The Arrival Of Robin Hood

Remember teaching your children that money doesn’t grow on trees and that they have to earn it? Evidently some of our members of Congress never learned that lesson.

Yesterday Breitbart posted an article about some recent statements made by Representative Rashida Tlaib, a Democrat from Minnesota.

The article reports:

Far-left “Squad” member Rep. Rashida Tlaib (D-MI) spoke at the NAACP convention over the weekend and railed against the GOP tax cuts in a pitch for her anti-poverty BOOST Act, promising to take money from the rich and give it “back to the people that earned it.”

Tlaib introduced her anti-poverty legislation – the Building Our Opportunities to Survive and Thrive (BOOST) Act – last month and spoke about it at the NAACP convention over the weekend. The proposal offers a guaranteed income – up to $6,000 per year – to families and individuals under certain financial thresholds via a “refundable tax credit that can be paid monthly.”

The Michigan lawmaker’s BOOST Act serves as her response to what she calls the “GOP Tax Scam,” despite the fact that two-thirds of Americans will pay less in taxes in 2018, thanks to the tax cuts.

“Recently, I introduced the Boost Act. This legislation completely repeals the GOP Tax Scam that is only helping wealthy individuals – the rich, the corporations,” she told the crowd.

“And do you know what I did with that money? Do you know what I said? We’re going to go ahead and put it in the pockets of folks like everyday Americans,” she said, noting that families making less than $100,000 could get up to $6,000 per year.

Taking the moral route, Tlaib said it is important to give money back to the people who actually “earned” it, suggesting that wealthy individuals do not earn or deserve to keep the fruits of their labor.

 I guess the Democrats have decided that class warfare works better than racism. Their playbook is getting very old.

The article notes the impact of the GOP tax cuts:

The economy has seen a boost from the GOP tax cuts, with companies issuing employee bonuses and announcing plans to invest billions in the U.S., thereby providing thousands of new jobs.

Last year, Exxon Mobil announced that it would invest $50 billion in the U.S. economy, adding 12,000 new jobs, thanks to the GOP tax cuts.

Even Starbucks, a notoriously left-leaning company, used millions of its corporate tax cut to raise the wage for existing workers.

Under Tlaib’s economic plan, the people who would benefit are the people who are not working; and the people who would lose are the people who work for a living. How long would it be before those who are working to give those who don’t work a free ride would see the folly of their ways and quit producing? That’s where socialism always winds up.

Propping Up A Dictator

One America News is reporting today that two Russian air force planes landed in Venezuela’s main airport on Saturday carrying a Russian defense official and nearly 100 troops. This is reported by a local journalist.

The article reports:

Reporter Javier Mayorca wrote on Twitter on Saturday that the first plane carried Vasily Tonkoshkurov, chief of staff of the ground forces, adding that the second was a cargo plane carrying 35 tonnes of material.

An Ilyushin IL-62 passenger jet and an Antonov AN-124 military cargo plane left for Caracas on Friday from Russian military airport Chkalovsky, stopping along the way in Syria, according to flight-tracking website Flightradar24.

The cargo plane left Caracas on Sunday afternoon, according to Adsbexchange, another flight-tracking site.

It sounds as if the Russians are attempting to duplicate what they did in Cuba many years ago, support an unpopular dictator who will be a thorn in the side of America. The Russians have another reason to want to keep Venezuela indirectly under their control.

On March 22nd The Miami Herald reported:

Cuba would have to spend nearly $2 billion a year to meet its domestic oil needs if Venezuela’s National Assembly and interim president Juan Guaidó manage to stop deliveries to the Caribbean island.

“Cuba’s demand for oil is about 130,000 barrels per day, and Cuba produces about 50,000 barrels per day, which means a deficit of about 80,000 barrels per day,” said Jorge Piñón, director of the Latin American Energy Program at the University of Texas at Austin.

Piñón estimates that Cuba has fuel reserves for about 45 days. But the end of deliveries by Venezuela’s PDVSA oil company would force the government to spend nearly $5.2 million per day at the market price of $65 per barrel for the 80,000 barrels per day it would need to import to meet demand.

By the end of one year, that would add up to nearly $2 billion for an economy that economists agree has not reached 2 percent annual growth in recent years and has probably experienced a recession.

The National Assembly, controlled by the opposition, recently ordered a suspension of crude shipments to Cuba, which started under an agreement to exchange oil for medical services negotiated by the late Fidel Castro and Hugo Chávez.

PDVSA now ships an estimated 40,000 to 50,000 barrels per day to Cuba, not quite half of what the oil company sent before it spiraled into an unprecedented crisis under the Nicolás Maduro regime.

There is also another aspect of Venezuela’s oil shipments.

In November 2013, I reported:

On Friday the Associated Press reported that PDVSA, the government-owned oil producer in Venezuela, seized control of two oil rigs owned by a unit of Houston-based Superior Energy Services. The company had shut down the rigs because the Venezuela oil monopoly was behind on payments.

Nicolas Maduro, the successor to Hugo Chavez, has not taken over any industries during the six months he has been President of Venezuela. This is the first move he has made in that direction. When Hugo Chavez began taking over industries, one news analyst observed that it would be difficult for him to keep those industries running at their profit levels without the knowledge of the companies that owned them. The seizure of these two rigs, which are repair rigs, is an illustration of that point.

Like it or not, free enterprise generates more wealth for more people than socialism.

It is a safe bet that oil production is only a fraction of what it was before Maduro took over the oil industry. That adds to the financial woes of Venezuela and will also have an impact of Cuba.

Wise Words From An Economic Professor

Walter E. Williams is a professor of economics at George Mason University. I heard him speak many years ago when one of my daughters received a degree from Northern Virginia Community College. He is a brilliant man. On March 16th, Professor Williams posted an article at the Daily Wire. The article deals with the idea of redistributing wealth.

The article states:

In a free society, people earn income by serving their fellow man. Here’s an example: I mow your lawn, and you pay me $40. Then I go to my grocer and demand two six-packs of beer and 3 pounds of steak. In effect, the grocer says, “Williams, you are asking your fellow man to serve you by giving you beer and steak. What did you do to serve your fellow man?” My response is, “I mowed his lawn.” The grocer says, “Prove it.” That’s when I produce the $40. We can think of the, say, two $20 bills as certificates of performance — proof that I served my fellow man.

A system that requires that one serve his fellow man to have a claim on what he produces is far more moral than a system without such a requirement. For example, Congress can tell me, “Williams, you don’t have to get out in that hot sun to mow a lawn to have a claim on what your fellow man produces. Just vote for me, and through the tax code, I will take some of what your fellow man produces and give it to you.”

The last example shouldn’t even be legal.

The article also comments on the idea of ‘making enough money”:

Let’s look at a few multibillionaires to see whether they have served their fellow man well. Bill Gates, co-founder of Microsoft, with a net worth over $90 billion, is the second-richest person in the world. He didn’t acquire that wealth through violence. Millions of people around the world voluntarily plunked down money to buy Microsoft products. That explains the great wealth of people such as Gates. They discovered what their fellow man wanted and didn’t have, and they found out ways to effectively produce it. Their fellow man voluntarily gave them dollars. If Gates and others had followed President Obama’s advice that “at a certain point” they’d “made enough money” and shut down their companies when they had earned their first billion or two, mankind wouldn’t have most of the technological development we enjoy today.

The article concludes:

Take a look at the website Billionaire Mailing List’s list of current billionaires. On it, you will find people who have made great contributions to society. Way down on the list is Gordon Earle Moore — co-founder of Intel. He has a net worth of $6 billion. In 1968, Moore developed and marketed the integrated circuit, or microchip, which is responsible for thousands of today’s innovations, such as MRIs, advances in satellite technology and your desktop computer. Though Moore has benefited immensely from his development and marketing of the microchip, his benefit pales in comparison with how our nation and the world have benefited in terms of lives improved and saved by the host of technological innovations made possible by the microchip.

The only people who benefit from class warfare are politicians and the elite; they get our money and control our lives. Plus, we just might ask ourselves: Where is a society headed that holds its most productive members up to ridicule and scorn and makes mascots out of its least productive and most parasitic members?

If you want to be a millionaire, find a need and fill it. That is the proven method.

The Power Of The Media Illustrated

This is the current polling from RealClearPolitics:

This is some recent economic news reported by The Washington Times on January 9:

Given the dazzling December economic data, it’s no wonder the press gave it short shrift. According to the U.S. Bureau of Labor Statistics, the economy added a whopping 312,000 jobs, far more than the expected 176,000. After revisions, job gains have averaged an impressive 254,000 per month over the past three months. Job growth in 2018 (an average of 220,000 per month) passed that of both 2016 (195,000) and 2017 (182,000). Payrolls increased by 2.6 million in 2018, the highest since 2015.

The sunny jobs picture encouraged 419,000 new workers to enter the workforce and sent the labor force participation rate up to 63.1 percent. Unemployment rates among blacks, Latinos and women are at or near historic lows.

Job growth has also meant significant wage growth. Wages are up a stunning 3.2 percent from last year and .4 percent from November. December was the third straight month that the yearlong growth in nominal average hourly earnings was above 3 percent in nearly a decade; the last time we saw that trend was April 2009. Wages are also being given an assist by inflation being kept in check.

The article at The Washington Times concludes:

His (President Trump’s) astounding economic track record is their worst nightmare. It puts the lie to the nonsense Mr. Obama, the Democrats and the media have been shoveling for years: That anemic economic growth, high unemployment, the collapse of manufacturing and grotesque trade imbalances were the “new normal.”

It also pointedly demonstrates that the statist vision — radical wealth redistribution, socialized medicine, green energy chimeras, social justice enforcement, limits on free speech, private property and gun ownership, and the rule of the leftist mob — creates only tyranny, poverty, injustice and servitude. (Note the deflection: These are things the left claims to want to eradicate.)

Mr. Trump and his economic thunderbolt are exposing the left and its policies as irredeemably bankrupt, economically and morally. And that is perhaps the biggest reason why they must try to destroy him.

A lot of this economic news has not been reported. However, people do notice when there are more jobs available and there is more money in their paycheck. President Trump’s approval numbers are finally in positive numbers. The economy is booming. What would be the basis for most Americans believing America is headed in the wrong direction? Might it be the constant negative reporting from the media? Can you imaging what President Trump’s approval rating would be if the media were actually balanced? Just remember–the people vote. The media represents only a small percentage of votes.

Consequences Of Good Economic Policy

On Friday, Investor’s Business Daily posted an editorial about The Heritage Foundation’s 25th annual “Index of Economic Freedom.”

The editorial reports:

In just one year, the U.S. climbed six places to 12th worldwide on the Heritage Foundation’s 25th annual “Index of Economic Freedom.” The U.S. index score of 76.8 is the highest since 2011, the report says.

Heritage bases its annual rankings on a dozen different measures of economic freedom, such as tax burden, protection of property rights, tax burden trade policies, labor laws, judicial effectiveness.

…In fact, during Obama’s tenure, the U.S. plunged from 6th place down to 18th on the Heritage freedom rank, in the wake of tax hikes and massive new financial, insurance and environmental regulations.

The editorial explains the importance of these ratings:

Why do these rankings matter? As Heritage explains, there’s a clear correlation between economic freedom and prosperity. The freer an economy is, the more prosperous its people.

Heritage finds that in countries consistently rated “free” or “mostly free,” average incomes are twice that of all other countries, and five times that of “repressed” economies.

The most striking example of the connection between freedom and prosperity is Venezuela. One of the wealthiest countries in South America before socialist dictator Hugo Chávez took control, Venezuela is now racked with hyperinflation, starvation, and political chaos.

But you can see the same impact in the U.S. as well.

The editorial concludes:

And the benefits of this growth are widespread. The unemployment rate was just 3.9% at the end of the year. The job market is so vibrant right now that it’s pulling people off the sidelines to look for work. In fact, the number of people who aren’t in the labor force actually declined last year. That hasn’t happened since 1996 — which was in the middle of the Clinton boom. Wage growth is accelerating, and median household incomes are at record highs.

The freedom index is a powerful reminder that while redistributionist policies — like those currently in favor among Democrats — might be emotionally satisfying, they won’t grow the economy or boost prosperity.

It will be interesting where our rating is next year in view of the fact that the Democrats now control the House of Representatives.

Exactly What Does ‘Paying Down The Debt’ Mean ?

John Hinderaker at Power Line posted an article yesterday about President Obama’s claim that he plans to pay down the debt in a balanced fashion–increasing taxes on the wealthy to increase revenue and reduce the deficit. Aside from the fact that it is historically proven that raising taxes does not increase revenue, there are some definite problems with that approach.

This is a picture of a concept called the Laffer Curve:

As the illustration states, 50% is not necessarily the ‘magic number’–that number could be anywhere. The best real life illustration of this principle is the migration of millionaires out of Maryland after the tax on millionaires was increased (see rightwinggranny.com). People who will be impacted by large tax increases on the upper middle class (no–they are not ‘the rich’) usually have the means to shelter their wealth from the tax man (check out the financial disclosure statements of some of the Kennedy’s running for office).

The article at Power Line shows a graph of what President Obama’s budget plan will actually do for the deficit. The graph is based on figures from the Office of Management and Budget (OMB):

As voters, we need to be aware of the consequences of another four years of President Obama’s economic policies.

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About That Fairness Thing

Thomas Sowell posted an article at Townhall.com dealing with the subject of fairness in tax policy.

Mr. Sowell describes the supposed justification for higher taxes on the rich, and then asks a questions we should all be asking:

He pointed out that a child born to a poor woman in the Bronx enters the world with far worse prospects than a child born to an affluent couple in Connecticut.

No one can deny that. The relevant question, however, is: How does allowing politicians to take more money in taxes from successful people, to squander in ways that will improve their own reelection prospects, make anything more “fair” for others?

How much has the billions of dollars spent of the War on Poverty actually helped alleviate poverty in America?

Mr. Sowell points out that giving money to single mothers has not helped alleviate their poverty problems–instead, it has increased the number of single mothers. Since children raised by a single parent do not do as well as children who grow up with their two original parents, increasing the number of single parents is not ‘fair’ to anyone.

Mr. Sowell concludes:

High tax rates in the upper income brackets allow politicians to win votes with class warfare rhetoric, painting their opponents as defenders of the rich. Meanwhile, the same politicians can win donations from the rich by creating tax loopholes that can keep the rich from actually paying those higher tax rates — or perhaps any taxes at all.

What is worse than class warfare is phony class warfare. Slippery talk about “fairness” is at the heart of this fraud by politicians seeking to squander more of the nation’s resources.

We have reached the point where half of Americans pay no income taxes. If we don’t level out the tax burden to the point where everyone pays something, we will find ourselves with a very small number of people trying to support those who are not paying taxes and have no interest in what the tax rate is. We are almost there already.

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