Rand Paul Blasts Republicans for Repealing Obamacare with Budget – YouTube

Great tutorial that can get you up-to-speed on the budget and how it won’t balance under current trajectory.  Senator Paul explains a simple way to balance and control the debt.

 

Comparing the cost of living between 1975 and 2015: You are being lied and fooled when it comes to inflation data and the cost of living.

Inflation is widely misunderstood by the public. Even economists tend to have a hard time coming to a general agreement to the true definition of inflation.  When you ask the person on the street what inflation is they usually respond by saying the “price of things going up” which is more of a

Source: Comparing the cost of living between 1975 and 2015: You are being lied and fooled when it comes to inflation data and the cost of living.

Comparing the cost of living between 1975 and 2015: You are being lied and fooled when it comes to inflation data and the cost of living.

Democracy’s Death Spiral – John C. Goodman

257e412251dd752f730fd7cb60c52ee2

John C. Goodman

It works like this: Politicians find it in their self-interest to take from Peter and give to Paul, whenever Paul can offer more political support than Peter – in the form of votes, campaign contributions, get-out-the-vote efforts, etc. But as tax rates rise to pay for these political acts of theft, some of the Peters begin to emigrate to other jurisdictions. As more taxpayers leave, the tax rates needed begin to rise – leading to a greater exodus. Eventually there are no Peters left to tax to pay for all the benefits the Pauls were expecting.

In the United States I associate this general approach to politics with Franklin Roosevelt, who had two important insights.

Source: Democracy’s Death Spiral – John C. Goodman

Power To The People: Can We Privatize The Welfare State? – Forbes

John C. Goodman

John C. Goodman

Government insurance for the elderly is invariably run like a Ponzi scheme. Payroll taxes paid by workers are not invested for future benefits. Those tax revenues are spent the very day, the very hour, the very minute they arrive in the Treasury’s bank account. The U S experience is not unique. Social insurance is run like a Ponzi scheme in most countries around the world.

In the United States, the Social Security Actuaries publish an annual accounting of the unfunded liability in Social Security and Medicare. Looking indefinitely into the future, the unfunded liability in Social Security is almost $28 trillion. That’s the difference between the promised benefits for future generations of retirees minus expected taxes dedicated to fund those benefits. That’s more than twice the size of the official outstanding debt of the U.S. government…

In 1960, nearly two-thirds of the families in the bottom fifth of the income distributions were headed by someone who worked. By 1991, only one-third of these households were headed by someone who worked and only 11% worked full time. Early on in the War on Poverty, the federal government’s own studies showed the devastating effects it was having. In the guaranteed income experiments of the 1970s, for every $1 of extra welfare given to low-income persons, they reduced their labor earnings by 80 cents.

via Power To The People: Can We Privatize The Welfare State? – Forbes.

Krugman: Don’t Worry About Debt; We Owe It To Ourselves

John C. Goodman

John C. Goodman

Krugman’s way of thinking could apply equally well to acts of crime. Suppose I steal $10,000 from you. My wealth goes up. Your wealth goes down. But the wealth of society as a whole hasn’t changed at all. Right? Wrong.

Remember the original Jamestown colony? In 1607, it started out as an experiment in socialism. “We” really did own everything collectively and “we” nearly starved to death. But then a new governor substituted “mine” and “thine” for “we” and the colony began to prosper. Who owns what and why and the ability to be secure in what we own is hugely important for growth and prosperity.

via Krugman: Don’t Worry About Debt; We Owe It To Ourselves.