FT215: “Of course the Republicans are the party of ‘no’ because that’s what grownups say to children.” —Old Pithy

Posted by PITHOCRATES - March 28th, 2014

Fundamental Truth

Children only care about the Here and Now and Instant Gratification

“Mom, can I eat this whole birthday cake?”  “No.”  “Dad, can I stay up past my bed time?”  “No.”  “Mom, can I go out and play instead of cleaning my room?”  “No.”  “Dad, can I skip my homework and play football with the guys?”  “No.”  “Mom, can I go to the concert with Billy and his big brother?”  “No.”  “Dad, can I use your table saw?”  “No.”  “Mom, will you buy me this micro dress for the dance?”  “No.”  “Dad, can I borrow the car this Friday to drive to a party?”  “No.”  “Mom, can I have boys in my bedroom?”  “Hell no.”  “Dad, can I have $50?”  “For what?”  “Stuff?”  “What kind of stuff?”  “You know, stuff.”  “Oh, in that case, no.”

“No.”  It is the most important word in a parent’s vocabulary.  For kids want to do a lot of things that aren’t good for them.  Things that will get them into trouble.  Things that might hurt them.  Things that may leave them with unpleasant and/or long-lasting consequences.  Parents have to say ‘no’ because kids just don’t know any better.  They only think about the here and now.  Not about the future.  They want instant gratification.  They want to have fun.  They don’t want to wait.  They don’t want to work.  And the last thing they want to do is to delay gratification.

So parents have to keep saying ‘no’ for their children’s own good.  At least, responsible parents do.  Because parents are older and wiser than their children.  Contrary to popular belief children have about their parents.  Children like to say that their parents “don’t know anything.”  But they do.  In fact, they know a lot.  Because they were once impulsive children having the same arguments with their parents.  And now that they are parents they see the world differently than they did as children.  They see it as their parents saw it.  And realize that their parents were right all along.  Thanks to a lot more education, a lot more work experience and a lot more life experience.  The things that makes one wiser as one gets older.

Children who never Grow Up as Adults tend to Remain Liberal and Vote Democrat

Children that grow up into responsible adults tend to be more conservative.  They get jobs.  Straight out of high school.  Or after college.  And party less.  They cut back on reckless behavior.  Such as drinking and driving.  Because they realized they could get a DUI.  They could hurt themselves.  Or, worse, hurt someone else.  If they used drugs they cut back.  Some stop using them completely.  They stop having  casual sex with random people.  In part to avoid an STD.  In part because they want something more than just a good time.  So they, instead, get married.  And settle down.  Raise a family.  And it’s about this time that these one-time wild liberals start voting Republican.  As they see there is a lot more to life than partying with booze and drugs.  And having sex.  Especially when they become parents.

Becoming a parent changes a person.  Single coworkers may still want to go out and get a drink after work.  They may look forward to the weekend so they can drink themselves into a stupor.  But not a married person.  At least, not a married responsible grownup.  They want to go straight home to their wife.  Or husband.  They want to spend time with their kids.  And they don’t want to do anything that could harm their kids.  Like risking their job by coming in late hung over after a night of excessive drinking.  They’d rather get to work early.  Do their job.  And build a successful career.  That is both personally satisfying.  And takes care of their family.  Something sobriety helps.  And our days tend to be easier when they don’t start with a hangover.

Children who never grow up as adults, on the other hand, tend to remain liberal.  Focused on the here and now.  Without a thought about the future.  For them gratification is all that matters.  These people tend to keep the wild ways of their youth.  And those who go on to college take it up a notch.  Away from their parents incessant ‘no’s they can finally say ‘yes’ to everything.  And a lot of them do. They’ll get drunk and video things with their smartphones.  And upload them to the Internet.   The kind of things you once had to go to a pornography store to buy.  But they and their friends will post these videos for all the world to see.  And these things will still be floating around the Internet years later when they’re saying ‘no’ to their own children.  Or interviewing for a job.  Jessie Watters on The O’Reilly Factor has interviewed some of these young college students on spring break.   Asking them questions about history.  International events.  Current events at home.  And if they could identify members of the Federal government.  Few could.  Very few.  Because they have more pressing things in their lives apparently than getting an education.  At least based on what they’re doing with their smartphones.

Democrats only care about the Here and Now and Instant Gratification

Liberal Democrats love these kids.  For they know all they want is to have fun.  So they become the party of fun.  Free birth control.  Access to abortion.  Decriminalizing marijuana.  Anti-religion.  No moral absolutes.  Anything goes.  Even encouraging reckless behavior (they’re going to have sex anyway so we might as well make it easier for them).  Veritable anti-parents.  Who tell these kids that they (these kids) know what’s best for them.  Not their parents.  And if they want instant gratification that’s okay.  You don’t have to worry about the future because if you vote Democrat that’s something else we’ll do for you besides the birth control, abortion, marijuana and the lack of moral constraints.  If you vote Democrat we’ll take care of you from cradle to grave.  Just like that The Life of Julia slideshow promised.  With so little education, work experience and life experience these kids don’t know any better and say, “Okay.  Where do I vote.”

So the Democrats use these kids to stay in office.  They know little so it is easy to lie to them.  About the ‘evil Republicans’ that are as big a killjoy as their parents.  And about how much better the Democrats are going to make their lives.  If only they keep voting Democrat.  So they do.  Because the Democrats offer everything an irresponsible adult could want.  Which is a shame as a lot of what the Democrats offer is bad for the rest of us.  And the country.  Their Keynesian economics fails over and over yet they keep using these failed policies of the past.  Putting the country further into debt.  And further depreciating the dollar.  They lie to these kids about global warming.  Allowing the Democrats to remain in power and pass crippling regulations.  Threatening the coal industry.  As well as increasing our energy costs.  They want to raise the minimum wage for unskilled, entry-level jobs.  Reducing the number of entry level jobs available for those looking to enter the workforce.  And they want to take over our health care.  The best health care system in the world.  Replacing it with something not as good and more costly.

But these grand domestic plans require a lot of money.  Which they often get from gutting the defense budget.  Weakening our military (something they never liked to begin with) to free up money for buying votes (i.e., spending) elsewhere.  They help justify this with a horrible foreign policy.  Instead of peace through (costly) strength they choose a ‘please like us’ foreign policy.  Marginalizing American Exceptionalism.  Being kind to our enemies.  And leaving our allies doubting our commitments.  But if our enemies like us we won’t need a large military anymore.  Allowing them to use those defense dollars elsewhere.  And how has that been working out?  Not good.  Since the ‘please like us’ foreign policy juggernaut Egypt is in chaos.  Syria is in a bitter civil war.  Iran is developing a nuclear bomb.  Israel is feeling abandoned.  Al Qaeda is taking over Libya and Iraq.  The Taliban will return to Afghanistan once the U.S. leaves.    North Korea is test-firing ballistic missiles.  And Vladimir Putin is restoring the Soviet Union.  Because he can.  Thanks to America’s new ‘please like us’ foreign policy.  Instead of the peace through strength of previous presidents.  Like Ronald Reagan.  And JFK.

There’s something else children who never grow up do.  Go into politics.  Into the Democrat Party.  Not the Republican Party.  The party the Democrats derisively call the party of ‘no’.  They join the Democrat Party.  And do all of the things that give us the worst economic recovery since that following the Great Depression.  And a more dangerous world.   Despite this they still want to do more.  Without caring what their actions may do to our future.  Just like children.  All they care about is the here and now.  And instant gratification.  So of course the Republicans are the party of ‘no’ because that’s what grownups say to children.  ‘No’.

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If it weren’t for High Labor and Regulatory Costs there would be no need for Currency Manipulation

Posted by PITHOCRATES - October 2nd, 2011

Minimum Wage Earners only become Valuable after Costly on the Job Training

Minimum wage jobs are entry level jobs.  And they’re starting to get that in the UK (see Minimum wage harming job opportunities for young by Richard Tyler and James Kirkup posted 10/2/2011 on The Telegraph).

Firms may be reluctant to create jobs by recruiting inexperienced staff because they are put off by the increased wage bill, the Low Pay Commission has suggested.

The Commission’s intervention comes amid calls from businesses for minsters to freeze or even cut the rate to enable more young people to find work…

Official figures last month showed that almost 1 million of the 2.5 million people officially counted as unemployed in Britain are aged between 16 and 24.

Almost 220,000 have been out of work for more than a year and some economists fear a “lost generation” of young people who never learn the habits of work and face a lifelong struggle ever to find employment…

“The concern is that the current rate is discouraging some employees from taking on young people and giving them a chance to get into the workplace,” he said. “Some companies are finding the rate is a real problem.”

The New England Patriots pay Tom Brady more money than the Detroit Lions pay Mathew Stafford.  Stafford was the number one draft pick.  Brady wasn’t.  But Brady has 3 Super Bowl rings.  Stafford doesn’t have one.  Yet.  He may have one soon, though.  He’s having a very good season.  Undefeated through 4 weeks.  But Brady is better.  Because of his 3 Super Bowl rings.  And his experience.  It’s that experience that makes him worth more.

What’s true for quarterbacks in the NFL is true for workers everywhere.  Experience makes a worker worth more to an employer.  Inexperienced workers are worth less.  So they’re paid less.  Just like in the NFL.

The New England Patriots pay Brady a lot of money.  But they can’t pay everyone that amount of money.  Most players will make less than him.  Just like in the workforce.

Key employees are paid more.  And less critical employees are paid less.  Entry level workers with the least skill and the least experience get paid the least.  These are the minimum wage workers.  Who are just starting their working careers.  Most of who are grateful for the work experience.   Because they know if they show ability they can move up.  Gain more experience.  And earn more as they become more valuable to their employer.  Or to their employer’s competitor.

So of course employers oppose high minimum wages.  Because minimum wage earners only become valuable after costly on the job training.  That’s why they’re paid the least.  They come in with nothing.  And don’t provide any value until the employer gives them value through training.  Mentorship.  And experience.

If you Protect your Markets too much from Imports you will Hurt your own Export Markets

Costs are costs.  And labor costs are some of the more expensive costs.  Because there are a lot of other costs attached to wages.  They add up.  And often are a percentage of an employee’s wages.  The higher the wage, the higher these other costs.  Which makes it harder for a business to be competitive.  And in today’s competitive global economy, nations will help their businesses be competitive any way they can.  To try and make up for all those onerous regulations they impose on their businesses (see One more such victory posted 10/1/2011 on The Economist).

A YEAR ago Brazil’s finance minister, Guido Mantega, declared that the world had entered into a “currency war”. He worried that in a depressed global economy, without enough spending to go around, countries would sally forth and grab a bit of extra demand for themselves by weakening their currencies. The dollar, for example, fell by 11% against Brazil’s real in the year to August 2011, much to the chagrin of Brazil’s manufacturers. Like other emerging economies it fought back by imposing taxes and other restrictions on foreign purchases of local securities…

A cheaper real, zloty and rupee will help emerging economies win a bigger share of global spending. But that is small consolation if global spending declines…

Falling export orders was one of the complaints voiced by Chinese manufacturers in a preliminary survey of purchasing managers published by HSBC last week.

Yes, a cheaper currency gives you an advantage.  So a nation wants it.  But so do other nations.  And what’s more, these other nations don’t want your nation to have a cheap currency.  Because a cheap currency means more exports.

But a currency war is a double edged sword.  If you protect your markets too much from imports you will hurt your own export markets.  Yeah, you may succeed in having a cheap currency but little good that will do if your primary export market slaps a punitive tariff on everything you sell there.

And then there’s the danger of releasing the inflation genie from its bottle.  If you devalue your currency too much your own manufacturing costs will rise.  It’ll take more dollars to buy the stuff you need to manufacture the things you sell.  Which means you’ll have to raise prices.  And anyone who buys from you will have to raise their prices.  And so on until this inflation ends in a recession.  Which will slash overall consumer spending.  Making any win in a currency war a hollow one.

The Senate Bill to Punish China for Currency Manipulation is nothing more than Pandering to a Recession-Weary America

So rational thinking bets against any currency war.  Or antagonizing any trade relationships.  Of course, in an election cycle, rational takes a back seat to winning an election (see Senators court 2012 voters with China currency bill by Doug Palmer posted 10/2/2011 on Reuters).

For lawmakers eyeing their re-election prospects next year, this week provides a chance to show they mean business about cracking down on China’s currency practices and returning jobs to America…

“It is very easy to say that China is the bogeyman,” said Doug Guthrie, dean of business at George Washington University. He said the bill would do little to help U.S. jobs and would raise U.S. import costs, but said it might yet pass…

The Senate bill is the wrong approach because most of the goods the United States imports from China are no longer made by U.S. industry, Frisbie [president of the U.S.-China Business Council] said.

“I’ve always been of the view that, if the Chinese currency were to appreciate, we’re not going to get those jobs back in the U.S. They will migrate to Indonesia or Vietnam or Bangladesh perhaps Sub-Saharan African — the lowest next lowest cost place,” Lardy [a senior fellow at the Peterson Institute for International Economics] said.

So this Senate bill is nothing more than pandering to a recession-weary America.  It won’t help the economy.  And probably will end up making things worse.  By making life that much more expensive for the American consumer.  By replacing those cheap Chinese goods with almost as cheap goods from Indonesia, Vietnam, Bangladesh or Sub-Saharan Africa.  All the while creating zero American jobs.   It will just make life more difficult.  But it may elect a politician or two.  And really, now, isn’t that what’s really important?  I’m jesting, of course.

Why Exactly is the ‘Made in USA’ Stamped Stuff more Expensive?

Perhaps it isn’t the Chinese.  Or the other emerging economies.  Perhaps it isn’t the weak currencies of our trading partners.  Maybe it’s us.  I mean, why do we play with the currency in the first place?  To make our goods cheaper.

So the issue we should be addressing is why are our goods more expensive in the first place.  Why exactly is the ‘Made in USA’ stamped stuff more expensive?  Higher labor and regulatory costs.  Such as the minimum wage.  And the hundreds of other costly regulations American businesses have to comply with.  Remove these and America can be competitive again.  With anyone.  Anywhere.  And in any industry.

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