I wanted to remind my future self of what is going on today in regards to debt talks, etc..., in Washington these days. The democrats are shouting from the mountain-top that we must reach a "compromise" in meeting the countries fiscal obligations. They want us to raise taxes and cut spending.
We have been spending wildly for some time now (as a nation), and have accrued debt surpassing 14 trillion, about to be raised to 16 or so trillion dollars. We constantly spend more than we raise in tax revenue...regardless of what that tax revenue is.
Are we to believe that taking more money from the taxpayers (either rich or poor) will somehow fix the spending problem that exists today?
So many people today are unable to see what is really going on. Much of the media is a willing participant, being spoon-fed by our elected leaders, claiming that the smoke and mirrors that we all see is in fact, fact. Even the most conservative Americans may approve tax-hikes some day, when our leaders show us that they have some idea on how to spend it with wisdom and prudence.
Wednesday, July 20, 2011
Wednesday, July 6, 2011
A look at Socialism
"Freedom is choice, choice requires responsibility." -Yuri Maltsev
Yuri presents a fascinating view of the socialist regime in Soviet Russia revolving around the agriculture system. It is interesting to see that the soviets were basically forcing people to farm for free and give away all their food. The soviets would basically kill as many people as necessary to keep the rest of the peasant motivated to continue working. The false propaganda that we heard and acted on in regards to the agricultural problems in the Soviet Union is staggering. Great piece on how socialism works.
http://mises.org/media/6357/What-Soviet-Agriculture-Teaches-Us
Yuri presents a fascinating view of the socialist regime in Soviet Russia revolving around the agriculture system. It is interesting to see that the soviets were basically forcing people to farm for free and give away all their food. The soviets would basically kill as many people as necessary to keep the rest of the peasant motivated to continue working. The false propaganda that we heard and acted on in regards to the agricultural problems in the Soviet Union is staggering. Great piece on how socialism works.
http://mises.org/media/6357/What-Soviet-Agriculture-Teaches-Us
Tuesday, July 5, 2011
Stimulus Report
THE ECONOMIC IMPACT OF THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 - SEVENTH QUARTERLY REPORT
The report above, released by the White House on July 1 shows some interesting data. Two key elements stand out:
1) Estimates say that between 2.4 million and 3.6 million jobs have been funded by the stimulus. Having that large of a range shows me that they probably just guessed, and I have seen many reports showing that they double-counted and all kinds of shenanigans to get this number. Suffice it to say that the low end is pretty optimistic, but let's assume that it is accurate for now.
2) Total expenditures so far have reached $666,300,000,000...that's 666.3 billion.
That means that the government has spent between $185,083 and $277,625 (depending on which number you choose to believe for each job created/saved.
Couple these numbers with the New York Times report that Executive pay has risen 23% over the last year while middle-income earnings have remained stagnant and you begin to see a pattern.
There are a few patterns that MAY be connected to each other over the same time frame:
- Increased government (debt) spending
- Increased pay inequality among the rich and poor
- Increasing number of beauracrats blaming each other for fiscal problems while they continue to grow the size and spending within government
This shows me once again that "intentions" don't equal results. I have no problems with extreme cost-cutting measures that will force legislators to start deciding where to cut spending. Maybe those cuts will lead to extremely positive results in the real world of income and expenses that most of us live in.
The report above, released by the White House on July 1 shows some interesting data. Two key elements stand out:
1) Estimates say that between 2.4 million and 3.6 million jobs have been funded by the stimulus. Having that large of a range shows me that they probably just guessed, and I have seen many reports showing that they double-counted and all kinds of shenanigans to get this number. Suffice it to say that the low end is pretty optimistic, but let's assume that it is accurate for now.
2) Total expenditures so far have reached $666,300,000,000...that's 666.3 billion.
That means that the government has spent between $185,083 and $277,625 (depending on which number you choose to believe for each job created/saved.
Couple these numbers with the New York Times report that Executive pay has risen 23% over the last year while middle-income earnings have remained stagnant and you begin to see a pattern.
There are a few patterns that MAY be connected to each other over the same time frame:
- Increased government (debt) spending
- Increased pay inequality among the rich and poor
- Increasing number of beauracrats blaming each other for fiscal problems while they continue to grow the size and spending within government
This shows me once again that "intentions" don't equal results. I have no problems with extreme cost-cutting measures that will force legislators to start deciding where to cut spending. Maybe those cuts will lead to extremely positive results in the real world of income and expenses that most of us live in.
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