Archive for September, 2012

…doesn’t drive the economy. that’s Keynesian BS. You always hear the MSM touting the BS that the 70% of the economy is driven by the consumer. It’s actually supply that drives the demand not the other way around.
Don’t worry, it isn’t math-centric.

Enjoy the read. This is from 2010.

Consumer Spending Doesn’t Drive the Economy Investment does.
Mark Skousen

“Consumer spending makes up more than 70 percent of the economy, and it usually drives growth during economic recoveries.”

–“Consumers Give Boost to Economy,” New York Times, May 1

Every quarter, when the government releases its latest GDP figures, we hear the familiar refrain:

“What the consumer does is vital for economic growth.”

“If the consumer starts saving and stops spending, we’re in big trouble.”

“Consumer spending accounts for 70 percent of the economy.”

The latter “fact” is repeated regularly in the news reports from the Associated Press, the Wall Street Journal, and the New York Times.

The truth is that consumer spending does not account for 70 percent of economic activity and is not the mainstay of the U. S. economy. Investment is! Business spending on capital goods, new technology, entrepreneurship, and productivity are more significant than consumer spending in sustaining the economy and a higher standard of living. In the business cycle, production and investment lead the economy into and out of a recession; retail demand is the most stable component of economic activity.

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…is getting hammered by Rush.

It’s about time someone said it. He’s a lying sack of shit. Oh, wait. I’ve already said that. And the media hasn’t the balls to tell it like it is.

Good stuff here:

Rush Limbaugh: Obama is ‘a serial liar’
‘Lies just flow out of his mouth as naturally as a baby’s cries’

PALM BEACH, Fla. – Rush Limbaugh, the top-rated radio host in America, is now calling President Obama “a serial liar” who is “delusional” and “pathological” in fabrications being told by his administration.

“Barack Obama is a serial liar, and I think it’s time to call him out on this,” Limbaugh said Wednesday afternoon.
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His analysis began with the Obama administration’s claim the recent onslaught against the U.S. consulate in Benghazi, Libya, was in response to an anti-Muslim movie on YouTube.

Libyan President Mohamed Magarief said the film had “nothing to do” with the attack.

“Reaction should have been, if it was genuine, should have been six months earlier. So it was postponed until the 11th of September,” Magarief told NBC News. “They chose this date, 11th of September to carry a certain message.”

Limbaugh said, “They have lied to us for a week about this video. Obama went to the U.N. yesterday and made most of his speech or quite a large part of his speech about this video, which even now, nobody has ever seen. All they’re doing is promoting it. All they’re doing is giving others who want to be agitated by it an excuse to be.”

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Or as my uncle used to say: “horsefeathers!”
Really.

This is an excellent article.
Please read.

The Great Horse-Manure Crisis of 1894

 

Our Economic Past | Stephen Davies

We commonly read or hear reports to the effect that “If trend X continues, the result will be disaster.” The subject can be almost anything, but the pattern of these stories is identical. These reports take a current trend and extrapolate it into the future as the basis for their gloomy prognostications. The conclusion is, to quote a character from a famous British sitcom, “We’re doomed, I tell you. We’re doomed!” Unless, that is, we mend our ways according to the author’s prescription. This almost invariably involves restrictions on personal liberty.

These prophets of doom rely on one thing—that their audience will not check the record of such predictions. In fact, the history of prophecy is one of failure and oversight. Many predictions (usually of doom) have not come to pass, while other things have happened that nobody foresaw. Even brief research will turn up numerous examples of both, such as the many predictions in the 1930s—about a decade before the baby boom began—that the populations of most Western countries were about to enter a terminal decline. In other cases, people have made predictions that have turned out to be laughably overmodest, such as the nineteenth-century editor’s much-ridiculed forecast that by 1950 every town in America would have a telephone, or Bill Gates’s remark a few years ago that 64 kilobytes of memory is enough for anyone.

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…from the Romney campaign.
No I Can’t…

Here’s today’s hump day hottie.
This is Harada Orei.

…here’s today’s reading list.

 

…from Afghanistan.
There is only one question that needs to be answered.
Why are we still there?

America’s Dumbest War, Ever

Yesterday a concerned father forwarded to me a letter from his son in Afghanistan. I confirmed authenticity, and republish with permission:

Dad,

I am fed up. I cannot believe the lack of attention the recent changes in this war is receiving by the media or the country. I think I saw one thing on CNN about the following subject, but I had to dig extensively to find it. The purpose of this letter is to let you know of the garbage that our soldiers are going through right now. With this knowledge, I hope that you take action by writing your congressmen.

First, because of the recent green on blue incidents or “insider threats” as the new buzz phrase dictates, all coalition forces in Afghanistan have completely stopped partnering with the ANA, AUP, and ALP in order to prevent the death of anymore CF casualties by ANSF or Taliban disguised as them. This is also greatly spurred by President Karzi’s indifferent attitude and lack of action to take measures to prevent further insider attacks.

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…out for you?
Not so good I guess. Sure isn’t doing me any favors.

Household Incomes Fall In Aug., Off 8.2% Under Obama
By JOHN MERLINE

In another sign that the economic recovery under President Obama is not producing gains for average Americans, median household incomes fell 1.1% in August to $50,678, according to a report released Tuesday by Sentier Research.

Since the economic recovery started in June 2009, household incomes are down 5.7%, the Sentier data show, and they are down more than 8% since Obama took office.

“Even though we are technically in an economic recovery, real median annual household income is having a difficult time maintaining its present level, much less recovering,” said Sentier co-founder and former Census Bureau official Gordon Green.

Earlier this month, the Census Bureau released its annual report showing that the number of people in poverty was nearly 3 million higher in 2011 than in 2009, an increase of 6%.

That report also found that average incomes for middle- and lower-income households fell in 2011 after adjusting for inflation. They rose only for the wealthiest 20% of households.

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…from Bishop E.W. Jackson.
Just wow.
It’s about time someone from the black community said this.

…of public sector unions.

It’s disgusting to me that PSUs get away with the bullshit that they get away with. The teacher’s unions always screaming “it’s for the children,” when in reality it is for them. It is their greed and their pensions that need to be padded by the public through taxation. These unions have a monopoly that must be broken up in order to bring sanity to the fiscal problems that most cities have these days.

They don’t want to have standards imposed on them that would threaten their tenure. Accountability for their crappy education skills are constantly being fought tooth and nail. Just look at the graduation rates across the country. Chicago has a 40% dropout rate. And they want more money for that shit? Pathetic.

Charter schools are a way to put a stop to the monopoly of teacher’s unions. The schools are better and the kids get a better education. It’s a fact.

Take Chicago, please.
Here’s an excellent article that goes in depth on this issue.

How to Stymie the Teachers Unions
by Richard A. Epstein

Want to prevent another Chicago? Let charter schools flourish.

n September 18, 2012, the Chicago Teachers Union negotiated a settlement with the City after going on strike for seven days. At issue in the dispute were critical issues like teacher salaries, working conditions, and teacher evaluations. As is typical in these situations, neither side held all the high cards. The two parties had to agree to compromises that patched up the current difficulties without implementing any sensible long-term reforms.

The wage piece of the deal is likely to add about $74 million per year over the next four years to a municipal budget that is already deeply in the red. The extra dollars that go into wages will be taken out of other budgets, rendering classrooms and other facilities less suitable than before. The moderately stiffer standards for teacher evaluation, both before and after tenure, may make marginal improvements in teaching performance, but none that will be significant in the short term. The overall dismal performance of the Chicago public school system, with its 60 percent graduation rate, will remain more or less what it has been.

The recent news affirms that public education in Chicago and other major cities needs to be fundamentally overhauled. The first item on the reform list should be the collective bargaining system, which has taken over public education for the last fifty or so years. Collective bargaining has its roots in the private sector, where it received a huge boost from the passage of the National Labor Relations Act of 1935.

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