Saturday, January 26, 2013

More political than purely economical...

Political left or right...  Is it true that communism is 'leftist' and fascism is 'right-wing'?


 Too often history profs/teachers will launch into a diatribe on how the Nazi's and Hitler were right-wing fascists and the Soviets with Stalin were communists (and they may actually mention 'left') and were bitter enemies because they were on opposite sides of the political spectrum. 

Hmmm...a real student or political scientist should stop right there.  Ask this question, "NAZI...what did that basic acronym stand for?  Oh yeah, 'National Socialists'."  We all know how right-wing socialists are.


Long story short, as one becomes a greater student of history, economics, of basic social trends, one sees a movement toward collectivization, of a greater concentration of power, wealth, etc. to the government.  Only at pivotal times does this concentration become scattered, usually through violent revolutions that shatter the social structures and economic activities, resulting in death on a super-scale, of massive destruction.  There are but few exceptions to this rule, the American Revolution and the fall of the Roman Empire come first to mind.  One had few deaths or disruption, and the other occurred over a few centuries.

The most efficacious means to distinguish 'left' and 'right' politically, is to determine a power/wealth concentration index.  Many scholars have in fact calculated these, each with a set of assumptions that may differ one to the other.  However, the point remains, the more concentrated, the further to the left.* 

Ayn Rand's objectivism, or the Founding Fathers' drive for equal opportunity, are clearly toward the right side of the spectrum.  With the knowledge that there are no guarantees in life, that risk is inherent but reward is possible, people accept this and try try try.  They usually also fail fail fail, but once in a while they make it big.  And because they do, society in general benefits, too.  Bill Gates became exceedingly wealthy, but his efforts resulted in many, many others having tools to increase their own standards of living (like the program I'm using to write this now, Microsoft Word).  Steve Jobs and his Apple company became very well-to-do, but the products they sold to willing customers enhanced the same customers' life-styles.
   
Obviously the costs likely out-weigh the benefits at the extremes.  The real trick is similar to a bell curve distribution as to the majority's wishes, and how 'majority rules' is equated to mob-rule by the Founding Fathers, hence the republican form of gov't we have.



Have you noticed the increases of power accrued by the Federal (should be 'National') gov't?  The benchmarks:  adoption of the U.S. Constitution (recall Jefferson's adamant opposition to it as a power-grab), Civil War and Lincoln, Roosevelt and the Progressive movement, Roosevelt and the New Deal, LBJ and the Great Society, Reagan's failed attempt at pushing it back to the right in his New Federalism, then the most recent efforts at healthcare reform providing precedent for the gov't, who will become the payer of all healthcare costs, to assume the role of nanny, to dictate reduction in the lifestyle choices that will be more likely to incur higher healthcare costs (already we see it with regard to smoking...and like Mayor Bloomberg in NYC on size of beverages, the subtle change in advising the public on cancer screenings being less necessary now...).



My goal here is to illustrate the way major shifts occur slowly, with an occasional quickening, but always to the side of greater gov't control and the ratcheting effect (or slippery slope).  To achieve any type of 'reset' brings with it great socio-economic upheavals and death, with very few exceptions, notably the American Revolution.

French Revolution, Soviet Revolution and Russian Civil War, then the roll-back of the early 90's, China with Mao, but then the adoption of State Capitalism which seems to move to the right side, but doesn't, Germany in the 20s and 30s, post WWII Great Britian over several decades, etc.  Even the rise of empires of Rome and Persia, or the Aztecs, whoa.



*Caveat, this concentration is about public or government acquisition, NOT private acquisition.  For those of you about to go off on a diatribe about the evils of rich capitalists, may I point out that almost to a one the 'robber-barons' became monopolists because of crony-capitalism wherein they lobbied the government and received special treatment that skewed the competitive market structure, distorting it in the favor of the rich.  The 'evil rich' are inherently motivated to maintain the status quo, and do so using the power structure of gov't, making the fascist partnership model between big business and gov't, or the 'simpler' model of gov't take-over as we find in communist societies.  Note that the individuals in that power structure are in fact, the rich.

Tuesday, January 15, 2013

Thorium and Economics...yes, it is here, too.



What in the world does Thorium to have to do with economics?  Well, if you click the link and watch the vid, you will SO understand so much more.

Electricity = Great quality of life.

How to make electricity, how to generate it?  Uranium?  No...check it out.



http://www.youtube.com/watch?v=tyqYP6f66Mw

Saturday, January 12, 2013

A Rush Commentary...Prosperity

Rush Limbaugh made a great comment that synopsizes the whole issue of where a country's wealth originates, where prosperity comes from.  He was in a diatribe about Nancy Pelosi's comments about how unemployment payments stimulate the economy, that for each dollar given to an unemployed individual (couldn't bring myself to say 'worker') produces a dollar and seventy three cents of activity due to the multiplier effect.  Well...check it out and comment.



"If people don't know where prosperity comes from, then all the rest of it is academic and doesn't matter.
If people think that prosperity comes from not working and receiving unemployment benefits, then we're finished. If a majority of people who vote really believe that or can be swayed by that -- that prosperity comes from government providing for people who can't work -- then we're pretty close to over. In truth, prosperity comes -- prosperity is created -- by people doing useful things for each other.
In fact, you could say, if you wanted to make a really literal point, that prosperity doesn't even have to deal with money. It could be accomplished with bartering. Money just makes the process more efficient. Via bartering. Okay, you don't use money; you barter. It means you offer to change the tires on the butcher's car and he gives you a steak. That's barter. But instead of that, people pay each other for doing useful things for them.
People pay other people for performing useful things. People pay other people for inventing useful things. People pay other people for making useful things. People buy useful things because they want them. This is how prosperity is created. Therefore, what is required for prosperity? As many people as possible doing useful and desired things for each other. At its root level, this is so simple.
But economics is taught as this very complex, intricately woven web of deceitful, hard-to-understand things. But economic commerce happens when people engage in economic activity, i.e., you buy something that somebody's made because you want it, and they sell it for profit. That's their incentive to make it. If they're only going to get back what it cost them, there won't be any reason outside of passion (which doesn't feed you) to make it. Simple as that.
As many people as possible working, producing and offering as many things and services as people need and want, equals prosperity. Therefore people sitting at home destroys it! People sitting at home doing nothing for anybody not only doesn't create prosperity, it destroys it, and people like Nancy Pelosi... This is near criminally incompetent in basic economics. She says this...
Now, I don't know whether she's that dumb and really believes it or if this is simply the result of some strategic thinking and knowing their voters and knowing their audience and saying silly things to justify stupid government policy. It doesn't really matter outside of the point of curiosity. But she said it; it couldn't be more wrong. It is irresponsible for political leadership to be speaking this way, but she does.
And they're winning right now."
Time to comment.
http://www.rushlimbaugh.com/daily/2013/01/11/flashback_pelosi_claimed_jobless_benefits_were_economic_stimulus

Taxes Schmaxes

Now that most Americans have received a pay day, and have had opportunity to view their pay stubs, it is very likely they've noticed fewer numbers going into their bank accounts.  Taxes have increased on them, and they didn't even think they were rich!

FICA, Medicare or 'payroll taxes' have increased, taking a couple percentage points away from take-home pay.  This in addition to the increases on the marginal income tax rates on those that have incomes in the upper six figures plus?  Gives rise to this interesting fact...Rolls-Royce had it's best year of sales EVER!  One may think this due to China et al accounting for more demand for luxury goods, but hey, the USA increased it's demand by 17%.  HOW IS THIS POSSIBLE?!?  A luxury good, more sold, this implies more disposable income on the part of the rich, right?

Maybe not.

When the taxes on economic activities involving investment (business expansion, etc.) increase, the opportunity costs of alternative dispositions of $ change so now the rich guy takes his money and puts it to other uses, specifically purchasing 'real' assets instead of 'paper' assets; gold, collectibles, etc. instead of expanding businesses (which then would have hired people, who would have more $ and then more economic activity...).

People respond to incentives.  If a all-knowing third party (gov't) establishes 'perverse incentives', do not be surprised when those with resources (rich) do something other than what was expected.

http://www.autoblog.com/2012/01/11/rolls-royce-records-highest-annual-sales-in-107-year-history/