Tag Archives: Democrat Party

Arthur Brooks: why is the American public shifting from optimism to envy?

Labor Force Participation down to 62.8%
Labor Force Participation down to 62.8%

An editorial by Arthur Brooks appeared today in the leftist New York Times. His topic is the shift from optimism to envy, why it is happening, and whether envy makes us happier than optimism.

Excerpt: (links removed)

The Irish singer Bono once described a difference between America and his native land. “In the United States,” he explained, “you look at the guy that lives in the mansion on the hill, and you think, you know, one day, if I work really hard, I could live in that mansion. In Ireland, people look up at the guy in the mansion on the hill and go, one day, I’m going to get that bastard.”

[…]Unsurprisingly, psychologists have found that envy pushes down life satisfaction and depresses well-being. Envy is positively correlated with depression and neuroticism, and the hostility it breeds may actually make us sick. Recent work suggests that envy can help explain our complicated relationship with social media: it often leads to destructive “social comparison,” which decreases happiness. To understand this, just picture yourself scrolling through your ex’s wedding photos.

My own data analysis confirms a strong link between economic envy and unhappiness. In 2008, Gallup asked a large sample of Americans whether they were “angry that others have more than they deserve.” People who strongly disagreed with that statement — who were not envious, in other words — were almost five times more likely to say they were “very happy” about their lives than people who strongly agreed. Even after I controlled for income, education, age, family status, religion and politics, this pattern persisted.

It’s safe to conclude that a national shift toward envy would be toxic for American culture.

Unfortunately, in the wake of the Great Recession, such a shift may well be underway, given the increasing anxiety about income inequality and rising sympathy for income redistribution. According to data from the General Social Survey, the percentage of Americans who feel strongly that “government ought to reduce the income differences between the rich and the poor” is at its highest since the 1970s. In January, 43 percent of Americans told the Pew Research Center that government should do “a lot” to “reduce the gap between the rich and everyone else.”

Why the shift? The root cause of increasing envy is a belief that opportunity is in decline. According to a 2007 poll on inequality and civic engagement by the Maxwell School of Citizenship and Public Affairs at Syracuse University, just 30 percent of people who believe that everyone has the opportunity to succeed describe income inequality as “a serious problem.” But among people who feel that “only some” Americans have a shot at success, fully 70 percent say inequality is a major concern.

People who believe that hard work brings success do not begrudge others their prosperity. But if the game looks rigged, envy and a desire for redistribution will follow.

This is the direction we’re heading. According to Pew, the percentage of Americans who feel that “most people who want to get ahead” can do so through hard work has dropped by 14 points since about 2000. As recently as 2007, Gallup found that 70 percent were satisfied with their opportunities to get ahead by working hard; only 29 percent were dissatisfied. Today, that gap has shrunk to 54 percent satisfied, and 45 percent dissatisfied. In just a few years, we have gone from seeing our economy as a real meritocracy to viewing it as something closer to a coin flip.

There is a good lesson in this for people who want what is best for the poor. Simply receiving money from others is not going to make poor people happy. What we need to focus on is providing the poorest people with opportunities.

One way to help the poor is by giving poor children a better education. Conservatives support school choice, which takes money away from government and puts it back in the hands of parents, letting them choose the best school for their child. Schools have to produce good outcomes in order to earn the money, just like private businesses have to compete for customers. But Democrats oppose school choice, as when they killed the D.C. voucher program that helped poor black students. Less school choice helps public schools to be insulated from competition, which provides worse outcomes to students, especially poor minority students. If we really cared about poor, minority students, we would put pressure on public schools to compete with private schools. But the Democrats don’t want that, they prefer to give favors to their teacher union allies.

Democrats also want to punish job creators with high taxes and burdensome regulations. Democrats passed Obamacare, which punishes businesses with taxes if they allow part-time workers to work for more than 30 hours a week. Many jobs were lost because of this, and many people are now struggling to pay higher premiums for plans with higher deductibles and co-pays. Obamacare is a nightmare of intrusive regulations, too. Now the Democrats are talking about raising the minimum wage, which is going to put even more pressure on employers to lay off workers, because they can’t afford to pay them more money for the same work. For Democrats, this is all to the good, though. Because if the poor don’t have jobs, or can’t work enough hours, they start to see the economic game as “rigged” and they are more responsive to “envy rhetoric”. They start to look to big government for handouts, rather than trying to prevent the government from taxing and regulating job creators.

What we need to see is that it’s not the Democrats’ objective to help people find jobs. They gain when people become more envious, like in European countries, and start to vote to grow the size and power of government to redistribute wealth. Speeches about income inequality never have the goal of giving people jobs. None of Obama’s policies aim to do that. That’s why he won’t build the Keystone XL pipeline, or boost domestic energy development here at home. Instead, they want to extend unemployment benefits and pass the costs on to the next generation. Their goal is to get you unemployed or on disability or on welfare, so that you will vote for the government to continue to take your neighbor’s money to give it to you. That manufactured envy is what keeps the Democrats in power.

This plan to borrow from young people to buy the votes of old people today works for a while, until the money runs out. But by then, the politicians who put in place the redistribution programs are usually long gone .

How exposed is your state to the problem of underfunded pensions?

I am thinking about moving to a new state in the future, and one of the factors I am considering is underfunded pension liabilities. This basically refers to the ability of a state to pay out pensions to retiring public sector employees going forward. I’m going to tell you everything you need to know to solve this problem in this post.

First, Investors Business Daily explains the problem:

A new report by Hoover Institution Senior Fellow Joshua Rauh shows that, unless action is taken soon, many local governments could face bankruptcy because they can’t meet their pension obligations.

[…]The problem is surprisingly simple: States and cities overestimate returns on their pension fund investments, while systematically underfunding them. The result is a growing deficit that will require massive tax hikes or dramatic and painful cuts in government services and promised pensions to public workers.

Rauh’s study looked at 564 state and local pension systems, representing $4.8 trillion in pension liabilities and $3.6 trillion in assets — for an apparent current deficit of just $1.19 trillion.

So far, so good. But Rauh notes the average expected return on pension assets is about 7.6% — which means a doubling every 9.5 years. He calls that assumption “wildly optimistic,” and says a more realistic assumption would be the Treasury bond rate of 3% or lower — less than half the expected return.

Unless pension managers, politicians and voters do something now, the unfunded liabilities of the national system will continue to grow out of control, reaching $3.4 trillion in just 10 years. States and cities across the country would have to raise taxes massively to keep from becoming insolvent.

Right now, state and local governments set aside about 7.3% of revenues for public pensions. To keep the funding gap from exploding and taking down governments across the nation, pension spending would have to rise to  17.5% of revenues on average — roughly equal to a 240% tax increase.

How did things get so bad? Generations of feckless politicians have refused to face down public employee unions, which have negotiated massively expensive pensions for their members while concealing their true cost. Politicians have gone along with it because, heck, it’s not their money and anyway, the problems will take place long after they’re out of office. That’s where we are now.

States and cities will come under intense pressure to raise taxes on local citizens to pay for this travesty. Instead, they should get rid of the public employee unions that have plundered the public for too long and have made local government inefficient, expensive and dysfunctional. If not, they can expect to face the same economy-crippling effects as Detroit, San Bernardino and a number of other cities have — financial insolvency.

Now, obviously states with kick-ass governors like Scott Walker of Wisconsin are not going to have the same exposure to such problems as incompetent governors like Maggie Hassan of New Hampshire. Scott Walker know how to rein in public sector unions.

Let’s get the numbers to confirm this hypothesis.

Bloomberg has the numbers:

Bloomberg ranked 49 U.S. states based on their pension funding ratios in 2014 under GASB 25. (Delaware is not included because of insufficient data for GASB 25.)

Here are the best states… Wisconsin is 100% funded:

States with the best-funded pension liiabilities
States with the best-funded pension liiabilities

And actually there is a comprehensive analysis of the fiscal solvency of all the states right here from George Mason University.

Here’s the map:

Overall fiscal solvency by state
Overall fiscal solvency by state

I notice that the deep blue states like California, Massachusetts, Illinois, Connecticut, New Jersey, etc. are just horrible states. No wonder everyone is fleeing them in droves. Socialism doesn’t work. Eventually, the money runs out.

So, if you’re thinking of moving to a new state, look at that. And if you don’t want to move, then vote for governors like Scott Walker who will take on public sector unions – otherwise, you’re headed for a big tax hike in the future, to pay for the big spending liberals of the past.

Obama administration threatens landlords who screen tenants for felonies

Is Barack Obama focused on protecting the American people?
Is Barack Obama focused on protecting the American people?

Amazing article about the pro-criminal Democrats, from Investors Business Daily.

Excerpt:

The Obama administration has just made it easier for felons to move in next door. Landlords who don’t want tenants who are going to mug their neighbors or deal drugs will now be treated as racists and potentially sued.

Last week, the Department of Housing and Urban Development issued new guidelines to landlords, warning that bans against renters with criminal convictions violate the Fair Housing Act because they disproportionately affect minorities.

In effect, the Obama regime is now outlawing criminal background checks for apartment rentals, even though such screening is critical for the protection and security of tenants and property, and serves a legitimate business need.

In a newly released 10-page missive, HUD warns landlords they can be held liable for discrimination if they deny housing over criminal records.

“HUD will use the full force of the law to protect the fair housing rights of folks who’ve been arrested or who’re returning to their communities after serving time in jail or prison,” HUD Secretary Julian Castro warned.

By “full force,” he means the “disparate impact” theory of civil-rights enforcement, which HUD claims is written into the Fair Housing Act even though the phrase appears nowhere in the statute.

Disparate impact holds businesses liable for colorblind policies and practices that may have adverse outcomes for minorities — in this case, screening all apartment applicants for criminal histories. It doesn’t matter if there is zero intent to discriminate in carrying out such polices. The policies will be condemned as racist regardless.

This isn’t surprising, because the Obama administration has a long history of favoring criminals’ rights over the rights of law-abiding taxpayers.

Consider these numbers from CNS News.

They write:

According to weekly detention and departure reports from U.S. Immigration and Customs Enforcement, there were 167,527 non-detained convicted criminal aliens in the United States as of Jan. 26 of this year, a congressional hearing revealed Thursday.

House Oversight and Government Reform Chairman Jason Chaffetz (R-Utah.) read the statistic aloud Thursday durin a hearing examining ICE’s priorities and procedures for removing criminal aliens currently living in the United States.

“In that report, it said that there are 167,527 non-detained, final-order convicted criminals on the loose in the United States,” Chaffetz pointed out while questioning ICE Director Sarah Saldana.“These are people that are here illegally, get caught, convicted, and you release back out into the public,” he said, adding that some of the crimes committed by those who have been released include homicide, sex crimes, child pornography, drunk driving, robbery and kidnapping.

The federal government announced Wednesday that ICE had released about 30,000 convicted criminal aliens from ICE custody in 2014 alone, according to The Washington Times, which first reported the statistic.

Meanwhile, the Washington Times reports on some criminals who were amnestied by Obama’s executive action.

Excerpt:

Nearly two dozen of the illegal immigrants picked up in a nationwide sweep for criminal aliens earlier this month had previously been approved for President Obama’s deportation amnesty, the Homeland Security Department said Wednesday.

All 23 were part of Mr. Obama’s original program for so-called Dreamers, which began in 2012 and which had granted tentative legal legal status to nearly 640,000 as of the end of last year.

Of the 23, 15 were still actively part of the amnesty, while eight had been approved once but had not gotten their status renewed after the first two-year period expired.

[…]Homeland Security spokeswoman Marsha Catron said 14 of the 15 Dreamers who were still part of “deferred action” were convicted of their crimes after they were approved. The other one had a has a pending criminal charge but hadn’t yet been convicted or acquitted.

This is all part of the Democrat tendency to criminalize law-abiding Americans, and de-criminalizing real criminals. They think it’s better to let the guilty go free, even if the innocent are put at risk. If you want a tough on crime government policy, then you need to vote Republican.