A Few Observations From The Polls

I have visited my local voting place twice today. Don’t worry–I didn’t vote twice–my husband was handing out information, and I went to provide food and moral support. While I was there, I picked up some literature from the Democrats and investigated the talking points on their local website.

This is what I learned.

Their website states:

Democrats are standing up for the American Dream: an economy and government that works for everyone, not just the few.

Found on their Twitter page:

Hi kids, this is your Mom. Remember to vote on 11/6. If Trump cuts my Social Security and Medicare I’m moving in with you!

Both these statements are totally misleading.

The American Dream is more accessible to everyone under President Trump than it was under President Obama, a Democrat. According to a Western Journal article posted December 18, 2017:

The national unemployment rate for black Americans, ages 16 and over, is the lowest it has been in 17 years, according to the Bureau of Labor Statistics.

In November 2016, the unemployment rate for black people was at 8 percent, and in November 2017 that rate dropped to 7.3 percent — a percentage not seen since the months of September, October and November 2000.

As reported by CNS News, black unemployment rate during the Bush and Obama era’s fluctuated between 7 and 17 percent.

BLS data also shows that labor force participation among African-Americans rose from 61.9 percent in November 2016 to 62.2 percent in November 2017.

Unemployment rate for the Hispanic demographic fell from 5.7 percent to 4.7 percent — the lowest it’s been in 44 years, while the unemployment rate for whites and Asians hovered around 3 percent, roughly the same as one year prior.

About Social Security cuts–none of us can predict the future, but we can draw conclusions based on past behavior. This is the chart showing Cost of Living Adjustments (COLA) to Social Security in recent years:

I know that it’s only a coincidence that one of the biggest increases in Social Security occurred in 2011, a year before the 2012 election.

As far as Medicare is concerned, the statements are also misleading. The Republicans are not the ones who have cut Medicare. Medicare funding was cut to fund ObamaCare. On August 13, 2012, Forbes Magazine reported:

You wouldn’t know it from listening to the Obama campaign, but there’s only one Presidential candidate in 2012 who has cut Medicare: Barack Obama, whose Affordable Care Act cuts Medicare by $716 billion from 2013-2022. Today, the Romney campaign reiterated its pledge to repeal Obamacare, and promised to “restore the funding to Medicare [and] ensure that no changes are made to the program for those 55 and older.”

If any of the above is news to you, you need to reconsider where you are getting your news. If you were already aware of the above information and voted Democrat, then it is obvious that facts will not get in the way of your opinion. Facts are such inconvenient things.

The Consequences Of Not Understanding Economics

I am not an authority on economics. I am, however, a person who watches what goes on around me and sometimes learns lessons from what I see. Some economic principles are obvious enough to be learned that way.

In 2013, Forbes Magazine posted an article quoting a statement by then-President Obama on the subject of economic freedom. Economic freedom was not something President Obama believed in. President Obama acted on his belief that economic freedom was not a good thing, and the American economy suffered during his presidency.

The article quotes a speech President Obama gave in Kansas:

there is a certain crowd in Washington who, for the last few decades, have said, let’s respond to this economic challenge with the same old tune. “The market will take care of everything,” they tell us. If we just cut more regulations and cut more taxes–especially for the wealthy–our economy will grow stronger. Sure, they say, there will be winners and losers. But if the winners do really well, then jobs and prosperity will eventually trickle down to everybody else. And, they argue, even if prosperity doesn’t trickle down, well, that’s the price of liberty.

Now, it’s a simple theory. And we have to admit, it’s one that speaks to our rugged individualism and our healthy skepticism of too much government. That’s in America’s DNA. And that theory fits well on a bumper sticker. (Laughter.) But here’s the problem: It doesn’t work. It has never worked. (Applause.) It didn’t work when it was tried in the decade before the Great Depression. It’s not what led to the incredible postwar booms of the ’50s and ’60s. And it didn’t work when we tried it during the last decade. (Applause.) I mean, understand, it’s not as if we haven’t tried this theory.

Well, have we tried this theory? A little history is in order here.

The article reminds us:

I pick 100 years deliberately, because it was exactly 100 years ago that a gigantic anti-capitalist measure was put into effect: the Federal Reserve System. For 100 years, government, not the free market, has controlled money and banking. How’s that worked out? How’s the value of the dollar held up since 1913? Is it worth one-fiftieth of its value then or only one one-hundredth? You be the judge. How did the dollar hold up over the 100 years before this government take-over of money and banking? It actually gained slightly in value.

Laissez-faire hasn’t existed since the Sherman Antitrust Act of 1890. That was the first of a plethora of government crimes against the free market.

…Obama absurdly suggests that timid, half-hearted, compromisers, like George W. Bush, installed laissez-faire capitalism–on the grounds that they tinkered with one or two regulations (Glass-Steagall) and marginal tax rates–while blanking out the fact that under the Bush administration, government spending ballooned, growing much faster than under Clinton, and 50,000 new regulations were added to the Federal Register.

The philosophy of individualism and the politics of laissez-faire would mean government spending of about one-tenth its present level. It would also mean an end to all regulatory agencies: no SEC, FDA, NLRB, FAA, OSHA, EPA, FTC, ATF, CFTC, FHA, FCC–to name just some of the better known of the 430 agencies listed in the federal register.

Even you, dear reader, are probably wondering how on earth anyone could challenge things like Social Security, government schools, and the FDA. But that’s not the point. The point is: these statist, anti-capitalist programs exist and have existed for about a century. The point is: Obama is pretending that the Progressive Era, the New Deal, and the Great Society were repealed, so that he can blame the financial crisis on capitalism. He’s pretending that George Bush was George Washington.

Please follow the link to read the entire article. It accidentally explains the reasons the economy has prospered under President Trump. I also strongly recommend reading The Creature From Jekyll Island by G. Edward Griffin for the story behind the creation of the Federal Reserve System.

 

 

Somehow A Lot Of The Media Missed This

On March 20, The Washington Times posted an article about the impact of HB2 (also known as the bathroom bill) on the North Carolina economy. Despite much of the media in North Carolina telling you that the bill has hurt the state economically, the actual numbers tell a different story.

Here are some basic facts taken from the article:

Tourism has thrived: Hotel occupancy, room rates and demand for rooms set records in 2016, according to the year-end hotel lodging report issued last week by VisitNC, part of the Economic Development Partnership of North Carolina.

Meanwhile, North Carolina ranked fourth in the nation for attracting and expanding businesses with the arrival of 289 major projects, and seventh in projects per capita — the same as in 2015, according to Site Selection magazine, which released its 2016 rankings in the March edition.

North Carolina finished first for drawing corporate facilities in the eight-state South Atlantic region, said Site Selection, which uses figures tracked by the Conway Projects Database.

And in November, both Forbes and Site Selection magazine ranked North Carolina the No. 2 state for business climate.

Also unscathed was the state’s seasonally adjusted unemployment rate, which registered at 5.3 percent in January 2016 and 5.3 percent in January 2017, according to the U.S. Bureau of Labor Statistics.

The figures released almost exactly a year after the bill’s passage appear to fly in the face of predictions of economic doom made by opponents of HB2. The Center for American Progress estimated in April that the state would lose more than $567 million in private-sector economic activity through 2018.

Obviously the predictions of gloom and doom if HB2 passed were not true. I have stated before that I truly believe if you asked parents of high school children whether or not they wanted members of the opposite sex in their children’s high school locker rooms, the answer would be a resounding NO. I understand that there are a small number of people impacted by this law, but the answer is simply to allow them private changing and restroom facilities. The same people who support ‘safe spaces’ for college students because their candidate lost the last election should at least support private spaces for students and others struggling with their sexuality.

Wisdom From The Voice Of Experience

Senator George McGovern was elected to the Senate in 1962. He left the Senate in 1981.

In June 2011, Forbes Magazine noted:

After leaving the Senate in 1981, McGovern hit the lecture circuit and in 1988 decided to invest his speaking fees in the Stratford Inn in Connecticut. He loved the idea of running a hotel. It went bankrupt a few years later, thanks in large part to the withering recession of 1990-91. But the experience gave McGovern new wisdom on how little politicians understand the arduous task of job creation.

I would like to point out that the recession of 1990-1991 was caused by a bi-partisan deal to ‘raise taxes on the rich.’ This was done in the form of instituting a tax on ‘luxury items’ such as expensive boats and jewelry. As boat sales and expensive jewelry sales dropped significantly, people in the boat-building business and some areas of the jewelry industry began to lose their jobs. As these people decreased their spending on going out to dinner, travel, and entertainment, those industries began to suffer and more people lost their jobs. At that point Americans began to curtail their spending in other areas because of fear of a recession, and the recession followed. This was a graphic illustration of the Laffer Curve at work.

The Forbes Magazine article quotes a Wall Street Journal editorial written by Senator McGovern in 1992.

In The Wall Street Journal, Senator McGovern states:

In 1988, I invested most of the earnings from this lecture circuit acquiring the leasehold on Connecticut’s Stratford Inn. Hotels, inns and restaurants have always held a special fascination for me. The Stratford Inn promised the realization of a longtime dream to own a combination hotel, restaurant and public conference facility–complete with an experienced manager and staff.

In retrospect, I wish I had known more about the hazards and difficulties of such a business, especially during a recession of the kind that hit New England just as I was acquiring the inn’s 43-year leasehold. I also wish that during the years I was in public office, I had had this firsthand experience about the difficulties business people face every day. That knowledge would have made me a better U.S. senator and a more understanding presidential contender.

Today we are much closer to a general acknowledgment that government must encourage business to expand and grow. Bill Clinton, Paul Tsongas, Bob Kerrey and others have, I believe, changed the debate of our party. We intuitively know that to create job opportunities we need entrepreneurs who will risk their capital against an expected payoff. Too often, however, public policy does not consider whether we are choking off those opportunities.

My own business perspective has been limited to that small hotel and restaurant in Stratford, Conn., with an especially difficult lease and a severe recession. But my business associates and I also lived with federal, state and local rules that were all passed with the objective of helping employees, protecting the environment, raising tax dollars for schools, protecting our customers from fire hazards, etc. While I never doubted the worthiness of any of these goals, the concept that most often eludes legislators is: `Can we make consumers pay the higher prices for the increased operating costs that accompany public regulation and government reporting requirements with reams of red tape.’ It is a simple concern that is nonetheless often ignored by legislators.

We have just elected a President who has the experience of running a business and dealing with government regulations. Hopefully, he has already learned the lessons Senator McGovern learned after he left office.