sweeping the world.  And strong elements in the U.S. wanted to join these movements.  The Soviet Union even had agents working inside the Roosevelt administration.)  In fact, they were angry that FDR didn’t take this chance to deliver the deathblow to capitalism once and for all by nationalizing some big industries.  Something FDR wasn’t willing to do.

FDR did Everything in his Power to Increase Wages & Prices because of the Massive Deflation of the Great Depression

Then came the alphabet soup of make-work agencies.  Civilian Conservation Corps (CCC) paid young unemployed men to do landscaping and other outdoor activities.  Tennessee Valley Authority (TVA) paid young men to build dams and other water related activities.  Agricultural Adjustment Act (AAA) raised food prices by paying farmers not to grow crops and to kill off some of their livestock herds instead of bringing them to market.  National Industrial Recovery Act (NIRA) reduced unfair competition by letting big corporations collude with each other to keep their prices high.  Public Works Administration (PWA) was a whole new agency that built roads and bridges.  Works Progress Administration (WPA) paid for more construction work for men, sewing work for women and arts projects for the creatively inclined.  National Labor Relations Act (NLRA) gave more power to unions to keep their wages (and the prices of the things they made) high.  And many other alphabet agencies.

Most of these programs passed between 1933 and 1935.  So FDR put a lot of money into workers’ pockets during the 1930s.  And according to Keynesian economics all that money would cause an explosion in consumer spending.  Thanks to the Keynesian multiplier.  For every dollar a consumer received from the government it would generate up to $5 of new GDP.  Which was probably one of the mathematical equations Keynes discussed that so underwhelmed FDR.  And that formula is 1/(1-MPC).  Where MPC stands for the marginal propensity to consume (and if it’s 0.80 you get a multiplier of 5).  If a person receives $100 and spends $80 then their MPC is 0.80 or 80%.  This is basically trickle-down economics Keynesian style.  If the person above spends that $80 those receiving it will spend $64.  Those who receive $64 will spend $51.20.  And so on until these other people create an additional $400 of economic activity in addition to that original $100.

And FDR couldn’t ask for a better time to spend that money.  During the Great Depression.  He was doing everything in his power to increase wages and prices because of the massive deflation of the Great Depression.  So even though he was trying to raise prices they were still low throughout much of the economy.  Which meant a little bit of money bought a lot of stuff.  Because deflation strengthened the dollar.  Giving it more purchasing power.  Allowing buyers to get a lot of bang for the buck.  Especially those union workers making 25% more than they normally would have been making.  Talk about kick-starting an economy.  It was so easy.  They even had mathematical formulas saying this would end the Great Depression.  The Great Depression was as good as over.

Had President Obama not been Elected the Great Recession would have Ended some time in 2010

The unemployment rate topped out at around 25% in 1933.  Excluding the government make-work, the true unemployment rate didn’t fall below 20% until 1936.  And never got below 14% until 1941.  When America began tooling up to build the instruments of war.  To become the Arsenal of Democracy.  A few things happened during this time to greatly reduce the unemployment rate following 1941.  The war removed a lot of men from the workforce to serve in the military.  The Supreme Court found parts of the New Deal unconstitutional.  And there was a split in organized labor that helped conservatives (Republicans and Democrats) gain power in Congress.  And they shut down some of those liberal New Deal programs.  So while one war began (World War II) another ended (the war on business).

And how did things progress after they ended their war on business?  Pretty well.  The unemployment rate fell.  To 14.6% in 1940.  To 9.9% in 1942.  To 1.9% in 1943.  To 1.2% in 1944.  Then it soared back up to 1.9% in 1945.  With the war over the unemployment rate rose again.  But nowhere near where it was during FDR’s New Deal 1930s.  From 1948 to 1968 it averaged 4.7%.  Not too bad considering full employment is 5%.  So for the 30 years or so following the end of New Deal policies the economy returned to full employment.  And stayed at full employment.  The conservatives in Congress needed but 4 years to do what FDR couldn’t do in 10 years with his Keynesian, New Deal policies.

Yes, the war helped.  A lot.  It pulled a lot of men out of the workforce.  And American industry ramped up to provide the war material for war.  However, we financed that buildup with deficit spending and American war bonds.  As most of that war material went to our allies via Lend-Lease.  Which means we gave most of it away to allow others to fight the war.  So it was little different than Keynesian spending.  So why did the war spending work when all those alphabet soup make-work agencies didn’t?  Because of the stages of production.  Putting more money into consumers’ hands only helped the retail and wholesale stages.  It did not do anything to stimulate the manufacturing or raw commodities stages.  Especially with those high union wages and lack of competition thanks to the collusion to keep prices high.  All that did was pay the very few who actually had jobs very well.  While making it economically foolish to hire any new workers because of the exceptionally high cost of labor (25% higher than it would have been without the New Deal programs).  That high cost of business just slammed the brakes on economic activity.  Economic activity picked back up only after conservatives in Congress undid some of the damage of the New Deal.  In fact, had it not been for FDR’s New Deal the Great Depression would have ended some 7 years earlier.  Extrapolating this to the Great Recession today one could estimate that the Great Recession would have ended 7 years earlier had it not been for the Keynesian policies of President Obama.  So if the current recession lasts as long as the Great Depression and President Obama wins a second term and continues his anti-business policies the recession will last 7 years longer than it need be.  Or, had President Obama not been elected it would have ended some time in 2010.  Giving us full employment today instead of 14.7% U-6 unemployment.

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LESSONS LEARNED #52: “The political right is usually right.” -Old Pithy

Posted by PITHOCRATES - February 10th, 2011

The Right Knows Business.  The Left Doesn’t.

Creating jobs is important.  Without jobs no one has any money.  No one can buy anything.  And the government can’t tax what we don’t have.  So jobs are important.  To those on the right.  As well as on the left.

Now critics of the Right claim that those on the right only care about profits.  Not people.  Whereas those on the left claim they care about people.  Not profits.  In some sense this is true.  Those on the right tend to understand business.  They know a business can only survive by making a profit.  And only a business that stays in business can create jobs.  The Right understands this.

Those on the left, on the other hand, don’t really understand business.  They don’t understand incentive.  Only duty.  And sacrifice.  For others, that is.  Not them.  They don’t think a business should make a profit.  That they should give any excess revenue to their workers.  Or to the government.  In other words, business owners, they feel, should serve others.  They should work and sacrifice so others may live better.  Workers shouldn’t have to work hard or sacrifice.  But owners should.

Protecting an Industry only Delays the Inevitable

Some great entrepreneurs created some great businesses.  Made life better for all of us.  Provided good, inexpensive clothing.  Made high quality steel cheaper and more plentiful than any other nation.  Built cars than the average working man could afford.  These titans of industry built this nation.  Because of them we surpassed all other nations and became the most powerful economic engine of the world.  Life was good.  There were lots of jobs.  Lots of stuff.  And lots of homes filled with the most modern stuff available.  America was the place to be.  People waited in line to immigrate to our shores.

Unfortunately, big piles of money attract a lot of people.  And not just workers begging to get a job in these new industries.  No.  It was people looking out for the workers.  Labor unions organized workers.  To get a ‘decent’ wage.  And better working conditions.  Cost of labor went up.  Which made the price of what they sold go up.  Imports started to look more attractive.  So government stepped in and slapped tariffs on those.  To force Americans to pay the higher price for our domestic goods.  Then they legislated ways to further ‘protect’ these American industries.  And how did that all work?

Well, take a look at the American textile, steel and automobile industries.  The Left overreached.  And killed these industries.  They’re no longer the dominate industries they once were.  We have no textile industry to speak of anymore.  The once big steel towns look more like ghost towns.  And the government had to bail out 2 of the Big Three auto makers.  Those generous union contracts added thousands to the price of a car.  Allowing Toyota to take over the top auto manufacturer spot from GM.  By providing the same or better quality for less.

Bad Jobs Today may have been Good Jobs Yesterday

That’s what happens when you protect an industry.  That industry has no incentive to innovate.  To be better.  To be more efficient.  To be more productive.  To give the consumer what they want.  Because when the consumer doesn’t have a choice, where else is the consumer going to go?  So protected industries rest on their laurels.  While others innovate.  And became better.

Combine that with union wages and benefits that keep getting higher and higher and what do you get?  Inferior products that cost more than the higher quality imports.  The Big Three sold crap during the Seventies.  Opened the door to the Japanese.  And a few decades later they took over the top spot from GM.  No matter how much we tried to protect our domestic automotive industry.

Say what you want about life before labor unions but the fact remains that we had more jobs.  And as dangerous or as dirty as those jobs were, people still came to this country by the thousands to get those jobs.  People were falling off the Golden Gate Bridge during construction.  Did that dissuade people from wanting to work on that bridge?  No.  There was a shanty town with people waiting for others to fall and die so they could get their job.  Sure, by today’s standards, these were some pretty nasty jobs.  But not then.  In fact, they were pretty damn good jobs.  Compared to what else was out there.  How can we say this?  Because they chose those jobs over the other jobs out there.

The Greed of the Left Killed the Golden Goose. 

Henry Ford had a bold idea.  He was going to mass produce a car so he could sell it at a price that the working man could afford.  To get the best people in his plants he offered $5 per day.  Twice what other manufacturing jobs were offering.  No union made him do this.  The market did.  He got the best mechanics and the lowest turnover rates.  Other businesses had to follow suit to retain their best people.  And working conditions improved.  Because of the greed of these business owners.

Contrast that to today where union contracts force high wage and benefit packages onto a manufacturer.  And contractual obligations that make it near impossible to get rid of excess workers during times of weak demand.  Using the Ford model, Detroit became the Motor City.  An economic dynamo.  Under the union model, GM and Chrysler went bankrupt.  And Detroit is considering bulldozing sparsely populated neighborhoods into farmland.

When profit wasn’t a dirty word businesses prospered and provided jobs.  When the left came in to protect the little guy from those greedy business owners they made it difficult to make a profit.  Business struggled to compete with their competition.  And when they couldn’t, they shuttered operations.  Jobs disappeared.  The greed of the left to protect against the greed of the right killed the golden goose.  And all those good manufacturing jobs grew legs and left the country.  Where they’re now providing a better life for other workers.  Like they once did here.

Greed is a Hell of an Incentive

The Right understands business.  The Left doesn’t.  But it has never stopped them from trying to tell businesses how they should conduct business.  And the more they get involved, the more business suffers.  The more jobs we lose.  And the less competitive we get as a nation.

FDR tried for a decade to end the Great Depression.  Nothing he did worked.  When World War II came along, something had to change.  There was a crisis.  We needed to provide war material to our allies.  So the FDR administration told American industry to do what they do best.  They let them make profits.  Restored incentive.  And the government said they would interfere no more.  Well, that unleashed the floodgates.  Workers were hired and factories worked round the clock.  Businesses made profits that let them innovate.  Improve productivity.  Trucks, planes, boats, weapons, etc., poured out of American factories.  The Allies armies were mechanized.  Jeeps and trucks moved our armies.  While the Nazis used horses to pull their artillery and supplies.  The Arsenal of Democracy, the Detroit dynamo of industry, won World War II.  And men like Henry Ford made it all possible.  Because they were greedy.

The post-war era was one of the most prosperous times in our nation.  There were jobs for everyone.  And a better life was there for the taking.  Times would stay good until the Left ushered in their Big Government programs beginning in the Sixties.  To protect the little guy.  And it’s been downhill ever since (with a brief respite during the Reagan Eighties).

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Democrats Seek to Increase the Debt Ceiling, Republicans Prefer Spending Cuts

Posted by PITHOCRATES - January 2nd, 2011

Obamacare Push the Deficit Higher than Reagan’s and Bush’s Combined

Ronald Reagan had deficits of $200 billion.  The Left said that was reckless and irresponsible.  George W. Bush averaged $800 billion deficits.  The Left said that was reckless and irresponsible.  Now Obama’s deficits approach $1,500 billion.  And the Left says, “Let’s raise the debt ceiling.”

It’s a reckless and irresponsible game Obama, Pelosi and Reid have been playing.  During the worst recession since the Great Depression they have gone on a spending orgy.  Hoping to pass as much as possible in as short of time as possible.  The goal being simple.  Get as many people as possible addicted to this new government spending.  Make it political suicide for the opposition to repeal.  Thereby giving the Democrats yet more things to frighten voters about should Republicans win elections.  That those rascally Republicans will take away those benefits they fought so hard to give them.

But they have increased spending to levels impossible to sustain.  Medicaid is bankrupting the states.  Medicare and Social Security are bankrupting the nation.  Despite this, Obama, Pelosi and Reid passed Obamacare.  This on top of stimulus spending that stimulated nothing but unions and Democratic loyalists.  They’re selling bonds and printing money to feed this orgy of spending.  In the process mortgaging our future.  And making the United States credit worthiness on par with a subprime mortgage.

The Best Way to Stop a Spending Crisis is to Stop Spending

The Left is now concerned.  They see spending is unsustainable.  With the current debt ceiling.  So they want to raise the debt ceiling (see Obama aide: Debt limit fight could be “catastrophic” by Caren Bohan posted 1/2/2011 on Reuters).

White House economic adviser Austan Goolsbee accused Republicans of “playing chicken” with the nation’s financial credibility.

“This is not a game. You know, the debt ceiling … is not something to toy with,” Goolsbee told the ABC News program “This Week.” “If we hit the debt ceiling, that’s … essentially defaulting on our obligations, which is totally unprecedented in American history.”

“The impact on the economy would be catastrophic. I mean, that would be a worse financial economic crisis than anything we saw in 2008,” he said.

Interesting.  When we get ourselves in trouble by maxing out our credit cards, what do debt counselors tell us?  To solve our problem by getting another credit card so we can keep spending?  Or do they tell us to cut all of our credit cards and sell everything we own to pay our bills?

When spending gets you in trouble you stop spending.  You don’t keep spending.  It’s what we the people do.  And it’s what our government should do.  Because the nation, the states and even our cities are all having spending and debt problems.

Big Government Spending Destroys Some of our Biggest Cities

Big Government at every level is failing.  Destroying great cities in its wake (see American Cities That Are Running Out Of People by Michael B. Sauter posted 1/1/2011 on Yahoo! Finance).

New Orleans has lost more than a quarter of its population in the past 10 years as the result of Hurricane Katrina. The rest of the cities that have lost major parts of their population have seen their flagship industries, which include coal, steel, oil, and auto-related manufacturing, fall off or completely collapse.

The big losers?  Flint, Michigan.  Cleveland, Ohio.  Buffalo, N.Y.  Dayton, Ohio.  Pittsburgh, Pennsylvania.  Rochester, N.Y.  Big, blue cities.   Big labor unions.  And big public sectors.  Is there any surprise that these cities are dying?

Targeted Tax Cuts and Incentives Don’t Stimulate

The evidence is all around us.  Government spending may get you votes in November, but it is bankrupting the nation, the states and the cities.  And you don’t fix that problem with more taxing.  And more spending.  Even liberal Democrats know this (see Goolsbee: Obama to Make ‘Tough Choices’ on Budget by Mary Lu Carnevale posted 1/2/2011 on The Wall Street Journal).

Mr. Goolsbee, chairman of the White House Council of Economic Advisers, said on ABC’s “This Week” that the administration is focusing on spurring investment and improving U.S. exports and innovation to boost economic growth. And he said that steps already taken, such as cutting payroll taxes by two percentage points and giving small businesses new tax incentives, should soon provide some economic fuel.

They know that cutting taxes stimulates the economy.  They admit as much by cutting payroll taxes.  And by offering tax incentives.  But they target everything.  It’s never across the board.  Because across the board tax cuts don’t offer tit for tat.  And what good is a tax cut to a politician if it doesn’t get you something in return?

Repeal Obamacare, Forget about Raising the Debt Ceiling

Cutting taxes will stimulate the economy.  It worked for Harding.  For Kennedy.  For Reagan.  And for Bush.  Reagan doubled tax receipts with his cuts.  But he still had $200 billion deficits.  Why?  Because the Democratic Congress spent the money faster than it came in.  And they reneged on their promised spending cuts.  Lesson learned?  You have to cut spending.

There’s hope.  Thanks to the Republican ascendancy at the 2010 midterm elections.  The Republicans have the power of the purse.  And a lot of Democrats lost their seats for voting for Obamacare.  You add this up, and you can take tough words about repealing Obamacare seriously (see House to vote early on health care repeal by Jake Sherman posted 1/2/2011 on Politico Live).

Incoming House Energy and Commerce Chairman Fred Upton (R-Mich.) says the new Republican-controlled House will look to repeal Democratic health care overhaul legislation before President Barack Obama delivers his State of the Union address later this month.

“We have 242 Republicans,” Upton said on “Fox News Sunday.” “There will be a significant number of Democrats, I think, that will join us.”

Upton, whose committee will key in the GOP’s effort to roll back the law, said that he believes the House may be near the two-thirds majority required to override a presidential veto. Short of repeal, Upton said the House will “go after this bill piece by piece.”

Social Security, Medicare and Medicaid are political third rails.  Too many people are dependent on them for significant reform.  But Obamacare is a no brainer.  No one is dependent on it now.  Repealing that will be pain free.   Other than a bruised ego.  But Obama can get over that.  When he retires in 2012.

You repeal Obamacare and our debt crisis all of a sudden gets a whole lot easier to manage.  So let’s cut that credit card.  Before we build up a balance that we’ll never be able to pay off.

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