Tag Archive: economics


To clarify, we don’t need uniform taxes in the essence of taxing uniforms, but by the way of making them equally applicable to everyone. Here is a brilliant synopsis by my friend Rex about how the current high tax rates on corporations really plays out. Hint: it’s not hurting “the rich.”

“Big Corporations have a huge advantage in raising capital because they can take people’s money and give them limited liability. Big corporation executives have huge advantages in tax rates because they can use incentive stock options to defer taxation on capital and tax most of their salaries at capital gains rates instead of ordinary income rates.

If a small corporation borrows from the bank, the shareholder will have to sign a personal guarantee, so the small corporation guy usually doesn’t walk away free when something fails like the big corporation guy. The preferred way for small corporations to raise capital is through prior earnings, but if the government takes half their earnings in taxes, or more, it gets very difficult for the small corporation to control its own destiny without having to resort to banks, brokers, underwriters, public shareholders, and everything else that will limit the way they can use their ideas, which they are usually pretty attached to.

Big income taxes, for those reasons, and others, are not a tax on being rich, but on getting rich. The middle class doesn’t want to stay in the middle class, and that’s the source of a lot of incentive, being able to do things your way and control your own destiny.

That’s what the income tax system is destroying in America, the economic liberty that brings a ton of innovation. That’s why big corporations do all the things to us we don’t like, because big government gives them unfair advantages. Living in a homogenized society may not be the most terrible thing, everyone working in cubicles with a 401k and doing it the way someone else wants it, but that isn’t what made America what it is. It was never meant to be a place where people were stamped out uniformly like postage stamps, standing in long lines at McDonald’s.”

So, high taxes don’t do anything to the already rich, but they sure do keep people down. This is one minor example of how the rhetoric doesn’t match the actual results of a policy. “Tax the rich” equals “keep people down and help the rich.”

Do you want policy that sounds good but hurts the average American? Or do you want policy that delivers?

Know where you stand.

One of the best economists is the world is Thomas Sowell. He is a stalwart for liberty and truth. Well, now he is. He started out as a Marxist. Not the kind that covers it up and says they are just for “social justice” or whatever, but a full-on, “Yep, Marx was right!” kind of Marxist. He even studied under Milton Friedman for a year and still thought his views were right. It takes a special kind of stubborn to do that.

Then, he got a job with the Department of Labor. He was specifically involved in the area of minimum wage enforcement. He soon found that the department never, not once, checked to see that the laws they were enforcing were helping the people they were supposed to help. In fact, they avoided it. They were only interested in one thing: making sure they kept getting more and more funds so the department could grow. That’s IT.

He then took it upon himself to see if the increases in minimum wage helped the target demographic they were supposed to help. Turns out, what it did was cause vastly more unemployment for that group. Did the department heads care? Nope.

That’s when he woke up and realized that he was ever-so-wrong.

So, when you support minimum wage increases, what you are saying, in essence is: I SUPPORT POLICIES THAT CAUSE POOR PEOPLE TO BE AND STAY UNEMPLOYED.

It’s the results that matter, and minimum wage laws dramatically hurt those they are intended to help. They even keep low skilled workers from ever being able to get a foot in the door, to then gain experience, to then get promoted and get raises. If they can never get the job in the first place, because their work is not worth the cost of the amount they are required to be paid, how can they ever have a chance to pull themselves out of poverty? They can’t. Then, the government steps in and gives them “welfare,” which is anything but good for the soul.

So, the laws first destroy the chances of being self-supporting, then, the “fix” laws cause their souls to be crushed. How would you feel if the laws first blocked any chance of success, and then offered to be your very low paying sugar daddy? It would suck the very essence of self-respect out of you, that’s what it would do. And, yet, that’s what we have and the same people who will be unemployed very quickly if they get their way are picketing for $15/hour. It’s economic suicide.

You may think that you don’t support hurting poor people, or want that, because you have the best of intentions. But, there is a very, very old saying that applies here. The road to Hell is paved with good intentions.

Well, I’ve kind of found my niche in taking more complex or incredibly boring ideas and making them plain. I usually use a bit of humor to translate them, so to speak, so that they are more accessible to those who really do not care to become well versed in the language of the founders and those of different epochs, or who are just snoozing by the time they get three sentences into a monologue, however eloquent.

 

I have taken classes in the art of translating intralingually (within the same language), and I home school. Honestly, the home schooling, with children that ask a BILLION questions has prepared me greatly. We have our dinner (my folks come to eat with us several times a week), and we discuss the issues of the day. Afterward, I spend a lot of time explaining the topics covered, and giving definitions for words used at the table. Seriously, it got to where I challenged myself to define any word in less than 10 words. Try it sometime! 😉

 

Back to topics, I do tend to add some bizarre imagery and do some analogies that make things more fun for the reader, more relatable to life in modern form. It’s easier to remember things when they are made clear and are in your language, no? Just ask any foreign exchange student encountering American slang for the first time…

 

The reason I started this is because all of the political fights we are having right now have already been fought. All the “new” economic and political theory that is being touted as revolutionary is actually quite regressive. It’s all been said before, it’s all been USED before, but we just don’t read about it (thanks government schools!). I hope you caught the sarcasm on that last bit, there…I was laying it on pretty thick.

 

So, what I want to know is: what do you want to know? Do y’all have any topics, questions, concerns, etc. that you’d like for me to cover? Because, let me tell you…I’ll keep coming up with stuff on my own. Be forewarned, I like economics, as well as government and politics.

 

Leave a comment and we’ll get your questions answered! For those who are new, please feel free to see the series that I’ve written on the electoral college and a bill being passed.

 

But, I’m up for anything. If I don’t know (and more importantly, cannot, in a reasonable amount of time, find out, I’ll let you know), but feel free to ask about whatever. I’ve had a weird life, and experienced many things. So, come on! Give it a try…you know you wanna! 🙂

I was having a chat with someone who grew up in Finland, married an American and moved to the US, and still has family there. Here are excerpts from our conversation.

Finnish Friend: I have so many friends that are looking for a handout, and it saddens me. I grew up in Europe and loved it, but after seeing the differences between the good old USA and Europe, I do not want to go back and live there. I even became a US citizen. That is why I am passionate about the freedoms we enjoy here. I just need to be bold and not worry about what family and friends think. I guess I better start praying that Romney picks a good vp.

Later in the conversation…

FF: You can not have a discussion with socialists… [A man I know, who lives in Finland]…is very well to do. There has been accusations that [he] must have done something illegal to be so rich or at least must not pay enough taxes. They can not see that he works countless hours and has started business[es] and then sold them. All the [truly] rich people have left Finland since they do not want to see 50% of their income to go to taxes. That is one of the reasons why the economy there is doing so poorly. Also they can not afford to keep all the social programs running. My dad can not get in to testing to see what is wrong with his heart until end of August. [This wait has been going on for months already.] His life is not valued since he is drawing a pension and not working and paying taxes. I just wish Europe could adopt Obama and leave us alone.

I must add here that my FF informed me that the man she knows who is well to do has been tried three times for the same crime. He has been found innocent all three times. They do not have double jeopardy laws in Finland. Found innocent? So what…take it back to court.

What was his crime, you ask? Selling his stocks and making a profit from it.

God bless the USA!

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