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Archive for the ‘Economic Lessons’ Category

Your Taxes

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President Ronald Reagan recognized that higher corporate taxes have a trickle-down effect … and not in a good way.

In his words: “Some say shift the tax burden to business and industry, but business doesn’t pay taxes … business must pass its costs of operations – and that includes taxes – on to the customer in the price of the product. Only people pay taxes, all the taxes. Government just uses businesses in a kind of sneaky way to help collect the taxes. They’re hidden in the price; we aren’t aware of how much tax we actually pay.”

Reagan knew that if Americans understood just how many hidden government fees and taxes are hidden in the price of the everyday goods and services they buy, they would be more than angry.

What does government do with your tax dollars?

Wastes them by:

—  providing excessive salaries and benefits to government workers including elected politicians

—  providing unearned and un-deserved benefits to lowquals, freeloaders and trash people

—  giving money to foreign countries; getting nothing in return from people who hate The United States

—  supporting worthless, corrupt international organizations

—  overpaying for everything

Government could provide high quality services while spending 75% less.

The economy would grow.

Your quality of life would be so much better.

 

 

The facts no one wants to read.

Comments and referrals to this blog would be greatly appreciated.

Written by solutions777

January 16, 2017 at 7:45 pm

All Government Debt Is Worthless

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As an asset, all government debt is worthless.

No individual, business or other entity should ever buy government debt.

This means(includes) investing in government securities.

The same for quasi-government organizations or government backed debt.

No organization should loan money to any government.

Government forces financial institutions, pension funds and other regulated entities to buy government debt.

When government refuses to repay/redeem the loan/debt, what is the investor/lender to do?

 

 

The facts no one wants to read.

If the facts make you mad, it could be the truth hurts.

Written by solutions777

January 12, 2017 at 6:42 pm

Deporting Illegal Immigrants

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Trump wants to fight illegal immigration:

—  build a wall on the southern border

—  deport all illegal immigrants

—  freeze remittances to home countries

—  eliminate sanctuary cities, churches, etc

Everybody is “up in arms” about it.

Emotionalism.

The United States has over 50 million illegal immigrants.

Deporting all illegal immigrants would be beneficial to the nation.

It would

—  reduce unemployment

—  improve health care

—  boost the economy

—  help fight terrorism

—  give Americans a better quality of life

Using logic, all Americans(non-illegal immigrants) should strongly support the deportation of over 50 million illegal immigrants.

Why are you not supporting the deportation of all illegal immigrants?

 

 

The facts no one wants to read.

If the facts make you mad, it could be the truth hurts.

Written by solutions777

December 10, 2016 at 8:33 pm

Who Is Your Enemy?

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The world is a sad state.

Everything is in decline:

—  economy

—  education system

—  health care

—  world wide safety; wars, terrorism and priacy

And anything else.

Who is to blame?

Who should you be against?

Who is the enemy?

Most people say it is the rich and big business.

These people are WRONG!

Big business and the rich are easy targets.

Envy, jealousy, greed and stupidity drive the hate of the rich and big business.

Forget EVERYTHING you have ever heard.

Here are the FACTS:

—  the rich and business grow the economy

—  politicians and government destroy the economy

—  freeloaders sell their votes for government handouts

These are the factors that shape the economic structure of the nation.

Attack big business and the rich all you want:

—  the economy will continue to decline

—  it will not effect them

 

As Calvin Coolidge said:

” … it is probable that a press which maintains an intimate touch with the business currents of the nation is likely to be more reliable than it would be if it were a stranger to these influences. After all, the chief business of the American people is business. They are profoundly concerned with buying, selling, investing and prospering in the world. (emphasis added)
President Calvin Coolidge’s address to the American Society of Newspaper Editors, Washington D.C., January 25, 1925.[102]

The above is from Wikipedia.

 

This IS the way it is.

Like it or not, it will not change.

Adapt or pay the price.

 

 

The facts no one wants to read.

Comments and referrals to this blog would be greatly appreciated.

Written by solutions777

December 13, 2014 at 6:00 am

Government — Thieving Middle Man

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Politicians offer up largesse to buy votes.

Every election, politicians promise voter economic benefits to get your vote.

The problem is all money, goods and services — every last dollar of it — must be created through someone’s hard work.

Remember, government has no money on its own. It produces nothing, so it earns nothing. Government has only the money it takes from taxpayers or borrows against the payments of future taxpayers.

Everything government “gives” to one person or organization must be taken from another person or organization. Every dollar that government redistributes to someone, it must first take from someone else, and then deduct administrative costs before passing it on.

Approximately, 100 million people received over a trillion dollars in benefits.

This redistribution cannot continue indefinitely; growing in both the number of people receiving this charity and the amount they receive.

If this continues, it will reach a tipping point where there are too many people receiving government benefits and not enough people to pay for those benefits.

Then, what happens?

Not enough benefits to go around.

What happens if producers just stop producing?

Nothing is produced!

There will be nothing to be re-distributed.

What will the freeloaders do?

 

 

The facts no one wants to read.

Comments and referrals to this blog would be greatly appreciated.

Written by solutions777

September 20, 2014 at 11:32 pm

GROWTH AND ENVY

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“Would you prefer a United States where the typical family income was $100,000 per year but the top 5 percent averaged $500,000 a year or five times the typical family, or a United States where the typical family income was $30,000 a year but the top 5 percent averaged only $60,000 or twice that of the typical family?”

In other words, do you think overall prosperity is more important, or equality?  If you answered “equality” then you’re probably a believer in Big Government, Big Spending, and Big Taxes.

We do not care how much someone else makes as long as our own quality of life is good and we have the freedom to do what we want.  We do not really understand the “envy syndrome” where people attack others’ success even if those attacks result in a lower level of success for everyone (including themselves).

After all, the societies with the greatest freedom (and not so coincidentally, the greatest wealth) usually have the smallest wealth disparities, not the highest.  Trying to “make everyone equal” fails  —  like all such government programs in the end  —  and creates greater inequalities than ever before.

Indeed, as the article concludes:  “The failure of socialism and welfare statism clearly show those who demand equality at the expense of prosperity will get neither equality nor prosperity.”

 

The facts no one wants to read.

Comments and referrals to this blog would be greatly appreciated.

Written by solutions777

December 5, 2012 at 9:06 pm

The Real Unemployment Number

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The following is from a reference in a tweet by S.E. Cupp.

 

Posted By Clyde Prestowitz Monday, July 9, 2012 – 11:03 AM

So the headlines said June jobs were up by about 80,000 and unemployment stayed at 8.2 percent. Not great, but not a disaster. At least things are not getting worse. Right?

Well, you could be forgiven if that was the meaning you drew from the headlines and the latest Labor Department releases on job creation. That was how it looked to me at first glance. But having been through this many times before, I took a second glance — and quickly lost my appetite.

The headline unemployment numbers are the so called U-3 government numbers that count just current jobs held, gained, and lost. Because of seasonal factors it is easily subject to distortion that makes it more or less meaningless as was the case in June. A broader, more meaningful measure is U-6 which takes into consideration short term discouraged workers who have only recently stopped looking for work as well as those working part time who really want full time work. U-6 unemployment is 14.9 percent and up about two tenths of a percent in June.  Then there are the numbers of the consulting firm Shadow Government Statistics (SGS) which hark back to 1994. Until that time, the U.S. government kept track of long term discouraged workers as well as short term discouraged workers. In 1994, the method of collecting and calculating the unemployment data was changed and the workers who said they would like to work but were so discouraged that they hadn’t been looking for work for a long time were defined out of the calculation. But SGS still does the calculation, and it’s a shocker — 22.9 percent. Yes, that’s the percent of Americans who say they would like to work but for one reason or another can’t find work, are working only part time when they want to work full time, or have become so discouraged that they have given up looking for work. That number means that the U.S. full time work force ought to be a quarter larger than it currently is. Can you imagine what that would do to U.S. GDP growth, to local, state, and federal government tax collections and budget deficits, to savings and investment, and to long term retirement prospects?

The fact is that the U.S. economy is operating far below its potential productive capacity. Estimates of how far below vary, but a good guess is about 5-8 percent of GDP or close to $1 trillion. Remember when Senator Everett Dirksen used to say: “a billion here, a billion there, pretty soon you’re talking about real money?” Well a trillion dollars is real money, and it’s money America isn’t making. Why is the big question.

A significant piece of the answer can be glimpsed in a recent report by U.S. Trade Representative Ron Kirk. In a recent press statement about the Global System of Preferences  he said:

“GSP is a valuable tool for advancing the Administration’s goals to boost trade and to advance international economic development. The GSP program helps developing countries to grow their economies while also helping U.S. businesses, workers, and consumers by lowering the costs of imported goods, including those used as inputs for U.S. manufacturing. The annual review allows the Administration to ensure that the program is working as intended.”

Got that? The focus is on promoting cheap imports. Looking at the U.S. trade deficit, I’d say the program is working fully as intended. But if the U.S. government spent a fraction of the effort it spends on promoting cheap imports on promoting domestic American production, the U.S. unemployment numbers would look a lot better and the economy would be much closer to operating at its full potential capacity. For the United States to achieve growth without increasing debt, it must substantially cut its trade deficit.

 

The facts no one wants to read.

Comments and referrals to this blog would be greatly appreciated.

 

 

Written by solutions777

July 10, 2012 at 3:39 am

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