Tag Archives: Profit

Greed drives the advocacy of organizations on climate change

Atmospheric temperature measurements though Sept 2015
Atmospheric temperature measurements though Sept 2015

This article from the The Stream is helpful.

Excerpt:

Global warming alarmism is big business. On one side you have Greenpeace, the Sierra Club, The Nature Conservancy, World Wildlife Fund, Environmental Defense Fund, The Climate Project and dozens upon dozens of other non-governmental organizations who solicit hundreds of millions from private donors and from government, and who in turn award lucrative grants to further their agenda.

You also have the Environmental Protection Agency, the National Science Foundation, the National Institute of Health, the Departments of Commerce and Agriculture, both Houses of Congress and many more government agencies, spraying global warming money at anything that moves and at staggering rates — billions of dollars.

And then you also have every major and minor university — with contributions from every department, from Critical Literature Theory to Women’s Studies — all with their hands out and eager to provide the support Greenpeace, the government and others desire. Add to that another two or three dozen think tanks which are also sniffing for grants or which support government intervention to do the impossible and stop the earth’s climate from changing.

Every scientific organization which is dependent on grant money has released a statement saying “something must be done” about global warming. They’re supported, fawned over and feted by just about every news and media agency. And don’t forget the leadership of most major organized religions have their own statements — and their hands out.

We’re not done: we still have to add the dozens of Solyndra-type companies eager to sell the government products, to get “green” subsidies or to support its global-warming agenda. Included in that list are oil companies. Oil companies?

How much money are we talking about? Billions:

Joanne Nova has documented the massive amount of money pouring from government into the pockets of individuals and groups associated with the environment. “The U.S. government has provided over $79 billion since 1989 on policies related to climate change, including science and technology research, foreign aid, and tax breaks.” $79 billion.

Now it’s important to note that when the government hands out money, they are not handing out part of their profits from the sale of useful products and services, the way a private company might. No. What government does is they borrow money from future taxpayers and add it to the national debt. That’s why our national debt has doubled under Obama and will be $20 trillion by the time he leaves office in January 2017. So, government is busy manufacturing support for government intervention and regulation of businesses and individuals using money that will be taken from future job creators and taxpayers.

Would you like to have your money back so you can support causest that you care about instead of global warming socialism? So would I. But that’s why people ought to support slimming down government and letting it only perform those minimalist duties that are laid out for it in the Constitution.

Planned Parenthood whistleblower: we billed Medicaid $35 for $3 pills

Hillary Clinton and Planned Parenthood
Hillary Clinton and Planned Parenthood

This is from the Daily Signal.

Excerpt:

A little-known whistleblower lawsuit accuses Planned Parenthood clinics in Iowa of wrongly siphoning millions of American taxpayer dollars with a series of complicated billing schemes aimed at increasing profits.

Among other dishonest practices, a former manager of the clinics alleges, Planned Parenthood staffers routinely purchased birth control pills for just under $3, billed Medicaid $35 for the same package of pills, and got reimbursed for $26.

[…]By privately negotiating a deal with Ortho Tri-Cyclen Lo, a birth control prescription manufactured by Janssen Pharmaceuticals, Thayer said the Iowa clinics were able to purchase birth control pills for $2.89 per 28-day cycle.

[…]Thayer then said Planned Parenthood of the Heartland would bill Medicaid $35 for each birth control package and be reimbursed about $26 by Iowa Medicaid authorities.

Medicaid, a government-run health care program, provides free services to low-income families and individuals. When a patient on Medicaid seeks treatment at one of Planned Parenthood’s more than 600 locations, the organization bills Medicaid on that patient’s behalf.

Video:

Now recall that Planned Parenthood gives a cut of their profits to the Democrat Party, in exchange for allowing them to butcher defenseless unborn children:

Planned Parenthood donations to Democrats
Planned Parenthood donations to Democrats

We already know that the Democrats give Planned Parenthood tons of money every year to subsidize their operations. Now, if these charges are true, the Democrats politicians are funneling taxpayer even more money to Planned Parenthood, by allowing them to overbill incompetent government agencies, and then some of that taxpayer money they are getting makes its way back to the Democrat politicians by way of political contributions. So, if you’re paying taxes, you’re actually giving money to people who kill unborn babies, as well as the Democrats who protect the abortion industry.

There is always a conflict between government and private sector businesses. The private sector businesses serve customers in exchange for money, and the government takes some money from the private sector businesses and gives it to low-information voters in exchange for votes. Conservatives know that the government wastes taxpayer money, and that’s why we want to shrink government spending and instead let the efficient private sector handle things like health care. Liberals realize that the private sector cannot be fleeced as easily because they do business with their own money. Government spends taxpayer money – and that’s why they aren’t careful with it.

When we have more government, we get more government waste. The wasting is what gives the Democrat politicians the ability to help themselves to taxpayer money.

With government subsidies, Planned Parenthood did 327,653 abortions in 2013

This is from Life News.

Excerpt:

The abortion giant Planned Parenthood has released its 2013 annual report and the new numbers indicate it did more abortions than the year before — killing 327,653 babies in abortions while taking in millions in taxpayer funds.

Planned Parenthood Federation of America has released its 2013-2014 Annual Report and Jim Sedlak, vice president of American Life League, broke down the numbers.The report indicates Planned Parenthood did 327,653 abortions in 2013, an increase over the 327,166 abortions it did in 2012.

While it remains America’s biggest abortion corporation, the “nonprofit” continued to make money — bringing in $305.4 million last year and $305.3 million this year. Planned Parenthood continued to receive over a half-billion dollars in taxpayer money, as it took in $540 million in 2012 and $528 million in 2013.

“Despite this lack of increase in its primary business, Planned Parenthood continued to receive over a half-billion dollars in taxpayer money,” Sedlak said. “It has such a tremendous publicity machine that it convinced corporate and private donors to increase donations by more than $75 million (from $315.4 million to $391.8 million).”

“The increased donations, plus an increase of $28 million in “other operating revenue” and the reduction in costs from closing clinics, led to a near-record $127.1 million in profits for the largest abortion chain in the nation. This was the second highest reported annual profit in Planned Parenthood’s history,” he explained to LifeNews.

[…]After reviewing the report, SBA List President Marjorie Dannenfelser told LifeNews:

“The abortion rate may be declining across America, but not in Planned Parenthood clinics. Their latest annual report is fresh evidence that Planned Parenthood remains an abortion-centered, profit-driven business. In 2013, Planned Parenthood upped the number of abortions they performed to 327,653. Meanwhile, their already limited cancer screenings, prenatal services, adoption referrals – and even contraception services – continue to drop. Planned Parenthood claims to be an altruistic health care provider for women and girls but their bottom line is all about abortion.”

Republicans have attempted to cut off some funding for Planned Parenthood in red states, but as long as we have a Democrat President, the federal subsidies will remain in place. Something to think about in 2016.

New paper on income inequality: Does taxing the rich hurt the middle class?

Aparna Mathur (right)
Aparna Mathur (right)

Here’s an article by Indian economist Aparna Mathur.

She writes (in part):

In a recent paper that I co-authored with Kevin Hassett, we explored the effect of high corporate taxes on worker wages. The motivation for the paper came from the international tax literature (summarized by Roger Gordon and Jim Hines in a 2002 paper1) that suggested that mobile capital flows from high tax to low tax jurisdictions. In other words, in any set of competing countries, investment flows are determined by relative rates of taxation. The current U.S. headline rate of corporate tax is 35 percent. The combined federal and state statutory rate of 39 percent is second only to Japan in the OECD. With Japan set to lower its statutory rate later this year, the U.S. rate will soon be the highest in the OECD and one of the highest in the world. What effect do these high rates have on worker wages?

When capital flows out of a high tax country, such as the United States, it leads to lower domestic investment, as firms decide against adding a new machine or building a factory. The lower levels of investment affect the productivity of the American worker, because they may not have the best machines or enough machines to work with. This leads to lower wages, as there is a tight link between workers’ productivity and their pay. It could also lead to less demand for workers, since the firms have decided to carry out investment activities elsewhere.

Our paper was one of the first to explore the adverse effect of corporate taxes on worker wages. Using data on more than 100 countries, we found that higher corporate taxes lead to lower wages. In fact, workers shoulder a much larger share of the corporate tax burden (more than 100 percent) than had previously been assumed. The reason the incidence can be higher than 100 percent is neatly explained in a 2006 paper by the famous economist Arnold Harberger.2 Simply put, when taxes are imposed on a corporation, wages are lowered not only for the workers in that firm, but for all workers in the economy since otherwise competition would drive workers away from the low-wage firms. As a result, a $1 corporate income tax on a firm could lead to a $1 loss in wages for workers in that firm, but could also lead to more than a $1 loss overall when we look at the lower wages across all workers.

Following our paper, several academic economists substantiated our results, using different data sets and applying varied econometric modeling and techniques. Some examples of these studies include a 2007 paper by Mihir A. Desai and C. Fritz Foley of Harvard Business School and James Hines Jr. of Michigan University Law School, a 2007 paper by R. Alison Felix of the Federal Reserve Bank of Kansas City, a 2009 paper by Robert Carroll of The Tax Foundation, and a 2010 paper by Wiji Arulampalam of the University of Warwick and Michael Devereux and Giorgia Maffini of Oxford.3 A recent Tax Notes article that I co-authored summarizes these various studies and also the lessons from the theoretical literature on the topic. The general consensus from theory and empirical work is that while we may argue academically about the size of the effect, there is no disagreement among economists that a sizeable burden of the corporate income tax is disproportionately felt by working Americans. On average, a $1 increase in corporate tax revenues could lead to a dollar or more decline in the wage bill.

Conservatives and liberals have the same goal. We both want to help the poor. Liberals think that taking money from the rich and giving it to the poor helps, but all it does it cause the rich to move their capital and jobs elsewhere, leaving the poor poorer. Conservatives let the rich keep their money and encourage them to risk it trying to make more money by engaging in enterprises that create wealth – creating products and services from less valuable raw materials. In a socialist system, the rich get poorer, but so do the poor. In a capitalist system, the rich get very rich, but the poor also gain more wealth. That’s what happens when corporations like Apple make IPads out of junky raw materials. That’s how wealth is created – by letting people who want to make things keep more of what they earn. We all benefit from encouraging people to make new things and provide value for their neighbors.

Related articles

Richard Epstein explains why economic inequality is required in order to promote innovation

My friend Matt, who blogs at The Conscience of  a Young Conservative, posted this on Facebook.

Epstein explains how the profit motive creates economic value that raises the standard of living of all people, who are able to exchange their money for valuable products and services that they did not create. He explains how wealth redistribution is wasteful and harmful to economic growth.

(Found here)

Now let’s look at some myths that Christians believe about economics.

We need to understand basic economics

Christian philosopher Jay Richards explains basic economics.

Excerpt:

THE ZERO-SUM GAME MYTH.

There are three kinds of games: win-lose, lose-lose, and win-win. Win-lose games, like basketball, are sometimes called “zero-sum games.” When the Celtics and the Bulls compete, if the Celtics are up, then the Bulls are down, and vice versa. The scales balance. It’s a zero-sum.

Besides lose-lose games, which most of us avoid, there are positive-sum, or win-win, games. In these games, some players may end up better off than others, but everyone ends up at least the same if not better off than they were at the beginning.

Millions of people think that the free trade in capitalism is a dog-eat-dog competition, where winners always create losers. This is the zero-sum game myth, which leads many to think that the government should somehow redistribute wealth. While some competition is a part of any economy, of course, an exchange that is free on both sides, in which no one is forced or tricked into participating, is a win-win game. When I pay my barber $18 for a haircut, I value the haircut more than the $18. My barber values the $18 more than the time and effort it took her to cut my hair. We’re both better off. Win-win.

THE MATERIALIST MYTH.

A similar myth leads people to think of the economy as some fixed amount of material stuff—money in safes or gold bars in a vault. Since two firms competing for one customer can’t both get the customer’s money, we might think the whole economy looks that way: wealth itself isn’t created, it’s merely transferred from one party to another.

A common image of this “Materialist Myth” is a pie. If one person gets too big a slice, someone else will get just a sliver. To serve it fairly, you have to slice equal pieces.

This isn’t how a free economy works, however. Over the long run, the total amount of wealth in free economies grows. We can create wealth that wasn’t there before. The “pie” doesn’t stay the same size. Under capitalism, someone can get wealthy not merely by having someone else’s wealth transferred to his account, but by creating new wealth, not only for himself, but for others as well.

THE GREED MYTH.

Friends and foes of capitalism often claim that it is based on greed. Writer Ayn Rand even claimed that selfishness is a virtue (see the accompanying feature article). But greed is one of the seven deadly sins. If capitalism is based on it, then Christians can’t be capitalists.

In truth, Adam Smith and other capitalist thinkers did not believe this “Greed Myth.” Rather, Smith argued that capitalism, unlike static economies, channels even greedy motives into socially beneficial outcomes. “In spite of their natural selfishness and rapacity,” Smith wrote, business people “are led by an invisible hand…and thus without intending it, without knowing it, advance the interest of the society.”3

Rather than inspire miserliness, capitalism encourages enterprise. Entrepreneurs, including greedy ones, succeed by delaying their own gratification, by investing their wealth in creative but risky ventures that may or may not pan out. Before they ever profit, they must first create.

In a fallen world, we should want an economic system that not only channels greed into productive purposes, but unleashes human ingenuity, creativity, and willingness to risk as well.

I think Christians who don’t understand economics really need to make the effort to understand the basics. I recommend Robert Murphy’s “The Politically Incorrect Guide to Capitalism” and Thomas Sowell’s “Basic Economics“. If you want to see how economics works together with Christianity, then you also want Jay Richards “Money, Greed and God” and Wayne Grudem’s “Politics According to the Bible“.