WHAT REALLY HOLDS THE ECONOMY BACK: G20 Channels Herbert Hoover - Up and Down Wall Street Daily - R. Forsyth - Barrons.com
The above article tries to suggest that developed country governments should continue deficit spending to spur growth; but, it ignores a key variable, which is to set in place the conditions that will make investors want to invest and for entrepreneurs to build businesses?
It also ignores the fact that governments have been piling on to the labor component of production costs (labor+raw materials+capital) additional charges that distort the labor component. Part of the distortion is to channel the fruits of labor to 'non-producers' (retirement benefits, etc.).
Thus, the government may be trying to get the economy going by borrowing; but, it is pushing on a string because of the road blocks and inhibitors of the fiscal policies and social policies that governments have created.
(Communism in Eastern Europe is an extreme example of what happens with out of control social policies in terms of dampening down economic activity.)
The drag of fiscally based tax and social policies needs to be addressed. The current government spending won't work (e.g. Pimco's 'new normal')
Tuesday, June 8, 2010
Saturday, June 5, 2010
May's Big Selloff Could Be Just the Beginning - WSJ.com
PAYING FOR LUNCH: May's Big Selloff Could Be Just the Beginning - WSJ.com
This article also fails to address the big shifts in the reward for labor from the laborer to government. And, government then deciding how to redistribute these rewards.
As such, the laborer complains that they aren't seeing any additional income, whereas, in fact, the income is being taxed and charged away to feed government social programs.
This overtaxing was somewhat obscured under Bush with tax cuts and then the housing bubble. However, now, the government under Obama and Pelosi is trying to further blow out the bubble of government entitlements and government benefits.
As a result, not only is the allocation of the income from production going further down against the worker, the government's borrowing is taking capital out of the private economy.
Thus, corporations have cut back staff to maintain profits in 2009. But, looking ahead, all they see is more taxes and additional costs on investment.
This is not the picture that produces jobs or a revived economy.
Clearly the Democrats feel they can tax and tax and tax without any impact on the behavior of business or consumers.
But, this is clearly not turning out to be the case. And, as the government builds up a bigger and bigger debt, there is clearly a time when the lenders will "pull-a-Greek" and demand higher interest.
It's hard not to see the administration's policies as other than the band playing on the Titanic. Sadly, the administration can't imagine there is anything wrong with socialism; and, they can't see the evidence surrounding them.
Hard to believe the stock market won't wake up and reflect this - at some point!
This article also fails to address the big shifts in the reward for labor from the laborer to government. And, government then deciding how to redistribute these rewards.
As such, the laborer complains that they aren't seeing any additional income, whereas, in fact, the income is being taxed and charged away to feed government social programs.
This overtaxing was somewhat obscured under Bush with tax cuts and then the housing bubble. However, now, the government under Obama and Pelosi is trying to further blow out the bubble of government entitlements and government benefits.
As a result, not only is the allocation of the income from production going further down against the worker, the government's borrowing is taking capital out of the private economy.
Thus, corporations have cut back staff to maintain profits in 2009. But, looking ahead, all they see is more taxes and additional costs on investment.
This is not the picture that produces jobs or a revived economy.
Clearly the Democrats feel they can tax and tax and tax without any impact on the behavior of business or consumers.
But, this is clearly not turning out to be the case. And, as the government builds up a bigger and bigger debt, there is clearly a time when the lenders will "pull-a-Greek" and demand higher interest.
It's hard not to see the administration's policies as other than the band playing on the Titanic. Sadly, the administration can't imagine there is anything wrong with socialism; and, they can't see the evidence surrounding them.
Hard to believe the stock market won't wake up and reflect this - at some point!
Friday, June 4, 2010
Red Decal Has N.J. Teens Seeing Red - WSJ.com
Q&A: Red Decal Has N.J. Teens Seeing Red - WSJ.com
Question: "Isn't it true that those that subscribe to the authoritarian mind-set such as the current Leftist Culture (I know, I repeat myself), there can never be too much control."
Answer:
Sadly, the religious right is probably the worst offender in terms of trying to legislate their questionable (at best) moral agenda.
As for liberals, they seem to think they can legislate processes to ensure an easy and mindless life.
So, the Republicans take your rights (e.g. abortion, drug laws, etc.) that cost money; and, the Dems do the same by their social entitlement spending.
We need a third way. But, I'm sure not seeing it.
Meanwhile, the money that could be invested in jobs is going to social consumption; and, the Dems seem perplexed. They fail to see how their economic model bankrupted GM and has failed in Greece.
The Republicans don't seem to be able to articulate any meaningful alternative. And, people wonder why no one is investing in jobs?
Ah well. Somehow 2+2 always equals 4. It's just a matter of knowing how to frame the equation correctly.
Question: "Isn't it true that those that subscribe to the authoritarian mind-set such as the current Leftist Culture (I know, I repeat myself), there can never be too much control."
Answer:
Sadly, the religious right is probably the worst offender in terms of trying to legislate their questionable (at best) moral agenda.
As for liberals, they seem to think they can legislate processes to ensure an easy and mindless life.
So, the Republicans take your rights (e.g. abortion, drug laws, etc.) that cost money; and, the Dems do the same by their social entitlement spending.
We need a third way. But, I'm sure not seeing it.
Meanwhile, the money that could be invested in jobs is going to social consumption; and, the Dems seem perplexed. They fail to see how their economic model bankrupted GM and has failed in Greece.
The Republicans don't seem to be able to articulate any meaningful alternative. And, people wonder why no one is investing in jobs?
Ah well. Somehow 2+2 always equals 4. It's just a matter of knowing how to frame the equation correctly.
Jobs Report: Bad - MarketBeat - WSJ
SHOULDN'T BE SURPRISED: Jobs Report: Bad - MarketBeat - WSJ
As Bill Gross said on Bloomberg today - we shouldn't be surprised with this jobs report.
The government has followed a program of borrowing to support consumption and is not supporting investment into job creation.
It's the old Democratic Keynesian belief that higher taxes and don't impact investment decision-making and that businesses will create jobs no matter how much money is taken from them to support social programs.
Clearly, the Democrats are blind to what such policies have wrought in Europe - because, it doesn't fit in with their redistributionist beliefs of the belief of unions that labor costs don't matter to job creation or job sustainability. Well, maybe it will be harder for Dems to argue that their policies are working as time goes on; but, meanwhile, those who'd rather work than rely on government handouts are having to suffer.
As Bill Gross said on Bloomberg today - we shouldn't be surprised with this jobs report.
The government has followed a program of borrowing to support consumption and is not supporting investment into job creation.
It's the old Democratic Keynesian belief that higher taxes and don't impact investment decision-making and that businesses will create jobs no matter how much money is taken from them to support social programs.
Clearly, the Democrats are blind to what such policies have wrought in Europe - because, it doesn't fit in with their redistributionist beliefs of the belief of unions that labor costs don't matter to job creation or job sustainability. Well, maybe it will be harder for Dems to argue that their policies are working as time goes on; but, meanwhile, those who'd rather work than rely on government handouts are having to suffer.
Thursday, June 3, 2010
Robert L. Pollock: Erdogan and the Decline of the Turks - WSJ.com
Robert L. Pollock: Erdogan and the Decline of the Turks - WSJ.com
Thanks for the good article.
It further emphasizes the risks posed by a world in which science creates great opportunities for productive, advanced ways of life that are resisted vigorously (and more vigorously) by religious societies that see myth and mystery their only way to hold onto control of populations that provide them succor.
As such, the disparity between not just rich-and-poor, but enlighted-and-unenlightened will grow.
What the result will be is worthy of discussion now.
Liberals may think they can buy off the unenlightened (e.g. Gaza and Hamas) by letting them have a small country (e.g. Israel), but let's hope the Israelis don't give up so easily!
Thanks for the good article.
It further emphasizes the risks posed by a world in which science creates great opportunities for productive, advanced ways of life that are resisted vigorously (and more vigorously) by religious societies that see myth and mystery their only way to hold onto control of populations that provide them succor.
As such, the disparity between not just rich-and-poor, but enlighted-and-unenlightened will grow.
What the result will be is worthy of discussion now.
Liberals may think they can buy off the unenlightened (e.g. Gaza and Hamas) by letting them have a small country (e.g. Israel), but let's hope the Israelis don't give up so easily!
The Blue Dogs Roll Over - WSJ.com
The Blue Dogs Roll Over - WSJ.com
Meanwhile, the media and financial commentators seem to be giving the economy a free pass - much like they did during the housing bubble.
The question is never asked: where will new jobs come from when all the money is being borrowed by government? Greece showed us what happened with Pelosi-type policies, but the press seems to prefer the 'ostrich' approach to doing the math.
And, the congressmen the other day berate Warren Buffet for not doing more to find out what is going on with the rating agencies - because, unsaid, is the fact that the government (i.e. the SEC) again failed to do its job as the regulator of these agencies. Such a double-standard!
Meanwhile, the media and financial commentators seem to be giving the economy a free pass - much like they did during the housing bubble.
The question is never asked: where will new jobs come from when all the money is being borrowed by government? Greece showed us what happened with Pelosi-type policies, but the press seems to prefer the 'ostrich' approach to doing the math.
And, the congressmen the other day berate Warren Buffet for not doing more to find out what is going on with the rating agencies - because, unsaid, is the fact that the government (i.e. the SEC) again failed to do its job as the regulator of these agencies. Such a double-standard!
Tuesday, June 1, 2010
William McGurn: Gallup's Pro-Life America - WSJ.com
EXCORIATION NOT ACKNOWLEDGMENT: William McGurn: Gallup's Pro-Life America - WSJ.com
The "anti-abortion" (let's give up the "pro-life" moniker) are really more like the people who thought "the world was flat".
They believe what they have 'cherry-picked' from their bible (or, more to the point, those who manipulate them have picked from the Bible) and they take it as 'such a complete truth', that their opinion has to 'forced' on society.
In this idea of 'forcing a religious point of view on society', they are totally in sync with today's Islamic radicals. So, we've got our own Christian crazies!
As for the belief that the world could be anything but flat, history teaches us religious authorities had no trouble at all burning people at the stake for such outrageous utterances in the 15th century.
So, as to whether the media should accept and pander to those whose belief systems should in fact be outlawed (i.e. the anti-abortionists) is as evil as allowing any wrong beliefs to be taught. It maybe that the world is flat and abortion is wrong; but, a more scientific view would be allow opposite knowledge and beliefs to have equal weight! And, this the Christian right can't countenance.
They deserve excoriation in the media, not acknowledgment.
The "anti-abortion" (let's give up the "pro-life" moniker) are really more like the people who thought "the world was flat".
They believe what they have 'cherry-picked' from their bible (or, more to the point, those who manipulate them have picked from the Bible) and they take it as 'such a complete truth', that their opinion has to 'forced' on society.
In this idea of 'forcing a religious point of view on society', they are totally in sync with today's Islamic radicals. So, we've got our own Christian crazies!
As for the belief that the world could be anything but flat, history teaches us religious authorities had no trouble at all burning people at the stake for such outrageous utterances in the 15th century.
So, as to whether the media should accept and pander to those whose belief systems should in fact be outlawed (i.e. the anti-abortionists) is as evil as allowing any wrong beliefs to be taught. It maybe that the world is flat and abortion is wrong; but, a more scientific view would be allow opposite knowledge and beliefs to have equal weight! And, this the Christian right can't countenance.
They deserve excoriation in the media, not acknowledgment.
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