Archive for the ‘Economics’ Category

$9 Billion Jobs Program Fails The Poor —- in India

May 8, 2011

No matter where it’s tried, big government make work job programs always fail to bring the poor out of poverty.  This time it was India’s turn.

This is because people – and we are the “economy” – don’t value digging ditches and filling them back in.  Until someone offers something of value to others, he will not earn more money and climb out of poverty.

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Petition to Redistribute GPA Scores

April 29, 2011

This video is awesome!

Somehow, if you work hard to earn money, well, it’s perfectly fine for the government to take that money from you and redistribute it to people who didn’t earn it.

But, my grades?  Oh, well, that’s different.  Those are my grades, I need my 4.0.  I earned….

Yeah, exactly, it’s the same thing!

Great Collapse: a hyperinflationary great depression

April 29, 2011

Ok, now Shadow Government Statistics is scaring me with this report on a hyperinflationary great depression. 

Essentially – the government is monetizing the debt, killing the dollar, for a deficit we can’t afford anyways.  All leads to a massive, Weimar Republic type collapse…soon.  Like in the next 12 months.

What’s scares me about this is its using statistics and data to verify what I’ve heard other people I trust who say the same thing.

Correlation is powerful.  This is scary.

BTW, the WSJ is starting to see this too.

Losing Jobs = Recession

April 24, 2011

Specifically, there is no such thing as a jobless recovery. If jobs are being lost, the economy still is in recession

Great line in this analysis of how bad GDP numbers are manipulated.

Alternative Fiscal Deficit and Debt – Scary Stuff

April 24, 2011

I am loving Shadow Government Statistics.  Very interesting reading.

One scary page was the 2010 Financial Statements of the U.S. Government.  The US government uses cash accounting – something a small business of 1-2 employees would use.  Meanwhile, in the real world, any company with more than 10 people uses GAAP accounting (or accrual accounting).

With GAAP, if you owe money in the future (like, umm, social security checks) to someone, you have to call it out on your financial statements now.  With companies using GAAP, this call-out usually becomes a liability (aka debt).  This attempts to clearly shows investors what the company’s future looks like.

But the federal government doesn’t do this.  If it accrues liabilities (like Obamacare or Medicare for baby boomers), the Feds don’t include these future debts in the financial statements. They just count the cash in and cash out in one year.  Like a babysitting business would.

This year, the Federal government ran a cash deficit of $1.294 Trillion.  An already disgusting number.  But, what if we required the Feds to use GAAP (just as GE, WalMart, and any other business does).  Oh, in that case, Shadow Government Statistics estimates the deficit this year at $5.3 Trillion (4X HIGHER!).

And what if we did this into the future?  Well, in that case, our already disgusting federal debt of $14.2 Trillion explodes to $76.3 Trillion in current dollars.

Who’s got that in their savings account?

If Inflation is Under Reported, then GDP is….

April 24, 2011

The most popularly followed inflation-adjusted economic statistic is the GDP, which reflects the growth in dollar economic activity minus the growth in inflation. If inflation is understated, which it is, then the resulting real GDP is overstated.

Isn’t that the truth lately!!

Inflation is high, but the government reports it low which makes GDP higher. So that paltry 2% GDP growth right now is probably more like -2%.

More good stuff at Government Shadow Stats.

The Government Now Picks Locations for Businesses

April 22, 2011

What the NLRB finds damning is their common account of Boeing’s business decision as a move to avoid future complications with uncooperative unions, which it undoubtedly was.  The IAM, now joined by their shills at the NLRB, somehow interpret this fact as evidence that Boeing is using blind discrimination rather than plain fiscal sense to determine its corporate policy.

If this NRLB action against Boeing doesn’t scare you, it should.  When the government starts to decide where companies can hire people, look out.  These companies will not acquiesce to the federal government’s demands.  They’ll just take these jobs to India, China, Mexico, etc.

The worst part is, you’ll hear about Boeing doing this – and after the media trashes them and politicians rail against Boeing moving jobs overseas you’ll hate Boeing.  But, what you won’t see is the hundreds of other companies that don’t want to even fight and quietly just start hiring overseas from the beginning.

Breakdown of Federal Personal Income Taxes – Yes, the Rich do Pay Taxes

April 20, 2011

Breakdown of Federal Personal Income TaxesA great graph and analysis from the Mercatus Center on the breakdown of federal income tax payers.  And, what do you know, the top 25% pay 86% of the income taxes.  86%!!!  Is this enough of their “fair share”?

At some point, the government will just shift the entire tax burden to the top 25% (or worse) and then it’s end game.  The bottom 75% will never ever ever vote to change the tax code.  The productive 25% reduces working and risk taking and economy (and country) collapses.

But, hey, at least those politicians got reelected.

Simple Economics (in a Cartoon)

April 19, 2011

Wizard of ID

Good cartoon.  The more government gives to people, the less the incentive there is to be self-sufficient.  Simple economics.  But of course, this is what Obama is after.  If you rely on government for everything, that government then controls you.  Just what liberals love.

From Dan Mitchell

Millionaires and Billionaires on Tax Day

April 18, 2011

http://www.cato-at-liberty.org/millionaires-and-billionaires-on-tax-day/

Rather than breeding resentment against the wealthy, the president should use his bully pulpit to encourage people to emulate their success by working hard, increasing their savings, and eschewing debt. Unfortunately, those are the attributes that today’s income tax punishes, and on this Tax Day the president is pushing policies to make the situation even worse.

AMEN!!!