Liar, Liar, Pants on Fire, Hang them up on Telephone Wire, President Obama

Posted by PITHOCRATES - December 12th, 2013

Politics 101

Oppression and Lies are Standard Fare for a Communist Dictatorship

Communists are pragmatic.  They know what they want.  And they do what it takes to get what they want.  For them the ends justify the means.  No matter how horrible those means can be.  And they’ve been pretty horrible.  As communists have been among the greatest abusers of human rights.  Something their people are not too keen on.  As well as those living in the free world.  So communists do something else a lot.  They lie.

When you want to do things against the will of the people you need to either lie to the people.  Or oppress the people with a large police state.  Which can be costly.  Because you have to take care of your police apparatus so they oppress the people and don’t turn on you.  That’s how all dictators stay in power.  Life is horrible in their countries.  But it’s pretty good at the top.  And those who protect those at the top.  North Korea still suffers from recurring famines.  Yet those at the top never go hungry.  Or suffer the abject poverty of the people.  And it’s been this way for a long time.  A system maintained with the firm hand of the state.  From Kim Il Sung to Kim Jong Il to Kim Jong Un.  As the Kim family succession continues to keep life horrible in North Korea (see North Korea announces execution of Kim Jong Un’s uncle, Jang Song Thaek by Chico Harlan posted 12/12/2013 on The Washington Post).

There have been no outward signs of instability under Kim Jong Un, and the North has largely maintained its key policies, resisting economic reform, devoting money to its weapons program and maintaining a gulag system for those accused of political crimes.

Kim Jong Un’s uncle was Jang Song Thaek.  I say was for he is no more.  Jang was in the inner circle of Kim Jong Il and thought to be a potential successor.  But that didn’t happen.  As Kim Jong Un had those honors.  But Jang was around a long time.  And knew a lot of people.  Which, of course, made him a threat.  So Kim Jong Un had him arrested, put him on trial for crimes against the state and executed.  Telling the people he was a “traitor for all ages” and was “despicable human scum” and was “worse than a dog.”  He demonized him to get the people to accept that this execution was just.  And to send a message.  He held power.  And anyone thinking otherwise will be demonized and executed.  Standard sort of fare for a communist dictatorship.  Oppression.  And lies.

You get the People to ask for more Government by Buying their Votes with a Cradle-to-Grave Welfare State

A communist state has its drawbacks, though.  The aforementioned abject poverty and recurring famines.  Because as an economic system planned economies just don’t work.  But a free market economy tends to put ideas into people’s heads.  Such as we don’t really need the government as much as the government wants us to believe we need them.  In the movie V for Vendetta this was something Chancellor Sutler impressed upon his lieutenants.  It was imperative to let the people know how much they needed British socialism.  Which is not quite communism.  But it’s anti-free market capitalism just like communism.  And a little easier to sell to the people.  For despite the left’s love affair with communism it is hard to spin that as anything other than it is.  Horrible.  I mean, people aren’t trying to break into North Korea and Cuba.  They’re risking their lives to escape these communist utopias.

So those on the left adopted a new type of socialism.  Social democracy.  Which was communism/socialism lite.  It wasn’t as anti-free market capitalism as communism/socialism was.  So as not to bring about the abject poverty and recurring famines you got with communism/socialism.  And you backed off on the oppressive police state.  Instead, you get the people to ask for more government.  By buying their votes with a cradle-to-grave welfare state.  And a lot of government jobs with decent pay and wonderful benefits.  To make the people love the state.  And impress on them how much they need the state.

Of course this bloated welfare state is costly.  Which they pay for with a progressive tax system.  A tax system that is ‘fair’.  By making the evil rich pay higher taxes so the good poor and the innocent children can have a decent life.  Not just those evil rich people.  And how do you oppose this?  You can’t.  Unless you hate the poor.  And the children.  Which is what the left says about the opposition whenever they oppose new spending.  Or higher taxes.  Of course, having to fight these battles over taxes and spending can be a pain in the behind.  So the state takes care of those in the inner circle of power.  Those who think correctly.  Who help get the people to ask for these taxes and spending.  The media who helps to spread their propaganda.  And the educational system.  That teaches the young to grow up loving government.  And fearing free market capitalism.  Then you add the coup de grâce.  National health care.

President Obama lied over and over again to put America onto the Pathway towards National Health Care

Every communist/socialist dictatorship had/has national health care.  For once the people become dependent on the state for their good health the state has them for life.  And whenever the opposition resists higher taxes for more spending all you have to do is kill some people by making them wait longer for health care that the opposition denied them.  Causing outrage among the people.  Who demand that the opposition stop playing politics with their lives.  The left’s kind of oppression.  Having the people beg for more government.  This is why national health care (or something that will help usher in national health care) is the holy grail of the left.  And why President Obama lied through his teeth to pass the Affordable Care Act (aka Obamacare) into law (see Lie of the Year: ‘If you like your health care plan, you can keep it’ by Angie Drobnic Holan posted 12/12/2013 on PolitiFact.com).

PolitiFact has named “If you like your health care plan, you can keep it,” the Lie of the Year for 2013. Readers in a separate online poll overwhelmingly agreed with the choice…

The Affordable Care Act tried to allow existing health plans to continue under a complicated process called “grandfathering,” which basically said insurance companies could keep selling plans if they followed certain rules.

The problem for insurers was that the Obamacare rules were strict. If the plans deviated even a little, they would lose their grandfathered status. In practice, that meant insurers canceled plans that didn’t meet new standards.

Obama’s team seemed to understand that likelihood. U.S. Health and Human Services Secretary Kathleen Sebelius announced the grandfathering rules in June 2010 and acknowledged that some plans would go away. Yet Obama repeated “if you like your health care plan, you can keep it” when seeking re-election last year…

Also on Oct. 1, insurers started sending out cancellation letters for 2014…

One example: PBS Newshour interviewed a woman from Washington, D.C., who was a supporter of the health care law and found her policy canceled. New policies had significantly higher rates. She told Newshour that the only thing the new policy covered that her old one didn’t was maternity care and pediatric services. And she was 58…

First, they tried to shift blame to insurers. “FACT: Nothing in #Obamacare forces people out of their health plans,” said Valerie Jarrett, a top adviser to Obama, on Oct. 28.

PolitiFact rated her statement False. The restrictions on grandfathering were part of the law, and they were driving cancellations.

Then, they tried to change the subject. “It’s important to remember both before the ACA was ever even a gleam in anybody’s eye, let alone passed into law, that insurance companies were doing this all the time, especially in the individual market because it was lightly regulated and the incentives were so skewed,” said White House Press Secretary Jay Carney.

But what really set everyone off was when Obama tried to rewrite his slogan, telling political supporters on Nov. 4, “Now, if you have or had one of these plans before the Affordable Care Act came into law, and you really liked that plan, what we said was you can keep it if it hasn’t changed since the law passed.”

Pants on Fire! PolitiFact counted 37 times when he’d included no caveats, such as a high-profile speech to the American Medical Association in 2009: “If you like your health care plan, you’ll be able to keep your health care plan, period. No one will take it away, no matter what.”

President Obama lied.  Over and over again.  He lied to get this pathway to national health care into law (for once he destroys the private health insurance industry what will be left but a public option?).  And he lied to win reelection.  President Obama lied.  And his fellow Democrats lied.  Over and over again.  To put America onto the pathway towards their holy grail.  National health care.  The linchpin of the massive cradle-to-grave welfare state.  The one thing that allows the state to tax and spend more than anything else.  And puts the opposition into the position of wanting to kill people anytime they oppose higher taxes and more spending.  Which has a lot more staying power than a government shutdown.

What can you say about someone who lies (at least) 37 times?  That person is a pathological liar.  A pragmatic.  A person who believes the ends justify the means.  That the rule of law is only a suggestion.  A person that will say anything and break any law to get what he wants.  And is willing to kill people by taking away the health insurance they liked and wanted to keep.  By taking away the doctor they liked and wanted to keep.  And by taking away the medication they liked and wanted to keep.  Fear and suffering President Obama and his fellow Democrats and supporters in the media and education are indifferent to.  For their greatest concern is how will this hurt President Obama?  This is what those on the left worry about.  Their dear leader.  Not the people.  Just like the inner circle surrounding every tin-pot dictator worry about.  For if the people turn on the dear leader they may overthrow him.  And with him go their privileged lives amidst the abject poverty and recurring famines surrounding them.

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

Posted by PITHOCRATES - September 27th, 2013

Fundamental Truth

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

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

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

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

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

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

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

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

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

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

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

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

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President Obama lied about Obamacare because Socialists are Devious

Posted by PITHOCRATES - September 14th, 2013

Week in Review

Politicians lie.  Especially those on the left.  Why?  Because their policies have a record of failure. So when they campaign for office they don’t tell the truth.  Because the people don’t want their taxes to go up.  They don’t want more regulations that might put them out of a job.  They don’t want higher unemployment.  They don’t want more environmental policies to save the world from global warming when the earth hasn’t been warming as predicted.

The people have rejected socialism.  So when the left campaigns for office they don’t use the ‘s’ word these days.  Even though their policies have but one goal.  To turn the United States into a European social democracy.  Despite some of these social democracies moving away from their socialist ways (see Is Rightward Shift In Norway, Australia A Trend? posted 9/10/2013 on Investors).

Elections held in recent days in two modestly populated but economically significant countries show that the global political pendulum may be swinging back toward conservatives.

First came the triumph of Australia’s Liberal (conservative) Party and its socially conservative Catholic leader, Tony Abbott, in national elections last weekend.

That was quickly followed by the surprise victory of the Conservative Party’s Erna Solberg, dubbed “Iron Erna” for her staunch conservatism, in Norway’s national elections.

A mere coincidence? Not likely. Polls show people in most developed countries are fed up. Angry rank-and-file voters are turning away from leftist parties that push welfare spending, higher taxes, increasing debt, more regulation, open-border policies and tight environmental restrictions.

Politically, socialist ideas no longer sell so well.

Which is why politicians on the left lie.  President Obama said if you liked your health insurance plan you could keep it.  Which was a lie to pass Obamacare.  As Obamacare was only a stepping stone to socialized medicine.  And the first step in getting there was to first destroy the private health insurance industry.  And with no private health insurance industry there would be only the government to step in and be the insurer of last resort.  And, voilà, national health care.  A devious way to get there.  But, then again, socialists are devious.  Because they know people don’t want what they’re selling.

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The Europeans are moving away from Green Energy as President Obama moves toward Green Energy

Posted by PITHOCRATES - June 30th, 2013

Week in Review

Europe had gone all in on the green energy bandwagon.  To save the world from catastrophic climate change brought about by manmade global warming.  But they paid a price.  They have increased the cost of electric power.  Which increased the cost of manufacturing.  Making them less competitive on the world markets.  Resulting in anemic economic growth.  And a sovereign debt crisis as tax revenues fell.

Their journey into green energy has been an unmitigated disaster.  They are now reversing course.  And climate change be damned.  If there ever was a problem to begin with.  For let’s face, what good did all of Europe’s green energy efforts do anyway?  The climate doomsayers are still warning us that we must act now before it’s too late.  So apparently whatever the Europeans did had no impact on the climate.  Only their economies (see Europe exits climate money pit as Obama jumps in by RON ARNOLD posted 6/27/2013 on the Washington Examiner).

Myron Ebell, director of the Center for Energy and Environment at the Competitive Enterprise Institute, told me, “The centerpiece of President Obama’s climate plan is a declaration of all-out war on coal. The only affordable way to reduce emissions from existing coal-fired power plants – which now provide 40 percent of the nation’s electricity – is to close them down…”

Ebell added that “Obama is pursuing his anti-energy agenda undemocratically through executive actions that bypass the people’s elected representatives in Congress.”

Autocrat Obama is also doing it without learning from the European Union’s green energy experience: skyrocketing energy prices, a ruinous slide into fuel poverty, solar panel financial meltdown, wind power bankruptcies and the specter of EU disintegration. As a result, the EU suffered an outbreak of realism.

In May, Europe’s heads of state and government at the EU Summit promoted shale gas and reduced energy prices. They would rather promote competition than stop global warming.

Obama just returned from Northern Ireland at the G8 meeting where he evidently didn’t ask why the United Kingdom removed climate change from the agenda.

European carbon markets had collapsed with the price of carbon hitting record lows, wrecking the European Union’s trading scheme for industrial CO2 emissions.

British Gas owner Centrica was buying up shale gas drilling rights in Lancashire for fracking operations. Green investors faced bankruptcy as Spain cut subsidies even further.

Large German companies such as Siemens and Bosch abandoned the solar industry, which had lost them billions, while investments in failed solar companies, including Q-Cells and SolarWorld, destroyed 21 billion euros of capital.

In response, German Chancellor Angela Merkel told a June energy conference in Berlin to expect reduced government spending on energy like wind and solar power to keep Germany economically competitive. Europe’s clean energy economy had become a black hole eating euros.

The United Kingdom is struggling to maintain their National Health Service (NHS) under the pressures of an aging population.  Fewer people are entering the workforce to pay taxes to fund the NHS.  While more people are leaving the workforce and consuming more and more NHS resources as they live longer into retirement than ever before.  A clarion call for anyone considering moving in the direction of a national health care system that also has an aging population.  Yet that is exactly what president Obama did during his first two years in office while the nation was suffering in the worst recession since the Great Depression.  Instead of cutting taxes to put people back to work he put into place massive tax hikes coming our way to fund Obamacare.  Learning nothing from the British.

Now he has an entire continent showing how wrong it is to pursue green energy.  And what does he do?  Ignores the Europeans completely and plunges headlong into the same foolish mistake they made.  Instead of cutting taxes to help put Americans back to work in the worst recovery since that following the Great Depression he plans on raising taxes on energy producers.  To fund green energy.  While increasing regulatory costs on good, dependable coal-fired power plants.  Which will increase the cost of electric power.  As well as the cost of doing business.  Not to mention the higher electric bills coming our way because of his desire to follow the Europeans down the dead-end road of Green Energy.

It’s as if the president is doing everything within his power to destroy the American economy.  Or he is completely clueless on how economies work.  He went to Occidental College, Columbia University and Harvard Law School.  So either these institutions are clueless on how economies work.  Or President Obama is purposely trying to destroy the American economy.  For someone or some institution is responsible for the president’s horrible economic policies.  They didn’t just happen.  There must be a method to this madness.  At least a reason for it.  Some reason for turning us into a failed European social democracy.

Of course, many believe that is the reason.  To turn us into a European social democracy.  To transform the country from the free market capitalism of the Founding Fathers into something closer to the state socialism favored by such anti-capitalists like Karl Marx.  Those on the left ridicule any such claims.  But Obamacare and this new Green Energy policy sure have more in common with socialism than capitalism.  As does the present anemic economy.

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

Posted by PITHOCRATES - June 16th, 2013

Week in Review

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

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

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

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

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

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

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

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

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

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

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

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

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

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President Obama has a Lot in Common with the Social Democracy Ideology of the NDP

Posted by PITHOCRATES - April 13th, 2013

Week in Review

The New Democratic Party (NDP) of British Columbia is a social-democratic political party.  Their political ideology is Social democracy.  And the Social democracy political ideology is to transform capitalism into socialism through progressive social reform.  And they do that with higher taxes and wealth redistribution.  In fact, the current NDP leader in British Columbia has pledged to raise taxes should they win the coming election (see NDP promises tax hikes if elected by Bryn Weese, QMI Agency, posted 4/11/2013 on Vancouver 24 hrs).

Corporations, banks, polluters and the wealthy will pay more if the BC NDP wins the provincial election.

The party’s fiscal plan, unveiled at Simon Fraser University Thursday, calls for: a one point rise in the corporate tax rate from 11% to 12%, reinstating a 3% bank tax, expanding the carbon tax to include vented oil and gas emissions, and raising the personal income tax rate to 19% on incomes over $150,000 a year.

The party, if elected, also plans to run the same $800 million deficits it alleges the ruling BC Liberals are hiding. In total, the NDP would run nearly $2 billion in deficits over the next three years until the party, it says, would balance the budget in year four of a NDP government.

“We’re looking at those who have a little more to give a little more,” NDP finance critic Bruce Ralston told reporters…

The fiscal plan is a broad look at how the NDP will pay for its election platform, which will be detailed during the campaign. On Thursday, the party promised a childcare and early-education plan and a poverty-reduction strategy.

Earlier this week, NDP Leader Adrian Dix proposed increasing the tax credits for TV and film productions in the province to 40% of labour costs.

Sound familiar?  It sounds a lot like what you hear coming out of Washington.  For the Obama administration wants to tax corporations, banks, polluters and the wealthy more.  In fact they’ve used the same language.  “We’re looking at those who have a little more to give a little more.”  The Obama administration is running deficits.  President Obama even talked about expanding funds for childcare so children as young as 4 years old can receive state indoctrination.  I mean, early developmental skills.  The Obama administration has a poverty-reduction strategy.  They call it food stamps.  Some have even called him the food stamp president because more people than ever use food stamps.  And the Obama administration as a special relationship with TV and film production.  He even changed his stance on same-sex marriage in exchange for more Hollywood campaign donations.

So what does this mean?  Does it mean that President Obama is a Social democrat, too?  Because he shares the same political ideology of the NDP?  Social democracy?  Does this mean President Obama wants to transform capitalism into socialism through progressive social reform?  Of course not.  Just because it looks like a duck and walks like a duck and quacks like a duck it doesn’t mean President Obama is a socialist-leaning anti-capitalist.  It’s just a coincidence that he looks like, walks like and quacks like a socialist-leaning anti-capitalist.

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The US without Obamacare is in the same Financial Mess as the UK who already has the NHS

Posted by PITHOCRATES - March 17th, 2013

Week in Review

The British Empire ruled the world for a century or more.  And they did that with representative government.  Capitalism.  And free trade.  Making the empire very wealthy.  And strong.  Allowing it to rule the world.  The devastating costs of World War I pretty much put an end to that.  And after World War II they nationalized health care.  With the NHS.  And some industries.  Becoming a social democracy.  Like much of Europe.  Labor strikes and power outages were so common in the Seventies they called it the British disease.  It was difficult to see the greatness that was once the British Empire.  The great nation that modernized the world.  Farming advances.  Representative government.  The Industrial Revolution.  Capitalism.  The things that built the great nations of the world today.  Things you didn’t think about when you looked at Britain in the Seventies.  Lady Thatcher brought some of that greatness back.  Improved the economic well-being of the nation.  But it didn’t last (see Osborne must make tax open and honest by Matt Sinclair posted 3/17/2013 on The Telegraph).

The Government is still spending nearly half of our national income. No country has ever financed that except by imposing punishing taxes on families making quite ordinary incomes. The alternative of making the numbers balance by taxing the “one per cent” just isn’t grounded in reality. First, there aren’t enough of them. Second, they won’t sit around like obedient little cash cows, and placidly continue to invest in this country, as we confiscate their incomes or levy swingeing property taxes on their homes.

Then there is the longer-term problem of demographics. Everyone is worrying about economic growth in the next quarter. But as the population continues to get older, none of our leaders seems to be asking how we are going to pay for the big NHS and pensions bills that are likely over the next quarter of a century.

Public spending has already reached its limits: our levels (at 49 per cent of GDP in 2012, according to the OECD) are higher than those in Germany, and could soon eclipse those of Sweden. The extra pressure caused by an ageing population means the existing system is unaffordable.

Sounds familiar.  Currently total government spending in the U.S. at all levels of government is approximately 40%.  Government at every level is trying to raise taxes. Even on those making ordinary incomes.  The government talks about making those who can afford to pay more (the 1%) should pay more.  But there aren’t enough of them.  Even if you take everything they earn.  We have an aging population, too.  And we have a system that is unaffordable as well.  There is really only one difference between the UK and the US.  The UK has national health care.  They have the NHS.  While the US is working towards a national health care.  Starting with Obamacare.  Which means things will get far, far worse in the US.  Far worse than they are in the UK.  Especially with the US having five times the population the UK has.

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Great Britain is trying to Privatize their State Pensions

Posted by PITHOCRATES - January 26th, 2013

Week in Review

Britain is a social democracy.  Not as much as they were before Margaret Thatcher.  But still a social democracy.  They have national health care.  And state pensions.  Something the American Left always wanted in the United States.  They got the state pensions—Social Security—a long time ago.  But they’ve been waiting a very long time for their national health care.  Now they’ve got something like it in Obamacare.  And now the Left can follow in the footsteps of that social democracy they so admire.  Who has no problem whatsoever in providing those lavish benefits onto their people (see Start retirement saving now or the government may make you by Sarah Mortimer posted 1/25/2013 on Reuters).

Britain may soon have to force workers to start saving for retirement to cut a soaring pensions bill set to reach 120 billion pounds in 20 years…

The government’s current pension legislation is an attempt to tackle the country’s ballooning pensions bill, set to hit 8.5 percent of economic output by 2060, from 6.9 percent now…

Britain lags behind countries including Denmark, the Netherlands and Australia in global pension rankings. Its pension system ranks seventh out of 16 countries in a global comparison of national schemes, according to data from consulting firm Mercer. Its lowly ranking reflects an ageing population, low investment returns and large government debt…

“One way or another, long-term pension contributions will increase,” Paul Macro, defined contribution retirement leader at Mercer said. “The government are trying to stop people relying on the state to support them in retirement.”

An aging population, low investment returns and large government debt?  Sounds like they’re talking about Social Security.

Note how Britain is trying to make their people less dependent on government while the U.S. is trying to make their people more dependent on government.  Even though both countries face the same problems.  An aging population, low investment returns and large government debt.  So it would appear one country—Britain—is trying to be responsible.  While that other country—the United States—isn’t.  Why?  Because Social Security, Medicare and Obamacare are not about taking care of people.  They’re about increasing the power of government.  Which is why the U.S. continues to increase their spending obligations no matter how much they can’t afford to.  Because spending money buys votes.  And winning elections give them power.  Which is what they want.  So they will ignore the responsible governing Britain is doing.  While implementing the kind of programs that caused Britain’s financial problems in the first place.

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The British Press slams President Obama following his Reelection

Posted by PITHOCRATES - November 11th, 2012

Week in Review

One of the harshest printed criticisms of President Obama doesn’t come from the US.  It comes from the UK.  From our friends in Britain.  Who have long been willing to tell kings that they aren’t wearing any clothes (see Under Barack Obama the US superpower faces four more years of decline by Nile Gardiner posted 11/8/2012 on The Telegraph).

The world needs powerful American leadership, the bedrock of which rest upon a sound economy, limited government and free enterprise, as well as a strong national defence. But it certainly won’t be provided by Obama’s imperial presidency. In his first term of office, an administration that worshipped bailouts and big government built up staggering levels of debt that threaten to saddle future generations with the profligate spending of their forefathers. Instead of hope, President Obama offered only the heavy fist of government intervention, rising taxes, increasing poverty and welfare dependency, and an increasingly bitter, angry and insular White House.

There is no reason to expect a different approach in Obama’s second term. His re-election will only embolden his deep-seated left-wing instincts, which are to “transform” the United States into a European-style social democracy. There is good reason why the Obama administration has been a wholehearted backer of the European Project – because it sees its ideals as a role model for America, not a warning.

Under the Obama administration, the very foundations of the world’s only superpower are being undermined by a $16 trillion national debt that has increased by 50 percent under President Obama – a staggering debt per taxpayer of $111,414. Incredibly, US per person debt is now 35 percent higher than that of Greece, according to a chart produced by the Republican side of the Senate Budget Committee. As The Weekly Standard reported earlier this week…

At the same time, economic freedom has declined dramatically, with the United States falling to 10th place in the world rankings, with government spending now exceeding one third of total domestic output. Adding further to the $1 trillion federal budget deficit, the White House has pushed through a vastly expensive health care reform package that harkened back to the failed European social model rather than the American dream.

You’d be hard-pressed to read something like this in a major US paper.  Which explains why print media is going the way of the dodo bird.  In a nation that has conservatives outnumbering liberals 42% to 23% the masses aren’t going to read a paper that is nothing more than an extension of the liberal Democrat Party.  The fact that per capita debt in the US is greater than in Greece is BIG news.  For Greece is falling apart from the weight of a European-style social democracy.  The kind of thing President Obama wants to build in the US.  So that bit of news would have been useful for the people to form an informed opinion on the direction of a second Obama term.  But doing so would have been harmful to the liberal agenda.  So the liberal-leaning press didn’t report this.  And it wasn’t a factor in the 2012 election.

To get any news critical of Obama administration you have to go to FOX News, talk radio or our friends in Britain.  Where they will tear apart any politician.  Including Americans.  Such as George W. Bush.  So even if they endorse European-style social democracy and state institutions like the National Health Service they can still be critical of them.  It would be nice to have a little of that in the US.  A little of Bernstein-Woodward investigative journalism that investigates all politicians.  Not just the ones with an ‘R’ next to their name.

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Moving from Capitalism towards Socialism in America and Life in the Former Soviet Union

Posted by PITHOCRATES - October 28th, 2012

Week in Review

Clearly President Obama is trying to move the country away from laissez faire capitalism.  And towards something where the government has a much larger role in our lives.  Such as Obamacare.  More government into our lives.  The question is where does it end?  For it is a slippery slope.  In Europe there was capitalism before there was social democracy.  A transition from capitalism towards socialism without a revolution.   Does a social democracy end in socialism?  Which is a real concern as America is moving ever closer to the European social democracy.  For someone who lived in a full-blown socialist state, this trend isn’t a good one (see If You Had Actually Grown Up In A Soviet Country, This Is What You Would Have Experienced by Rob Wile posted 10/22/2012 on Business Insider).

“I grew up in a socialist country. And I have seen what that does to people. There is no hope, no freedom. No pride in achievement.

“And that’s what I see happening here.”

So begins an ad that’s been airing in the run-up to November elections, narrated and paid for by Thomas Peterffy, in support of Republican candidates.

Peterrfy, the CEO of Interactive Brokers, came to America in 1965 to escape Communist Hungary.

He fears a world where, if we’re not careful, “people will lose interest in really working hard and creating jobs. I think this is a very slippery slope.

“It seems like people don’t learn from the past…”

We turned to “Steeltown, USSR,” a book-length work of reportage from current Princeton University History Professor Stephen Kotkin, to see what life under socialism is really like.

Published in 1991, the book is Kotkin’s account of his trips to the Russian city of Magnitogorsk in the late-80s, on the eve of the fall of Communism, and his interviews with the city’s residents.

If you follow the above link you can see what it was like to live in a socialist country.  In the Union of Soviet Socialist Republics (USSR).  Here are some excerpts:

“This apartment, I waited 18 years for it. During that time, we lived four in one room. No one remembered what color the walls were. You couldn’t see them, they were so covered with our belongings stacked up to the ceiling. I worked and struggled and endured all manner of humiliation for eighteen years for this pathetic, unexceptional new apartment. It makes me sad and angry to think about it. How much evil has accumulated! I have so much on my soul!”

“If you work hard, they demand from you. You have to get up in front of everyone and make speeches; they give you medals with pompous names. So it’s best to stay quiet, not attract attention to yourself. Once in a while, you work like a bull; the remainder of the time, you rest.”

“No one makes a move until we see where the power lies. As soon as it is clear, we all quickly take that side. We’re completely dependent on them. Food, clothes, apartments, furniture, day care, summer camp, vacations — everything is allocated by them according to their lists, with which they rule over our lives. Everyone has something to lose. It might seem you have nothing, but they take something away, and you have even less.”

“A handful of Magnitogorsk youth were fortunate enough to gain acceptance to university in Sverdlovsk, the ‘capital’ of the Urals, or even to Moscow University. Yet even this select group often found itself back in Magnitogorsk upon graduation, unable (in some cases unwilling) to secure the necessary official permission to remain in the larger city.”

“For every 100 Magnitogorsk families, there were 96 radio receivers, 99 TV sets, 39 tape recorders, 34 photo cameras, 92 refrigerators, 70 washing machines and five cars.”

Sugar, meat, butter and sausages had to be rationed — they could only be purchased using coupons distributed at residences in accord with the number of people in the household.

Fewer than 50 percent of Magnitogorsk residents enjoyed their own self-contained apartments without living with the rest of their relatives. You had to qualify for new housing by having less than 9 square meters per person. And you couldn’t move.

“There were approximately 30,000 cars for the city’s 438,000 residents (135,000 households). Only 22,000 were privately owned… the wait to purchase a car was more than 10 years.”

“There was only ‘children’s’ shoes, ‘women’s’ boots or ‘men’s’ coats…Discounts or markdowns were not permitted, even if goods were not selling. There were no seasonal sales.”

“An individual established himself or herself in the community not by purchasing a home in a particular neighborhood but by landing a job in a favored shop. ‘The shop or work unit is an entire social milieu,’ one official explained. ‘It’s not a job, but a life.’ In short, the steel plant was not relaly a ‘business’; rather, it was an industrial welfare agency.”

“At home we get together with friends, sit around the talbe. All we do is talk about our problems, and insufficienceis, endlessly, until someone bangs the table and shouts, ‘Enough. No more about that.’ But what else can we discuss?”

This is where you end up when you move away from capitalism and towards socialism.  A grey and dreary life.  Long waiting lists for apartments and cars.  Where hard work is only rewarded with more hard work.  So workers strive to do the minimum.  You live in fear of the authorities because everything you have in life is dependent on how they felt towards you.  If you were quiet and suffered your privations quietly you experienced no new privations.  If you complained you suffered more privations.  The state allowed few to go to college.  And those that did rarely saw an improvement in their lives.  They rationed your food.  And forced you to live with your relatives in tiny apartments.  Everyone wore the same shoes, boots and coats.  And few found any enjoyment in life.

So should Americans be worried about sliding towards socialism?  Well, soon our health care will be dependent on some bureaucrat’s whim under Obamacare.  Student loans are now provided by the government.  More people are dependent on the government for their food than ever before.  And their housing.  The government is subsidizing green companies that can’t compete in the market place.  To provide ‘high-paying’ jobs in companies that often go bankrupt.  So a lot of what is happening typically doesn’t happen in laissez faire capitalism.  These are things that are closer to socialism than capitalism.

These expansions in the welfare state come courtesy of class warfare.  The government’s relentless attacks on those who don’t need government benefits.  Accusing them for not paying their fair share in taxes.  Creating anger in lower-income people.  And agitation.  To support further transfers of wealth.  All the elements of a worker revolution.  But without the actual revolution.  Because they’re doing it at the ballot box.

Life is better under capitalism.  Which is why athletes from behind the Iron Curtain left their socialist paradise whenever they could.  Ballet stars.  Even military jet pilots who flew their planes to freedom.  Unless Americans want a country like the country these people fled we probably should do something about our slide on that slippery slope.

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