Berkeley College Republicans Hit Paydirt

Well, well, well. I would be willing to bet that most did not know that the UC Berkeley campus has an active, Republican student organization. They do now.
They are having a bakesale where the prices are determined by the level of political priviledge that one's minority status entitles one to. I am sure that there are those who were skeptical of stirring up such a hornets' nest, but they have hit the bullseye. They are receiving an extraordinary level of media attention.
They have proved, in spades, that private and institutional racism still exists in our country, and that not all practitioners thereof are of European descent.

Obama Crony Capitalism? maybe

Definition: it is the flow of government funds to private industry based not on merit or efficiency but rather on influence within the gov’t itself. For the cases below, this does appear to be the case, but somehow I doubt that he has the chutzpah to execute it. I think the truth is much uglier: Team Obama is in over its head (i.e. shades of Jimmy Carter).

SOLYNDRA

This company went down, taking $535 million in taxpayer dough with it. There are some rumors about inside influence. However, someone on the inside was releasing private email, and it seems that the Presidential visit had already been set, and there was pressure to approve the DOE loan before his big PR visit.

THE BUFFETT TAX

Then there is the odd symbiosis between Mr. O and the Oracle of Omaha. OO was an adviser to the Obama presidential campaign, plus he has scheduled a fundraiser for same upcoming. OO says that he is rich and not being taxed enough, and Team Obama comes up with something being dubbed ‘the Buffett Tax’. Here, it is hard to see how OO benefits. Besides: OO is widely regarded as financial genius, but I am beginning to wonder: does he understand the income tax was designed as a tax specifically on labor, not capital? It has nothing to do with fairness or rich vs. poor. That is why taxes in investment income are much lower, and also because capital is taxed internally in the financial system before it reaches the taxpayer.

IMMELT AND GE

He was appointed by Team Obama to tackle the problem of jobs migrating overseas. He is viewed as a poor candidate, since his company is doing this international job movement as fast as any multinational company; perhaps a campaign link or that GE jumped into Team Obama’s green energy bandwagon early and often? Maybe, but GE is a unique company: it is a wide ranging company that has its fingers in many, many pies, and does bring a unique perspective on the international job market.

CONCLUSION

So, is Team Obama guilty of crony capitalism? Perhaps, but I am not convinced. I am sure that it is one of the most incompetent Presidential administrations in history.

President Obama’s uncle is…an illegal alien?

Apparently, said uncle was at a waffle house (apparently never having listened to his niece about healthy eating), got drunk, and nearly hit a police car.

Mr. President, I have a question. I will grant that your ‘certificate of live birth’ indicates your birth on the Hawaiian Islands rather than on the ship on the way to said islands (both of my parents have roots in Hawaii). I will further grant that the ‘birth certificate’ circulated later as a response to the brouhaha is genuine.

Question: what about your uncle?

The truth about taxes, unemployment, and GDP

I am getting just a wee bit tired of jawboners from both sides of the political aisle distorting the truth. Truth is something that you cannot pundit your way past. So, permit me to illuminate 3 popular myths.

TAXES ARE AT AN ALL TIME LOW

These folks gleefully full point out that currently, only 15-16% of GDP is going to taxes (which is true; the exact % depends on whose numbers you believe). These pundits then go on to say that further cutting taxes are unnecessary, witness the % they claim. This is simply not true. See, if millions of previously employed people lose their jobs, they are no longer paying federal/state/local taxes, but instead, are drawing wealth transfer payments from gov’t. It is no secret that this situation decreases the % take of GDP from taxes, regardless of the tax rates.

CUTTING TAXES WILL INCREASE JOBS

The theory here is that cutting taxes will put more $$$ into the pockets of consumers, they buy more stuff, and therefore create more jobs. Nonsense. Cutting taxes will make working people a tad richer, but it will not create more jobs. It never has: W tried this with those free checks, but no jobs were created then, and none will be created now. Do not get me wrong: I think lower taxes are a good reward for hard working Americans, but it will not create more jobs. Sorry about that.

MORE GDP = MORE JOBS

This may have been true 5 decades ago when I was born, but not today. See, a company like US Steel can create more product using fewer employees. How? Automation, computers, industrial robots, and so forth. So, if we dramatically increase GDP somehow, this has nothing to do with more jobs.

WHAT IS YOUR SOLUTION, SMARTY PANTS?

I do not have one. If I did, I would be a very rich and very famous economist somewhere.

Mr. Obama, Mr. Bernanke - surrender now

OK, gentlemen, you are totally out of ammo. Set for a spell. You have both failed, and more of the same ain’t gonna do anything: perhaps you have heard the old saw that stupidity is doing the same thing over and over, and expecting a different result?

You, Mr. O, have proven once and for all that fiscal stimulus has little, if any, effect on macroeconomics. You have jacked up the federal budget and the deficit to record levels, all to no avail. Yes, I know: you are scheduled to announce to a fatigued and unemployed nation that you have a new plan to fix things. Forgive my skepticism that you will announce more of the same.

You, Helicopter Ben, have used up every tool in the Fed’s toolbox, not to mention a few I had never heard of before. Like Mr. O, you have proved the relative impotence of the effect of monetary policy on macroeconomics. Borrowing money is now around 0.25%, i.e. free money to lend, yet this has had imperceptible results.

It is finally time for both of you to surrender to the invisible hand of capitalism. I can tell by your respective actions that you have not read the Wealth of Nations recently, so I suggest that you do so now while enjoying a cocktail. As an American who cares about my country, I beg you: let the economy heal itself. If you are in a hole, stop digging. The scab will never heal if you keep picking at it. And any other stupid cliche I can think of.