Bye Bye Stimulus Jobs

Posted by Jason | Posted in Economics, Government | Posted on 01-12-2009

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The Wall Street Journal had an article about how construction companies are going to be laying people off as the stimulus money projects run out.

WASHINGTON—Highway-construction companies around the country, having completed the mostly small projects paid for by the federal economic-stimulus package, are starting to see their business run aground, an ominous sign for the nation’s weak employment picture.

Tim Word, vice president of Dean Word Co., a heavy-construction company in New Braunfels, Texas, said his income is now coming mostly from projects that are winding up. He said that in normal times he has about $100 million of signed contracts in hand. But that number has fallen to $30 million, and the pipeline is empty.

via Job Cuts Loom As Stimulus Fades – WSJ.com.

This is why stimulus does not create jobs. It does not create permanent jobs, because it does not create wealth. Where does the government get the money? It must take it from one area of the economy whether through taxes or borrowing, and it gives it temporarily to another area of the economy. This is temporary, and businesses aren’t stupid enough to fall for it. Yeah, the businesses who receive the money love it. They aren’t going to turn it down. But the other businesses that don’t receive it are either laying off or not hiring because of it. They either don’t have the money to hire because it was taxed away, or they are competing with the government to borrow money. The more money the government is borrowing, the harder it is for small businesses to borrow. After all, who is considered the safest bet when lending, and if the government keeps demanding more money in a slow economy, wouldn’t it be best to lend them the money?

This whole story highlights several things. The government cannot create jobs, create wealth, control the economy, fix economic problems, or help you in anyway that doesn’t hurt you more in other ways.

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Public Education – A View From Outside The Matrix

Posted by Jason | Posted in Education, Government | Posted on 30-11-2009

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If you have not read my previous post, Thanksgiving, Statism and Life Outside the Matrix, you may want to do so first. This will be my first post where I will challenge the assumption of public education, which is what provides us our programming to live within the Matrix.

As I said in my previous post, both sides of the Matrix structure argue about how to best improve public education. One argues for more money. The other argues for more localized control. Neither side questions the existence of government controlled education, the results over the long term, or whether we’d be better off with no government education.

To start, why do statists claim we need a public school system? They claim that all children need an education, and only government can make sure all children regardless of race, class, and gender receive an education. That sounds reasonable, but are the children, especially the poor really getting educated? According to The Daily Beast, 7,200 students drop out every day. In some cities (usually ran by socialists), it’s even worse. In Detroit, only 25% of students graduate. According to CNN, the nationwide dropout rate is 16% or over 6 million students.

Every single school day, more than 7,200 kids, on average, drop out of high school—1.3 million each year. In many American cities, including Miami, Denver, Los Angeles, New York and Minneapolis, most public school students don’t graduate. In Detroit, the unhappy poster child for American industrial decline, a study from last year showed that a mere quarter of students earn high school diplomas.

via America’s Dropout Crisis – Page 1 – The Daily Beast.

Nearly 6.2 million students in the United States between the ages of 16 and 24 in 2007 dropped out of high school, fueling what a report released Tuesday called “a persistent high school dropout crisis.”

The total represents 16 percent of all people in the United States in that age range in 2007. Most of the dropouts were Latino or black, according to a report by the Center for Labor Market Studies at Northeastern University in Boston, Massachusetts, and the Alternative Schools Network in Chicago, Illinois.

via ‘High school dropout crisis’ continues in U.S., study says – CNN.com.

As you can see, the groups most affected by the dropout rate are the groups that socialists claim to champion. Students are dropping out left and right, which does not provide them many options for the future. Then again, why worry? We have a “safety net”. You know if you don’t go to school, you can at least live off the government dole. On top of that, you can partake in criminal activity and receive tax free income. “Cash only please for all drug and stolen good purchases”.

“Yeah, OK Prof, but literacy was horrendous.” Well, let’s take a look at the “improving” literacy. As we all know, slaves were systematically prevented from learning to read and becoming educated, so we can’t really count their literacy under slavery. We can look at how quickly they became literate after slavery ended.

Although the black literacy rate soared from 20% in 1850 to nearly 80% in 1890, blacks were still having a difficult time finding work.

via ljonespage4content.

Wow, that’s damn impressive. Black literacy reached 80% in 1890. Well, what is it now? Hmmm, under our socialized, secular government ignorance programs, it stands at about 60%.

Six decades later, at the end of the twentieth century, the National Adult Literacy Survey and the National Assessment of Educational Progress say 40 percent of blacks and 17 percent of whites can’t read at all. Put another way, black illiteracy doubled, white illiteracy quadrupled.

via Intellectual Espionage – John Taylor Gatto.

White literacy was near 100% at the beginning of the 20th century, and as you can see, it is now at about where the formers slaves were in 1890. According to John Quincy Adams, only 4/10ths of 1 percent of New Englanders were illiterate. Also, I think everyone would agree the books that were read back then were much more challenging.  Isn’t progress wonderful?

How about math and science scores? Well, according to international testing, American children are not what they used to be. The bad news is the longer they are in school, the worse they get.

At science and math, American students trail those in other advanced democracies. The longer students are in school, the worse things get. Among fourth graders, U.S. students rank high on the International Test of Mathematics and Science Study (TIMSS). Despite this head start, by eighth grade, American adolescents have slipped to the midpoint on the TIMSS; by age 17, their scores trail all but those in a few developing countries

via Hoover Institution – Hoover Digest – The Decline and Fall of American Education.

So as you can see, the public schools in our country have failed as all government planned goods and services do. The debate then goes straight to “how do we make them better?” This is the debate that rages inside the statist Matrix. Both sides argue back and forth about how to improve it. The cheerleaders hooray their side and boo the other side, and it’s completely incomprehensible to them that maybe the government should not be forcing people into government schools. All coercive monopolies are bad, and government is a coercive monopoly. If you do not believe so, try to “choose” to keep your children out of government approved schooling. See how long before you go to jail.

What is the solution? Well, let’s start off by agreeing that we should not stick a gun to people’s heads and tell them they are either going to send their children to government schools, or else they will go to jail. Can we agree that is the moral thing to do? I’m sure some will argue that some parents just are too stupid to make sure their kids get educated, so government must stick a gun to your head. The argument goes that because a small group isn’t responsible with their children, the government should stick a gun to everyone’s head and force their kids into public schools. Pro-government school people argue it’s child abuse to not let your child get an education, but then have no problem with the abuse government schools are inflicting on our children at increasing rates as the statistics above show. Let’s not even get into the lunch programs they inflict on children.

Next, let’s let people choose how they want their kids to be educated. If you do not want to send your child to a government school, there is no reason you should have to pay for government schools plus a private school. Do you think this has something to do with why poorer students are worse off? Their parents cannot afford to pay for public and private schools, so they suck it up and send them off the the ignorance factories. You should be able to keep your money. At the very least, you should be able to take your tax dollars to the school of your choice.

Then the government should allow the free market to deliver education options. They should not set standards, because their standards are pretty much useless. They deliver horrible results. Private schools will have to deliver to the parent’s liking, or they will automatically be punished with lost tuition. Government, on the other hand, has no accountability. If you don’t like the results, you still pay for it. If you try not to pay for it, well you know what happens.

Why is it so hard to imagine a world without public schools? It’s hard to imagine because it’s part of your programming. You were brought up in public schooling and taught that you must have public schools. It’s like most of society in the early 1800s, who couldn’t comprehend how former slaves and former slave masters could live in the same society if slavery was abolished.  Instead of admitting it was immoral, abolishing the institution, and letting free men figure their own way out of it, the government legalized slavery every step of the way. They couldn’t see outside the Matrix in which they were living. If the government had not enforced slavery through fugitive slave laws, it’s hard to believe slavery would have lasted long at all. It would have cost plantation owners too much money to chase slaves down when they escaped. They were only able to do so, because government (really the tax payer) ate the cost of chasing them down and returning them. It would have actually been cheaper for plantation owners to hire the slaves or any other workers had they not forced the cost of fugitive slave laws on the society as a whole. What I am saying here is just because you can’t imagine something other than government schools, because you have been programmed to only see it that way, doesn’t mean it’s not possible and better.  When men are free to make choices in their best interest, society progresses more quickly. It is not happenstance that the least regulated areas in our life are all the fast growing and evolving areas, and there is no reason education cannot be the same.

It’s very easy to see how education if unleashed from government shackles could quickly skyrocket in the success it delivers. It’s not hard to envision bountiful options to meet the needs of all children. Does your child excel in math? How about a school that focuses on math, engineering, and computers? Has your child always loved being the center or attention? How about a school that focuses on the arts? Does your child love to fix things and find out how they work? How about a tech school? Do you want your child to focus on reading, writing, and math? How about an elementary school that focuses exclusively on fundamentals? Does your child have special needs? How about a school that specializes in teaching kids with the same needs as your child? Does your child have many interests? How about a school that brings in great teachers from around the country via video conferencing? Better yet, if your child goes to any of the other schools mentioned, how about those schools bringing in the best teachers in their focused area via video? How about sending your child to a school whose competitive advantage is small class sizes? How about a retired NASA scientist being able to teach students without a teaching degree? How about parents, who know their kids best, deciding what school is best for their child. It is not hard to imagine options and schools opening all over the place.

Why would so many schools open? Because there are greedy profiteers out there, and guess what. They have to deliver a quality service in the private sector. According to the 2007 census, the average cost per student in public schools was $9,000. Do you think for one second there wouldn’t be businesses competing for that $9,000 per pupil and driving the cost down? It happens in every other sector of our economy. Well, it does until the government gets jealous and decides to jump into the game.

While I’m sure the diehard statists can never imagine education without Uncle Sam forcing us into a one size fits none system, I hope some of you question your assumptions about our supposed need for public schools. Hopefully, when you hear politicians debating more funding for education, higher national standards, or any other top down school program, you will question it more deeply. You will ask why they would do that in the first place. How does that open up choices? Does not having choices provide better results? Who benefits from this?

Take the Red pill, and ask yourself, “If I could disregard all laws related to education, what would I choose for my child or for myself when I was a child? Would I send them to government schools, or would I send them to schools who must prove themselves in order to get my money?”

PS. Please ignore all spelling, grammar, and punctuation errors. I learned those in public school.

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Obama and Business Owners Differ On How To Create Jobs

Posted by Jason | Posted in Government | Posted on 30-11-2009

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Go figure! Business owners who create jobs everyday differ from our President, who never created or worked at a job that had a real economic value to it.

Businesses of all sizes are brimming with proposals they say would spur economic growth. The most commonly voiced are tax cuts and boosting access to credit

The White House, for its part, wants to discuss job growth in the clean-tech sector and shifting some stimulus spending to infrastructure projects. Obama aides are also eyeing a limited range of incentives for small businesses to create jobs.

Business want tax cuts without spending cuts, and Obama wants more government spending. Wonder why gold keeps going up? If businesses weren’t looking for handouts, they’d be asking for the government to get the hell out of the economy and quit “boosting access to credit”. It’s the boosting of access to credit that created the bubble that just burst and now leaves them in the predicament they are in. We really cannot expect any better from Obama than more government spending. He believes all life’s value comes from the hand of government. Besides, the media has told him repeatedly how smart his is. “He’s possibly the most intellectual President we’ve ever had.”

Another point of contention: A number of chief executives say the government should clear up uncertainty over health care, energy prices and financial regulations. “Companies large and small are saying, ‘I am not going to do anything until these things — health care, climate legislation — go away or are resolved,’ ” said Dan DiMicco, chief executive of steelmaker Nucor Corp.

Who didn’t know that government medaling is causing businesses to stand still? How about government drop all this stuff, so businesses can get back to what they do best, which is creating economic value.

“Hiring often takes time to catch up to economic growth,” said Valerie Jarrett, an adviser on business issues to President Barack Obama.

Thanks Commissar Jarrett! When will we have economic growth?

Among those invited are the chief executives of Boeing Co., AT&T Inc. and FedEx Corp., along with the heads of many smaller companies.

Oh boy. I’m sure these big companies will not ask for government money. Do they bring their own money jars, or does Obama hand them out at the door?

For small businesses, the No. 1 issue is credit, which remains tight despite the billions spent by the government helping ailing banks.

Yeah, but just imagine how much worse things would be if we didn’t give almost $1 trillion to Obama’s buddies. Right! We bailed out Wall Street in order to bail out Main Street. I don’t think credit is going to make a dimes worth a difference when you have the Federal governments foot pressed firmly down on your neck. Again, easy credit lead to this mess. Expanding credit will not fix the problem. It will just setup the next bubble followed by more disaster down the future. Then again! The government can step in and take more control when the next bubble bursts.

Ron DeFeo, CEO of Terex Corp., a maker of heavy construction equipment, said tight credit is hurting his customers. “Small businesses are having a tough time capitalizing any piece of equipment.” Terex has laid off 4,000 people over the past 15 months. Mr. DeFeo said he would “hire 100 people right now” if the government offset a portion of the new hires’ salary with tax incentives.

via White House, Business Leaders Split on How to Create Jobs – WSJ.com.

Is this supposed to be a reason to go more in debt? This guy says he’d hire 100 people right now if the government would give him more money? That simply means the employees can’t produce enough value to justify paying them. The only way they can justify paying them is with a government subsidy. While I am all for getting rid of taxes, just saying I’ll hire with tax incentives is ridiculous. What he is saying is all the other average Joes out there should give him money so he can make those jobs justifiable. I wonder if this guy pays for health benefits. Would dropping health benefits provide enough to justify the positions? Has he looked into HSA for his employees? Does he have ancient equipment that makes employees less productive, thus making it harder to justify paying them? Who knows. The point is we should not just hand out money to anyone to justify creating jobs. We don’t know if the jobs are worth creating.

If you want real job creation, the government needs to get out of job creation. The free market when left alone creates good jobs for everyone. The jobs are long term, because they can justify themselves. If a job generates profits, it’s justified. If it cannot, it should not be created. If the government would get out of health care, corporate welfare, entitlement programs, environmental frauds, etc, the cost of each job would go down. Guess what happens? Many more jobs then become justifiable, and then they are created.

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Thanksgiving, Statism And Life Outside The Matrix

Posted by Jason | Posted in Economics, Education, Government, Gun Control, Health Care, History | Posted on 28-11-2009

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Over Thanksgiving dinner, my brother and I began our normal debates of politics, war, health care, etc. This year was  a little different.

I’ve always been the typical conservative, who believes the government is a necessary evil that wants to control us more and more with healthcare, welfare, net neutrality and on and on, but we need to maintain a strong military and remain on the offense in the war on terror.

Having always considered my self a free market capitalist, I was reading pro-capitalist books, websites, etc. Eventually, I found myself in a world that challenged my own contradictions. I’ve always realized that liberalism was irrational and illogical, but I always thought conservatism was rational and logical. After reading Ron Paul’s book, End The Fed, I started a debate on Mises.org, a pro-free market site founded to spread the economic ideas of Ludwig von Mises. Like most conservatives, I liked Ron Paul’s belief in the constitution and his domestic policy beliefs, but I thought his foreign policy was isolationist and unrealistic. In the forums, I said I like Ron Paul and would vote for him, but I didn’t believe in his isolationism and questioned whether he believed in a strong military. Having always laughed at liberals and all their contradictions, it was now I who seemed to be the one with contradictions.

Not being used to people debating with logic and reason, I quickly felt like I was being presented an option. The forum users were offering me the Red Pill, leading me on a path which would challenge my assumptions and the Matrix in which we live, or the Blue Pill, in which I could ignore their arguments and stay in the comfort of what I’ve always believed and had reinforced by the Matrix. Having always believed in pursuing TRUTH in spite of fear, ostracizing, or ego, I took the Red Pill. Quickly I realized I was outside the Matrix looking in.

The first thing you realize is the Matrix is constructed of two sides who are opposites of the same contradictory, statist coin. Both believe in using government force in order to compel the populace to live by their terms. One side believes in “national greatness” while the other believes in “national virtue”. Neither fulfills their stated goal, and neither believes in individual liberty. Both sides benefit from the endless debate and the “my team is best” mentality. The Matrix was not constructed over night. It was developed over time piece by piece and quickly became the known world to those who know no alternative to life inside the Matrix. Current generations have had the programming loaded into their minds through the government schools. Even if you attend private schools, you must meet certain mandated “standards”. As an adult, your programming is reinforced with TV shows, news programs, and “educational” programs that reinforce the assumptions that were programmed into you as a child.

The founding institution of the Matrix, the State, is formed by competing parties, which you are encouraged to cheer one as your team and boo the others as the enemy no matter what the topic. Debates rage with differing opinions, but never involve root causes or underlying assumptions. Both sides debate particular wars, but never discuss what caused the war or whether foreign intervention is just and in our best interest (ex: Should our military is deployed in 150 countries). We debate how to best raise the standards of public schools, but no one questions the existence of the public schools or the historical failure of them(ex: Black Americans went from 20% literacy rate in 1860 to 80% by 1890. Now, black Americans have a 60% literacy rate). They debate how to best handle retirement savings, but neither questions whether the government should be handling it at all or the consequences of their mishandling (ex: Inflating Wall Street pay via 401ks and IRAs). Currently, we’re debating health care. One side argues for national health care, and the other argues against it. Neither side debates government involvement and it’s effect on skyrocketing prices in the first place.

It’s not hard to understand why the Matrix is so hard to break free from. It’s all we’ve known. We haven’t experienced schooling without public schools, health care without insurance, a world without US policing, or life without so called “safety nets”. During the debate with my brother, who always argued with my beliefs on foreign policy when I was inside the Matrix, agreed Americans were not looking at the issue properly because they are surrounded by re-enforcing factors such as the media. The media never gives a historical perspective. They only ask what should be done about terrorism or which war we should fight. They never ask why is there terrorism or if we think punishing civilians via embargoes will help them overthrow tyranny. They never ask if we believe it creates less responsibility for Wall Street executives when the Fed drops interest rates to zero and promises to prevent bank failures. They are only asked whether we should have bailouts or not.

The funny thing was as soon as the debate turned to public education, my brother was back in the Matrix. I asked the question of why there should even be public schools, and immediately his programming took hold. “You have to have government schools. How would people get schooling? I don’t think the schools are bad. It’s our culture. Teacher unions aren’t to blame, it’s the parents. You can’t teach a child who’s parent is a drug addict. What about the poor?” On and on the debate raged, but he could not get his head around the fact that the government has created the disastrous system in the first place. He could not comprehend a world without the government. It was if nothing comes about without the government. It’s understandable. Can you imagine arguing what life would be like without slavery in the early 1800s? Surely, you would have been nuts. They were living inside their Matrix, created by generations that came before.

Over the coming months, I will attempt to touch on some of these topics. While I am not an expert, I will present you with Red and Blue pills. The Red pill will question whether our lives our better with government involvement in all aspects of our lives. Is the government really protecting us? Could we live without government? You will have to open your mind and challenge your assumptions if you take the Red pill. On the other hand, you can take the Blue pill. You can stay in your comfort zone, fight the same old fights, assume the government is there for your protection, and live out the consequences of those beliefs. The choice is yours, but you must make a choice.

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Bernanke Fights Back

Posted by Jason | Posted in Economics | Posted on 28-11-2009

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Bernanke appears to be on the ropes. He’s fighting back in the Washington Post.

These matters are complex, and Congress is still in the midst of considering how best to reform financial regulation. I am concerned, however, that a number of the legislative proposals being circulated would significantly reduce the capacity of the Federal Reserve to perform its core functions. Notably, some leading proposals in the Senate would strip the Fed of all its bank regulatory powers. And a House committee recently voted to repeal a 1978 provision that was intended to protect monetary policy from short-term political influence. These measures are very much out of step with the global consensus on the appropriate role of central banks, and they would seriously impair the prospects for economic and financial stability in the United States. The Fed played a major part in arresting the crisis, and we should be seeking to preserve, not degrade, the institution’s ability to foster financial stability and to promote economic recovery without inflation.

To start, Bernanke says he’s concerned congress will significantly reduce the capacity of the Fed to perform it’s core functions. Are we supposed to say “oh boy, wouldn’t want that”? It’s core function is to trick businesses and consumers into spending money and then pulling the carpet out from under them when inflation seems to be getting out of control. It’s core functions caused the mortgage meltdown, the tech bubble, skyrocketing oil prices, and skyrocketing food prices. I sure wouldn’t want those functions being impeded.

The government’s actions to avoid financial collapse last fall — as distasteful and unfair as some undoubtedly were — were unfortunately necessary to prevent a global economic catastrophe that could have rivaled the Great Depression in length and severity, with profound consequences for our economy and society. (I know something about this, having spent my career prior to public service studying these issues.)

Bernanke, in his infinite wisdom, has mastered all there is to know about economics. After all, he’s spent his career studying it. What can be more disastrous than a man who doesn’t recognize there are things he doesn’t even know that he doesn’t know. History abounds with disasters from men who thought they had it all figured out and didn’t realize they were living within their own assumptions.  Can someone have Bernanke study the weather? I’d like someone to control the weather, so it’s a constant 75 degrees.

Moreover, looking to the future, we strongly support measures — including the development of a special bankruptcy regime for financial firms whose disorderly failure would threaten the integrity of the financial system — to ensure that ad hoc interventions of the type we were forced to use last fall never happen again.

via Ben Bernanke – The right fix for the Fed – washingtonpost.com.

While Bernanke says he doesn’t want the Fed politicized, he sure is a politician. They cause the problem and then ask you to look to them to be the ones who solve it. We are supposed to believe if we just give them more power, they swear they’ll protect us. This will never, ever, ever happen again. Oh, don’t read history books, you ignorant common man. Just because the Fed was established almost 100 years ago to make sure these things never, ever happened again, doesn’t mean they don’t mean it this time.

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Obama Brings Big Pharma Into The Family

Posted by Jason | Posted in Global Warming, Health Care | Posted on 27-11-2009

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I’m not saying we are a fascist nation yet, but we are moving closer and closer. Obama’s dealings are looking more and more like Don Corleone. Making an offer they can’t refuse, Big Pharma is falling in line.

In June, the Pharmaceutical Research and Manufacturers of America sealed a deal with the White House and Senate Finance Chairman Max Baucus promising to contribute $80 billion in lower drug costs over the next decade to ObamaCare, plus a multimillion-dollar TV ad campaign. In return they were to be spared from price controls and the reimportation of cheaper foreign drugs.

To hell with the people. Obama and Big Pharma are going to prevent importation of drugs from other countries, which would help drive costs down. In a free market, drug companies would not be able to charge one price to foreign consumers and another, higher price to American consumers. American consumers are subsidizing the research and development, so the rest of the world gets the benefit without the cost. In Corleone fashion Obama threatens price controls (death to your business) to Big Pharma, or they can be a team player and benefit like the rest of those who fall in line with “the family”.

The pharma lobby was unfazed. “Despite the shortcomings in the House legislation, we remain completely committed to helping the President and Congress pass comprehensive health care reform this year,” a senior vice president said in a statement. “This is a three-act play and a good critic doesn’t write a review after the opening scenes.”

Why would pharma be fazed, when the Don gives them his word that they’ll be taken care of?

So how has the industry responded? More or less as Lenin predicted. Big Pharma is now running ads against Joe Lieberman, saying his threat to torpedo the Senate bill could cause drug prices to rise by 20%. It is also funding a campaign that targets the fence-sitters Ben Nelson, Mary Landrieu and Blanche Lincoln.

So after we’ve been told how evil Big Pharma is, how they only care about profits, how they careless if you live or die, and how they hold a gun to your head to make you buy their product, we are now supposed to believe they are looking out for the public, and those who stand against government health care are now the bad ones. Oh, how a little threat from the White House can change things.

via Big Pharma Sells Out on Health Care – WSJ.com.

Now we are supposed to believe that Big Pharma is actually giving something up to the benefit of all of us. Do you really believe they are doing something that isn’t in their best interest? This will lock out imported drugs, preventing price competition. It will prevent smaller drug companies from entering the market, thus preventing competition. It also allows the government more control over the drug business. Once Big Pharma enter the family, they can never leave.

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Race To The Top?

Posted by Jason | Posted in Education, Government | Posted on 25-11-2009

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There has been a lot of buzz about Obama’s Race to the Top program to improve public education. Currently, the Education Secretary Arne Duncan, Newt Gingrich and Rev. Al Sharpton are traveling the country together to promote the program.In this morning’s Wall Street Journal, former congressman Harold E. Ford Jr, a former IBM Chairman and a founder of The Broad Foundations wrote an article calling for accountability for President Obama.

By HAROLD E. FORD JR., LOUIS V. GERSTNER JR. AND ELI BROAD

For decades, policy makers have talked about significantly improving public education. The problem has been clear: one-third of public school children fail to graduate, there are embarrassing achievement gaps between middle-class children and poor and minority children, and the gap between our students and those in other countries threatens to undermine our economic competitiveness. Yet for the better part of a quarter century, urgent calls for change have seldom translated into improved public schools.

Now, however, President Barack Obama has launched “Race to the Top,” a competition that is parceling out $4.35 billion in new education funding to states that are committed to real reform. This program offers us an opportunity to finally move the ball forward.

To that end Mr. Obama and Education Secretary Arne Duncan are pushing states toward meaningful change. Mr. Duncan has even stumped for reform alongside former Republican House Speaker Newt Gingrich. Yet the administration must continue to hang tough on two critical issues: performance standards and competition.

First, I must say Newt Gingrich in pursuit of trying to be bipartisan has become a stooge of the left. If he thinks giving his support is going to get any real reforms, he’s become Charlie Brown hoping Lucy won’t move the ball this time. What’s worse is no one will no if he doesn’t agree with the ultimate outcome, but his name will be used for what will be called a “bipartisan effort”.

Already the administration is being pressured to dilute the program’s requirement that states adopt performance pay for teachers and to weaken its support for charter schools. If the president does not remain firm on standards, the whole endeavor will be just another example of great rhetoric and poor reform.

Competition among the states is also vital to reform. The administration is resisting the temptation to award funds to as many states as possible. And that’s good. To be effective, Race to the Top funds cannot become a democratic handout. Competition brings out the best performance. That’s true in athletics and in business, and it’s true in education.

Wow, all the sudden liberals realize competition among states is vital to reform, and competition is what brings out the best results? Who said progress isn’t being made. If they now realize this, can we make more moves back towards federalism, in which we had states competiting? Better yet, how about we get the federal government out of education altogether? How can you have competition when the government always promotes one size fits all policy on all states? Can we remove much of the federal laws and allow states to compete for the best standards of living? Citizens can then again vote with their feet. When the federal government creates national laws, citizens cannot hold states accountable. It doesn’t matter where you go, you still have to deal with the federal law. Your only choice is to leave the country, which ultimately harms our country.

The old way of doing business would be to spread around the money so no one could be held accountable. The new approach is to give governors authority and responsibility, and then hold them accountable for results.

For decades, adult interests have been at the forefront of public education. Reform has been derailed by adults who wanted to protect the status quo and enjoy lifelong benefits. This time the focus will be on learning in the classroom. What’s important is that the administration is demanding that every child receive an education that prepares him or her for college or for work. Without that we will continue to be sidetracked by insignificant issues.

Again wow, some truth from these guys. Ok, so now I must ask if we know this, then why aren’t we redoing all the federal dollars? Why are we continuing to spread money around?  According to the Department of Education’s website here is how much money they are spreading around with no accountability.

ED currently administers a budget of $62.6 billion in regular FY 2009 discretionary appropriations and $96.8 billion in discretionary funding provided under the American Recovery and Reinvestment Act of 2009

via U.S. Department of Education Budget Office.

Wow, imagine what we could do if we actually focused over $150 billion on the classroom? Instead you have teacher’s unions setting up life long cushy jobs and retirement plans that private sector workers could only dream about.

States that have the track record and leadership in place to implement Mr. Obama’s aggressive reform menu—of enforcing rigorous academic standards, creating data systems that track individual student performance, ensuring teacher quality and effectiveness, and turning around failing schools—deserve the funds to show that our public schools can again lead the world.

We have yet to prove, on a systemic basis, that we can dramatically improve America’s public schools. Race to the Top is a chance to start small, hold states accountable, and expand proven reforms to the rest of the country.

via Harold E. Ford Jr., Louis V. Gerstner Jr.,And Eli Broad: Race to the Top in Education – WSJ.com.

Ok, here is the root of the problem. You are rewarded based on your record of implementing “Mr. Obama’s agressive reform menu”. The problem is the whole damn thing is captive to politics. Assume this policy improves results. After Obama is replaced, you then have to worry about who’s menu is next? I’m not saying Obama’s menu is good, because I don’t know what it is. The problem is you hold the carrots way above where the work actually takes place. The further you get away from the end participants, the harder it is for you to dictate good policy and the harder it is to know what’s working.

If you want real reform, the federal government should get out of education. Governors should then open education to all providers public and private. Parents should be able to take either their own taxes or their allocation of taxes per student to any school they want. This would generate massive competition and a massive improvement in the education of children in this country. Even the writers of this article admit that competition is what generates results. Are they advocating only a little competition? Don’t they want spectacular results, or are they too afraid they’d loss their political power?

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Uncle Sam’s Crowding Out Of Private Lending

Posted by Jason | Posted in Economics, Government | Posted on 24-11-2009

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For anyone who thinks we’ll be pulling out of this recession anytime soon, you may want to think again. Even if we do pull out, it will more than likely be temporary. Unfortunately, the government is crowding out private investment by killing financing to the privates sector. George Melloan, author of “The Great Money Binge: Spending Our Way to Socialism” writes in the Wall Street Journal.

For anyone who wondered if last winter’s federal seizure of the financial services industry would have adverse economic consequences, an answer is now available. The credit market has been tilted to favor a single borrower with a huge appetite for money, Washington. Private borrowers, particularly small businesses, have been sent to the end of the queue.

The Federal Reserve, which supervises some 7,000 banks, has been telling bankers that they must cut risk. The most spectacular step in that effort was the Fed announcement last month that it will evaluate the salaries of bank officers on how carefully they manage risk.

By official definition, Treasury securities are risk-free, so how better to manage risk than to pad your bank’s portfolio with Treasury securities, which is what bankers are doing. Under the new management from Washington, bankers who take a flyer on a venture that might some day become an Apple, Microsoft or Google will risk not only their depositors’ money but a possible pay cut. Banking has been captured by the nanny state, which means that its potential for contributing to economic growth and job creation has been sharply curtailed, even as its potential contribution to government growth has been expanded.

The federally dictated risk-aversion was underway even before the Fed began monitoring banker paychecks. According to the Fed’s September flow of funds report, commercial banks were net buyers of Treasury securities to the tune of $25 billion on an annualized basis in the second quarter. They were net buyers of federal agency paper—think Fannie Mae and Freddie Mac—at an annualized rate of a whopping $185 billion, contributing mightily to federal efforts to keep these miscreants afloat. Meanwhile, private lending, which once was the mainstay of banking, was shrinking at a $392 billion annual rate.

Washington hasn’t been able to milk the taxpayers sufficiently to finance its massive deficit. The Chinese are getting skittish as well. So tapping bank deposits is yet another avenue to a big pot of cash. As for the bankers, they’ve been awarded an easy life. Thanks to the Fed’s zero interest-rate policy, they can make a decent profit on “safe” Treasury and agency securities yielding 3% or more. The too-big-to-fail banks like Citi and Bank of America can draw on their big shareholder, the U.S. Treasury, if their capital needs further supplements. Bankers don’t have to worry about making risk judgments because they’ve been ordered to not take risks. So maybe the Fed is justified in cutting their salaries, since whatever banking skills they had—meaning the ability to assess risk—are no longer needed or wanted. An office boy could buy government bonds.

via George Melloan: Government Deficits and Private Growth – WSJ.com.

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Republicans fight for the free market?

Posted by Jason | Posted in Health Care | Posted on 23-11-2009

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This health care bill is so anti-free market, you know Democrats had to create it. At least we have the Republicans to fight for the free market… or something like that.

The danger for Republicans is that their delay tactics begin to look like political opportunism and they appear to obstruct a bill that contains some popular elements such as restrictions on health insurers.

In the give and take on the Senate floor, where the bill will be debated in December, Republicans hope to drive a wedge among Democrats, potentially peeling off centrists on key issues. Republicans also hope to force attention to their own proposals for changing health care, such as limiting medical-malpractice claims and enhancing the ability of small businesses to buy insurance.

“I think people will be more comfortable with us biting off what we can chew instead of this arrogance, thinking we can fix the whole system all at once,” Mr. Alexander said.

via For GOP, Health Is Only One Battle on Road to ’10 Elections – WSJ.com.

OK, so Republicans aren’t for the free market either, they just aren’t as anti-free market as the Democrats. Limiting medical malpractice should not be something the Federal government does. If anyone should pass tort reform, it should be state legislatures. This would cause competition amongst states for doctors and would ultimately lead to a better solution. States would try out different reforms. They could look at each other’s examples and learn from the mistakes and successes. Instead, Republicans believe in a one size fits all plan.

Also, enhancing the ability of small businesses to buy insurance will not fix the rising health care costs. Having businesses in the health care insurance purchasing business is one reason for the increasing costs. Republicans need to get back to the free market ideas and remove the incentives for businesses to provide insurance. Then consumers would be in charge of their health care. HSAs were the right way to go, and more than likely consumers would move towards HSAs if government would stay out of the business of promoting health insurance.

At least Republicans aren’t looking to take over our health care, but it sure would be nice if someone was fighting for the free market in Washington.

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Government job creation?

Posted by Jason | Posted in Economics, Government | Posted on 23-11-2009

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Would someone please ask the government to stop creating jobs before we are all unemployed? Most of these idiots never even held a real private sector job, and yet they are trying to create jobs. Government can only do one thing. It can take money from private citizens at the point of a gun and give it to other private citizens. That will not create jobs.

White House Chief of Staff Rahm Emanuel said in an interview that “there are two engines to our economic message, two ways to generate jobs. One is small business, the second is energy.” The government could promote hiring in those sectors through expanded tax credits or lending. “It’s not about legislation — it’s about the economy,” he said.

House Speaker Nancy Pelosi last week said ideas under discussion in the House included a tax on a variety of financial transactions. Democrats estimate such a tax could raise as much as $150 billion a year, a pool of money that could help offset the cost of a job-growth package.

via Weighing Jobs and Deficit – WSJ.com.

I love these idiots in the White House and Congress. How is small business and energy going to create jobs when you are pillaging both of them, Rahm. Small business  is going to get hammered with all these health care bills. Energy is not allowed to flourish in our country because of special interest groups. The government is pushing cap n trade, while  the sham of global warming has finally come to light with the hacked emails of global warming scientists. Cap n Trade will drive up costs on businesses and families. Congress is also raising taxes for the health care bill, and they are going to let Bush’s tax cuts expire. All of this leads to increased burdens on the private sector, but some how these morons see this as job creating stimulus.

Nancy Pelosi’s solution to job creation is to tax a variety of financial transactions? I guess I shouldn’t be surprised. For some reason, she believes you can tax your way to prosperity. Why do we tax cigarettes again? Oh yeah, because we want people to smoke less. You tax something in order to punish it and get less of it. So Nancy Pelosi wants to tax financial transactions. What do you think is going to happen? You are going to get less financial transactions. That sounds like another great job creating idea.

Would someone pull the plug on Washington already. They have no clue how jobs are created. Please make them stop before everyone is out of work, and we’re relying on these morons for the bread lines.

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