Tag Archives: Economic Ignorance

Does Bernie Sanders know a lot about business, finance and economics?

Democrats took control of government spending in 2007
Democrats took control of government spending in 2007

This article from Investors Business Daily takes a look at his record and experience in the areas that are relevant to economic growth.

It says:

Democratic presidential hopeful Bernie Sanders said Monday his parents would never have thought their son would end up in the Senate and running for president.

[…]He explained his family couldn’t imagine his “success,” because “my brother and I and Mom and Dad grew up in a three-and-a-half-room rent-controlled apartment in Brooklyn, and we never had a whole lot of money.”

It wasn’t as bad as he says. His family managed to send him to the University of Chicago. Despite a prestigious degree, however, Sanders failed to earn a living, even as an adult. It took him 40 years to collect his first steady paycheck — and it was a government check.

“I never had any money my entire life,” Sanders told Vermont public TV in 1985, after settling into his first real job as mayor of Burlington.

Sanders spent most of his life as an angry radical and agitator who never accomplished much of anything. And yet now he thinks he deserves the power to run your life and your finances — “We will raise taxes;” he confirmed Monday, “yes, we will.”

One of his first jobs was registering people for food stamps, and it was all downhill from there.

Sanders took his first bride to live in a maple sugar shack with a dirt floor, and she soon left him. Penniless, he went on unemployment. Then he had a child out of wedlock. Desperate, he tried carpentry but could barely sink a nail. “He was a shi**y carpenter,” a friend told Politico Magazine. “His carpentry was not going to support him, and didn’t.”

Then he tried his hand freelancing for leftist rags, writing about “masturbation and rape” and other crudities for $50 a story. He drove around in a rusted-out, Bondo-covered VW bug with no working windshield wipers. Friends said he was “always poor” and his “electricity was turned off a lot.” They described him as a slob who kept a messy apartment — and this is what his friends had to say about him.

The only thing he was good at was talking … non-stop … about socialism and how the rich were ripping everybody off. “The whole quality of life in America is based on greed,” the bitter layabout said. “I believe in the redistribution of wealth in this nation.”

So he tried politics, starting his own socialist party. Four times he ran for Vermont public office, and four times he lost — badly. He never attracted more than single-digit support — even in the People’s Republic of Vermont. In his 1971 bid for U.S. Senate, the local press said the 30-year-old “Sanders describes himself as a carpenter who has worked with ‘disturbed children.’ ” In other words, a real winner.

This is the man that so many Democrats want to put in charge of our economic policy. He’s never run a damned thing in his entire life, but his words sound nice if you have no understanding of how the world works. Besides, doesn’t a person’s good intentions automatically mean that he will achieve good results? He doesn’t have to know anything if his heart is in the right place, does he?

Here’s an article from the Washington Free Beacon that talks about a non-partisan study from the Tax Foundation think tank, which analyzes Sanders’ plans for the US economy.

Excerpt:

Bernie Sanders proposed tax plan would raise taxes by $13.6 trillion over the next decade and reduce the economy’s size by 9.5 percent, according to an analysis by the Tax Foundation.

[…]After accounting for reductions in economic growth, Sanders’ plan would lead to 12.84 percent lower after-tax incomes for all taxpayers, 6 million fewer full-time jobs, and an 18.6 percent smaller capital stock.

That’s who just won the Democrat primary in the Live-Free-Or-Die state of New Hampshire on Tuesday night. They used to want freedom in New Hampshire, now they just want free stuff. Free stuff that their neighbor has to pay for. Or maybe their neighbor’s children.

The problem with all these new taxes ($13.6 trillion) is that you can’t get that money from ONLY “the wealthy”. Although ignorant college kids may think that you can get $13.6 in tax revenue from the rich, the truth is that the so-called 1% don’t make that much money.

Let’s say that $13.6 trillion is $1.36 trillion per year.

John Stossel explains why you can’t make $1.36 trillion per year from taxing the rich:

Progressives say, if you’re so worried about the deficit, raise taxes! There are lots of rich people around, squandering money. On my show, David Callahan of the group Demos put it this way: “Wealthy Americans who have done so well in the past decade should help get us out.”

But it’s a fantasy to imagine that raising taxes on the rich will solve our deficit problem. If the IRS grabbed 100 percent of income over $1 million, the take would be just $616 billion.

[…]My $616 billion assumption above is absurd. Rich people wouldn’t work if government takes all their earnings.

Progressives claim an increase in tax rates won’t stop producers from producing. But they presumably understand that people don’t work for free. When the top marginal rate was 90 percent, actor Ronald Reagan worked just half the year. As soon as he made enough money such that every additional dollar was taxed at 90 percent, he stopped working and went off to ride horses. Reagan later said that woke him up to the damage that high taxes impose.

Maryland created a special “tax on the rich” that legislators said would bring in $106 million. Instead, the state lost $257 million. Some of Maryland’s rich just left the state. When New York state hiked its income tax on millionaires, billionaire Tom Golisano moved to Florida, which has no personal income tax. “[M]y personal income tax last year would’ve been $13,800 a day,” he told us. “Would you like to write a check for $13,800 a day to a state government, as opposed to moving to another state?”

That $13.6 trillion in taxes cannot come from the rich – they will stop producing, or more likely move their production to another country with more reasonable taxes. (Canada’s corporate tax rate is 15% – less than half our 36% corporate tax rate). The tax money Bernie wants is going to have to come out of the pockets of middle-class families, small businesses and other job creators.

Now think, Democrats: how well can your employer afford to employ you if they have to pay much higher taxes? They can’t, and you won’t have a job. Everything doesn’t stay the same when you make these changes to go in a socialist direction. People react to the changes. We have to think beyond stage one. What comes next, for ALL the people who are impacted by the change?

UK Supreme Court rules against Christian B&B couple’s conscience rights

Dina sent me this article from the UK Telegraph about a recent Supreme Court decision from the UK.

Excerpt:

The devoutly Christian owners of a Cornish hotel who refused to allow two gay men to take a double room have lost their final appeal to the Supreme Court. It ruled that Peter and Hazelmary Bull had discriminated against the couple, even though they had long operated a rule that unmarried guests had to sleep apart. One of the judges, Lady Hale, said such a case would have been unthinkable less than two decades ago, and it is a measure of how both the law and societal norms have changed that the Bulls should have found themselves in such a predicament.

It is also a pity this matter was not settled amicably when the Bulls made an offer of redress; but campaigners were intent on making an example of them. The aggrieved men, Martyn Hall and Steven Preddy, who were in a civil partnership, were supported by the Equalities and Human Rights Commission (EHRC). The Bulls were perplexed as to why the EHRC should act against them, since their right to exercise their religious beliefs was being set against that of the men not to be discriminated against on the grounds of their sexual orientation.

Dina also sent me this article from the pro-gay Spiked Online.

Excerpt:

[A]s the systematic unequal treatment of gays has ended, so another problem has grown. One pernicious social force has been replaced by another: the willingness of the state to outlaw minority or eccentric views and behaviours. State-backed oppression has yielded to state-backed intolerance.

The Bulls have been hauled before the courts and told they can no longer practise what they preach. To deny a couple the right to make a living in a manner consistent with their Christian values is draconian. The Bulls’ fate is similar to that of Lillian Ladele, an Islington marriage registrar, and Gary McFarlane, a Relate counsellor, who were both sacked after declining to provide their professional services to lesbians and gays. Equality laws did for them all.

The problem here is not, as it appears, merely a slap in the face to Christians. It is a slap in the face to the right of all individuals to act free of state control absent a compelling reason for intervention. As John Stuart Mill put it in On Liberty (1859): ‘The only purpose for which power can be rightfully exercised over any member of a civilised community, against his will, is to prevent harm to others.’

As if to satisfy Mill’s harm principle, the Supreme Court went in search of Preddy and Hall’s ‘harm’. What they found was that when the Bulls’ house rules were explained to Preddy and Hall, they found it ‘upsetting’ and ‘very hurtful’. Even in the touchy-feely twenty-first century, where self-esteem is seen as so important and so fragile, this is pretty lame.

The Supreme Court judge, Lady Hale, may have been aware that this ‘affront to their dignity’, as she put it, was not the sort of harm, in the Mill sense, that should justify the state’s coercive power. She bolstered her argument by linking Preddy and Hall’s hurt feelings to a bigger historical picture. ‘We should not underestimate’, she said, ‘the continuing legacy of those centuries of discrimination, persecution even, which is still going on in many parts of the world’.

Fascism happens when the normal desire for compassion is taken out of the family context and becomes the policy of a powerful feminist welfare state. And that’s when it becomes a threat to the right of individuals to make moral judgments and to exercise religious liberty.

The EHRC, you’ll remember, was a project of the Labour Party of the UK, which is the socialist party in the UK. There is also a communist party called the Liberal Democrats. The striking thing is that many church-attending Christians not only vote for the Labour Party, but they also vote for the Liberal Democrats, which are even more liberal. A lot of this is because British Christians are so far to the left on economic issues that they sort of go along with the assault on their own religious liberty out of ignorance. They vote for bigger and bigger government, and then they are surprised when they actually get it.

The same thing happened in Canada with the Liberal Party and their introduction of Human Rights Commissions and Human Rights Tribunals, which criminalize offending people with free speech. The very Christians that voted for expanding government to reduce poverty were the ones who were then persecuted by the same big government they voted to create. This goes to show why we need to have better economics knowledge among Christians, because many of us are voting for left-wing parties because we think that private, voluntary charity can be replaced with government-controlled redistribution of wealth. Not only does that not work to reduce poverty, but in the end, we lose our liberties, too.

In the UK, you’ll find a lot of Christians who think that rent control is a good thing, that price controls are a good thing, that raising minimum wage is a good thing, that tariffs on imported goods are a good thing – positions which are generally viewed as incorrect by academic economists across the ideological spectrum. That’s why churches need to teach the Christian worldview, including economics. The UK church should be training Christians to undo this ignorant, patriotic confidence that UK Christians have in their welfare state. We all have a lot of work to do to educate ourselves on how the Bible applies to the real world (e.g. – economics), or else we will end up undermining our own liberties.

Additionally, I find it very frustrating that so many churches are so focused on providing emotional comfort and a sense of community to the people in the pews that they neglect to talk about these religious liberty issues. Pastors don’t want to alert ordinary Christians about how dangerous it’s becoming to take unpopular stands on issues like gay rights in public – it’s scary and divisive and drives people away from church. You’re not going to hear them trying to apply the Bible to moral issues or economic issues, etc. from the pulpit, because that spoils the “experience” and “the show” – the comfort and entertainment that people expect from church. We need to do better at helping Christians to be aware of threats to our liberties. They need to be trained to connect their faith to specific laws and policies in the real world.

MUST-READ: Correcting the economic myths that liberals/leftists believe

Here’s a nice New York Post. (H/T Mary)

Full text:

According to Barack Obama, “The arguments of liberals are more often grounded in reason and fact.” But according to Margaret Thatcher, “The facts of life are conservative.” Who’s right?

Myth: The deficit was caused by Bush’s tax cuts.

Fact: For over four decades, 1960 through 2000, federal revenues averaged 18.2% of Gross Domestic Product and the trend was virtually flat. The final Bush tax rates became effective in 2003. In 2006 and 2007, well after the new tax rates were in effect, federal revenues were 18.2% and 18.5% of GDP, above historical levels. The federal government collected over half a trillion dollars more in 2007 than it did in 2000.

Myth: Republicans spent like drunken sailors.

Fact: Federal spending from 1960 through 2000 averaged 20.3% of GDP, with a slightly upward trend. The average over all Bush years, 2001 through 2008, was 19.6% of GDP – below the historical average. The 2001-2008 average deficit was also below the 1960-2000 average.

Myth: Republicans exploded the federal debt.

Fact: Per the US Constitution, “all bills for raising revenue shall originate in the House of Representatives.” Democrats controlled the House from 1955 through 1994, leaving the federal debt held by the public at 49.2% of GDP. Republicans then controlled the House from 1995 through 2006 and left it at 36.5% of GDP — below the level left by Democrat Congresses.

At the end of Bush’s presidency the debt was 40.2% of GDP. Now, two years post-Bush and four years of a Democrat Congress, the debt is 64% of GDP, the highest it’s been since Harry Truman was paying off World War II.

Myth: The deficit is due to the Iraq War.

Fact: The Congressional Budget Office calculated that the Iraq War cost $709 billion from 2003 through 2010. Total federal deficits over those eight years added up to $4.944 trillion, with the bulk of that ($2.968 trillion) added in just the last two years, after Bush was out of office.

By contrast, federal spending on education over 2003-2010 was $792 billion, and Obama’s stimulus will cost $814 billion. How often do you hear that our deficit problem was caused by education spending?

Myth: The Reagan and Bush tax cuts only benefited the rich.

Fact: According to the CBO, “The lowest three income quintiles have seen declines in their average tax rates since the early 1980s .¤.¤. The average tax rate on the top quintile has fluctuated more, with periods of increases and decreases, and was somewhat lower in 2007 than in 1979.”

In fact, the top quintile (top 20% of taxpayers) paid about 25% of its income in federal taxes in 2007, about the same as it did in 1982. By contrast, the middle and bottom quintiles paid less than 15% and 5%, respectively, both lower than at any time since 1979. The bottom two quintiles had negative average income taxes – they received more in tax credits than they paid in income taxes. Per the CBO, “In 2007, about 35 percent of households did not owe any federal income taxes.”

Myth: The deficit is due to military spending.

Fact: If federal military spending had been eliminated in its entirety in 2009, the deficit would still have been $776 billion, a historical high. Defense spending is less than one fifth of the federal budget and less than 5% of GDP. When the economy was doing quite well in the 1960s, defense spending was twice as high in those terms. In fact, President Bush presided over smaller defense budgets (as a fraction of GDP) than all presidents from 1941 through 1993.

Myth: “The last eight years,” “the last ten years,” “the last decade,” “the lost decade.”

Fact: From 2000 through 2007 real GDP grew 2.4% annually and real disposable personal income grew 2.8% annually. The economy added 5.5 million net new jobs in those years. The unemployment rate stood at 4.4% in May 2007, just before the newly elected, Democrat-controlled Congress raised the minimum wage.

From August 2003 through December 2007, over eight million net new jobs were created.

Fiscal year 2007 was the last one under a federal budget written by a Republican-controlled Congress, and marked the peak in real GDP, jobs, and the stock market. The bad economy of the “last ten years” was all in the last three years – under federal budgets written by a Democrat-controlled Congress.

Myth: Bush deregulated banks, causing the financial crisis. Fact: President Bush did not deregulate banks, or much of anything else. He increased staffing and spending on economic regulation more than President Clinton did. The number of pages in the Federal Register averaged more in Bush’s first term than at any prior time in US history. He signed the Sarbanes-Oxley Act of 2002, the most sweeping regulation of business since the New Deal.

The New York Times, no cheerleader for President Bush, said in 2003, “The Bush administration is rightly pushing for the Treasury Department to regulate the two giants [Freddie Mac and Fannie Mae], along with the network of federal home loan banks.” It was Barney Frank and other Democrats who helped kill such regulation. Frank said, “These two entities, Fannie Mae and Freddie Mac, are not facing any kind of financial crisis.”

Not a Myth: The above facts are matters of historical record. The sources of many myths are computer models rather than results from the real world. Remember the economic model that said the unemployment rate would not go above 8% if Obama’s stimulus was passed? The stimulus was passed, yet the unemployment rate went above 10% and has been above 9% for the last 19 months.

The models that say extending today’s tax rates would add to the deficit assume that tax rates have no effect on taxpayer behavior. That is an assumption virtually all economists, and most non-economists, know is false. Yet Congress requires the CBO to base its predictions on that bogus assumption.

The reality is that government spending is the problem. It is absurdly above historical levels right now and is unsustainable. It is driven by payments for individuals (64% of 2010 federal outlays) and entitlements, especially health care spending. ObamaCare did not bend the health-care cost curve down, either; it bent it up.

We have to go with Margaret Thatcher on this one.

What a great find by Mary!

Let’s re-post a Margaret Thatcher video and bask in her glorious competence and intelligence.

[youtub=http://www.youtube.com/v/okHGCz6xxiw]

She had a background in the hard sciences, like Angela Merkel, another conservative.

I think if Christian women want to impress men, they should talk like  the Iron Lady. Liberalism / leftism is really just selfishness, envy and blaming others for your own choices. What man wants to marry someone like that?