Bold Colors Blog

Stickin’ it to the libs, one day at a time

Posts Tagged ‘Economy’

A sad little opinion piece from Peggy Noonan

Posted by Liberty on March 15, 2009

There’s No Pill for This Kind of Depression

“…the economy isn’t the only reason for our unease. There’s more to it. People sense something slipping away, a world receding, not only an economic one but a world of old structures, old ways and assumptions. People don’t talk about this much because it’s too big…”

I feel sad writing this but Peggy Noonan’s piece really resonates with me.  She attempts to explain and define the malaise that we’ve found ourselves in.  Read it and see what you think.

Posted in Uncategorized | Tagged: , , , , , | Leave a Comment »

Victor Davis Hanson on why Wall Street is still worried

Posted by Liberty on March 12, 2009

Obamafusion

Just a few of the money lines:

“A redistributive economy in which government ensures an equality of result is Wall Street’s worst nightmare.”

And:

“Given the amount of debt the US is incurring (and the decades needed to pay it off), given the loose talk about the ‘rich’, and given the rumors about nationalization, investors are unsure whether the United States will remain a safe haven for investment, or even offer a climate for profit-making, since it would either be taxed to the point of seizure, or its beneficiaries would be culturally and socially demonized.”

And:

“There is much talk about Obama merely returning to the tax rates of the Clinton administration. But that is misleading for two unfortunate reasons: (1) Clinton did not tamper with FICA ceilings and other deductions in addition to the income tax hikes; (2) he had spending limits imposed by the post 1994-Congress, so at least his income tax increases led to a balanced budget. But Obama is not only raising taxes far higher in aggregate than did Clinton with the present trillion-some spending hikes, but ensuring that we will still end up with astronomical deficits. So we get the tax hikes of Clinton — but without the balanced budgets; and we get far higher deficits than under Bush — but sans the tax cuts.”

Posted in Arrogant politicians, Liberalism, Obama, Redistribution of wealth, Social engineering, Socialist economics, Taxes | Tagged: , , , , , , | Leave a Comment »

Seize the perspective

Posted by Liberty on February 17, 2009

From Carpe Diem today:

Early 1980s vs. Now

Here’s a bit of an antidote for my last post about the plummeting stock markets.  It’s important to remember that, while our economy is bad, it certainly has been worse.  Some of us haven’t been around long enough to remember the last severe recession firsthand, so these statistics bear repeating.  In the early 80’s, America was still recovering from the failed presidency of Jimmy Carter.  How about 18.5% interest on your 30 year fixed mortgage?  It really was that bad in 1981.  14.8% inflation in 1980?  And 10.8% unemployment in 1982?  I’m not saying that we’re not headed there under Obama’s socialist policies but for the time being at least, it could be worse.

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The change we didn’t need…

Posted by Liberty on February 17, 2009

Stocks drop on worries about economy, automakers

“Investors are absorbing the reality of a deepening global recession — and dumping stocks on exchanges around the world. The major U.S. indexes dropped by well over 3 percent, sliding alongside other countries’ stocks. The Dow Jones industrial average sank near the multi-year lows it reached last November.”

Curious timing, there.  Last November, you say?

Posted in Liberalism, Obama, Socialist economics | Tagged: , , , , | Leave a Comment »

Stimulating the destruction of health care as we know it.

Posted by Liberty on February 10, 2009

Ruin Your Health With the Obama Stimulus Plan: Betsy McCaughey

The Senate is poised to pass Obama’s massive “socialize America” stimulus plan.  Thanks to human jellyfish pseudo Republicans like Arlen Specter, Olympia Snowe and Susan Collins, news blips everywhere will praise the bill’s passing as “bipartisan.”  The unfortunate thing is that there is policy buried in this stimulus that will change the course of our society as we know it. 

Most people don’t even have a clue–they’ve bought the Obama bill of goods that the stimulus will build roads and schools.  Obama has done this country a major disservice by doing his best to shut down discussion on this bill.  If there had been a more honest, open debate, perhaps more people would know about the back-door transition to socialized medicine that’s been included under the guise of improving our economy.  Here I reference a piece that was published yesterday on Bloomberg.com.  Betsy McCaughey has done the work that the celebutard pre-occupied main stream media has refused to do.  Debate rages about Jessica Simpson’s weight gain, Alex Rodriguez’s steriod use and whether or not some R&B artist beat up his girlfriend when it should be focused on the fraud being perpetrated upon us all.  The numbers included in the quotes I’ve pulled from Ms. McCaughey’s article are the page numbers in the  H.R. 1 EH, pdf version.

“The bill’s health rules will affect ‘every individual in the United States’ (445, 454, 479). Your medical treatments will be tracked electronically by a federal system. Having electronic medical records at your fingertips, easily transferred to a hospital, is beneficial. It will help avoid duplicate tests and errors.

But the bill goes further. One new bureaucracy, the National Coordinator of Health Information Technology, will monitor treatments to make sure your doctor is doing what the federal government deems appropriate and cost effective. The goal is to reduce costs and ‘guide’ your doctor’s decisions (442, 446). These provisions in the stimulus bill are virtually identical to what [Tom] Daschle prescribed in his 2008 book, “Critical: What We Can Do About the Health-Care Crisis.” According to Daschle, doctors have to give up autonomy and ‘learn to operate less like solo practitioners.’”

I don’t know about you but I trust my doctor.  That’s why I go to her instead of down to the DMV when I need medical care.  If you’re wondering what exactly it means to have the federal government “guide” your doctor’s decisions, read on.

 

“Hospitals and doctors that are not ‘meaningful users’ of the new system will face penalties.  ‘Meaningful user’ isn’t defined in the bill. That will be left to the HHS secretary, who will be empowered to impose ‘more stringent measures of meaningful use over time’ (511, 518, 540-541).

What penalties will deter your doctor from going beyond the electronically delivered protocols when your condition is atypical or you need an experimental treatment? The vagueness is intentional. In his book, Daschle proposed an appointed body with vast powers to make the ‘tough’ decisions elected politicians won’t make.

The stimulus bill does that, and calls it the Federal Coordinating Council for Comparative Effectiveness Research (190-192). The goal, Daschle’s book explained, is to slow the development and use of new medications and technologies because they are driving up costs. He praises Europeans for being more willing to accept ‘hopeless diagnoses’ and ‘forgo experimental treatments,’ and he chastises Americans for expecting too much from the health-care system.”

Is this what you want?  To accept a “hopeless diagnosis” like a European?  To just give up?  What about hope?  Isn’t hope the very thing we’re supposed to have now that Obama has been elected?

“Daschle says health-care reform ‘will not be pain free.’ Seniors should be more accepting of the conditions that come with age instead of treating them. That means the elderly will bear the brunt.

Medicare now pays for treatments deemed safe and effective. The stimulus bill would change that and apply a cost- effectiveness standard set by the Federal Council (464).

The Federal Council is modeled after a U.K. board discussed in Daschle’s book. This board approves or rejects treatments using a formula that divides the cost of the treatment by the number of years the patient is likely to benefit. Treatments for younger patients are more often approved than treatments for diseases that affect the elderly, such as osteoporosis.”

Quick, can somebody tell me who the AARP endorsed in the 2008 Presidential election?

The hypocrisy here is simply appalling.  These same “compassionate” liberals that don’t believe in killing terrorists and think that every child should start the day with taxpayer-funded Lucky Charms are implementing policy that will deny medical treatments for the elderly.  How long is it going to be before the doctor approaches the family gathered around dear old aunt Mary’s bedside and says, “The Federal Coordinating Council for Comparative Effectiveness Research says there’s nothing more we can do.  I think it’s time to put her down.”

“If the Obama administration’s economic stimulus bill passes the Senate in its current form, seniors in the U.S. will face similar rationing. Defenders of the system say that individuals benefit in younger years and sacrifice later.

The stimulus bill will affect every part of health care, from medical and nursing education, to how patients are treated and how much hospitals get paid. The bill allocates more funding for this bureaucracy than for the Army, Navy, Marines, and Air Force combined (90-92, 174-177, 181).

Hiding health legislation in a stimulus bill is intentional. Daschle supported the Clinton administration’s health-care overhaul in 1994, and attributed its failure to debate and delay. A year ago, Daschle wrote that the next president should act quickly before critics mount an opposition. ‘If that means attaching a health-care plan to the federal budget, so be it,’ he said. ‘The issue is too important to be stalled by Senate protocol.'”

Arrogance!  Unbelievable arrogance!  Not only does Daschle think that he is above paying taxes, he believes you should not have a say on the implementation of socialized medicine.  Don’t comfort yourself for a second by thinking that at least Daschle has withdrawn his nomination.  That isn’t going to slow this plan down in the least.  The Senate is scheduled to vote today.  You can still call them.

Update, 11:22 am

The bill passed.  Our only hope for stopping this is in the conference committee now.  I thought of two things since I originally posted this morning.  Liberals whipped themselves into a hysteria over the Bush administration’s wire taps on suspected terrorists.  Civil libertarians were absolutely crazed over it.  Do you think they’ll have a problem with a federal bureaucracy over-seeing our health care? 

Also, what about the “my body, my choicer’s?”  They want choice when it comes to killing babies and under Obama’s plan, that’s one option that will probably always be there.  But what will your choices be when the Federal Coordinating Council for Comparative Effectiveness Research dictates your treatment for diabetes, arthritis, kidney stones or any other condition to your doctor?  Why is it important for you to have the choice to kill babies but not to choose what course of treatment is best for cancer, MS or neo-natal care?

Posted in Arrogant politicians, Bureaucratic ineptitude, Celebutards, Constitutional Rights, Health care, Innate hypocrisy, Just plain dishonest, Liberalism, Main Stream Media, Obama, Slavish media bias, Social engineering, Socialist economics, Socialized medicine, Stupid legislation | Tagged: , , , , , , , , , , , , , | Leave a Comment »

Once again, Queen Christine needs your help

Posted by Liberty on February 5, 2009

The Governor apparently either really cares what the public thinks about the budget or wants you to think that she really cares what the public thinks about the budget.

Go to:

http://www.governor.wa.gov/priorities/budget/default.asp

There’s a budget calculator where you can adjust levels of state government spending to get rid of the budget gap.  This brings me to one thing that needs to be made clear about Washington’s budget problem.  According to the Governor’s budget calculator webpage, under the current budget, the projected revenue for the 2009-2011 budget cycle is $31,573 million.  The proposed spending is $35,274 million.  We aren’t in debt yet but if we continue spending as proposed, we will be.  The spending is the problem!

The Governor’s proposed budget has spending dropped down to $32,079 million and she adds in $122 million from “Other Fund Transfers and Budget Driven Revenue.”  [Not really sure where that came from?!]  She also includes $609 million from the state’s Rainy Day Fund.  Note that the Rainy Day Fund starts out at $709 million and she wants to use almost all of that in this 2009-2011 budget cycle.  If the economic downturn is prolonged and if the State of Washington does not gain a better understanding of what functions actually are the legitimate responsibility of state government, we could get into serious trouble.  Can you say, California?

Do you understand what I’m saying here, though?  Much has been made of Washington’s Budget crisis and I’ve posted several times about it before, too.  The point I’m trying to make is that we don’t have to have a budget crisis.  It is not a foregone conclusion.  All that the Governor and the Legislature have to do is cut spending.  There is plenty of waste, fraud and abuse hidden in that budget.  Will anyone tackle that?  There is a lot of spending for things that are not really the responsibility of state government.  Are we going to see some of it reversed?  With Democrats in control, it isn’t likely.  Instead, they’ll make visible, painful cuts to essential services.  And then, they’ll use those cuts to sell the public on a tax hike.

Unfortunately, I think that the Governor’s budget calculator page is designed to make you more sympathetic towards Queen Christine.  It lets you play with the numbers but ultimately, I think you’re supposed to walk away with a new appreciation for how tough it is for the Governor to make everyone happy.  The budget calculator doesn’t let you adjust specific programs–only general areas like “student achievement,” public safety,” “human services for vulnerable children & adults,” and “health of Washingtonians.”  Like her earlier request for your e-mailed budget suggestions, I think this budget calculator is just a public relations stunt.

Posted in Bureaucratic ineptitude, Liberalism, Redistribution of wealth, Socialist economics, Taxes, Washington State | Tagged: , , , , | Leave a Comment »

Your daily dose of perspective

Posted by Liberty on January 24, 2009

This comes to us courtesy of Dr. Mark Perry of Carpe Diem.  If you haven’t looked at Carpe Diem yet, I couldn’t recommend it more highly. 

Time Magazine Cover Story: Why We’re So Gloomy

I have to admit that the two editorials by Dick Morris did leave me gloomy.  So, when I ran across this posting, I had to link to it.  Here’s a quick quote:

“Well, why are Americans so gloomy, fearful and even panicked about the current economic slump?

In one of history’s most painful paradoxes, U.S. consumers seem suddenly disillusioned with the American Dream of rising prosperity even as capitalism and democracy have consigned the Soviet Union to history’s trash heap. Hard times are forcing some people to turn their back on the American Dream.”

The question is, which economic slump is this article about?  I’m not going to spoil it for you–click on through to Professor Perry’s blog to find out.

Posted in Conservatism, Educate yourself, Main Stream Media | Tagged: , , , | Leave a Comment »

In light of my last post…

Posted by Liberty on January 24, 2009

I know if you read my last post, you’ve probably had it with negativity but I wanted to make sure to link to two editorials that Dick Morris put out this week.  The first one was published on TheHill.com on January 20. 

The Obama Presidency:  Here Comes Socialism

“2009-2010 will rank with 1913-14, 1933-36, 1964-65 and 1981-82 as years that will permanently change our government, politics and lives. Just as the stars were aligned for Wilson, Roosevelt, Johnson and Reagan, they are aligned for Obama. Simply put, we enter his administration as free-enterprise, market-dominated, laissez-faire America. We will shortly become like Germany, France, the United Kingdom, or Sweden — a socialist democracy in which the government dominates the economy, determines private-sector priorities and offers a vastly expanded range of services to many more people at much higher taxes.

Obama will accomplish his agenda of ‘reform’ under the rubric of ‘recovery.’ Using the electoral mandate bestowed on a Democratic Congress by restless voters and the economic power given his administration by terrified Americans, he will change our country fundamentally in the name of lifting the depression. His stimulus packages won’t do much to shorten the downturn — although they will make it less painful — but they will do a great deal to change our nation.”

Morris goes on to forecast how Obama’s reckless fiscal policies will create a permanent dependent class.

“But it is not his spending that will transform our political system, it is his tax and welfare policies. In the name of short-term stimulus, he will give every American family (who makes less than $200,000) a welfare check of $1,000 euphemistically called a refundable tax credit. And he will so sharply cut taxes on the middle class and the poor that the number of Americans who pay no federal income tax will rise from the current one-third of all households to more than half. In the process, he will create a permanent electoral majority that does not pay taxes, but counts on ever-expanding welfare checks from the government. The dependency on the dole, formerly limited in pre-Clinton days to 14 million women and children on Aid to Families with Dependent Children, will now grow to a clear majority of the American population.”

The second editorial has pretty similar content.  It came from www.dickmorris.com and was published on January 22. 

Beware Obama’s Trojan Horse

“He will call this radical change a stimulus package. He will dress up a generation of liberal priorities as necessary steps to fight the economic crisis. His programs and policies won’t do much to end the depression. It will end only after the massive burden of debt is lifted from the shoulders of American and foreign households and companies, a process which will take years. At most, his stimulus will act as methadone while we withdraw from our debt addiction, mitigating the pain, smoothing over the trauma, and soothing our system.

But Obama’s strategy is to hide inside the Trojan Horse of stimulus an army of radical measures to change America permanently.”

Posted in Liberalism, Obama, Redistribution of wealth, Social engineering, Socialist economics, Stupid legislation | Tagged: , , , , , , | Leave a Comment »

Apocalypse now?

Posted by Liberty on January 24, 2009

In the days since Obama was elected, I’ve been trying to find reasons for Conservatives to stay positive.  That has not been easy.  Conservatives know what the GOP needs to do to win elections but they haven’t been listening.  The GOP has been ignoring their largest voting bloc in favor of chasing elusive groups like Independents, Hispanics, Walmart voters, etc.  Maybe somewhere in the US today, there are Republicans starting to do the right thing.  Maybe somewhere there is a groundswell of Conservatism growing.  Unfortunately, living in the deep blue state of Washington–behind the Iron Curtain, so to speak,–I’m not seeing it.  I hope it really is happening and that we have strong Conservatives candidates ready to take on the libs with guns blazing in time for the midterm elections. 

A conversation that I had last night further pushed me into a state of worry.  It’s hard to know how bad the economic picture under the bad policies of Obama and the radical liberal Democrats in Congress.  But, it will be bad.  We are headed for some hard times–probably harder than anything my generation has ever seen.  I got some good advice last night and I’d like to pass it along.  Get rid of debt.  Don’t take on new debt.  Watch for the stock market to rise briefly in an “Obama rally” and try to salvage some of the principle that you have in the market.  And then, hoard some cash, just in case. 

I don’t like the thought that the economy is going to head even further south.  This kind of negativity is just the opposite of the thought process I’ve been trying to cultivate.  But, we have to be honest.  I have it on good authority that the banking crisis is not over yet, not by a long shot.  And I also firmly believe that Obama’s Socialist policies will push us further into trouble.  So tighten up the budget, kill your debt, put some cold hard cash in a safe spot and take care.  It’s going to get worse before it gets better but we’ll survive just fine.

Posted in American society, Arrogant politicians, Conservatism, Future of the GOP, Liberalism, Obama, Socialist economics, Washington State | Tagged: , , , , | 1 Comment »

Are you curious about what’s in that sneaky stimulus?

Posted by Liberty on January 22, 2009

Leave it to the Heritage Foundation [and Club for Growth, and National Taxpayers’ Union, and Citizens Against Government Waste, and Taxpayers for Common Sense…I could go on here] to help us figure out what in the world our government is really up to.  We have been told for months and months now how bad our economy is.  Obama’s inauguration speech on Tuesday further fed this crisis mentality.  This economic downturn is going to be used to sell Obama’s massive stimulus plan.  But, do you know what’s really in that plan?  Well, you will after you spend some time at ReadTheStimulus.org!

As the webpage says, “$850 Billion, 334 pages, and counting… somebody needs to read it!”  That url again is:

ReadTheStimulus.org

Posted in Conservatism, Educate yourself, Just plain dishonest, Liberalism, Obama, Redistribution of wealth, Socialist economics, Stupid legislation | Tagged: , , , , | Leave a Comment »

Will Washington’s economy withstand four more years of Gregoire “leadership”?

Posted by Liberty on January 21, 2009

Wash unemployment rate jumps to 7.1 percent in Dec

“Washington’s unemployment rate jumped to 7.1 percent last month, the largest one month increase in more than three decades.”

Gregoire pushes cap-and-trade bill

“A cap would be placed on the amount of carbon dioxide emissions that companies release, and companies would be required to buy permits in order to emit at the acceptable level. Companies also could auction off their permits between each other, creating their own market system.”

Good thinking, Queen Christine!  Let’s make doing business in Washington State even more expensive.  All based on the flawed theory of man-made global warming.  Way to go.  Oh and isn’t it ironic that a “market system” would be great for auctioning these worthless carbon emission permits but the free market can’t be permitted to work in ways that would really help Washingtonians?  How about a free market for health insurance?

Posted in Arrogant politicians, Environlunacy, Liberalism, Social engineering, Stupid legislation, Washington State | Tagged: , , , , | Leave a Comment »

Obama’s Choice: FDR or Reagan…government or market…socialism or capitalism

Posted by Liberty on January 12, 2009

Socialism or capitalism?  The choice America is facing at this time is just that existential.  I fear that the average citizen in this country today doesn’t even clearly understand the differences between the two economic systems.  We’ve been in similar economic situations before, chosen wrongly and suffered the consequences.  All I ask is that we examine the past…say the era of the Great Depression, since that’s what our current economy is constantly being compared to.  Pat Buchanan has some important Depression economic stats in the article linked below.  For instance:

“By 1933, 89 percent of stock value had been wiped out, the economy had shrunk by one-third, thousands of banks had closed, a third of the money supply had vanished, and unemployment had reached 25 percent — among heads of households.”

 

Compare that to what’s happening today:

“…the financial collapse and economic crisis of 2008, inherited by Obama, with 40 percent of all stock values wiped out in a year, foreclosures pandemic, and unemployment near 7 percent and surging.”

So what did we do to combat the Depression?

“FDR’s answer: vast federal spending, tough new regulations on business and higher taxes — like Herbert Hoover before him, only more so.

The Depression lasted until war orders from the Allies brought U.S. industry back to life. Before 1940, not once did unemployment fall below 14 percent. In May 1939, Treasury Secretary Henry Morgenthau testified:

‘We are spending more money than we have ever spent before, and it does not work. … I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises. … I say after eight years of this administration we have just as much unemployment as when we started … and an enormous debt, to boot.'”

Obama’s economic stimulus plan consists of spending.  Plain and simple.  Government spending didn’t work in the 1930’s and it won’t work now.  Period.  But the New Deal programs got Roosevelt 3 terms as President and solidified Democrat power.

Obama’s Choice: FDR or Reagan

Posted in American history, Liberalism, Obama, Public education, Redistribution of wealth, Socialist economics, Taxes | Tagged: , , , , , , , | Leave a Comment »

Stop the presses! The New York Times got it wrong

Posted by Liberty on December 23, 2008

From Newsbusters:

New York Times Blames Housing and Financial Crisis on Bush

The New York Times published a story the other day blaming the mortgage market crisis solely on President George W. Bush.  I clicked on the headline, skimmed the first page of the article [it was six pages long], determined it was as biased and inaccurate as the New York Times generally is and moved on.  I’ve decided to revisit that article because, for once, The President is defending himself from attack.  Here’s the NYT hit piece:

White House Philosophy Stoked Mortgage Bonfire

“Today, millions of Americans are facing foreclosure, homeownership rates are virtually no higher than when Mr. Bush took office, Fannie and Freddie are in a government conservatorship, and the bailout cost to taxpayers could run in the trillions.”

And here’s a Fox News story about the response from the White House:

 White House Fires Back at Times Over Housing Meltdown Story

“The White House is pushing back hard against a New York Times article that essentially blamed President Bush for the sub-prime mortgage mess and the Wall Street collapse by linking those crises to a policy goal he stated more than six years ago. 

That goal? 

‘We want more people owning their own home,’ as Bush said in December 2003.”

The Times goes on to claim that Bush encouraged sub-prime lending to lower income and minority families as a way to win more voters.  The Times is conveniently ignoring the complicity of Democrats, including Jimmy Carter, Bill Clinton, Chris Dodd and Barney Frank.

“…the Times made no mention over the weekend of President Clinton’s aggressive deregulation of the financial services industry, which empowered banks, brokerage firms and insurance companies to engage in some of the very practices — such as credit default swaps — that contributed most to the current fiscal crisis. 

While the Times mentioned that mortgage bankers and brokers donated almost $850,000 to President Bush’s 2004 re-election campaign, the newspaper omitted the fact that the top three recipients of campaign contributions from Fannie Mae and its sister organization Freddie Mac over the last two decades were all Democrats. 

Connecticut Sen. Chris Dodd, head of the Senate Committee on Banking, Housing and Urban Affairs; President-elect Barack Obama; and Bush’s 2004 opponent John Kerry all benefited from Fannie and Freddie.”

And, as Noel Sheppard points out in the Newsbusters article:

“housing policies encouraging lax lending standards have existed in this nation since Jimmy Carter signed the Community Reinvestment Act in 1977. This required financial institutions to make loans to lower-income individuals in the communities they served. Non-compliance with this Act would prevent a bank or savings and loan from being able to expand within the states it was currently in and beyond.”

Posted in Liberalism, Main Stream Media, Redistribution of wealth, Socialist economics | Tagged: , , , , | 1 Comment »

The City of Seattle doesn’t plow snowy roads–is it so they can afford salary hikes for pencil pushers?

Posted by Liberty on December 22, 2008

From Crosscut & Kent Kammerer this morning:

Memo to city pols: times are tough

“We are now experiencing the full impact of WaMu layoffs and downsizing of hundreds of other Seattle area employers. While local businesses and the public are feeling the pinch, Seattle decision makers seem much less concerned.

Consider that the City just passed an increase in spending. Seattle’s budget for 2009, will be $3.9 billion. The general fund, which pays for most City functions, is $910 million, up 1.6 percent from 2007, and is projected to rise to $925 million in 2010. To fund the increase, the City will raise parking fees, raise the garbage rates 42 percent and water rates by 38 percent to help pay for the increase in spending. At the same time, it will reduce city revenues with property tax deferments to developers.

Mayor Greg Nickels also just announced that a Seattle top administrator needs a 37 percent pay raise to $302,000 per year. So, is spending on City employees getting out of hand, particularly in a time when many others are making salary sacrifices?”

Posted in Arrogant politicians, Liberalism, Redistribution of wealth, Taxes, Washington State | Tagged: , , , , | Leave a Comment »

What the U.S. can learn from Japan’s failed experiment with “zombie businesses”

Posted by Liberty on December 22, 2008

Return of the Living Dead

“After Japan’s asset bubble burst in the late 1980s, their economy took a sharp downturn, prompting government officials to try bailing out banks and investing in infrastructure, much like the activity and proposals floating around America today. The results were terrible.

With the government propping up poor business models rather than allowing further job losses, firms wound up operating over the long-term without making a profit or adding any value to society. Their utter lack of vitality earned these perpetual money-leaching entities the moniker ‘zombie businesses.’ And unless American policymakers understand the failures of the Japanese response, we will suffer the same zombie fate.”

Check out this article in Reason Magazine today that foreshadows the consequences that we’re likely to face in return for passing out government bailouts like Halloween treats.  Ding dong, here’s $700 billion.  Japan has dealt with a similar economic crisis and they made significant errors that prolonged the problem.  We’re headed down that same road and I predict that Japan’s errors will be our errors.

“First mistake. The Bank of Japan tried to ease economic pains during their downturn through the 1990s by loaning large amounts of money to businesses. However, such attempts to recapitalize the market were counteracted by underlying management problems endemic to the dying firms.”

Check.

“Second mistake. With all those loans, the Japanese government was simply too integrated into the market to have adequate incentives to create the right policies. Daniel Okimoto, former director of the Asia-Pacific Research Center, points out that the interests of Japan’s economic bureaucracies, such as the Ministry of Finance, became interdependent with the banking industry.”

Check.

“Third mistake. The length of Japan’s asset deflation, recession, and liquidity struggles has been blamed largely on the lack of foresighted policies and political leadership. Politicians bent on retaining their power took action that sought to solve the present day concerns, such as infrastructure projects, without regard to their long-term effects. As a result, economic growth was not sustained.”

Check.

“Fourth mistake.Japan tried to climb out of its economic mess by raising taxes and cutting interest rates. Okimoto cites a series of policy mistakes in a report on Japan’s economic stagnation that includes a consumption tax hike, business taxes, and heavy-handed reliance on interest rate cuts that reduced investment incentives.”

Are you getting my drift here?

“Fifth mistake. With the Japanese government enabling lending to zombie businesses, taking cash away from productive ventures, and passing tax laws and other regulations that did not promote growth, the private sector was actively discouraged from investing.”

I encourage you to read the whole article–Anthony Randazzo has done his research.  Clearly our politicians have not.

Posted in Conservatism, Obama, Redistribution of wealth, Taxes | Tagged: , , , , , | 3 Comments »

Economic Crisis? Not at the U.N.

Posted by Liberty on December 6, 2008

Economic Crisis? Not at the U.N.

Did you now that the United States pays 25% of the budget of the United Nations?  According to the U.N. website, there are 192 sovereign states that belong to the U.N.  Interesting.

Posted in Redistribution of wealth | Tagged: , , | Leave a Comment »

Washington enviro-lunacy and budget-lunacy collide

Posted by Liberty on December 5, 2008

State environmentalists outline priorities

“With Washington facing an expected deficit of more than $5 billion in the upcoming two-year budget cycle, environmental groups say they’re heading into the 2009 legislative session with a wish list that adds jobs and revenue.

‘This is not the year to be walking with your hands out,’said Clifford Traisman, lobbyist for the Washington Environmental Council and Washington Conservation Voters. ‘We believe our priorities go hand in hand with generating a stronger economy.’

As in earlier sessions, the groups have several key priorities, mainly focusing on cutting the effects of global warming. They want more energy-efficient buildings, to auction rather than give away pollution credits that allow industries to emit greenhouse gases and to have polluters pay fees to help clean up Puget Sound and other waters.”

Translation:  “We want businesses to pay more for their buildings, pay for “pollution credits” so they may continue to do business and possibly even pay pollution fees.”

Mr. Traisman, how will making Washington even more inhospitable to business generate a stronger economy?  Certainly the environmental agenda will require more bureaucrats to administrate the green-ness of buildings, the distribution of pollution credits and collect all the fines from the evil polluters.  The last thing Washington State needs is more unelected government drones whose jobs are dependent upon money confiscated from citizens and businesses.  And, there is growing dissent among the scientific community about the validity of global warming.  Sure it’s been accepted as gospel by environmental groups, the main stream media and Hollywood celebutards but it would be a serious mistake to further hinder Washington’s economy based on an un-proven theory.

Also, I read recently that 20% of Washington’s working population is employed in some capacity by government.  [Searching madly for the source on this, no luck so far but 1 in 5 or 20% is the figure that I recall.]  Having 20% of the workforce directly dependent upon tax dollars for their own salary is not a good thing.  That doesn’t even factor in all of the tax money that those people can potentially spend in the course of their jobs.

Posted in Environlunacy, Liberalism, Redistribution of wealth, Washington State | Tagged: , , , | 2 Comments »

Punitive taxes for the oil industry–what effect will they have?

Posted by Liberty on November 10, 2008

Professor Mark J. Perry [author of Carpe Diem blog] addresses this question in an article from November 7th’s Investor’s Business Daily.

Punitive Taxation Of Profitable Oil Industry Won’t Break Dependence On Foreign Crude

“With joblessness and serious economic problems rising, the last thing we need is public policy that makes them rise even faster. Yet, there is a danger this could happen if President-elect Obama’s proposed punitive taxes on the oil industry are enacted and lead to less energy development.”

Posted in Liberalism, Redistribution of wealth, Taxes | Tagged: , , , | Leave a Comment »