FT118: ” It’s better to have rich investors risk their wealth than having the government risk our taxes.” -Old Pithy

Posted by PITHOCRATES - May 18th, 2012

Fundamental Truth

It wasn’t the Private Investors who lost Half a Billion Dollars on Solyndra

It takes money to create jobs.  Some conveniently forget this fact when the politicians want to take money away from rich people who got rich by creating jobs.  But the politicians always remember this fact when they want to ‘invest’ our tax money into projects to create jobs.  When they want to spend our taxes they then fully understand the concept that it takes money to create jobs.  Funny how that works.

Also funny is that the projects the politicians want to invest in are not projects the rich investors want to invest in.  Because it’s their wealth they’re risking they are a little choosier in deciding where to invest it.  So they don’t invest in these losers the politicians champion.  For even though these politicians are Ivy League graduates who are smarter than everyone else they only like to risk other people’s money.  Unless they have inside information.  Such as pending legislation that will affect the market.  Then they’ll invest their own money.  But that’s the only time.  For as smart as these Ivy League graduates are they have little understanding of free market capitalism.  Or what it takes to be an entrepreneur.  And have no idea how to evaluate an investment opportunity without having inside information.

Still, politicians are so arrogant to believe that they are smarter than the market.  And that if they ‘wisely’ invest our tax money that they can do a better job than those who risk their own money.  People the politicians believe aren’t smart enough to make the best and wisest investments.  Despite their having gotten rich doing just that.  Making wise investments.  For example, it wasn’t the private investors who lost half a billion dollars on Solyndra.  For they saw the only thing keeping the solar industry afloat were government subsidies.  And any industry that requires government subsidies is not likely ever to earn a profit.  So they said ‘no’ to Solyndra and put their money in what they deemed wiser investments.  While the government invested in Solyndra.  Because they saw that as the ‘wiser’ investment.  Only to lose a half a billion of our tax dollars in the process.  Yup.  When it comes to making smart investments the politicians are regular ‘geniuses’.  And by that I mean they are actually the opposite of geniuses.  I was using sarcasm.

Politicians lose Hundreds of Billions of our Tax Dollars in Investment after Investment because they Care 

So the politicians are worse than the worst rank amateur investor.  We know it.  They know it.  At least they should know it what with their perfect record of failure.  So why do they do it?  Why do they continually take money away from the people who know how to better invest that money so they can make some of the worst investments of all time?  That’s a good question.  And we really need to think about it. 

To figure this out think about this one word.  Elections.  That’s the key.  You see, a majority of people wouldn’t vote for these politicians.  Because they want to spend our money.  They want to raise our taxes.  So they can spend it on more Solyndras.  How does that help them?  Here’s how.  People at these companies who receive this federal money are very grateful.  And to show their gratitude they make campaign contributions.  Often with some of the very money they received from the government.  Part of that ‘wise’ investment to create the ‘smart jobs’ of the future.  And why not?  There’ll be a little left over after paying some generous executive salaries and bonuses.  Why not give a little back to the people that made all of that possible?  Make a nice campaign contribution to help the politicians convince the people that they are smart and wise and deserve to win the next election.  So they can spend more of the people’s taxes.  Into other wise investments.  Like Solyndra. 

You just need one thing to make this all possible.  A bad investment.  An investment so bad that no rich people will risk their own money.  Because they know what a loser the investment is.  It has to be that bad.  So someone in the government can say rich people are evil and selfish.  That they only care about turning a profit.  That they are not interested in the jobs of the future.  Or high paying jobs with good benefits for the working man.  Like the politicians do.  They care about the people.  Instead of turning a profit.  And are willing to invest taxpayer money in the poorest of investments.  And lose hundreds of billions of our tax dollars in investment after investment.  Because they care.  More for their own self-interests but they care.  Unlike those evil rich people.  Who refuse to waste valuable investment capital.  And won’t let the people they’ve loaned it to waste it either.  Because they only care about the money.  Unlike our government.  Who has no problem throwing away trillions of our tax dollars.

Investors Invest Responsibly and know how to Pick a Winner that will Create Jobs 

Rich investors take risks when they invest their own money.  So they are very careful in how they invest it.  And when they invest it they are very interested in how that money is used.  They don’t need any oversight committees or legislation.  Because they are no one’s fool.  They are not rank amateurs.  And they appreciate the value of hard-earned money.  They have a vested interest to make sure that money is used in the most efficient manner possible.  Because it’s their money.  And they care.

Politicians invest taxpayer money.  They have no vested interest.  So they don’t care.  When they run out of money from all of their bad investments they don’t suffer any consequences.  All they do is malign rich people again to foster a little class warfare to make raising taxes on the ‘evil rich’ easier.  Then they keep on making bad investments.  Mostly to their political cronies.  Who will return some of that public money back to them in the form of a campaign contribution.

That’s why it’s better to have rich investors risk their wealth than having the government risk our taxes.  Investors will invest responsibly.  The politicians will not.  And the investors know how to pick a winner that will create jobs.  The politicians do not.  The only way they know how to make money is with inside information.  Or skimming a little off the top of the public purse.  Which is the only way to explain investments like Solyndra.  It’s either that or our politicians are just really stupid. 

What a choice.  Corrupt or stupid.  Or is it even worse?  Are they corrupt AND stupid?  If so it sure would help explain a lot.

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FUNDAMENTAL TRUTH #49: “The ‘tolerant’ are intolerant.” -Old Pithy

Posted by PITHOCRATES - January 18th, 2011

Liberals Benefit most from a Liberal Agenda

People on the left claim to be more tolerant than those on the right.  Live and let live, they say.  But they don’t really mean that.  For they are very intolerant of anyone who thinks differently than they do.

We’re talking about the far left.  The liberals.  That 20% of the population.  Which excludes a large percentage of Democrats.  And moderates and independents.  We’re talking college professors, public school teachers, the liberal media, the Hollywood elite, public sector unions, liberal politicians, etc.  People who have an air of superiority about them.  Who think they’re better than most people.  And who don’t care to hear any contrary views or opinions.  Because if they disagree with them, those views and opinions are just wrong.

For the ruling elite is always right.  And that’s who they think they are.  Elite.  And they rule.  Or try to.  Either in Congress through legislation.  Or by shaping opinion.  In the elite liberal media.  In our public schools where they shape the minds of our young children (to be good stewards of the planet, to trust government and not private business, that Americans stole the land from the indigenous people, that America was built on slavery and greed, etc.).  In our colleges where they continue and add to the work of the public schools (that we oppress women, that we’re a racist society, that Marxism is good while capitalism is bad, etc.).  In the entertainment world (actors, musicians, etc.) that gives a loud voice to this minority opinion.  In the public sector that grows bigger and consumes ever more of our tax dollars in exchange for support of the liberal agenda.  Etc.

It’s a small community.  Where they take care of each other.  They all have a vested interest in advancing the liberal agenda.  Because they live better than the average American.  At the expense of the average American (through high taxes, tuition, union contracts, etc.). 

Getting the People to Vote you into the Privileged Elite

So we have a minority group enjoying a privileged lifestyle.  Far better than the people paying to support that lifestyle can ever imagine.   In times past, the ruling elite used the power of the state to oppress the masses.  To get the money from them to support those privileged lifestyles.  While keeping them living in fear.  So the oppressed didn’t band together to overthrow the ruling elite.

It’s an effective formula.  And it has worked.  For awhile.  For some.  They may enjoy a few years.  Or a decade.  Or two.  A century.  Until they get overthrown by the masses.  Like the French did in 1789 (the French Revolution).  Or like the Russians did in 1917 (the February Revolution and the October Revolution).  These got pretty ugly.  A lot of people died.  Including the royal sovereigns. 

That’s the downside of absolute power.  You really piss off the people you oppress.  And pissed off people tend to revolt.  Thankfully, in a democracy, you don’t have to worry about that.  You can live the privileged life.  Without physically oppressing them.  You just have to get the people to vote for you.  And you do that by promising them free stuff.  And by demonizing your opponents.

Political Correctness helps to Limit Political Dissent

It’s called divide and conquer.  When you go up against a larger enemy, you try to divide that enemy and attack smaller parts of the enemy.  Because there is no way you can win going head to head.  The liberals, that 20%, cannot go up against the other 80% with any hopes of winning.  So they pick off parts of the 80% and attack them.

Their weapon of choice?  Political correctness.  Today you have to be very careful of what you say.  And how you say what you say.  Because if you don’t you can offend someone.  This helps to limit political dissent.  Because dissenters may say something politically incorrect.  And no one wants that.  Because they tell us in our public schools that that is wrong.  In college, too.  And in the media.  And on TV.  In the movies.  Etc.

And you can use political correctness to demonize your opponents.  If you oppose affirmative action you’re racist.  If you oppose immigration reform, you’re racist.  If you oppose welfare reform, you’re cruel and indifferent to the sufferings of the poor.  If you oppose gay marriage you’re a homophobe.  If you oppose gun control you’re a redneck Second Amendment nut (somehow that’s politically correct to say).  If you oppose Big Government you’re a tool of the special interests and Big Business.  And so on.  If you oppose any part of their agenda, there’s just something wrong with you.  Because you disagree with the enlightened people (that 20% of the population).  And because we see so many people admire and respect these enlightened people (thanks to our schooling, the media, Hollywood, etc.) we should want to be like them.  So people admire and respect us, too.

Divide and Conquer the Single Issue People

Those on the left, that 20%, are very tolerant of what you say or do.  As long as it’s what they say or do.  Because if you think and act like they do, they can maintain their privileged life.  If you disagree with them, then you threaten their privileged life.  You could vote liberals out of office.  You could set performance standards for public school teachers.  You could reduce the power of public sector unions.  You start doing these things and the next thing you know these liberals will have to get real jobs.  And they ain’t having none of that.

So they divide and conquer.  They support gay marriage and call you a homophobe because of your ‘intolerance’ of the gay lifestyle.  So the gays and lesbians support liberals.  They support abortion and call you a religious extremist because of your ‘intolerance’ of women having choice.  So a lot of people who enjoy consequence-free sex support liberals.  (And a lot of women who want to keep the right to choose just in case.)   They want to decriminalize drugs and call you a fascist for your ‘intolerance’ of people being free to put whatever they want into their bodies.  So the potheads and other recreational drug users support liberals.  (Of course, these same liberals will tell you NOT to eat a Big Mac or drink a Coke because they’re just not healthy for you.  Unlike heroin or cocaine.  Apparently.)   They support affirmative action and call you a racist because of your ‘intolerance’ of minorities.  So a lot of minorities support liberals.  And so on.

It adds up.  Get enough of these single issue people and you can maintain your power base.  So they are very tolerant of these people’s views and opinions.  And very intolerant of anyone opposing them.  They do this to persuade as many of the 80% that oppose their liberal agenda to support them.  So this minority of the population can continue to live a privileged life.  At our expense.

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