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A Lesson on the Laffer Curve for Barack Obama | Daniel J. Mitchell | Cato Institute: Commentary: 'The key takeaway is that the IRS collected fives times as much income tax from the rich when the tax rate was far lower. This isn't just an example of the Laffer Curve. It's the Laffer Curve on steroids and it's one of those rare examples of a tax cut paying for itself.
Folks on the right, however, should be careful about over-interpreting this data. There were lots of factors that presumably helped generate these results, including inflation, population growth, and some of Reagan's other policies. So we don't know whether the lower tax rates on the rich caused revenues to double, triple, or quadruple. Ask five economists and you'll get nine answers.
But we do know that the rich paid much more when the tax rate was much lower.'
Friday, December 02, 2011
Executive Privilege Claim Ahead on Solyndra | Gene Healy | Cato Institute: Commentary
Executive Privilege Claim Ahead on Solyndra | Gene Healy | Cato Institute: Commentary: 'as is so often the case in politics, the real scandal is what's gone on in broad daylight. Solyndra is a perfect illustration of the dangers of government/business "partnership."
"We're all in this together," has been Obama's continual refrain this fall while pushing his $449 billion jobs bill. Sure, it's a collectivist notion that's hard to reconcile with a country dedicated to the individual pursuit of happiness. But he doesn't really mean it.
In this half-socialized, corporatist sector of privatized profit and socialized loss, we're only "all in it together" if a federally favored company goes belly up — as Solyndra did, sticking the taxpayer with tab. "One has to take risks in order to promote innovative manufacturing," as Energy Secretary Steven Chu put it last week.'
'Today, with unprecedented levels of money and power flowing to Washington, more and more Americans fear that the game is rigged. Can you blame them?'
"We're all in this together," has been Obama's continual refrain this fall while pushing his $449 billion jobs bill. Sure, it's a collectivist notion that's hard to reconcile with a country dedicated to the individual pursuit of happiness. But he doesn't really mean it.
In this half-socialized, corporatist sector of privatized profit and socialized loss, we're only "all in it together" if a federally favored company goes belly up — as Solyndra did, sticking the taxpayer with tab. "One has to take risks in order to promote innovative manufacturing," as Energy Secretary Steven Chu put it last week.'
'Today, with unprecedented levels of money and power flowing to Washington, more and more Americans fear that the game is rigged. Can you blame them?'
Keynes Was No Liberal - Allen McDaniels - Mises Daily
Keynes Was No Liberal - Allen McDaniels - Mises Daily: 'Keynes called his theory "general" because he claimed it would work not only in a laissez-faire setting but also, and more easily, in a totalitarian one.'
The Immorality of Democratic Voting - Kel Kelly - Mises Daily
The Immorality of Democratic Voting - Kel Kelly - Mises Daily: 'How is it that people are outraged when a CEO steals from his company, or a street thug steals a car, but they are not upset with themselves and their poorer neighbors for stealing from those who rightfully earned more money than they?'
'In 2008, congresswoman Maxine Waters threatened, on behalf of "society," to nationalize (i.e., to steal) the privately owned companies in the oil industry[9] due to the "large" profits they were making, since oil was at the highest price in years. But Congress itself brought about the high profits by
sanctioning the printing of money by the Fed (increased demand) and
preventing new oil drilling and refining (reduced supply).
One hundred fifty years ago, oil was a worthless substance. Companies voluntarily extracted and refined it, and made it useful, significantly improving our lives in the process. But by threatening nationalization, the government now threatens to take away the property of the millions of individuals who own these companies, by force, against their will. Americans should have been shocked and aghast that this government threat could happen in their own "free" country; instead, most agreed with her sentiments. If this is moral, then virtually anything could be argued as being moral.'
'In 2008, congresswoman Maxine Waters threatened, on behalf of "society," to nationalize (i.e., to steal) the privately owned companies in the oil industry[9] due to the "large" profits they were making, since oil was at the highest price in years. But Congress itself brought about the high profits by
sanctioning the printing of money by the Fed (increased demand) and
preventing new oil drilling and refining (reduced supply).
One hundred fifty years ago, oil was a worthless substance. Companies voluntarily extracted and refined it, and made it useful, significantly improving our lives in the process. But by threatening nationalization, the government now threatens to take away the property of the millions of individuals who own these companies, by force, against their will. Americans should have been shocked and aghast that this government threat could happen in their own "free" country; instead, most agreed with her sentiments. If this is moral, then virtually anything could be argued as being moral.'
Thursday, December 01, 2011
More Ratings, Not Fewer | Mark A. Calabria | Cato Institute: Commentary
More Ratings, Not Fewer | Mark A. Calabria | Cato Institute: Commentary: 'In the midst of a crisis, politicians and regulators all too often believe they can restore "confidence" by silencing the bearers of bad news. Witness the common banning of short selling whenever bank stocks take a tumble, as if speculators were to blame for the problems at Lehman or Fannie Mae.'
Tuesday, November 29, 2011
How to Fix the Housing Crisis - Doug French - Mises Daily
How to Fix the Housing Crisis - Doug French - Mises Daily: 'These plans keep people chained to underwater mortgages, keeping them from moving to where there are more and better job opportunities.
Unemployed heavy-equipment operator Charles Mills wanted to leave North Las Vegas for Oklahoma and a job, but he is $200,000 underwater on a home he bought at the peak of the housing market in 2006. The plans mentioned by Blinder and Feldstein would relieve Mills of roughly $190,000 of the debt, but the principal reduction won't put him back to work.'
'All of these plans are not really aid to underwater homeowners as much as another bailout for the banks — not to mention Fannie and Freddie.'
'Those looking for mortgages should expect to put 20 percent down. Values in a bankruptcy sale would reflect this reality and then some. Based on the liquidation prices received by the FDIC and other distressed debt sellers, this mortgage paper would likely be scooped up for half or a third of the home's value.
Buyers of the paper would immediately negotiate with borrowers to create loans that are conforming (80 percent LTV) and performing.'
'"Around 90% of Selene's loan modifications involve reducing the principal," James R. Hagerty wrote in the WSJ, "compared to less than 2% of the modifications done by federally regulated banks in the first quarter."
And while many upside-down borrowers can't even find a human to talk to about their loan, let alone sit down and renegotiate terms that will benefit both parties, Selene immediately tries to contact the borrowers on the notes they have purchased, "sometimes sending a FedEx package with a gift card that can be activated only if the borrower calls a Selene debt-workout specialist."
It's hard to imagine Fannie and Freddie being so proactive.'
Unemployed heavy-equipment operator Charles Mills wanted to leave North Las Vegas for Oklahoma and a job, but he is $200,000 underwater on a home he bought at the peak of the housing market in 2006. The plans mentioned by Blinder and Feldstein would relieve Mills of roughly $190,000 of the debt, but the principal reduction won't put him back to work.'
'All of these plans are not really aid to underwater homeowners as much as another bailout for the banks — not to mention Fannie and Freddie.'
'Those looking for mortgages should expect to put 20 percent down. Values in a bankruptcy sale would reflect this reality and then some. Based on the liquidation prices received by the FDIC and other distressed debt sellers, this mortgage paper would likely be scooped up for half or a third of the home's value.
Buyers of the paper would immediately negotiate with borrowers to create loans that are conforming (80 percent LTV) and performing.'
'"Around 90% of Selene's loan modifications involve reducing the principal," James R. Hagerty wrote in the WSJ, "compared to less than 2% of the modifications done by federally regulated banks in the first quarter."
And while many upside-down borrowers can't even find a human to talk to about their loan, let alone sit down and renegotiate terms that will benefit both parties, Selene immediately tries to contact the borrowers on the notes they have purchased, "sometimes sending a FedEx package with a gift card that can be activated only if the borrower calls a Selene debt-workout specialist."
It's hard to imagine Fannie and Freddie being so proactive.'
Tuesday, November 22, 2011
How Cutting Pentagon Spending Will Fix U.S. Defense Strategy | Benjamin H. Friedman | Cato Institute: Commentary
How Cutting Pentagon Spending Will Fix U.S. Defense Strategy | Benjamin H. Friedman | Cato Institute: Commentary: 'Far bigger savings are possible if the Pentagon is recast as a true defense agency rather than one aimed at something far more ambitious.'
'the U.S. military is currently structured to exercise power abroad, not provide self-defense. The U.S. Navy patrols the globe in the name of protecting global commerce, even though markets easily adapt to supply disruptions and other states have good reason to protect their own shipments. Washington maintains enormous ground forces in order to conduct nation-building missions abroad — despite the fact that such missions generally fail at great cost. Garrisons in Germany and South Korea have become subsidies that allow Cold War-era allies to avoid self-reliance.
Not only are these missions unnecessary, they are counterproductive. They turn economically capable allies into dependents, provoke animosity in far-flung corners of the globe, and encourage states to balance U.S. military power, often with nuclear weapons. A strategy based on restraint would allow Washington to save at least about $1.2 trillion over a decade, three times what the Obama administration is now asking for.'
'the U.S. military is currently structured to exercise power abroad, not provide self-defense. The U.S. Navy patrols the globe in the name of protecting global commerce, even though markets easily adapt to supply disruptions and other states have good reason to protect their own shipments. Washington maintains enormous ground forces in order to conduct nation-building missions abroad — despite the fact that such missions generally fail at great cost. Garrisons in Germany and South Korea have become subsidies that allow Cold War-era allies to avoid self-reliance.
Not only are these missions unnecessary, they are counterproductive. They turn economically capable allies into dependents, provoke animosity in far-flung corners of the globe, and encourage states to balance U.S. military power, often with nuclear weapons. A strategy based on restraint would allow Washington to save at least about $1.2 trillion over a decade, three times what the Obama administration is now asking for.'
Is Debt Necessary for Recovery? - Robert P. Murphy - Mises Daily
Is Debt Necessary for Recovery? - Robert P. Murphy - Mises Daily: 'The old-school, commonsense solution to an economy plagued by excessive debt is for people to work hard and save more. Keynesian economists have been saying throughout our current crisis that this folk wisdom overlooks basic accounting tautologies, but these pundits are smuggling in a Keynesian theory without realizing it.
Contrary to the assertions of these pundits, an economy does not need mountains of debt — whether government or private — in order to grow. Corporations can still raise needed financing through issuing equity. There are pros and cons to debt financing, but it isn't necessary for a strong economy.'
Contrary to the assertions of these pundits, an economy does not need mountains of debt — whether government or private — in order to grow. Corporations can still raise needed financing through issuing equity. There are pros and cons to debt financing, but it isn't necessary for a strong economy.'
EXCLUSIVE: Lena Taylor, Property Accessory To Voter Fraud | Media Trackers
EXCLUSIVE: Lena Taylor, Property Accessory To Voter Fraud | Media Trackers: 'According to a Media Trackers open records request with the City of Milwaukee Election Commission, the property at 1018 N 35th St. in Milwaukee currently has 36 active voter registrations and at least 23 individuals voted using the address.'
'Senator Lena C. Taylor owns the property at 1018 N. 35th St. in Milwaukee. The property has 6 units'
'Senator Lena C. Taylor owns the property at 1018 N. 35th St. in Milwaukee. The property has 6 units'
Thursday, November 17, 2011
Congressional Quarterly: House Panel Ready to Move Bill That Would Trim Federal Workforce - In the News - Newsroom - Ron Johnson, United States Senator for Wisconsin
Congressional Quarterly: House Panel Ready to Move Bill That Would Trim Federal Workforce - In the News - Newsroom - Ron Johnson, United States Senator for Wisconsin: '“It’s a bad way to manage. It doesn’t distinguish between programs that need cuts and those that are doing a great job,” said John Palguta, vice president for policy at the Partnership for Public Service, an organization that advocates better management of federal agencies. Palguta said the measure could increase pressure to hire outside contractors.'
Correct, it has problems, but what is his plan?
Correct, it has problems, but what is his plan?
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