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Thursday, October 13, 2011
The Real Solution to the Debt Problem - David S. D'Amato - Mises Daily
The Real Solution to the Debt Problem - David S. D'Amato - Mises Daily: 'within a fiat-money system, public debt increases "at a much faster rhythm" than even the distended money supply. Pointing to the United States since 1971 as an example, Professor H�lsmann notes that while the money in circulation "increased by the factor 6," the federal government's debt grew by a factor of 20.'
Taking Liberties: Bright Lights, Big Trouble | Fox News
Taking Liberties: Bright Lights, Big Trouble | Fox News: '“It's illegal because you're warning someone,” he explained. “It's the same thing as saying, 'run, here comes the cops,' You're obstructing a cop from doing his lawful duty.”'
It's illegal to warn someone?!?
It's illegal to warn someone?!?
Job-Killing Politicians, Modern Military Hawks, and Hapless Central Banks | Edward H. Crane | Cato Institute: Commentary
Job-Killing Politicians, Modern Military Hawks, and Hapless Central Banks | Edward H. Crane | Cato Institute: Commentary: 'Someone did a review of the employment growth during the tenures of the various GOP presidential candidates who have been governors. That would include Tim Pawlenty, Mitt Romney, Jon Huntsman, Rick Perry, and Gary Johnson. You remember Johnson, don't you, the former two-term Republican governor of New Mexico, a dark blue state? Well, it turns out that the highest percentage increase in employment was in New Mexico!
When asked to take credit for this, the libertarian Johnson demurred. I didn't do anything, he said, other than get out of the way and let the entrepreneurs create jobs.'
When asked to take credit for this, the libertarian Johnson demurred. I didn't do anything, he said, other than get out of the way and let the entrepreneurs create jobs.'
At Least Ponzi Didn't Force People to Enroll | Michael D. Tanner | Cato Institute: Commentary
At Least Ponzi Didn't Force People to Enroll | Michael D. Tanner | Cato Institute: Commentary: 'Some defenders of the current system insist that it is not because, well, as USA Today editorialized, "Ponzi schemes are a criminal enterprise; Social Security is not." But this is simply a tautology that says nothing about the program's structure. Those young workers who will be forced to pay more in taxes while getting less in benefits will not take much comfort from Social Security's legality.
But those taxes and benefit cuts do point out one area where Social Security is different from a Ponzi scheme. Though it's usually a swindle, people sign up for a Ponzi scheme voluntarily. Once Ponzi was unable to talk enough people into investing with him, his scheme collapsed. People participate in Social Security because ... the government makes them. And if the Social Security system begins to run short of people paying into the system, as it is now, it can always force those people to pay more.
That's what the program has done more than 40 times since it began. Even after adjusting for inflation, Social Security payroll taxes have increased by more than 800 percent since the program began.'
'Under current law, if nothing changes, a 30-year-old worker today can expect to receive just 76 percent of the benefits that he has been promised. That will be far less than the amount of money he could have had if he had been able to invest his Social Security taxes privately. In fact, many young workers will be lucky if they receive back as much in benefits as they pay into the system.'
But those taxes and benefit cuts do point out one area where Social Security is different from a Ponzi scheme. Though it's usually a swindle, people sign up for a Ponzi scheme voluntarily. Once Ponzi was unable to talk enough people into investing with him, his scheme collapsed. People participate in Social Security because ... the government makes them. And if the Social Security system begins to run short of people paying into the system, as it is now, it can always force those people to pay more.
That's what the program has done more than 40 times since it began. Even after adjusting for inflation, Social Security payroll taxes have increased by more than 800 percent since the program began.'
'Under current law, if nothing changes, a 30-year-old worker today can expect to receive just 76 percent of the benefits that he has been promised. That will be far less than the amount of money he could have had if he had been able to invest his Social Security taxes privately. In fact, many young workers will be lucky if they receive back as much in benefits as they pay into the system.'
Wednesday, October 12, 2011
End the DOE - Aaron Smith - Mises Daily
End the DOE - Aaron Smith - Mises Daily: 'while the income potential for a college dropout is virtually unchanged, she must now bear the dual burdens of servicing student debt and the emotional scars of failure. Oddly, the supposedly "compassionate" policies espoused by left-liberals rarely account for the human toll of market distortions. Credit-rating agency Moody's summarized the grim prospects for students burdened by debt:
Unless students limit their debt burdens, choose fields of study that are in demand, and successfully complete their degrees on time, they will find themselves in worse financial positions and unable to earn the projected income that justified taking out their loans in the first place.'
'Increases in institutional aid, however, are not accompanied by cost reductions for students. Instead, schools are using state and federal funds to grow their administrative empires.'
Unless students limit their debt burdens, choose fields of study that are in demand, and successfully complete their degrees on time, they will find themselves in worse financial positions and unable to earn the projected income that justified taking out their loans in the first place.'
'Increases in institutional aid, however, are not accompanied by cost reductions for students. Instead, schools are using state and federal funds to grow their administrative empires.'
Imprisonment is not the answer | Wide White
Imprisonment is not the answer | Wide White: 'When considering imprisonment as a punishment for a crime, we have to ask ourselves three questions. First, will imprisonment teach this person a lesson that they could not otherwise learn outside of prison? Second, do the crimes committed by this person warrant separating them from the rest of society for a period of time? Third, is imprisonment necessary to keep this person from causing anymore problems for society than they already have? I’m not convinced that negligence warrants a prison sentence under these guidelines.'
It's Not about Consumption! - Robert Higgs - Mises Daily
It's Not about Consumption! - Robert Higgs - Mises Daily: 'real personal consumption expenditure recovered from its recession decline by the fourth quarter of 2010. Continuing to grow, it now stands (as of the most recent data, for the second quarter of 2011) even farther above its prerecession peak.'
'The economy remains moribund not because consumption spending has failed to recover and not because government spending has failed to increase but because the true driver of economic growth — private investment — remains deeply depressed. Gross private domestic fixed investment fell steeply after the second quarter of 2007, and in the second quarter of 2011 it remained 19 percent below its prerecession peak. This figure fails to show how bad the investment situation really is, however, because the bulk of the investment spending now taking place is for what the accountants call the "capital-consumption allowance," the amount estimated as necessary to compensate for the wear and tear and obsolescence of the existing capital stock.'
'The economy remains moribund not because consumption spending has failed to recover and not because government spending has failed to increase but because the true driver of economic growth — private investment — remains deeply depressed. Gross private domestic fixed investment fell steeply after the second quarter of 2007, and in the second quarter of 2011 it remained 19 percent below its prerecession peak. This figure fails to show how bad the investment situation really is, however, because the bulk of the investment spending now taking place is for what the accountants call the "capital-consumption allowance," the amount estimated as necessary to compensate for the wear and tear and obsolescence of the existing capital stock.'
Cut Defense before Raising Taxes | Michael D. Tanner | Cato Institute: Commentary
Cut Defense before Raising Taxes | Michael D. Tanner | Cato Institute: Commentary: 'Last week, Rep. Howard McKeon (R., Calif.), chairman of the House Armed Services Committee, told the Daily Beast that he would support a tax increase rather than accept any further cuts in defense spending. McKeon is not a supercommittee member, but his remarks reflect the pressure from Republican hawks and defense contractors now being brought to bear.
This position seems remarkably shortsighted. First, the sequester would not go into effect until 2013, leaving Republicans with plenty of time to change the mix of domestic and defense cuts after the 2012 elections. But even if the cuts were to occur, they amount to just a bit more than 8 percent of expected defense spending over the next decade. With the U.S. spending more on its military than the rest of the world combined, does anyone really believe that if we stop protecting Germany from a Russian invasion, cancel weapon systems that don't work, or reduce the number of generals and admirals populating the Pentagon, that al-Qaeda will come swarming across our border?'
This position seems remarkably shortsighted. First, the sequester would not go into effect until 2013, leaving Republicans with plenty of time to change the mix of domestic and defense cuts after the 2012 elections. But even if the cuts were to occur, they amount to just a bit more than 8 percent of expected defense spending over the next decade. With the U.S. spending more on its military than the rest of the world combined, does anyone really believe that if we stop protecting Germany from a Russian invasion, cancel weapon systems that don't work, or reduce the number of generals and admirals populating the Pentagon, that al-Qaeda will come swarming across our border?'
Monday, October 03, 2011
America's Illegal Pioneers | Timothy B. Lee | Cato Institute: Commentary
America's Illegal Pioneers | Timothy B. Lee | Cato Institute: Commentary: 'Today, poor people still flock to the United States seeking a better life. And they face a dilemma not so different from the one their predecessors faced two centuries ago. Just as a cumbersome property system put formal land titles out of reach for many would-be pioneers, so today's antiquated immigration system puts green cards out of reach for many migrants.'
Minimize the work to come here illegally.
Minimize the work to come here illegally.
What Will Keep Our Food Safe? - Stefano R. Mugnaini - Mises Daily
What Will Keep Our Food Safe? - Stefano R. Mugnaini - Mises Daily: 'In the absence of a reliable government organic-food regulatory agency, the market has provided several voluntary options. The Certified Naturally Grown program offers "a non-profit organization offering certification tailored for small-scale, direct-market farmers and beekeepers using natural methods." They rely on voluntary participation and a peer-review system that is less expensive, less paperwork intensive, and more efficient than the USDA program.
Whole Foods Market has developed their own alternative for certifying certain production techniques for livestock and poultry, through a partnership with an animal-welfare nonprofit.
These are two options, but there are several others. All share a focus on voluntary cooperation between food producers and certifiers, and greater accountability to the consumer, as they can't hide their flaws behind the veil of government immunity. These programs, and others like them, are infinitely scalable, completely voluntary, and represent a real challenge to the notion that "only the government can …"'
Whole Foods Market has developed their own alternative for certifying certain production techniques for livestock and poultry, through a partnership with an animal-welfare nonprofit.
These are two options, but there are several others. All share a focus on voluntary cooperation between food producers and certifiers, and greater accountability to the consumer, as they can't hide their flaws behind the veil of government immunity. These programs, and others like them, are infinitely scalable, completely voluntary, and represent a real challenge to the notion that "only the government can …"'
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