Turning People into Potheads is Good for Colorado’s Treasury

Posted by PITHOCRATES - March 15th, 2014

Week in Review

First it was alcohol and tobacco.  Getting people hooked on these items to solve all of a state’s funding woes.  Then it was the lottery.  States needed to get their people hooked on gambling to solve all of their school funding needs.  Then it was casino gambling.  Because the lottery alone was taking enough money from the people to solve all of a state’s funding woes.  And now it’s marijuana (see Colorado made $3.5 million in taxes and fees on first month of marijuana sales by Nick Allen posted 3/11/2014 on The Telegraph).

Colorado, the first US state to legalise cannabis for recreational use, made just over $2 million in tax revenue from selling the drug in January, according to its first officially released figures.

The amount was not far behind the $2.7 million the state recouped in excise taxes on alcohol in the same period and is expected to exceed that in subsequent months.

More than $14 million worth of the dug was sold over counters to recreational users in the 30 days after cannabis shops opened on Jan 1…

In Colorado the first $40 million in tax revenue will go towards school construction and Mr Hickenlooper wants additional revenue to be used for projects including anti-drug advertising aimed at children, campaigns against driving under the influence of cannabis, and public health projects.

Another $2 million taken away from the taxpayers.  To add to the $2.7 million from alcohol sales.  On top of what they got from tobacco sales.  And what they got from the lottery.  Each step down this road was supposed to be a cure-all.  But it never was.  For once they got a new tax it wasn’t long before they said they needed yet another new tax.  Because the previous tax just wasn’t adequate to cover their spending.  Which just begs the question.  What are they doing with all of that money?

So we have people dying from lung cancer.  We have people dying from liver disease.  We have people becoming impoverished because they’ve gambled all of their money away.  Now Colorado is going to turn a part of their population into potheads.  Who will suffer the same ailments as tobacco smokers do.  As well as suffering some lost cognitive ability.  And some will end up wards of the state.  Filling hospitals and nursing homes.  Suffering from costly diseases. And yet the state cheers this new money.  And dreams of future revenue as more people pick up this unhealthy and dangerous habit.  Giddy at the thought of every new person lighting a marijuana cigarette for the first time.

The worst thing about the state using these people to fund their out of control spending is the regressive nature of these taxes.  Alcohol, tobacco, the lottery, casino gambling and marijuana hurt the poor the most.  Those who have the least money to spare now have to give more of it to the taxing authority.  The very people these progressive-thinking people are supposed to help.  Who instead use them for their selfish needs.  And don’t care a whit about the lives they destroy.

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Smoking Marijuana may give you Lung Cancer, Heart Disease and Diabetes

Posted by PITHOCRATES - February 22nd, 2014

Week in Review

It’s no secret.  You get the munchies after smoking marijuana.  Whether it’s recreational smoking.  Or medical smoking.  Apparently (see Girl Scout sells 117 boxes of cookies outside Green Cross medical marijuana clinic by Heather Saul posted 2/22/2014 on The Independent).

A girl scout has proved it really is “all about location” after selling 117 boxes of cookies from her stand outside The Green Cross medical marijuana dispensary in just two hours.

Thirteen-year-old Danielle Lei set up her cookie stall outside of the clinic in San Francisco and was welcomed by patients and staff.

Danielle sold out of her first batch within 45 minutes, according to the clinic, which is a fully licensed dispensary serving qualified California patients.

The left wants to tax sugary beverages.  They want to take away McDonald’s Happy Meals from our children.  And Michelle Obama wants our kids to eat rabbit food in school because our kids are too fat.  As childhood obesity leads to chronic and costly health problems later in life.  Then there’s the crusade against smoking.  Which they have banned from pretty much everywhere.  As first-hand smoke, second-hand smoke and third-hand smoke will kill you.  For just the whiff of tobacco odor will give you lung cancer.  Yes, the left is very concerned about what we eat, drink and smoke.  Because we apparently don’t know what’s good for us. Or what’s bad.  Thankfully, they do.

Which makes their drive to decriminalize marijuana puzzling to say the least.  They say it’s harmless.  No worse than a cocktail after work each day (though there are some who will say you are an alcoholic if you have a drink every day).  But marijuana causes first-hand smoke, second-hand smoke and third-hand smoke.  Giving marijuana smokers lung cancer.  And if that wasn’t bad enough marijuana also makes people obese.  Because of the munchies.  It’s so bad that people have to buy Girl Scout cookies just after buying their medical marijuana.  Even before they gave themselves a little more lung cancer by smoking it.  And it should be noted that Girl Scout cookies aren’t rabbit food.  No.  They’re the kind of food that tastes good.  And makes our kids obese.

Lung cancer, heart disease, diabetes, etc., are bad.  And we need to change people’s eating, drinking and smoking habits so their poor choices don’t become a burden to society.  Unless you get lung cancer, heart disease, diabetes, etc., from smoking marijuana.  Because smoking marijuana will give you the less deadly and less costly forms of lung cancer, heart disease, diabetes, etc.  Apparently.

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All Tobacco is Bad for you Except the Kind that can Help you Get the Youth Vote—Marijuana

Posted by PITHOCRATES - November 17th, 2013

Week in Review

Cigarettes will kill you.  And are addictive.  Which makes that killing you thing worse.  Governments have sued Big Tobacco for all the heart disease, lung cancer and emphysema their products caused.  Smoking is so bad for you that we’ve banned smoking in all public places.  We’ve also banned second-hand smoke.  And are discussing ways to band third-hand smoke (the stink of smoking left behind).  We ostracize smokers today.  And shame them.  Except in the movies.  Where people still love to smoke.  And they make it look so cool that kids who see them smoke want to smoke, too.

Apart from Hollywood, though, there is an outright war on smoking.  It’s just so bad that governments are doing everything they can to get people to quit smoking.  And prevent them from starting to smoke in the first place (see Fewer teens smoke but more use e-cigarettes, hookahs by Wendy Koch posted 11/14/2013 on USA Today).

Fewer U.S. teens are smoking cigarettes, but more are getting a nicotine fix from hookahs and electronic cigarettes, the Centers for Disease Control and Prevention reports today…

The CDC attributed the increase to lower prices for these products as well as their increased marketing and availability, and the perception that they are safer alternatives to cigarettes. It also found a slight uptick in high school students who smoked pipes and cigars, including the little ones that look like cigarettes but cost a lot less and come in candy flavors.

“This report raises a red flag about newer tobacco products,” said CDC Director Tom Frieden in announcing the findings. “Cigars and hookah tobacco are smoked tobacco – addictive and deadly. We need effective action to protect our kids from addiction to nicotine…”

The CDC report, published in this week’s Morbidity and Mortality Weekly Report, reported that 14% of high school students smoked cigarettes last year, down from 15.8% in 2011 and 28% in 2000. It notes that smoking remains the leading cause of preventable death and disease in the United States, and nearly 90% of adult smokers began smoking by age 18.

Leading cause of preventable death?  And 90% of adult smokers started smoking by age 18?  Wow, smoking must be bad.  But if it is why the big push to decriminalize marijuana by the same people who want to criminalize every other type of tobacco product?  Simple.  Kids love getting high.  And if the Democrats are the ones to decriminalize marijuana they can count on the youth vote in election after election.  Until they die from heart disease, lung cancer and emphysema, that is.

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Constantinople, Byzantine Empire, Ottoman Empire, the New World, Tobacco and Slavery

Posted by PITHOCRATES - July 16th, 2013

History 101

With the Fall of Constantinople to the Ottomans in 1453 Islam spread Unchecked into Christian Lands

Constantine the Great moved the capital of the Roman Empire to a place on the Bosporus.  Where the ancient city of Byzantium once sat.  Where Asia met Europe.  Where the Mediterranean Sea met the Black Sea.  And the great rivers beyond.  The Danube.  Dnieper.  And the Don.  Constantine named his new city Constantinople.  And made it a jewel.  With great Christian churches.  To celebrate his new conversion to Christianity.  Which started following the Battle of the Milvian Bridge.  Where on the eve of battle Constantine and his soldiers had a vision of the Christian God.  Promising them victory if they placed His symbol on their shields.  Which they did.  And they won.

Constantine spared no expense in his new city.  Which was easy to do because it was a very wealthy city.  For the greatest trade routes went through the Bosporus.  Which is why when the western half of the Roman Empire fell the eastern half, or the Byzantine Empire, carried on for another thousand years.  Give or take.  As it thrived on that trade pouring through it.  Especially from the Far East.  Along the Silk Road.  Which peaked during the Byzantine Empire.  Bringing the exotic goods of the Far East west.  From silk to porcelain to spices.  Which flowed unhindered to Christian Europe while the Christians still controlled the Byzantine Empire.

But all good things must come to an end.  Thanks to the Seljuk Turks.  And the rise of the Ottoman Empire.  Islam had united the Arab people.  And with the fall of Constantinople to the Ottomans in 1453 Islam spread unchecked into Christian lands.  Up through the Balkans into southern Europe.  Lands they would contest for time and again.  Making for some bitter Christian-Muslim animosity that continues into modern times.  But more crucially at the time was the loss of control over that trade from the Far East.  Making those goods not as reasonably priced as they once were.  Which proved to be quite the problem.  As the European Christians had grown quite fond of them.  Luckily for them, they could do something about that.  Thanks to all of those wars they fought with the Muslims.  The Crusades.  Which brought back a lot of Greek books of science that were collecting dust in some of the old great Greek cities all around the Mediterranean.  Founded during the Hellenistic period.  Which came before the Roman Empire.  Thanks to a fellow by the name of Alexander the Great.  Who spread Greek learning throughout the known world after he conquered it.

Christopher Columbus sailed West to establish Far East Trade without going through Muslim-Controlled Constantinople

From those books the Europeans were able to become better sailors.  On ships that could catch the wind and navigate their way great distances.  Portugal and Spain led the way.  Prince Henry (1394-1460), the Navigator, trained navigators in Portugal.  His students pushed further and further down the African coast until Bartholomeu Dias rounded the Cape of Good Hope (1486).  Vasco de Gama would round the Cape of Good Hope and sail up the eastern coast of Africa all the way to India (1498).  Pedro Álvares Cabral was heading south to round the Cape of Good Hope in (1500).  Swung out too far west.  And ran into Brazil in South America.

Spain then financed the voyages of Christopher Columbus.  Who had read that the earth was round.  And wanted to prove it.  As well as spread Christianity.  Columbus wanted to find a way west to the Far East.  Sure it was just beyond the horizon of the Atlantic Ocean.  After a voyage longer than his near mutinous crew expected they finally landed on San Salvador Island in the Bahamas (1492).  Thinking he found an ocean passage to the Far East.  Around the Muslim controlled land route.  He would later understand that he had found the New World.  Which we would be calling Columbia.  Had his dispatches beat a Florentine passenger’s on a Portuguese ship who wrote about what he saw.  Amerigo Vespucci.  Which is why there is not a North Columbia, a Central Columbia and a South Columbia.  Instead, there is a North America, a Central America and a South America.

With Columbus’ success Spain financed others.  Vasco Núñez Balboa.  Who crossed the Isthmus of Panama and reached the Pacific Ocean (1513).  Ferdinand Magellan.  Who sailed around South America through the Straits of Magellan and into the Pacific Ocean.  Sailing on to the Far East.  And back home.  Being the first to circumnavigate the globe (1519-1522).  Hernán Cortés.  Who conquered the brutal Aztec regime in Mexico (1521).  Eventually the Spanish would bring great riches of gold and silver back to the Old World.  Meanwhile France financed Jacques Cartier in his attempt to find a Northwest Passage to the Pacific.  Who sailed up the St. Lawrence River to Montreal (1534).  Then Samuel de Champlain founded Quebec (1608).  Where they established a lucrative fur trade with the native Indians.

Cultivating Tobacco took Large Tracts of Farmland which required more Laborers that they had in the Colonies

Queen Elizabeth of England financed Walter Raleigh.  Who explored the coast of North America (1584).  Looking for a place to settle a colony.  On a subsequent voyage he brought 100 settlers with him.  And settled a colony at Roanoke, North Carolina (1585).  Which became the Lost Colony of Roanoke (1591).  The Virginia Company of London, a joint-stock company, would have better luck.  They raised financing by selling stock shares to investors who would share in any profits of the colony.  Christopher Newport led a voyage that established the first permanent English settlement in the New World.  At Jamestown (1607).

Though the Americas were not the Far East it was a vast landmass with inexhaustible resources.  And endless tracts of fertile soil.  The possibilities were endless.  The marriage of John Rolfe to Pocahontas (1614) provided an uneasy peace between the settlers and their Indian neighbors.  Then Rolfe figured out how to cure tobacco (1612).  Something the English began smoking after Columbus observed the Cubans sticking burning rolls of tobacco in a nostril.  The English refined smoking with a pipe.  And they really enjoyed it.  Importing vast quantities from the Spanish colonies in America.  Thanks to Rolfe, though, the English could produce their own tobacco.  Once they worked out a few problems.

Cultivating tobacco took large tracts of farmland.  But to put large tracts of farmland into production you needed laborers.  And in 1612 Virginia there just weren’t a lot of colonists living there yet.  The demand for labor far outstripped the supply.  So they tried to satisfy that demand with indentured servants.  Preferably from Europe.  Even criminals from English jails.  As well as from Africa.  Who worked in bondage during their indentures.  Then went free.  Until around the 1660s.  When things changed.  Starting in the southern colonies.  Where slavery became hereditary.  For Africans, at least.  Like it was in the Old World.  Where peasants and serfs were bonded to the land.  Once a slave.  Always a slave.  And if your parent was a slave so were you.  Like it was in ancient Athens.  At the end of the Western Roman Empire.  And in the Muslim world.

Muslim didn’t only enslave Christians.  They also established slave markets with African slave traders.  Who opened their markets to the Portuguese, the Spanish, the French and the English.  To help them meet that soaring demand for labor during the early days of the New World colonies.  When there were so few colonists.  Who found their way to the New World in the first place because of the Muslim conquest of Constantinople.  Which sent the Europeans to the seas to find a western way to the Far East.  And when they did they discovered the New World.  Creating the largest market ever for African slaves.  And the greatest convulsions in the New World as they struggled to end slavery in the Americas.

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It will be Easier and as Expensive to Smoke Marijuana in Colorado than Regular Cigarettes

Posted by PITHOCRATES - March 10th, 2013

Week in Review

The stoners, the high school and college kids and the baby boomer-hippies of yesteryear are ecstatic about Colorado decriminalizing marijuana.  For now they don’t have to sneak around and buy their weed from some shady drug dealer.  No, today they can walk down the road any time and walk into Harry’s and hold their head up high and say in a loud steady voice, “Harry, I want you to sell me some marijuana.  In fact, today I think I’ll have some Acapulco Gold, for I am a Coloradan.  But people in other states?  They cannot.  Because their states have never made the great leap out of the Middle Ages and the domination of alien Episcopal supremacy.”

(Okay, so I borrowed a little from Monty Python’s The Meaning of Life.  And by a little I mean a lot.  From the scene where the Protestant goes on about being able to buy condoms unlike his Catholic neighbors.  You can see a clip of that scene here but be warned.  It is not appropriate for the workplace.  And not suitable for young children.  If you’re not a man-boy with a somewhat sophisticated yet sophomoric sense of humor you may find this scene somewhat offensive.  But if you are go and buy the two-disc collector’s edition for your personal collection.  So you, too, can impress your friends by quoting these scenes verbatim.  Or alienate everyone around you.  Depending on who your friends are.  But I digress.)

Where was I?  Oh yes, Colorado has solved all of their problems.  They’ve decriminalized marijuana so responsible adults can enjoy this drug responsibly while no kids will.  (Yeah, right.  Pull the other.)  And they’ve figured out a way to bring more money into the state treasury by encouraging people to smoke marijuana.  Even though they frown on people smoking regular cigarettes.  And pretty much banned cigarette smoking everywhere.  For that stuff can get into your lungs and kill you.  First-hand smoke.  Second-hand smoke.  Even third-hand smoke.  That ashtray smell left behind long after a smoker extinguished his or her cigarette.  So Colorado is serious about the harmful effects of smoking tobacco.  Unless it gets you high.  Then apparently the smoke isn’t that bad for you after all.  But just don’t dare light up a cigarette in public anywhere in Colorado.  But if you do, to be safe and save yourself from the judgmental stares of others just make you regular cigarette look like a marijuana joint.  And then you can light that up anywhere and everyone will be cool with you.  Apparently.

So Colorado is doing the responsible thing for responsible adults who will now all follow the letter of the law.  Even though they used to violate state and federal law before Colorado decriminalized marijuana.  Which was and still is classified as a schedule I controlled substance.  Along with heroin and cocaine.  Which carry some pretty stiff penalties if you’re caught carrying.  So these people were willing to break a law that carried stiff penalties when the drug was still illegal.  But that shouldn’t be a problem now that it’s legal (see Tax, and tax again: America’s first market for recreational marijuana will be far from free posted 3/9/2013 on The Economist).

FREE-THE-WEED campaigners speak not of “legalising” marijuana but of “taxing and regulating” it. True to their word, the ballot measure they placed before Colorado’s voters last November, which won the support of 55% of them, was called the Regulate Marijuana Like Alcohol Act and contained provisions for a 15% excise tax. Now that the law is taking shape, the signs are that one of the world’s first fully legal marijuana markets (Washington state also backed legalisation) will have all the taxes and rules anyone could have wished for…

Most importantly, the group wants to maintain, for three years, the “vertical integration” model that has governed Colorado’s medical-marijuana industry. Under this system retailers must grow at least 70% of the dope they sell. This forces licence-holders to master a suite of skills from cultivation to distribution. The task-force also suggests that for the law’s first year, only established medical-marijuana dispensaries should be granted retail licences. Some campaigners mutter about protectionism, though grudgingly admit that dispensaries deserve some reward for their pioneering (and risky) work.

Mr Finlaw admits that vertical integration makes it hard to apply the excise tax: licence-holders will have an incentive to undervalue their product. That may help explain another proposal: to slap a tax on marijuana sales, on top of existing state and local sales taxes and the proposed excise tax. No figure will be presented to the legislature, but an “example” of 25% was floated in hearings.

Regulators say they need the funds to enforce their rules. But set taxes too high, fear campaigners, and you leave the illegal market in place, which destroys one of the principal purposes of legalisation in the first place. Either way, any new taxes will have to be approved again by Colorado’s voters, probably in November.

With that level of taxation it is unlikely to make it any less expensive than the weed they used to buy.  And now that the penalty for buying ‘improper’ marijuana may be only as severe as being caught with cigarettes on you purchased in a low-tax state.  Unless you have a tractor trailer full the punishment will be a slap on the wrist.  When Canada raised their cigarette tax drug dealers turned to smuggling cigarettes.  Just as lucrative.  With far less risk.  Yes, the illegally imported marijuana may sell at a lower price than in the past but with it being legal they will be able to make up for a lower profit per sale on volume.  Because a lot more people will be smoking marijuana now.  Besides, a lot of those kids will not be able to walk into Harry’s.  They’ll still need to buy their stuff on the black market.

Over-tight rules create opportunities for and cosy relationships between the industry and regulators. But Colorado’s legislators must perform a balancing act, because they are being watched by the federal government. Marijuana remains illegal under federal law…

Some members of the prohibition industry are running out of patience. On March 5th the president of the International Narcotics Control Board, an arm of the UN, said that marijuana legalisation in America violated international treaties and threatened public health.

Ironic, really.  It’s the Left that is pushing for the decriminalization of marijuana.  Despite their relentless assault on Big Tobacco and making it pretty much illegal to smoke a regular cigarette anywhere outside your home or car.  And they’re closing in on those, too.  If you have children.  Because of that third-hand smoke.  It is also the Left that wants to keep ceding power and sovereignty to the United Nations.  And here they are.  Violating an international treaty of that august body that they hold so dear.  Go figure.

The Left is an inscrutable bunch.  With politics driving their every action.  They champion individual liberty when it comes to sex and drugs but want to put you in jail for smoking a legal cigarette.  Because smoking is bad for your health.  Unless that smoke is from marijuana.  Then it’s no big deal.  They want a big world government to pass environmental regulations they can’t pass in their own country to regulate and punish capitalism but then ask who does the UN think they are telling them they can’t violate a treaty they don’t like?  Like decriminalizing a schedule I controlled substance?

Individual liberty for those who think like them.  And oppressive and punishing regulations for those who don’t.  This is the political Left.  Which is also the way things were in an absolute monarchy.  A totalitarian fascist, Nazi or communist regime.  An Islamist theocracy.  And any other oppressive regime where those in power lived by a different set of rules than those who they ruled over.  Despite expressing equality and egalitarianism it was more times than not like life for the poor animals on George Orwell’s Animal Farm.  Where everyone was equal.  Only some were more equal than others.

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Planters, Money, Factors, Risk, Interest, Discounting, Accounts Receivable and Accounts Receivable Factoring

Posted by PITHOCRATES - November 27th, 2012

History 101

When a Factor advanced their Money to a Planter it could take up to 9 Months or more to Get it Back

It takes money to make money.  And in the early days before big banks there were few places to get big amounts of money.  Which you needed in the New World to grow large crops like tobacco.  You needed big amounts of money because it took a long time from planting a crop to getting it to market in Europe.  Planters needed money to plant, grow, harvest, bale, ship to a seaport where it then shipped by sail to a European market.  Then money from the eventual sale of that tobacco would take a couple of months to make it back to the planter.

It could take up to 9 months or more before they actually got the proceeds from the crops they grew.  And there were no large banks to provide financing for the planters.  So what did they do?  Enter rich people.  And merchant banks.  Factors.  Who advanced planters money to plant, grow, harvest, bale and ship their crops to a European market.  And when they sold those crops and the money worked its way back across the ocean it went to the factors.

But why would rich people do this?  Why would they take a risk with their money?  When they advanced their money it could take up to 9 months or more before they got it back.  A lot could happen in 9 months.  A drought could have wiped out their crop.  Insect infestation could have eaten their crop.  Fire could have destroyed the crop as it made its way to an ocean going sailing ship.  And that sailing ship could have suffered damage in a storm and sank.  So there was a lot of risk these rich people took.  So why did they?

Factors bought a Future Crop at a Discount from what they Expected it would Sell For

Well, they could mitigate some of this risk by purchasing marine insurance.  To cover the cost of their cargo in the event it was lost at sea.  But insurance policies aren’t free.  They cost money, too.  Not to mention the shipping costs to get these crops to market.  Costs that had to come out of those crops.  So there are costs.  And some work.  Back then you didn’t buy insurance or pay for transportation electronically.  People went to places and negotiated these things with other people.  People who earned wages and didn’t work for free.

Today when someone borrows large sums of money they pay interest.  Which helps to offset any costs incurred.  And let’s people earn money by loaning money.  Which provides an incentive to loan money.  Which is the only way people can borrow money.  When people are willing to loan it.  And people only loan money when it’s worth their while.  People save their money in the bank to earn interest.  They don’t put it there so others can borrow it for free.  But before large banks they needed another way to get money to people who needed it.  Which brings us back to those factors.

Factors made their money by discounting.  Which is a way of earning interest without charging interest.  When you buy a Treasury bill you are acting like a factor.  You may pay $970 dollars for a Treasury bill with a face value of $1,000.  When you redeem this Treasury bill the government pays you $1,000.  Giving you a $30 financial gain.  Which works out to an effective interest rate of 3%.  People like buying treasury securities because they are backed by the full faith and credit of the United States.  So there is little risk.  Whereas factors took a huge risk.  So they didn’t do it on any promise to pay.  They got collateral.  They bought a future crop at a discount from what they expected it would sell for.  Which became theirs.  And when that crop sold they got all the proceeds from that sale.  Hopefully they got as much as they thought it would sell for.  Or more.  But, of course, they took the risk that it might have sold for less.

Accounts Receivable Factoring is a Quick and Easy Way for a Business Owner to Raise Cash

Many small businesses will struggle to grow if they don’t offer credit.  Allowing their customers to buy things on account.  And then paying for all of their monthly purchases at one time at the end of the month.  This convenience encourages repeat customers to buy more.  And it allows them to buy things that they can sell later.  Like a restaurant owner who buys food from a restaurant supplier.  After selling prepared meals in his or her restaurant customers pay them.  Which allows the restaurant owner to pay his or her restaurant supplier at the end of the month.  A system that works well.  And benefits both supplier and customer.  That is, as long as people are dining at that restaurant.

But sometimes people stop going to restaurants.  And stop buying from other businesses.  Making it difficult for these businesses to pay their bills.  So they start paying their bills slower.  Instead of paying them in full at the end of the month they may take an extra month.  Or two.  So businesses who sold things on account have a growing list of outstanding invoices.  Or accounts receivable (A/R).  They print out their A/R aging report and they slowly see their open invoices go from 30 days to 60 days to 90 days.  Leaving them short of cash to pay their own bills.  And if they already maxed out their credit line they may be unable to borrow money.  So what other option do they have?  Here’s a hint.  Most of their outstanding accounts receivable will eventually become cash.  In time.  All they need is a way to get someone else to wait for that time to pass.

What they need is a factor.  Someone to buy their accounts receivable.  Giving them the cash they need.  While the factor will then pursue the collection of those outstanding invoices.  Most of which the customers will pay.  And it’s these invoices a factor will buy at a discount.  The small business owner loses some profit but they make up for that by getting the cash they need to pay their bills.  Accounts receivable factoring is a quick and easy way for a business owner to raise cash.  For unlike a loan there is no review of a company’s assets and liabilities.  No collateral to pledge.  No financial statement analysis.  For the owner is selling an asset.  His or her accounts receivable.  Which is the only thing a factor looks at.  The quality of those receivables.  Which they converted into cash.  Giving business owners the money they need to get back to the business of making money.  Much like those planters did in colonial America.

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2012 Endorsements: George Washington

Posted by PITHOCRATES - October 16th, 2012

2012 Election

At first the Six Nations feared the French taking their Land more than the British

George Washington entered the history books when he entered the Ohio Country.  Where the French and the British were claiming the same land in North America.  While his contemporaries went to college Washington went to war.  Over the Blue Ridge Mountains.  In the harsh frontier lands of the Ohio Country.  Fighting for the British against Britain’s archenemy.  France.  Who had seized a half-built fort near the junction of the Allegheny and Monongahela rivers.  Renamed it Fort Duquesne.  And proceeded to turn the surrounding area French.  Until, that is, Washington arrived on the scene.

It is much debated about what happened when the British fell upon a French force outside of Fort Duquesne.  Especially who fired first.  Or what happened after the French surrendered.  The French commander, Joseph Coulon de Villiers, sieur de Jumonville, was wounded.  And as he explained he was on a diplomatic mission to deliver a message to the British Washington’s Indian ally, Tanacharison, who was the diplomatic representative of the Six Nations (Iroquois Confederation), brutally murdered Jumonville while he was explaining his diplomatic mission.  Tanacharison spoke fluent French.  And had apparently heard enough.  For he feared the French taking their land more than the British at that time.

So this international incident brought war once again between the French and the British.  The Seven Year’s War as they called it in Europe.  Or the French and Indian War as they called it in British North America.  Even though the British also had Indian allies.  There were more French in the area.  So Washington built a fort to wait for their counter attack.  Fort Necessity.  The French came.  And after a brutal fight the British surrendered.  The Articles of Capitulation Washington signed included the word ‘assassination’.  Of Joseph Coulon de Villiers, sieur de Jumonville.  Washington later claimed the document was poorly translated from French and that he did not know he was admitting to assassinating a French diplomat.  Whether he did or not it put the blame of the French and Indian War on the British.  Not a very auspicious start for America’s indispensible Founding Father.

Washington felt that the British looked down on him and his Fellow Americans

The British came up with a bold plan to remove the French from North America.  By marching into the Ohio Country.  And taking Fort Duquesne.  Then capturing the forts along the Great Lakes.  And then capturing French Canada.  A bold plan.  Executed by a very experienced general.  Edward Braddock.  A veteran of European battles.  But without a clue of what it was like fighting in the American wilderness.  He had at his disposal the largest military force ever assembled in America.  Equipped with the finest arms.  So confident of victory he told the Indians that were friendly to the British that he didn’t need their help.  And that he was going to take all their land for the British Crown.  Making most switch sides and fight alongside the French against the British.

Washington requested to join General Braddock.  Hoping to get a good military career out of this great military expedition.  And a commission in the British Army.  Braddock took him along.  But disaster fell upon the expedition.  A force of French and Indians fell onto the lumbering column and attacked.  The British regulars formed into ranks as they would on any European battlefield.  And were shot down in droves.  Then broke and ran.  Braddock fell mortally wounded.  Washington then took command and rallied the troops and made an orderly retreat.  While having two horses shot out beneath him.  And four musket ball holes in his jacket.  But he didn’t suffer a scratch.  Washington learned a lesson that day.  You didn’t win battles in the American wilderness with European tactics.  No matter how superior you numbers and arms.

He never would receive that British commission.  Feeling in part that the British looked down on him and his fellow Americans.  They may have been part of the British Empire.  But they were not truly British.  Which made it difficult for Washington to respect his British superiors.  In fact, though he was a good soldier who followed orders he often felt superior to his superiors.  And preferred giving orders.  With the future of a British commission not in the cards he retired from the army.  Married Martha Dandridge Custis.  Thanks to her wealth he became one of the wealthiest men in Virginia.  As well as becoming one of the more successful planters in Virginia.  He had wealth (through his marriage to Martha).  Land.  And leisure time.  He lived the good life.  And spent the money.  And why not?  He married into great wealth.  And had vast land holdings earning wealth.  Life was good.

If George Washington were around Today he would Likely Endorse Republicans Mitt Romney and Paul Ryan

He bought the finest things from London from Robert Cary.  Who ran London’s largest mercantile houses.  Cary & Company.  Washington also sold his tobacco crop to Cary.  And early on he complained about the price he was getting for his tobacco.  And all the charges on his invoices.  But he had even bigger problems.  He was spending more than he was earning.  With the balance due coming from the wealth he got from his marriage.  Worse, his account at Cary & Company was in arrears.  The price for those fine things continued to go up while the price he was getting for his tobacco did not.  He didn’t trust Cary.  But he recognized the real problem was tobacco.  And mercantilism.  Where American colonists sent raw material to the mother country.  And bought finished goods from the mother country with the proceeds.  Making the planters dependent on people like Robert Cary.  Well, after this revelation Washington made some changes.  He planted wheat instead of tobacco.  Wheat he ground into flour in his own mill.  Which he sold locally.  Without going through Cary.  He built a ship to fish the Potomac.  And bought a ship to transport his goods to markets in the Caribbean.  Even all the way to Europe.  He set up a small textile shop to produce linen and wool fabric.  These changes helped Washington return to profitability.  Unlike some of his fellow planters.  Like Thomas Jefferson.  Who would die in debt.

Washington was an astute business man.  Who did not like being controlled by men in faraway places.  Around this time Parliament passed the Stamp Act to raise revenue to help pay the costs of the British Empire.  While he agreed with his fellow colonists that this was taxation without representation he did see something good in it.  The higher tax would reduce British imports.  As Americans gave up on British luxuries and provided for their own needs.  Which would help the Americans get away from the control of people in faraway places.  Something he was more and more interested in.  Economic independence.  Then came the Royal Proclamation of 1763.  Which shut off the Ohio Country to American settlers.  To ostensibly keep the peace with the Indians on the frontier.  Which stung Washington particularly hard.  Having helped to defeat the French to clear them from the Ohio Country King George was now denying this land to those who won it.  Still, they did promise to give some land to the veterans who fought there.  As long as they were a veteran of the British Army.  Yet another British slight directed at Washington.  And evidence of British cronyism when it came to the rule of the American colonies.  Then came the Intolerable Acts.  The Quebec Act.  The Townshend Acts.  Further encroachments by men in faraway places.  Washington had had enough.  And joined those demanding independence from Great Britain.

So if George Washington were around today who would he endorse in the 2012 election?  Well, he would not like the party that wanted to reach further into business affairs from faraway places.  Or that raised taxes and increased the regulations on business.  Or one that elevated the state over businesses.  Where the government picks winners and losers in the market place.  Like the mercantilism of old.  He would not like the smug, elitist politicians who know better than we do.  And change things in our lives to what they perceive as being for our own good.   Such as telling us what cars to drive or what fuels to use to make our electric power.  He would not like the massive spending.  Or the debt it gave us.  As his brief brush with inundating debt shook him to his core.  Making him turn away from the governing powers, returning to his rugged individualism of his days in the Ohio Country.  And so on.  Clearly the party he would not endorse would be the Democrat Party with their oppressive rules and regulations and their nanny state.  So it is likely that if he were around today he would endorse the Republican ticket of Mitt Romney and Paul Ryan.

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Tasmania to Ban the Sale of Cigarettes to Anyone Born after 2000

Posted by PITHOCRATES - August 25th, 2012

Week in Review

Tasmania is getting serious about smoking.  Really serious.  Unlike U.S. politicians.  Sure, they’ll put a picture of a diseased lung on a cigarette pack.  They’ll ban smoking in all public areas.  They’ll tax the bejesus out of cigarettes to ‘dissuade’ people from smoking.  They’ll even sue Big Tobacco.  They’ll do just about everything under the sun to protect the people from the evils of tobacco.  Except what Tasmania’s legislature is doing (see Tasmania move for cigarette sale ban by AAP posted 8/22/2012 on The Australian).

TASMANIA’S upper house is calling for a ban on cigarette sales to anyone born after the year 2000…

The ban would begin taking effect once people born in 2000 turned 18.

Independent MP Ivan Dean said the move would stop young people from taking up the habit…

Tasmania has the highest rates of smoking in Australia.

Wow.  This is serious.  They must really care about their people.  Would the U.S. go this far?  Some simple math will answer that question.

New York City (NYC) is probably the most liberal city in the U.S.  Pretty much anything goes there.  Except smoking in public areas.  But they allow the sale of cigarettes.  And they are the most expensive cigarettes you can buy in the U.S.  For they add $5.85 in taxes to each pack they sell.

NYC has a population of about 8.2 million people.  Approximately 19.3% of people smoke in the U.S.  So approximately 1.6 million people in NYC smoke.  If they buy a pack of cigarettes a day they generate approximately $3,397,754,206.96 in cigarette taxes for various levels of government.  That’s $3.4 billion of tax revenue from cigarettes.  And this is the reason why the U.S. government will never do what the Tasmanian government is proposing.

NYC used $3.5 billion in nonrecurring resources to balance their budget.  Otherwise they would have had a $3.5 billion deficit.  So imagine what giving up that $3.4 billion in cigarette tax revenue would do to the city.  So NYC will do everything in their power to get people to quit smoking.  Except for taking away their cigarettes.  Because without those cigarette sales they could easily double their deficit.  As would all cash-strapped cities with large public sector costs.

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FT131: “If liberals say sin taxes hit low-income and young adults disproportionally they must know they have photo IDs.” -Old Pithy

Posted by PITHOCRATES - August 17th, 2012

Fundamental Truth

Liberals want to Tax the Poor while Looking Like they’re not Taxing the Poor

A sin tax is an excise tax.  An excise tax is a flat tax.  Everyone pays the same amount.  Which liberals/progressives find unfair.  As these taxes hit low-income people disproportionately.  Whether it’s someone living on low wages.  Or on limited government support.  They live on a small amount of money each week.  And if they buy alcohol or cigarettes those sin taxes consume a large proportion of their weekly spending money.  By greatly increasing the price for alcohol and cigarettes.  When you hear things like ‘placing a bulls-eye on Joe Six-Pack’s back’ it refers to a low-income guy that enjoys drinking beer.  But drinking beer is difficult for him to do because the current tax structure favors the rich.  Who can more easily afford excise taxes.

And it’s the same for cigarette smokers.  There has been a war on tobacco.  And it’s been so successful that a lot of college-educated people don’t smoke these days.  For it is politically incorrect to smoke today.  They’ve banned it from restaurants.  From the office.  Even outside in some places.  Some are even trying to ban it in people’s homes if they have children.  Progressives hate smoking so much that they have placed enormous sin taxes on cigarettes.  Making it very difficult for Joe Six-Pack to buy his cigarettes.  And it is the low-income and those without college educations who tend to smoke these days.  So the people who can least afford to pay these high sin taxes pay most of them.

Progressives want to raise tax rates on the rich.  Because they have more money and therefore should pay more in taxes.  According to them.  So they can transfer the cost of government away from the low-income to the high-income.  And they’ve succeeded.  Today almost half of all taxpayers pay no federal income taxes.  While the top 10% of earners pay approximately 70% of all federal income taxes.  Yet despite this huge transfer of wealth from the rich to the poor sin taxes have continued to rise.  Meaning the liberals want to tax the rich.  And they want to tax the poor.  While looking like they’re not taxing the poor.  By ascending their self-righteous soapboxes.  For they know better than we.  Sin taxes, they say, are for our own good.  They discourage bad behavior.  And encourage good behavior.  Behavior that they approve of.  And it’s only coincidental that they these taxes fall disproportionately on Joe Six-Pack.  Then they try to take the little income remaining from poor Joe by selling him lottery tickets.  Something else more lower income people buy than rich people.  For rich people are already rich.

Obamacare combines the Joy of a Colonoscopy with the Fear and Loathing of an IRS Audit

Most people would rather have a colonoscopy than sit through an IRS audit.  Why?  Because a colonoscopy is more enjoyable.  It only takes a couple of hours as an outpatient in the hospital.  Your odds are better for getting good news after a colonoscopy than after an IRS audit.  And doctors are happy to give good news to their patients.  While IRS agents are happy when they can take your money.  The more of it they can take the happier they are.  And with today’s tax code they can always find money to take from you.  Especially if you’re a business owner.  Or a movie star.  Where you can lose your pension, your children’s college fund and your house if you made a mistake or trusted an untrustworthy accountant.  So given the choice people would choose a colonoscopy over an IRS audit almost any day.  Even without the anesthetic.

And speaking of health care and the IRS, how about that Obamacare?  The liberals’ solution to ‘fix’ health care.  Even though it wasn’t broken.  Americans have long opposed any form of national health care.  They opposed it when Hillary Clinton tried to put a plan together behind closed doors.  And they still oppose it.  Based on that majority of the population that wants to repeal Obamacare.  Which they passed into law thanks to some backroom deals.  And fun with numbers.  The big selling point was to keep the cost of it below what the wars in Iraq and Afghanistan cost.  If the liberals could keep the price tag below a trillion dollars over a ten year period they could say it wouldn’t cost Americans an extra dime to give ‘free’ health care to everyone.  Because they would just transfer all of that war spending to health care spending.  Despite those trillion dollar deficits.  A debt approaching $16 trillion.  And an economy wallowing in the Great Recession.

So how did they do it?  Keep the cost under a trillion dollars?  By being devious.  The data they submitted to the Congressional Budget Office (CBO) included ten years of expenditures but only 6 years of benefits.  Because 6 years of benefits cost about a trillion dollars.  Well, almost.  They also stole about $700 billion from Medicare.  So the real cost of Obamacare over a ten year period is closer to $3 trillion.  Or about three times the cost of the wars in Iraq and Afghanistan.  How’s that for free health care?  So Obamacare is really, really expensive.  Which is why Obamacare forces all Americans to buy health insurance.  Even the young and healthy who would rather put that money into a house payment while they are young and healthy.  And how are they going to enforce this?  By combining the joy of a colonoscopy with the fear and loathing of an IRS audit.

Getting a Photo ID is too Costly, too Complex or just too Time Consuming unless you’re a 16-Year-Old Anxious to Drive

Because of Obamacare everyone will have to prove to the IRS that they have bought health insurance.  Which means if you want health care you better file your federal income taxes.  Have a Social Security number.  And have proven to your employer that you are a legal citizen.  With two pieces of documentation.  Like a Social Security card.  And a photo ID.  Pretty intense requirements.  And much more stringent than it used to be when anyone could go to the emergency room and receive treatment.  Today if you’re sick you better hope dotted your ‘i’s and crossed your ‘t’s.  Because in Obamacare before you can get a colonoscopy you have to first answer to the IRS.

And Joe Six-Pack?  We love you.  Because you’re just an average Joe.  The backbone of America.  Working hard and raising your family.  So who are we to begrudge you a cold beer after a hard day’s work?  Or a smoke?  We won’t judge you for enjoying those things.  Because a lot of us enjoy those things, too.  Even if it’s not politically correct.  Or in our best interests.  Or behavior those ‘better than us’ would approve of.  Just make sure you have your photo ID before you buy your beer.  Or your pack of smokes.  Because unless you look old you aren’t buying either without one.  Even if you’re a grizzled war veteran.  And been to hell and back in Iraq or Afghanistan.  Because even a Purple Heart won’t get you beer or a pack of cigarettes without a photo ID.

The liberals have made it harder for you to get health care.  Or to smoke.  And they’re not making it any easier to drink adult beverages.  If you want to do any of these things you better suck it up and get a photo ID.  Because proving who you are, how old you are and whether you are a legal citizen are very important to liberals.  Unless, that is, you want to vote.  Then they don’t give a damn.  They even say asking for a photo ID to vote is only a way to disenfranchise the low-income and young adults.  So they can’t vote.  Because getting a photo ID is too costly, too complex or just too time consuming.  (Except for all those 16-year-olds anxious to drive.)  Yet these are the very same people who acknowledge that the low income and young adults pay a disproportionate share of sin taxes.  Which they pay on those things you can only buy with a photo ID.

So why this bizarre and inconsistent behavior on the part of liberals?  Well, it must have something to do with the vote.  And based on their devious behavior in passing legislation people don’t want, one can only assume that their lax attitude is for one reason.  Making it easier for them to win elections when they pursue policies that the people don’t want.  Like Obamacare.  Which is why when it comes to the vote they want anyone to be able to walk in off the street and say they’re whoever they say they are and vote.  Unlike the ‘hell’ people have to go through to buy a beer, a pack of cigarettes, getting a job or collecting their lottery winnings.  Yes, if you win the big one you’ll need a photo ID to claim your money.  But you don’t need it to vote.  Because voting just isn’t as important as these other things.

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Tobacco, Smoking, Cigarettes, Sin Taxes, Obesity, Health Care Costs, Lost Tax Revenue, Abortion, Deficit and Debt

Posted by PITHOCRATES - June 5th, 2012

History 101

The Government saves Money in the Long Run when People Smoke because they Die Earlier than Nonsmokers 

A lot of people like to smoke.  Before we knew any of the adverse health effects of smoking it was as wholesome as apple pie in America.  American tobacco was one of the first cash crops of the United States.  Because it was in such high demand throughout the world.  During the American Civil War many officers chain-smoked cigars.  We put cigarettes in our soldiers’ C-rations in World War II.  Some of the most iconic photographs of battle-weary soldiers, seamen and airmen have a cigarette dangling from their mouths.  Our favorite parents from the Fifties’ sitcoms smoked cigarettes in their homes with their children playing on the floor at their feet.  If you watch AMC’s Mad Men everyone smoked cigarettes.  All of the time.  At work and at home.  In restaurants and in hospitals.  Even while pregnant.  Then the attacks against Big Tobacco began.

First they started with the sin taxes.  Greatly increasing the cost of cigarettes.  Which increased their opportunity costs.  People had to give up other things to continue to enjoy their cigarettes.  Especially the poor.  The rich still could enjoy their cigarettes without making sacrifices in their life.  And kept on smoking.  Movie stars and rock stars always have a cigarette hanging out of their mouths.  To look cool.  Which is why teenagers started to smoke.  Not because of Joe Camel.  But to look cool like their favorite movie stars and rock stars.  So people kept smoking their cigarettes.  While the government bureaucrats started tallying the health care cost of smokers.  To recover the health care cost of smoking government bureaucrats sued Big Tobacco.

According to ‘health care experts’ in the government smoking costs the health care industry some $100 billion annually.  Which is why they’re constantly raising taxes on cigarettes.  Why they sued Big Tobacco.  And why they’re ostracizing smokers everywhere by making almost every area a nonsmoking area.  But they still haven’t made smoking illegal.  Why?  High sin taxes and lawsuits.  Smoking is a cash cow for government.  And the dirty little secret about smoking is that the government saves money in the long run when people smoke.  Because of those sin taxes.  And because smokers die earlier than nonsmokers.  Up to a decade or more.  And it is in that last decade of life that seniors cost government the most.  Another decade of Social Security benefits.  And Medicare and Medicaid benefits.  Those benefits smokers paid into all of their lives.  Who forfeit them when they die early (and they don’t get passed on to their heirs).  Unlike the nonsmokers who don’t have the decency to die before collecting all of their Social Security and Medicare benefits.  Adding another decade or so for a whole sort of health ailments to inflict their fragile bodies.  Requiring more hospitalization.  Medication.  And nursing home care.  Expenses smokers help cut short by dying earlier.  Such as from an early heart attack before they even get a chance to have a lengthy and expensive hospital stay.

The Loss Tax Revenue from Abortions in the Eighties over Three Decades is Approximately $4.98 Trillion 

So government is increasing the opportunity costs of something people enjoy.  Smoking.  When in the long run smokers’ early deaths save the government money.   Not to mention those sin taxes fattening the tax pot when they’re alive.  So it’s a specious argument that the government is spending more on them in health care costs than nonsmokers who live another 10-20 years.  So why do they do it?  To boost tax revenues.  And smokers are just a convenient scapegoat.  Like the obese.  Where those on the Left make the same arguments.  Where according to ‘health care experts’ in the government obesity costs the health care industry some $150 billion annually.  Even though these people like smokers live shorter lives.  So while they’re consuming that $150 million the government is keeping about 10-20 years of their contributions to Social Security and Medicare.  So it is again a specious argument that the government is spending more on obese people than thinner, healthier people who live 10-20 years longer.  Who could, say, fall and break their pelvis requiring an extensive and expensive hospital stay.  As well as rehabilitation and possibly nursing home care.  And yet those on the left have campaigned to remove toys from Happy Meals.  And made it illegal in New York to buy a big cup of soda pop.  Why?  Again, to boost tax revenue.

All right, let’s go to the source of that tax revenue problem.  Let’s look at a decade of lost tax revenue.  From 1980 to 1983 there were about 1,300,000 abortions each year.  In 1984 there were 1,333,521 abortions.  In 1985 there were 1,328,570 abortions.  In 1986 there were 1,328,112 abortions.  In 1987 there were 1,353,671 abortions.  In 1988 there were 1,371,285 abortions.  In 1989 there were 1,396,658 abortions.  In 1990 there were 1,429,577 abortions. 

Had these abortions not happen in 2006 there would have been an additional 1,300,000 taxpayers aged 26.  In 2007 there would have been an additional 1,300,000 taxpayers aged 27 and an additional 1,300,000 taxpayers aged 26.  And so on.  If you crunch the numbers over a 30-year period by decades you get an additional 72,006,665 people paying taxes at all levels of government in the first decade (2006-2015).  An additional 146,913, 940 tax-paying people in the second decade (2016-2025).  And an additional 88,169,092 tax-paying people in the third decade (2026-2035).  The average age in the first decade is 29.  It’s 32 in the second decade.  And 42 in the third decade.  Assuming those age 29 earn on average $30,000 annually, those age 32 earn on average $40,000 annually and those age 42 earn on average $50,000 we get the following incomes per decade: $2.16 trillion, $5.88 trillion and $4.41 trillion, respectively.  Assuming that we pay approximately 40% of all our earnings in taxes at the city, state and federal level the lost tax revenue (at all levels of government) for those same decades equals $864.1 billion, $2.35 trillion and $1.76 trillion, respectively.  For a grand total of loss tax revenue for those three decades of approximately $4.98 trillion.  Or on average $165.9 billion per year.  These numbers are conservative.  Yes, some of these people may not survive to become taxpayers.  But some of these could become millionaires and billionaires, paying more in taxes.  There could have been another Lady Gaga, Madonna, Oprah Winfrey, Warren Buffet, Bill Gates, Barbara Streisand, George Clooney, Steve Jobs, etc.  A few of these added to the calculations would make the lost tax revenue numbers larger.

From the Government’s Perspective Abortion has a Far Greater Opportunity Cost than Smoking and Obesity 

This is the opportunity cost of the abortions in the Eighties.  So much loss tax revenue that the government has attacked smokers and the obese.  Whose health care costs are not adding much if anything to the federal budget.  Thanks to their early deaths compared to nonsmokers and thin people.  (If the government starts refunding remaining Social Security and Medicare benefits to the surviving family that may change.)  Yes they are costing the health care system.  But their costs are just brought up earlier in their lives as opposed to someone living 10-20 years longer making the nursing home to hospital to nursing home roundtrip a few times in the last 10 years or so of their life.  Because they have lived so long.  And had a chance to suffer every disease and trauma those smokers and obese can’t due to their early deaths.

It is interesting to note that the federal deficit in 2006 was $282.14 billion.  The lost tax revenue from the Eighties’ abortions was on average $165.9 billion per year in those three decades.  Granted not all of that money would have been federal taxes.  But with the conservative estimate of that loss tax revenue it is safe to say it would have come close to balancing the federal budget.  And if you factor in the abortions of the Seventies (there were fewer than in the Eighties but they would have been higher earners in the 2000s) the federal deficit may have become a surplus.  At least holding the federal debt to the $9.34 trillion it was in 2006.  Perhaps even reducing it.

Smoking and eating an unhealthy diet may be bad for you.  But it probably doesn’t cost the government anymore in tax dollars.  But they increase the opportunity costs of these things we enjoy to dissuade us from enjoying them.  So those who enjoy smoking and eating and drinking ‘bad’ things enjoy life less.  By not choosing what they want to choose.  Why? To pay for the lost revenue from another choice that government doesn’t try to dissuade people from.  Abortion.  Which from the government’s perspective has a far greater opportunity cost than smoking and obesity.  And yet government paints a bulls-eye on the back of smokers and the obese.  Why?  Because they’ve so demonized and oppressed them they can.  While the abortion issue too much of a sacred cow to those on the Left.

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