Archive for Government
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A Snow Job
Posted by: | CommentsWhite house economic advisor Larry Summers stated in an interview with CNBC that the recent blizzards probably distorted the unemployment numbers due to be released on Friday morning. According to Summers, the mountain of accumulated snow halted construction projects and also temporarily closed many stores plus restaurants.
The White House reasoning quickly melts in the face of economic logic. Businesses make hiring or firing decisions based on the benefit that an employee brings to the table versus their cost. No doubt the weather kept people from eating out or shopping for a few days. But the dress that was not bought on Saturday because of the weather more than likely will be purchased after the roads have been plowed. The lobster whose life was saved by little snowflakes on Friday night will be boiled a week later for a delayed celebration.
The fact is that construction has hemorrhaged jobs for over a year. In a report authored by the Bureau of Labor Statistics and released at the beginning of February, the construction industry shed another 75,000 jobs, which was about the average monthly loss for the preceding 12 months. Currently, one out of four unemployed people came from construction. Read More→
John Taylor Gatto speaks about schools and brainwashing
Posted by: | CommentsJack Webb “Schools” Obama
Posted by: | CommentsKnight to c2
Posted by: | CommentsIn chess a fork occurs when a piece moves into a position where it can simultaneously attack two or more opposing pieces. The knight, which can move in an L shaped pattern and four different directions, is the piece most commonly used to execute this type of attack. A fork usually results in the opposing player losing a major piece. High caliber players often take care to avoid moves that could leave an opening for two quality pieces like a Queen and a Bishop to be attacked at the same time.
In his aggression to flood the economy with fiat money and lower key interest rates to zero, Ben Bernanke may have moved his monetary pieces and the economy into a vulnerable position. The Federal Reserve faces two problems. While lower rates did little to boost an economy already flooded in debt, they did help chase money toward the stock market where indices have bounced approximately 60% from the lows made almost a year ago.
A dramatically inflated money supply creates the very real danger of rapid price increases across the economic landscape. At its very worse, inflation can destroy the currency as illustrated historically by the experience of the Weimar Republic. The Producer Price Index, which showed an annualized rise of 16%, sounded an alarm to put the brakes on the monetary printing presses.
The likely result of pulling back on the monetary reins will be much higher interest rates and siphoning money out of the stock market. On the other hand, if the Federal Reserve continues on its present course, then the odds of a currency crisis increase with each passing day.
It looks like Bernake is sure to lose a piece. He has to be careful not to put the country into checkmate.
Another Flawed Keynesian Approach
Posted by: | CommentsWith the help of five Republicans in the US Senate, it appears the hurdle has been cleared for some form of a jobs bill to pass approval in Congress. Perhaps I am mistaken, but Congress already passed and the president signed a $750 billion spending bill to get people back to work. What is different about raiding an empty treasury of billions more this time to create jobs?
Architects of the legislation point to the tax credits available to businesses that increase their headcount. One idea is to give employers a tax-credit up to $5000 for each additional person hired. At first glance this may seem like a logical incentive. But as my economic students learn, two sides exist to transaction.
The tax credit will only reduce the marginal cost of a new employee for the first year. After the initial year the cost of the new hire will balloon by at least the amount of the tax credit. As any student passing a Principles of Economic realizes, cost is just one factor in the employment equation. The other side of the coin takes into account the revenue benefit that an employee brings to the table. Firms will retain or hire individuals as long as their additional benefit exceeds their additional cost. Without a significant pick up in demand, many firms will pass on expanding their payrolls.
Small business owners point to another flaw of the proposal in that tax-credits are realized at the end of the year. The cost of a new hire drains cash flow in the meantime. As one owner stated, cash flow is at the heart of staying in business. My creditors may not wait for the federal government to reimburse me.
It looks like another lesson in failed Keynesian economics.
India Snubs Own Nobel Prize Winner
Posted by: | CommentsIndia has established its own body to monitor the effects of global warming because it cannot rely on the United Nations Intergovernmental Panel on Climate Change, the group headed by its own Nobel Prize-winning scientist Dr R K Pachauri.
What Interests Does a Candidate Represent?
Posted by: | CommentsIn a discussion with an acquaintance the other day, she touched on the topic of politics and the importance of the Massachusetts race for US Senate. Granted it is interesting how a special election in the heart of Democrat country could see a Republican win and thus kill any attempts to pass a socialized medicine healthcare bill. Her comments illustrated a problem facing taxpayers in the state of Wisconsin. People will spend hours talking about national politics and vote in droves for the election of federal offices, but nary will a whisper be heard about local candidates.
Local spring elections barely draw enough voters to the polling place that would fill up a good size movie theater. Yet county, city and school district taxes are a sizeable chunk of a persons over all tax burdens. I recently attended a gathering of nearly 50 people at a private residence to hear a Congressional candidate speak. Imagine how many would show up to listen to a person running for school board or city council; maybe a handful.
Even though most yawn at the mention of local elections, an organization exists that is willing to put its money and manpower into candidates for local offices. Despite the economic hardships faced by many, local governments and school districts across Wisconsin have increased the tax burden over the last year. In the area where I live, both the county and the school district raised their portion of the property tax by nearly 9%.
Such actions have left many questioning the mindset of local elected officials. How can they vote to increase taxes in time like this and offer raises to government employees while at the same individuals are losing their jobs or their homes; why government does not suffer the same fate of the recession?
The answer may be found in the contents of an envelope going out to each of the candidates for the county board. The letter came from the offices of AFSCME, the government workers union. The opening sentence should send alarm bells to taxpayers about the true nature of local elections.
Dear Candidate for St. Croix Supervisor,
The AFSCME PEOPLE committee of the 3rd CD is considering endorsements for the Spring election of the ST. Croix County Board of Supervisors.
The committee decides locally who the American Federation of State, County, and Municipal Employees will support in the upcoming election
The letter then invites the candidate to be part of an interview process beginning with an enclosed questionnaire.
As part of the candidate interview process, we have enclosed an AFSCME questionnaire.
The second page of the letter deals with personal information including email, phone numbers, and details of the candidates campaign treasury (where they can mail the checks).
On the next couple of pages the union asks eleven support/oppose questions. No surprise the first handful of inquiries dealt with opinions on collective bargaining and living wages. The next set dealt with the idea of privatization, Taxpayer Bill of Rights (TABOR), and increasing the tax burden on wealthy individuals and businesses. One curious question dealt with the time of board meetings. Currently St. Croix County Board meetings are held during the day time when many taxpayers are at work, and therefore, find it difficult to exercise their Constitutional right to address grievances toward government. It is highly doubtful that government union employees are concerned that those who pay their wages and benefits are shut out of the process.
I find this letter from AFSCME and others like it very disturbing on several fronts (WEAC sends out similar invitations to school board candidates). The founding principles of the republic established a hierarchy of power. The Creator endowed the individual with rights. Government was a creation of the people, and thus subservient to the citizenry. In layman terms, the people are the true employers of government workers.
The very strong implication of the peoples representative having to interview with government employees flips the hierarchy and the foundations of the country on its head. By submitting to an interview with the government union, a politician puts the government on equal or superior footing with its creator. Liberty cannot exist under such a system. Read More→
Crimmins, How does it feel to wake up next to this?
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Last week it was divulged that good ole’ happy days star, Scott Baio had called the FBI because of death threats on the internet found in the site called Twitter.com. He had provided a picture of our esteemed President’s wife that didn’t show her in a good light. I’m sure it happens to everyone. The caption read, “How does it feel to wake up next to this…”.Story here.
Now I’m sure we all have had our moments and got caught in the wrong light at times. I know I have.
Now imagine. You belong to a government entity and are in the public eye for hours at a time. You would want to make sure you are at your best, right. Now image that is your wife. Image you work on a government payroll as well. Image you work for the Hudson School District as a liaison officer, someone who hasn’t enough credentials to get a real police job. Imagine your name is Mark Crimmins.
Now image having to wake up next to Cindy every morning. Yes officer Mark Crimmins, how does it feel to wake up next to that?
Flexing States Rights
Posted by: | CommentsMore states flexing their States rights.
This week in the Missouri state Capitol, a large rally was held in favor of defending state sovereignty. Rep. Tim Jones and Senator Jane Cunningham spoke about their respective bills filed to protect Missourians right to choose their own healthcare and not be forced into the federal governments plan under threat of fines or imprisonment. This centralization of more and more power in Washington D.C. is fostering a citizens movement to understand and defend personal liberty and the federalist principle of state sovereignty – a governing principle captured eloquently in the 10th amendment to the U.S. Constitution: The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.
Carnac – St. Croix County’s Government Worst Nightmare
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Looks who’s back.