Monday, October 31, 2011

Targeting the Argument -- Is The Right Again Fighting The Wrong Fight? Updated - Now with even more regulation!

Updated and bumped:

Forbes noticed and points out in Flat Tax This: Regulations Are The Boot On Hiring's Neck

Everyone’s talking about spending and flat taxes; but for healthy recovery, the hidden tax of regulation needs flattening too.

The right has a very good point about taxes, but it really isn't the full argument.   The talking heads almost daily discuss the tax rates and compare them to rates of the past with lines like, "the Clinton rates were higher and the economy flourished."

What they fail to note is the sheer mountain of regulations that have been created since Obama took office continuing and expanding on a long history of over regulating.  

It isn't JUST the taxes, the taxes are a means and they are high.  No one should pay more then 1/3 of their total income to the government.  With the taxes comes more regulations and rules.

(I will probably edit this, it is late but I wanted to get this out there).

Update: July 10, 2011 15:34

This opinion piece on jobs costing Obama his job sums up what I meant very well:
The private sector has regained about 30 percent of the manufacturing jobs it lost in the recession -- jobs created despite regulatory policies detrimental to manufacturing's expansion.
Add the administration's health-care policies (which drive up the cost of employment by increasing medical insurance costs) and environmental policies (which drive up the price of energy, particularly in Western Pennsylvania, where coal is a major source), and you can see why the private sector is skittish about enlarging payrolls.
That means the president has not only a small-business problem, but a blue-collar-worker problem. Both are sources of independent voters so essential to winning elections.
Add, too, the Dodd-Frank bill, which Larry Lindsey, former Federal Reserve governor, says "has made it much more difficult for banks to make business loans, as more of their resources must be devoted to regulatory compliance and (the) building of capital than to granting loans."
Partnerships are the key to economic growth. The great 20th-century economist Joseph Schumpeter described entrepreneurs as "gap-fillers and input-completers," meaning they bring together everything needed to create output and jobs in one place -- basically by partnering with various groups.
It's better that entrepreneurs, not government or academia, be central to this process because they typically know how to get things done, risk their own money and face real consequences if they fail.
"While the president often talks about having 'created' jobs ... he didn't," explained Lindsey. "Such jobs that have been gained have been produced by risk-taking entrepreneurs."
All that "shovel-ready" stimulus money filled many state budgets, but not so many private-sector job openings.
The president's resume includes little that indicates he knows how to create jobs -- which may, in the end, contribute to him losing his job.
Salena Zito

Read more: Issue could cost Obama his job - Pittsburgh Tribune-Review

Updated August 16, 2011:

If the federal government's regulatory operation were a business, it would be one of the 50 biggest in the country in terms of revenues, and the third largest in terms of employees, with more people working for it than McDonald's, Ford, Disney and Boeing combined.
Under President Obama, while the economy is struggling to grow and create jobs, the federal regulatory business is booming.
Regulatory agencies have seen their combined budgets grow a healthy 16% since 2008, topping $54 billion, according to the annual "Regulator's Budget," compiled by George Washington University and Washington University in St. Louis.
That's at a time when the overall economy grew a paltry 5%.
Meanwhile, employment at these agencies has climbed 13% since Obama took office to more than 281,000, while private-sector jobs shrank by 5.6%.
The Obama administration imposed 75 new major rules in its first 26 months, costing the private sector more than $40 billion, according to a Heritage Foundation study. "No other president has imposed as high a number or cost in a comparable time period," noted the study's author, James Gattuso.
The number of pages in the Federal Register — where all new rules must be published and which serves as proxy of regulatory activity — jumped 18% in 2010.
This July, regulators imposed a total of 379 new rules that will cost more than $9.5 billion, according to an analysis by Sen. John Barrasso, R-Wyo.
And much more is on the way. The Federal Register notes that more than 4,200 regulations are in the pipeline. That doesn't count impending clean air rules from the EPA, new derivative rules, or the FCC's net neutrality rule. Nor does that include recently announced fuel economy mandates or eventual ObamaCare and Dodd-Frank regulations.

Regulation Business, Jobs Booming Under Obama

Thursday, October 27, 2011

Fundamental Flaw In Logic Our Founders Well Understood

Here is an excellent video of Peter Schiff at the Occupy Wall Street Protests:

The fundamental flaw in the logic of these protesters is that Washington/government can ever be brought to heel!

Just one more regulation, one more law, or if we could only eliminate the money from Wall Street then we can control the system.

The assumption that government has to be big and in control is simply wrong and was well understood by our founders when they set up our system.  As Peter points out, if you take away the power to control you take away the ability to influence and thus to be controlled.

Wednesday, October 26, 2011

Obama History "Fail" Once More

At a fundraiser last night President Obama said:
"We've lost our ambition, our -- our imagination, and -- and -- our willingness to do the things that built the Golden Gate Bridge and Hoover Dam and unleashed all the potential in this country,"

Interesting fact about the Golden Gate (From California Historian):

"This bridge was the first of such magnitude and controversy to be completely financed by private citizens (Gronquist 128-129). All who did contribute money were promised restitution at four and three-fourths percent interest rate within a maximum of 40 years.

It is amazing how successful this way of financing was, considering the effects of the Great Depression."

More importantly the insurmountable level of regulations required to complete a project such as the Golden Gate Bridge or Hoover Dam would kill either of these projects before they even got to the drafting stage.

As Rush Limbaugh said today:
"The people in this country have their imagination. The people of this country still have their dreams and their willingness to do things. You stand in the way. The federal government stands in the way. Mountainous regulations. We did build the Golden Gate Bridge, the Bay Bridge, the Hoover Dam, and the Empire State Building in ten years -- and we did it in the middle of the Great Depression. You couldn't do it today. Regardless the ambition, imagination, willingness, or desire, you couldn't do it in ten years today. Look at Ground Zero in Manhattan. You couldn't do it. I mean, physically it could be done, but it couldn't be legally done."

Wednesday, October 12, 2011

Income Disparity a Failed Government Policy

Want to know why the income disparity has continued to grow, leading to much frustration?

As with most economic problems today you can tie the disparity directly to the policies of the government.

Our system had a built in solution to excesses of capitalism, including excessive CEO wages.  It was known as a recession and it regularly forced everyone from the single mother to the largest corporate board to reevaluate their priorities.  Companies fired underperformers!  Unfortunately the government's desire to lessen the effects of a recession and protect the too big to fail companies has not only extended the pain we all feel but has nearly eliminated the very important effects of that self correcting, excess eliminating mechanism.

Update with some thoughts brought to you by a leftie site via Ace

You've people got it backwards. Capitalism calls for insolvent banks to fail. Socialism calls for them to be bailed out. submitted 11 hours ago by r3compile
Edit: Some more complete thoughts:
The free market gets rid of risky, unstable businesses. Capitalism means if you don't have a viable product, you go away. People vote with their own money.
In Socialism, you vote with other people's money. You keep throwing good money after bad because you like the idea of a stable bank and you don't want to admit that it needs to go bankrupt.
All a businessman can do is try to sell you something that you think is worth the money.
But a government can take your wealth by force, and allocate it to an area that has no viable market, purely for the benefit of catering to voters and trying to get re-elected.
As long as we have a big government trying to run every aspect of the economy, it will be taken advantage of by some minority to the detriment of the majority.
I sympathize with the message of OWS thanks banks get special favors from government. But the answer isn't to give more special favors to labor unions and employees. The answer is to get the government out of the way and let the market flush out all these bad banks so a viable economy can rise.
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