With the US trapped in depression, this really is starting to feel like 1932

The US workforce shrank by 652,000 in June, one of the sharpest contractions ever. The rate of hourly earnings fell 0.1pc. Wages are flirting with deflation. "The economy is still in the gravitational pull of the Great Recession," said Robert Reich, former US labour secretary. "All the booster rockets for getting us beyond it are failing."

"Home sales are down. Retail sales are down. Factory orders in May suffered their biggest tumble since March of last year. So what are we doing about it? Less than nothing," he said.

California is tightening faster than Greece. State workers have seen a 14pc fall in earnings this year due to forced furloughs. Governor Arnold Schwarzenegger is cutting pay for 200,000 state workers to the minimum wage of $7.25 an hour to cover his $19bn (£15bn) deficit.

Can Illinois be far behind? The state has a deficit of $12bn and is $5bn in arrears to schools, nursing homes, child care centres, and prisons. "It is getting worse every single day," said state comptroller Daniel Hynes. "We are not paying bills for absolutely essential services. That is obscene."

Roughly a million Americans have dropped out of the jobs market altogether over the past two months. That is the only reason why the headline unemployment rate is not exploding to a post-war high.

Let us be honest. The US is still trapped in depression a full 18 months into zero interest rates, quantitative easing (QE), and fiscal stimulus that has pushed the budget deficit above 10pc of GDP.

The share of the US working-age population with jobs in June actually fell from 58.7pc to 58.5pc. This is the real stress indicator. The ratio was 63pc three years ago. Eight million jobs have been lost.

The average time needed to find a job has risen to a record 35.2 weeks. Nothing like this has been seen before in the post-war era. Jeff Weniger, of Harris Private Bank, said this compares with a peak of 21.2 weeks in the Volcker recession of the early 1980s.

"Legions of individuals have been left with stale skills, and little prospect of finding meaningful work, and benefits that are being exhausted. By our math the crop of people who are unemployed but not receiving a check amounts to 9.2m."

Republicans on Capitol Hill are filibustering a bill to extend the dole for up to 1.2m jobless facing an imminent cut-off. Dean Heller from Nevada called them "hobos". This really is starting to feel like 1932.

Washington's fiscal stimulus is draining away. It peaked in the first quarter, yet even then the economy eked out a growth rate of just 2.7pc. This compares with 5.1pc, 9.3pc, 8.1pc and 8.5pc in the four quarters coming off recession in the early 1980s.

The housing market is already crumbling as government props are pulled away. The expiry of homebuyers' tax credit led to a 30pc fall in the number of buyers signing contracts in May. "It is cataclysmic," said David Bloom from HSBC.

Federal tax rises are automatically baked into the pie. The Congressional Budget Office said fiscal policy will swing from a net +2pc of GDP to -2pc by late 2011. The states and counties may have to cut as much as $180bn.

Investors are starting to chew over the awful possibility that America's recovery will stall just as Asia hits the buffers. China's manufacturing index has been falling since January, with a downward lurch in June to 50.4, just above the break-even line of 50. Momentum seems to be flagging everywhere, whether in Australian building permits, Turkish exports, or Japanese industrial output.

On Friday, Jacques Cailloux from RBS put out a "double-dip alert" for Europe. "The risk is rising fast. Absent an effective policy intervention to tackle the debt crisis on the periphery over coming months, the European economy will double dip in 2011," he said.

SOURCE

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Republicans alienating the unemployed?

Republicans on Capitol Hill who backed the mobilization of $3 trillion of fiscal and monetary support to bail out the financial system are now going to great efforts to prevent the roll-over of temporary benefits to 1.2m jobless facing an imminent cut-off.

I don’t wish to enter deeply into an internal US dispute between Republicans and Democrats, but I do think think that the American political class will have to face up to the new reality of a semi-permanent slump for a decade or more that will blight a great number of lives. The cyclical recovery that normally makes it possible for most Americans to find a job if they want one is not going to happen this time because the overhang of debt, fiscal tightening, and a liquidity trap have combined to jam the mechanism.

The broader U6 rate of unemployment is 16.5pc. Jeff Weniger from Harris Private Bank estimates that over 9m Americans without jobs are receiving no support.

At some point this will become very political. Everybody knows that the wealthy have in fact been bailed out. Part of the purpose of quantitative easing was to raise asset prices, in the hope that this would course through the economy – and ultimately trickle down. The rich have benefitted enormously from federal action. Bond holders facing stiff losses on bank securities, or Fannie and Freddie bonds, and so forth, have been protected by the Fed and the Treasury.

I do not for one moment believe that Morgan Stanley or Goldman Sachs – for example – would have survived the Lehman storm without (implicit) intervention. This is not a criticism of federal action. It was right in such circumstances to step in to prevent a collapse of credit system.

But once welfare has been deployed so generously for the rich, it cannot be denied so easily for the poor. This was the Faustian Pact.

Republicans on Capitol Hill need to think long and hard about the nature of the contract they signed, and the language they now use. Otherwise American society risks splitting ever more bitterly into opposed camps.

The recession of the early 1990s spawned spontaneous militia groups across the country. What will we get this time?

More HERE

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The world of political journalism has radically changed in the post-WWII decades

As we know, the world of political journalism has radically changed in the post-WWII decades. The methods, the tone and the very role of media have morphed over time, although they have always been prone to liberal leanings. They began as mere reporters, whose sole function was to chronicle events in Washington. These pressmen represented the classic liberalism of the Scoop Jackson variety — committed to equality among men at home and the belief that a strong America was a force for good in the world — and generally represented the views of those to whom they reported the news.

Then, as the influence of radical socialists who had begun to infiltrate journalism schools in the 1930s began to take effect, they came to view their profession as a way to "change the world for the better." With the advent of television, the opportunity to be seen and heard furthered the ways in which the press increased its influence over the lives and psyches of everyday Americans. These men, embodied by the likes of Walter Cronkite, saw themselves as crusaders whose task it was to lift the minds of their fellow citizens out of their dreary middle-class ethos and into a more worldly one.

In earlier times, and especially those when Republican administrations held sway, they came off as courageous and zealous exposers of government tyranny and corruption. Even up until the Bill Clinton scandals, there were still members of the press — joined of course, by members of the "new media" — who didn't shirk their duty to report all the gruesome details which eventually led up to his impeachment. But things sure changed in a hurry. The hairsplitting minutiae that was the 2000 election seemed to drive them over the edge and out into the open. And they've never looked back.

Instead of speaking truth to power, they now hold the reins when it comes to shaping popular opinion and consequently view themselves as kingmakers; and their preferences are not hard to discern. Try as they might to deny this, it has never been more evident than in the last few election cycles. How? Let me count just a few of the ways.

President Bush was continually vilified for his supposed cowboy image, being compared as you might imagine, in an unflattering way with John Wayne. His use of the term, "bring it on," in reference to bloodthirsty killers, intent on murdering innocent women and children, was met with tsunamis of derision. USA Today bewailed his "combative tone" and quoted Sen. Frank Lautenberg (D-NJ) who called the president's language "irresponsible and inciteful." We're still waiting for comment from the estimable Sen. Lautenberg on Barack Obama's use of vulgar street-talk when wondering "whose ass to kick" while dealing with an environmental issue that is clearly over his head.

Or how about other examples of bad language? Bush was famously and thoroughly trashed by the media when he referred to NY Times reporter Adam Clymer as a bodily orifice during an open-mike gaffe at an outdoor Labor Day rally in Tennessee. The reaction when Joe Biden dropped the f-bomb during the signing of the healthcare bill at the White House? Puff pieces like this one from CBS that asked if the entire kerfuffle was, "Just Biden Being Biden?;" while over at ABC they wondered, "Was Joe Biden's Swear a Big Deal?" I'll leave the answers to you.

George Bush, a man who rarely talked about his time in the Texas Air National Guard, was for years subjected to what had to have been the most scrutinized military records in American history, to the extent that a formerly respected member of the media employed forged documents in an attempt to discredit the President's service. Yet, any attempts to delve into the military escapades of John Kerry were deemed unpatriotic and even spawned a new pejorative term, swiftboating, which is, I guess, another word for the job formerly held by the media.

Bush was constantly compared to Herbert Hoover as presiding over a terrible economic downturn and although he had earned an MBA from Harvard, he was widely regarded as a fiscal dunce. Not so his successor — whose main qualification for the presidency was a career spent in community organizing — upon whom no blame for our current mess seems to fall. Here's Paul Krugman, hitting on his two favorite subjects, love of Obama and hatred of "Bush's War," defending his hero: "And fear-mongering on the deficit may end up doing as much harm as the fear-mongering on weapons of mass destruction."

And in a more recent development, our friends over at NewsBusters have pointed out that the conservatism of Supreme Court Justice Samuel Alito was pointed out by the media ten times more often than the obvious liberalism of nominee Elena Kagan. The blatancy of this kind of coverage cannot forever be overlooked by an increasingly edgier electorate. Is it any wonder then, that the media has been losing its hold on the American public?

Yet the pendulum might be swinging back again. It seems that the far left segment of the media isn't too pleased with what their champion, Barack Obama, has accomplished lately, even with a friendly Congress. How far might they go in failing to defend him should the November disaster everyone expects come to pass?

SOURCE

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ELSEWHERE

Emphasizing home ownership is questionable policy: "It would be preferable if government stopped intervening in the housing market because then housing prices would return to their equilibrium level. The high foreclosure rate is yet another example of a government-created problem that would be better solved with less government, not more. Throwing more state money at the problem is more likely to incite people to buy more expensive houses than they can afford than to reduce the rate of foreclosure. Programs that encourage homeownership already exist at practically every level in the government, but despite these programs, the rate of homeownership has remained steady over time.”

Work for free: "With young people nearly shut out of the market (by recession, regulation, ‘child’ labor laws, and ghastly minimum wage laws), I would like to suggest the unthinkable: young people should work for free wherever they can and whenever they can. The reason is to acquire a good reputation and earn a good recommendation. A person who will give you a positive reference on demand is worth gold, and certainly far more than the money you might otherwise earn.”

French political elite aghast. Must cut personal spending: "French government ministers are under orders to lose the easy-come, easy-go attitude. That’s particularly true for Alain Joyandet, secretary of state for overseas development, who spent $143,000 of taxpayer money on a private jet to the Caribbean. And for Christian Blanc, secretary of state for the greater Paris region, who’s been told to reimburse the $15,000 of public funds he spent on Havana cigars. Revelation in the last few weeks of such lavish habits has sent a chilling wind through the corridors of power, resulting in a brisk awakening for many in the politically privileged class, including the president himself.”

HI: Lingle vetoes same-sex civil unions bill: "Hawaii’s governor on Tuesday vetoed legislation that would have permitted same-sex civil unions, ending months of speculation on how she would weigh in on the contentious, emotional debate. Republican Gov. Linda Lingle’s action came on the final day she had to either sign or veto the bill, which the Hawaii Legislature approved in late April.”

My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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Amnesty for employers: A sure-fire way to get everyone back to work

If that REALLY is Obama's top priority these days

By VIN SUPRYNOWICZ

Back in January, in his State of the Union speech -- my, how time flies when you're having fun -- Mr. Obama said his No. 1 priority was going to be jobs. "Jobs must be our No. 1 focus in 2010," Mr. Obama said, adding, "People are out of work. They are hurting. They need our help."

He didn't mean it, though. It's within the power of the federal government to facilitate the creation of millions of new private-sector jobs in only a matter of months, but Mr. Obama won't do it.

If the head of a lending library determines a huge chunk of the collection is out on loan and overdue, and that patrons are afraid to bring the books back because the accrued fines are so large, what does he or she do?

The traditional solution is to slice away the perverse disincentives by offering an amnesty: Anyone who brings back a book in the next month will be forgiven their fines.

Any president who wants to see a massive re-birth of private-sector jobs in this country (not government jobs, which suck money out of the private sector even after the bureaucrat retires) -- especially if his party controls both houses of Congress -- need only declare a three-year "employer amnesty."

Why are employers reluctant to hire? First, it would be stupid to add capacity if the economy is still headed down the tubes because of the looming threats of the health care taxes and mandates in ObamaCare; the threatened "global warming carbon tax"; the threatened "value added tax," and the threat that workplaces will now be unionized without a secret ballot majority vote ("card check").

The president could stimulate a giant sigh of relief out there among private-sector employers by declaring that ObamaCare is suspended for three years, along with all those other big-government initiatives. Tell Congress they've done a wonderful job, and send them home.

But the second big reason business owners are wary of creating jobs is all the costs, mandates, taxes and punishments the federal government has attached to job creation.

To fix this, we need an "employer amnesty." Simply tell employers that for the next three years, the federal government doesn't care how many employees you have, or who they are. Uncle Sam doesn't want to hear about it.

We're going to get busy rounding up and deporting some 12 million illegal aliens, so we won't have to worry about all these new jobs going to illegals. Otherwise, hire whoever you want, and don't tell us.

Minimum-wage laws? Three-year hiatus. Withholding, matching and submitting income taxes, Social Security taxes, Medicare taxes? All gone for three years. Tear up the forms. The IRS is on a three-year leave of absence. We won't need to keep transferring those moneys from young workers to old retirees; we'll just draw down the "trust funds" into which those retirees' wages were placed all through their working years in order to pay them their current, promised benefits.

The Equal Employment Opportunity Commission? Laid off for three years. OSHA? You won't be hearing from them. The ADA? In abeyance. Environmental impact statements for that new hospital, highway or factory you want to build? No one will ever ask to see them if you can get it done in the next three years.

Leftists, statists and fascists will be outraged over any and all of these proposals, of course. "You want workers to die!" they'll shriek, jumping up on their chairs and clutching their petticoats about their knees. "You want racists to be allowed to hire anyone they want, without quotas! You're against the disabled! Allow people to work for any wage they'll agree to? Oh, oh, I feel suddenly light-headed -- someone catch me! Who will protect the weak-minded and the oppressed from greedy capitalists offering them jobs?"

Which means "creating jobs" isn't really their top priority, or their second, or their third, or their 25th, is it?

By the time Rome fell, most of the farmland within a few days' march of the capital stood fallow. You couldn't make enough by farming the land to pay the taxes.

Yet keeping each and every one of these current job-killing federal taxes, regulations and mandates in place and operating at full strength is more important, isn't it?

So what Mr. Obama really meant, back on Jan. 27, was that "Protecting and creating more tax-funded government jobs must be our No. 1 focus in 2010, and you small people who work out there in Privatesectorland are just going to have to hunker down, shut up, and pay a whole hell of a lot more taxes to get it done, because we're not going to reduce the tax and regulatory burden on private employers who might want to create a job. In fact, you beasts of burden ain't seen nothin' yet!"

SOURCE

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Another Liberal Blind Spot

In another sign that liberals are becoming increasingly concerned with the growing popularity of libertarianism, a liberal named Daniela Perdomo has gone on the attack against libertarian John Stossel at Alternet.org, one of the major liberal (or “progressive,” as many liberals now label themselves) websites. In an article entitled “Is John Stossel More Dangerous Than Glenn Beck?” Perdomo has revealed a major blind spot within the liberal mind.

As I have pointed out time and time again in my articles on the minimum wage, liberals have a blind spot when it comes to economic understanding. Or to put it bluntly, when it comes to the field of economics, they have a woeful ignorance, and it is that ignorance that prevents them from recognizing the terrible harm they do to the poor, especially racial minorities, with such statist programs as the minimum wage.

In her attack on Stossel and libertarianism, Perdomo reveals another blind spot: the propensity to view a defense of freedom of choice as an endorsement of the bad, immoral, dangerous, or irresponsible choices that people end up making when they’re free to make choices.

What set Perdomo off was Stossel’s recent criticism of anti-discrimination laws. Like most other libertarians, Stossel argued that freedom entails the right of a bigot to be a bigot, including in the operation of his retail establishment.

What Perdomo’s blind spot prevents her from seeing is that one can defend freedom of choice as a principle without endorsing the wrongful choices that people make. To paraphrase Voltaire, we libertarians don’t agree with racist or bigoted choices but we will defend the right of people to make them, just as our defense of Nazi sympathizers to express their views in a public march in Skokie, Illinois, didn’t mean that we were endorsing their views.

Here is what Perdomo says about Stossel: “While he can make racist statements as well as the rest of them, he couches his particular brand of hate in his passion for libertarianism.”

Does Perdomo point to any racist statement or any expression of hate by Stossel? She does not, and the reason she doesn’t is because she can’t. Stossel didn’t make any racist statement or statement of hate. What Perdomo is essentially saying is that when a person calls for freedom of association on the basis of race, he is automatically, by virtue of taking such a position, guilty of making a racist or hate-filled statement.

Now, is that not ridiculous or what? That’s what passes for serious analysis within the liberal mind. That’s what comes from the 12-year-sentence in public (i.e., government) schools, where the mind is molded into conformity, memorization, and superficial analysis, stamping out any semblance of independent, critical thinking.

Of course, this isn’t the only area where Perdomo and liberals have this particular blind spot. We libertarians see it all the time with respect to the welfare state. Whenever we call for the repeal, not reform, of such liberal socialist programs as Social Security, Medicare, Medicaid, welfare, public housing, corporation bailouts, income taxation, and the like, and argue that people should be free to do whatever they want with their own money, what is it that liberals automatically say to us? They immediately exclaim: “You libertarians hate the poor, needy, and disadvantaged, and you would let them die in the streets!”

Again, they automatically jump to the conclusion that because libertarians favor freedom of choice in peaceful endeavors, they automatically endorse all the choices that people make.

An irony of all this in order to achieve a more moral, responsible, compassionate society, the worst thing people can do is use force to achieve it. It is through the widest ambit of freedom of choice that people are best able to achieve a higher level of conscience, consciousness, morality, and responsibility. Perhaps that’s what frightens statists, both conservatives and liberals, so much about libertarianism.

SOURCE

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‘Muslims-Only’ Enclave Thrives In Philadelphia

Thanks to U.S. taxpayers, an Islamic enclave is being carved out of the heart of the City of Brotherly Love. And how generous have you been with your tax dollars? You just gave $1.6 billion for the privilege of turning over all this cash to the Islamic community.
The person doing the carving is Kenny Gamble, the author of such hit songs as “Love Train” and “Me and Mrs. Jones.”

A convert to Islam, Gamble, now known as Luqman Abdul Haqq, is affiliated with the National Ummah Movement which seeks to establish sovereign Islamic enclaves ruled by shariah (Islamic) law within major cities throughout the U.S.A. The movement was started by Jamil al-Amin (the former H. Rap Brown), who is now serving a life sentence at a maximum security prison for killing two police officers in Atlanta.

Gamble managed to collect the $1.6 billion through Universal Company, a so-called “charitable organization,” which he formed in 1993. Gamble and his spokesmen say that the non-profit company provides a public service by cleaning up a blighted section of the south Philly, but local residents say that Universal has really used the $1.6 billion to create a Muslim ghetto. This allegation is supported by Gamble himself. Speaking to his fellow Islamists, the former songwriter quipped: “We are not here for Universal, we are here for Islam.”

The proof is in the pudding. The 800 block of South 15th Street now contains the United Muslim Masjid, an Islamic center, and a madrassah (charter school). All of these organizations have been created and sustained by Gamble’s enterprise. Rotan Lee of the Philly YMCA says: “You look up and down the street and see men, women and children in traditional Muslim dress everywhere; you see the masjid right across from Kenny's house and security guards on the corners in kufis.”

On the website of the Muslim Alliance of National American, the directors of Gamble’s company made the mistake of betraying their true intent by saying: “By the Blessing and Mercy of Allah (SWT), the efforts of Universal Companies serve as a national model for what can be done with commitment, compassion, focus and careful planning and execution. Just another proof positive of the words of the Qu’ran where Allah (SWT) states: ‘Let there arise from among you a small group of people, inviting to all that is good. They enjoin the good, and forbid the evil, and it is they who attain success.’ (3: 104).”

Proof of Gamble’s ties to National Ummah Movement was provided by a conference call from Jamil al Amin to the United Muslim Masjid., a mosque G founded on 15th Street. A transcript from the mosque reads as follows: "...A highlight of one meeting was when we had Imam Jamil Al-Amin on speaker phone talking to us from his Georgia prison. MANA (Muslim Alliance in North America ) and its members have raised and donated several thousands of dollars to his family and legal defense team. Imam Jamil has recently been transferred to a "supermax" prison in Colorado, and we ask that you make du'a for him."

More here

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ELSEWHERE

Judges: Obama can’t close Yucca Mountain nuke dump: "Democratic Rep. John Spratt and Republican Rep. Joe Wilson don’t agree on much, yet the South Carolina congressmen are cheering a new ruling that denied the bid by the U.S. Energy Department to withdraw its application for a nuclear waste repository at Yucca Mountain in Nevada. Three administrative judges within the Nuclear Regulatory Commission ruled last week that Congress had designated Yucca Mountain in 1987 to receive highly toxic waste from the Savannah River Site on the S.C./Georgia border and other complexes that built atom bombs during the Cold War. The panel found that President Barack Obama and Department of Energy Secretary Steven Chu, a nuclear physicist, lacked the power to close the Yucca repository unilaterally; doing so, it ruled, would require another act of Congress.”

Petraeus takes over Afghan fight, vows “to win” it: "‘We are in this to win,’ Gen. David Petraeus said as he took the reins of an Afghan war effort troubled by waning support, an emboldened enemy, government corruption and a looming commitment to withdraw troops — even with no sign of violence easing. Petraeus, who pioneered the counterinsurgency strategy he now oversees in Afghanistan, has just months to show progress in turning back insurgents and convince both the Afghan people and neighboring countries that the U.S. is committed to preventing the country from again becoming a haven for al-Qaida and its terrorist allies.”

Supreme Court opens door to more liberty: "The real surprise lay elsewhere: in signals that the Court may be inching toward a legal doctrine that offers stronger blanket protections of individual rights than this country has seen in almost 140 years. Many people don’t realize that the McDonald case is much more about the Fourteenth Amendment than the Second. Originally, the Bill of Rights — including the Second Amendment right to bear arms at issue in McDonald — only applied to the federal government. The Fourteenth Amendment was ratified in the wake of the Civil War to expand the reach of the Bill of Rights, mainly so that individual states could not pass laws depriving blacks of their civil rights.”

Founders didn’t create America; America created Founders: "When the Swedish botanist Pehr Kalm visited the American colonies in 1748 to find seeds useful for agriculture, he called it a place where ‘a newly married man can, without difficulty, get a spot of ground where he may comfortably subsist with his wife and children,’ and ‘the liberties he enjoys are so great that he considers himself a prince of his possessions.’ Kalm’s observations of the colonists’ liberties and culture came 28 years before the Continental Congress wrote and approved the Declaration of Independence, and his thoughts were neither wrong nor unique for the time.”

My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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Another lame attempt to wriggle out of the Race/IQ correlation

It's not much of a guess to say that stupid people are not very good at looking after their health and -- though lack of precautions -- may get a lot more disease than smarter people. And when you have got a whole nation of dumb people, the chances of them having good public health measures -- such as providing reticulated sewerage and clean drinking water -- must also be rated as low. So a finding that stupid people get a lot more illness is not remotely surprising.

And that is what the authors of Parasite prevalence and the worldwide distribution of cognitive ability by Eppig, Fincher and Thornhill found. Rather bizarrely, however, they reverse the causal link. They say that poor health causes low IQ! They do end up admitting that they have no proof for their "reversed" chain of causation so their work proves nothing but it is nonetheless amusing to note a few things about their study.

The whole point of the paper is of course to show that Africans have low average IQs not from genetic inheritance but because they are worm infested. And there is no doubt that Africans in Africa do carry a heavy burden of worm infestation -- mainly due to the great lack of public health measures there.

Where it gets amusing is that Eppig et al. did their study in various regions of the world and in 5 out of 6 regions, the correlation held. The exception was South America. The correlation collapsed completely there. Why? Because the South American region included several Caribbean nations almost wholly inhabited by Africans! So why were the results there different from the rest of South America? Could it be a racial difference?

Oh no! Eppig et al say: "It is possible that local parasites ... are causing these outliers". In other words, they abandon the obvious in favour of a totally vague and unfounded speculation!

Two other reasons why the perverse theory of Eppig et al is wrong: They pinpoint nutritional deficit as the mechanism by which parasite load inhibits brain development. But if poor nutition lowers IQ, how do we explain the famous Dutch famine study? In the closing phases of WWII, Nederland experienced a severe famine. So all the Dutch kids born during the famine should be real dummies, right? The reverse happened. They were of higher average IQ than other Dutch cohorts. Only the very healthy survived and, as we have seen, good health and high IQ correlate.

And a second very obvious disproof of the perverse Eppig et al. theory is that black Americans have very similar health environments to white Americans but are still a whole standard deviation lower in average IQ. The Eppig et al theory is, in other words, arrant and transparent nonsense

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President Reagan, Our British Friends, and the 4th of July

In 2001, Kiron Skinner, Annelise Anderson, and Martin Anderson edited a superb book that all friends of freedom, and of President Ronald Reagan, should read. Titled Reagan in His Own Hand: The Writings of Ronald Reagan that Reveal His Revolutionary Vision for America, it published a selection of Reagan’s daily radio broadcasts between 1975 and 1979.

Reagan composed and wrote these broadcasts himself, and the book reproduces them just as he wrote them. They provide indisputable proof that Reagan gave lengthy, serious thought to the major issues of the day, that he had a clear and consistent vision for America and the world, and that he was a wide reader and a hard worker. Anyone who doubts this should try writing over a thousand radio scripts – and much else – in four years.

All of Reagan’s scripts are worth reading. But this 4th of July, one is particularly appropriate. In a broadcast on September 21, 1976, “The Hope of Mankind,” Reagan returned to one of his favorite themes. As the editors put it, “Reagan believed . . . that America is unique among nations – ‘the hope of mankind.’ He felt we had a duty to protect what we had inherited. . . . In these essays, . . . the guiding star is always individual liberty, how lucky we are to have it, and how to preserve and protect it.”

To that end, Reagan quoted Ferdinand Mount. Mount later ran the Policy Unit in Number 10 Downing Street for Margaret Thatcher in 1982-83, and wrote the tremendously successful Conservative manifesto for the 1983 general election, when Lady Thatcher won her most smashing victory. On July 5, 1976, Mount wrote a memorable column for the Daily Mail. Here, as quoted by Reagan, is what Mount thought it important to say, that day after the 200th 4th of July:

What the world needs now is more Americans. The U.S. is the first nation on earth deliberately dedicated to letting people choose what they want and giving them a chance to get it. For all its terrible faults, in one sense America is still the last, best hope of mankind, because it spells out so vividly the kind of happiness which most people actually want, regardless of what they are told they ought to want. We criticize, copy, patronize, idolize insult but we never doubt that the U.S. has a unique position in the history of human hopes. For it is the only nation founded solely on a moral dream. A part of our own future is tied up in it and the greatest of all the gifts the Americans have given us is hope.

Reagan closed with three sentences of his own: “Thank you Mr. Mount – we needed that. This is Ronald Reagan. Thanks for listening.” Thanks indeed – to Mount, to our friends around the world, and to President Reagan for recalling their faith, and the faith of the Founding Fathers that inspired us all.

SOURCE

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The Founders’ Most Important Idea

Some opinions:

Jamie Radtke, Chairman of the Virginia Tea Party Patriot Federation:

In my opinion, one of their most significant achievements was the idea of a written constitution. Our U.S. Constitution was designed to serve as a limitation on federal powers, which is what makes it unique and powerful. It provides for a federal separation of power among three branches of government as was advocated by the French philosopher Montesquieu in his work, The Spirit of the Laws. Thus, unlike a parliamentary form of government, power is divided among an independent legislature, a chief executive and an independent judiciary. Additionally, the Bill of Rights guarantees the fundamental rights of the people and the states and further defines the boundaries of power of the federal government. This brilliantly composed document struck a remarkable balance of affirming our natural rights while establishing justice, safety, and a well-ordered society.

The Founders were sensitive to government’s proclivity to usurp the power of the people and therefore were very intentional in how they crafted these constitutions to safeguard our individual liberties. It is now our responsibility to preserve the original intent of the Constitution, restore federalism, and protect the unique treasure that was given to us by our Founding Fathers.

Matthew Mayer: President of the Buckeye Institute for Public Policy Solutions:

Without a doubt, the single greatest idea of the Founders is the system of checks and balances established in the Constitution. From 1787 to 1913, this amazing system allowed America to rise from a largely agrarian country to one of the world’s powers on the eve of World War I. During those 126 years, the federal government really was largely constrained and the states played dominant roles in the lives of their citizens. All of that changed in 1913 when Americans unwisely passed the 17th Amendment that fundamentally changed the balance of power between the states and the federal government. With the direct election of U.S. Senators, states lost the only real check they had on the growth and usurpation of power by the federal government. That seemingly insignificant change made to reduce corruption at the height of the Progressive Movement, ironically has resulted in an unchecked federal government with almost limitless powers and the attendant corruption that comes with great power.

ObamaCare illustrates this reality perfectly as states are left to try to undo what their own senators voted for/rammed through despite the costs ObamaCare will pose on states. Now, states desperately cling to the pre-1937 interpretation of the Commerce Clause—it only took 20 years or so for the federal government to realize the power it gained in 1913—and senators ignore the wishes of their constituents—the states, not the people in the states—knowing that the diffusion of the cost is outweighed by the concentration of the benefit. If we want to get America back on course, we should repeal the 17th Amendment, thereby making state legislative races far more important than they are today.

Matthew J. Brouillette, President of the Commonwealth Foundation for Public Policy Alternatives:

America’s founding was shaped by the radical declaration that our right to private property was and is inherent and inalienable. This hostile idea, embodied in our Founding documents, challenged the historical practice of man’s rights being determined, limited, and granted by the state. This reorientation of the grantor of rights—from our Creator rather than those in authority—dramatically redefined who was sovereign while simultaneously placing chains on the powers of government. The state would now be the protector—rather than the arbiter—of man’s inherent and inalienable rights to life, liberty, and the fruits of his labors.

Ginni Thomas, President of LibertyCentral.org:

While the Founders understood that men were not angels, they also recognized the inherent danger of powerful, centralized government. The simultaneous recognition of both of these principles is remarkable and formed the philosophical foundation for our system of limited Constitutional government. This foundation provided for the greatest degree of individual liberty within a robust independent civil society that could form, naturally, a just and successful society.

Thomas J. Gaitens, Florida Tea Party Leader:

The phrase “Endowed by their creator with certain unalienable rights” has to be the most significant idea, revolutionary idea. This simple yet profound idea is the seed by which LIFE, LIBERTY and the PURSUIT OF HAPPINESS spring. Furthermore, it is this principle that brings us the irreplaceable conclusion that “Governments are instituted among men …” This concept of unalienable rights, known as the rights of man is the building block of Liberty. Our Hale rallying cry, of “Give me Liberty or Give me Death” embodies this and has been our chief export for 233 years. Failure to understand this byproduct of our Founding is failure to understand American Exceptionalism.

SOURCE

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ELSEWHERE

The 4th of July: "The 4th of July is a dedicated day of remembrance. A day not only to remember the sacrifices our forefathers endured to free us from the yoke of tyranny, but also for us to recall how significant our Declaration of Independence and Constitution were for all of humanity. These documents, even with all the flaws of human nature self evident, were the strongest declaration of individual freedom ever created. Because of the freedom these documents provided, America became the wealthiest nation in the world.”

Celebrate race relations? "On my first Fox News Special, What’s Great About America, which airs this weekend, I argue that one of the things we should celebrate about America is American race relations. Yes, America has a history of slavery, then Jim Crow, then segregation and today, there’s still some racial hatred. But for a country that one generation ago had a presidential candidate (George Wallace) declaring ’segregation forever,’ race relations in this country are remarkably good. According to one poll, 81% of Americans have a ‘fairly close personal friend’ of another race. This kind of tolerance is rare in the world.”

Why is the Gulf cleanup so slow?: "As the oil spill continues and the cleanup lags, we must begin to ask difficult and uncomfortable questions. There does not seem to be much that anyone can do to stop the spill except dig a relief well, not due until August. But the cleanup is a different story. The press and Internet are full of straightforward suggestions for easy ways of improving the cleanup, but the federal government is resisting these remedies.”

If the US won’t drill oil offshore, other nations will: "If the United States commits to bypassing offshore drilling at depths greater than 500 feet, we will be cutting off our collective noses to spite our collective face. Spain, China, Venezuela and other nations will continue to exploit potential reserves of fossil fuels, wherever they may be found. As a result, more of the world’s supply of crude oil and natural gas will fall into the hands of unfriendly nations.”

Crude oil falls as US payrolls slip, factor orders decrease: "Crude oil dropped for a fifth day after a U.S. government report showed that employment slipped in June for the first time this year and factory orders declined more than forecast. … Crude oil for August delivery fell 81 cents to $72.14 a barrel on the New York Mercantile Exchange, the lowest settlement since June 8. Prices slipped 8.5 percent in five days, the biggest weekly drop since the week ended May 7.”

US economy stuck in misery: "The middle class is dead. The US has produced a self-sustaining two-class society. Most Lower Class Americans are in bad or uncertain economic shape but the rich and powerful Upper Class crowd keeps making and spending money as if there has been no recession. Talk about a possible double-dip recession misses the larger reality: For many millions of Americans the first recession is still here; there has been no recovery for them.”

CA: Court okays Governator’s cuts to state employees’ pay: "The governor has the authority to lower most state workers’ pay to the federal minimum wage if a state budget isn’t in place, a state appeals court ruled Friday, the second day of California’s 2010-11 fiscal year. The ruling came one day after Gov. Arnold Schwarzenegger ordered the state controller to cut pay for about 200,000 state workers to the federal minimum wage of $7.25 an hour. The court case began in 2008, when Schwarzenegger made a similar order. Controller John Chiang, a Democrat, defied the demand and was sued by the Republican governor, but a budget was approved before the case was resolved.”

There is a new lot of postings by Chris Brand just up -- on his usual vastly "incorrect" themes of race, genes, IQ etc.

My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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The USA: A country for the little guy

An Independence Day reflection

I was born and bred in the Australian working class and, despite my success in academe and business, I still feel most at home among working class people. They seem to me to have a realism that the bourgeoisie lack. And I notice the same good-humoured realism among small-town Americans too. Big cities and grand theorizing seem to undermine common sense.

And there is no doubt that people from humble beginnings can rise to the top in both Australia and the USA -- from a B grade actor like Ronald Reagan to a parasite like Barack Obama.

But I think that a major factor in making America great is an extraordinarily simple one and one that is often overlooked: America has Congressional elections every two years. That puts the politicians in mortal fear of the little guy -- of ordinary Americans.

The politicians have got very little room to maneuver. If they run off the rails they will very rapidly be out on their ear. And that fear does mostly restrain them from grand follies. So America is in a very real sense the country where the little guy rules -- and that has made it great. And there is no doubt that the grand folly of Obamacare will deliver many a well-deserved boot up the backside to Democrat politicians this November.

And one of the wonderful things about ordinary Americans and Australians is that they are benevolent. They are kindly people who are ready to help others if they can. And that has made the USA into an incredibly generous nation.

What leaves me in awe is that America has repeatedly shown its readiness to risk the lives of its finest young men in order to rescue people in other countries from tyranny and brutality. America itself has not been seriously threatened for around 200 years so most of America's many wars have simply been efforts to help others.

And I think therefore that it is very right to remind ourselves of that awesome sacrifice on this day. I think the video below does that:



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Barack Obama's 'politics as usual' revealed by Rod Blagojevich trial

Obama's action in trying to ease his friend Valerie Jarrett into his old Senate seat will fuel cynicism about politics, argues Toby Harnden

In a year when Americans are arguably more cynical and disillusioned about politics than at any time since Watergate, the corruption trial of Rod Blagojevich is a sobering reminder of how its practitioners operate.

Although "Blago", the foul-mouthed bouffant buffoon, is the main attraction of the Chicago production, the former Illinois governor's reluctant co-star is Barack Obama. The President forms part of the proceedings each day even though the judge has spared him a personal experience.


Reports of the Blago trial cannot make comfortable reading for the White House for they provide what Mary Mitchell, the Chicago Sun-Times columnist, described as "an unfiltered look at how the sausage is made in Illinois"

Illinois, of course, is the state that gave us President Obama. It is where he cut his teeth as a community organiser and where he first began to ascend the greasy pole of politics by taking his seat in the state senate.

At issue in the Blago trial is whether the then governor was trying to sell the United States Senate seat that Obama ascended to in 2004 after his initial Republican opponent imploded.

Blago had the power to appoint a new Senator when the seat was vacated because of Obama's presidential election victory in November 2008. Clearly, he thought the seat was a valuable prize.

"I got this thing and it's f------ golden and I'm not just giving it up for f------ nothing," he said in a conversation recorded by a federal wiretap. Blago's instinct was that Obama – who he mockingly described as "this historic, f------ demi-god" – would be willing to pay to have his preferred choice be duly appointed.

That choice, the trial has confirmed, was Valerie Jarrett, who now rejoices in the title of senior White House adviser and Assistant to the President for Public Engagement and Intergovernmental Affairs.

Her qualification to be a Senator? Jarrett had worked for Mayor Richard Daley and chaired the Chicago Transit Board. She had been a successful businesswoman in Chicago. But she had never held elected office and her name would not even have been mentioned had it not been for her closeness to the President-elect.

Jarrett was a long-time personal friend of Obama and his wife Michelle and that seemed to be qualification enough for the man about to enter the White House.

Tom Balanoff, president of the Service Employees International Union's powerful Local 1 branch, took on the role as "emissary" for Jarrett, who initially wanted the Senate seat, and testified that Obama telephoned him personally to speak about it.

Next, Obama's incoming chief of staff Rahm Emanuel spoke to John Wyma, a lobbyist, who then telephoned Blago's right-hand man John Harris to communicate that "the president-elect would be very pleased if you appointed Valerie and he would be, uh, thankful and appreciative".

Blago's problem seems to have been that he wanted something a little bit more concrete than appreciation. To be precise, his response was: "F--- them."

The gratitude of a President, however, is no small thing and who knows what favour Blago might have found coming his way in due course had he duly appointed Jarrett.

That, of course, is how Chicago politics works – mutual back-scratching, a nudge and a wink. Blago's problem, if the allegations prove to be founded, is that he took a much cruder and more literal approach to such matters.

It has also become clear from the trial that Obama wanted to make sure that Emil Jones, then President of the Illinois State Senate and the man Obama referred to as his "political godfather", out of the seat.

The former sewer inspector had taken Obama under his wing when he was a callow state senator but he had apparently now outlived his usefulness. Perhaps Obama did not want such a reminder of his past in Washington.

Team Obama soon concluded that Blago was out of control and that the way he was dealing with the Senate vacancy could be extremely damaging to the President if he was too closely associated with it. So they pulled back and Jarrett took her White House job instead.

Quite why the President who promised hope, change and transparency thought it proper to have been trying to ease his friend into his old Senate seat just days after he had won the White House has not been answered.

There is no suggestion that what Obama was doing was anything illegal, improper or even out of the ordinary, at least in Illinois. He was simply engaging in politics as usual. Unfortunately, politics as usual is what Candidate Obama promised to bring to an end.

SOURCE

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Unprecedented Arrogance

David Limbaugh

The Obama administration grows more arrogant, cavalier and fundamentally dishonest every day. Just in the past few days, we've seen a number of troubling examples. Frankly, sometimes it's hard to keep up.

In a speech in Wisconsin, Obama was bragging about how wonderful the terrible economy is. You'll recall that during both of President George W. Bush's terms, Democrats, including Obama, castigated him for destroying the economy, despite the existence of empirically verifiable robust growth during some seven of those eight years.

Now that Obama has been in office for a year and a half and his economy is failing by all objective measures, he and his Democrats demand, once again, that we ignore the empirical evidence in front of our faces and bow down to them in reverent gratitude for ensuring that things are not worse than they are.

Everyone knows Obama promised -- he was hardly tentative about his prediction -- that if the nation followed him over the cliff with his harebrained "stimulus" scheme, unemployment would not exceed 8 percent. When unemployment soared above 10 percent, he insisted we be patient to allow his plan to work. Now that it stubbornly remains in the high 9s, he tells us that if he hadn't implemented his stimulus bill, the economy would be much worse (12 or 13 or 15 percent), so we not only are forbidden from criticizing him for this disaster but also must genuflect because only three of the four wheels of the economy are teetering over the edge of the cliff.

He said, "There may be some roads that not only were repaired but also were ... linked up to create a new industrial park that would facilitate long-term economic development beyond this immediate crisis."

Can you imagine the reaction of the liberal media had a Republican president uttered such gibberish? There "may be some roads"? How's that for a non-statement? That were linked up to a new industrial park to facilitate long-term growth? How about some facts here, Mr. Intellectual? Then again, how can you blame him for citing nebulous "facts" and failed economic theory when neither the real facts nor the economic evidence substantiates his claims.

He also said that every economist who's looked at it has said that the recovery did its job. Would someone please get this man a link to The Heritage Foundation's website or any other credible conservative think tank or economist? Time and time again, Heritage scholars have not only argued but also demonstrated why Obama's economic policies don't work in theory and haven't worked in practice. As noted many times before, they have not helped avert a crisis, but have exacerbated already bleak conditions. Sure, all economists agree with him, just as all Americans agree with his socialistic policies.

Moving on, in the past few days, we've also heard from former Justice Department attorney J. Christian Adams, who has confirmed -- from the belly of the beast -- our worst suspicions about Obama and Eric Holder's Justice Department's dismissing a slam-dunk case for voter intimidation against New Black Panther Party members for racial reasons. This is an egregious trampling on the rule of law, an outrage that would subject any Republican president to charges of high crimes and misdemeanors, a scandal of the first order for which this administration isn't even bothering to develop "plausible deniability."

Next, we read about Obama's reaction to Sen. Lamar Alexander's reasonable suggestion that any energy discussion between the president and a "bipartisan" group of senators should include a focus on the oil spill and BP. Obama said, "That's just your talking point," and flat-out refused to discuss the subject. Is he king or what?

Finally, we've also witnessed this week another outburst from that paragon of smugness, White House press secretary Robert Gibbs, whom I criticized earlier for mocking members of the press corps for their legitimate questions in lieu of attempting to answer them in good faith.

This time, this little smarmy nerd-thug mocked Sen. Jon Kyl of Arizona for claiming Obama told him in a private meeting he would not secure our borders because it would disincentivize Republicans from supporting his effort to pass "comprehensive immigration reform" (read: amnesty). Gibbs accused Kyl of changing his story and basically arguing with himself on the matter, even though Kyl has not retreated an iota from the only relevant assertion: that Obama made the statement in question. Watch the video in which Gibbs clearly intends to create the false impression Kyl had vacillated on his charge, and tell me with a straight face we're not dealing with an entirely unprecedented level of arrogance in this White House.

SOURCE

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BrookesNews Update

Obamanomics hits a reef : Borrowing and taxation amount to a transfer of purchasing power. We measure aggregate spending in terms of dollars. How in heavens name does this process increase the quantity of dollars? What we get is not an increase in demand but a change in the composition of demand, the pattern of spending. Aggregate spending must remain unchanged
Did outsourcing hollow out the US economy? : The effect of an overvalued currency is to make imports cheap relative to domestic goods and services. The longer the longer the currency remains overvalued the greater will be the distortions, i.e., malinvestments. This is where an apparent hollowing out process could possibly make its appearance
A leftwing intellectual spews anti-market nonsense : The left's rage against capitalism is relentless. What is striking about these intellectuals is their total ignorance of how markets actually work and of the true history of capitalism. Another striking feature is their utter contempt for the truth
Paul Krugman's depressing krugnorance : A devastating critique of Paul Krugman's economics and his absurd belief that printing money cures recessions. He finds it impossible to entertain the thought that printing money may actually be the cause of booms and busts
Fidel's Castro's terrorist trade : Castro Incorporated has three lines of business: drugs, people smuggling and terrorism. So why isn't the media exposing this vicious political gangster? Because as he himself said: 'I belong to a species which is above arrest', ie, I'm a leftist. Castro's secret police are now working with Mexican drug lords and smuggling terrorists across the border
A Dog in the Manger Presidency: Obama's character described 2,500 years ago by Aesop : If you run a campaign on the argument you are an unprecedented natural-born leader, despite utter inexperience — can you afford to let anyone else outshine you? The notion that an exemplar, par excellence, will fall full-born, like Athena from the head of Zeus is appealing. This concept is seductive probably for the same reason Jesus has unmitigated attraction to this day
Lenin Lives! But will he get his own spot on Larry King? : The Larry King interview with Oliver Stone and Jesse Ventura displayed a carefully crafted use of disinformation and half truths which have been the hallmark of Communist propaganda within the United States since Lenin unleashed his campaign against America not long after the Bolshevik revolution

My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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Poland: A Shot of Free Market Capitalism Proves the Best Remedy

People emigrating TO Poland for job opportunities? Dell Computer shifting production to Poland? Positive GDP growth in 2009 -- at the height of a worldwide recession and financial crisis?

For most of the world, 2009 was a year to forget. Not for Poland. It was the only country in the European Union not to fall into a recession during the global economic crisis. Poland's GDP increased in 2009: no other European country was above water. By comparison, GDP fell in the US (-2.4%), in Germany (-5%), in the United Kingdom (-4.3%), in Italy (-6.5%). . . . well, you get the picture. The year 2010 promises to be similarly outstanding for Poland as it is expected to realize the fastest growth in Europe.

During this period, Poland's unemployment rate edged up only slightly, as did its budget deficit and total government debt. In the meantime, the US unemployment rate nearly doubled, while its government racked up record deficits and debt as far as the eye can see.

Why was Poland's experience different?

Simple. Poland's leaders, in particular, Finance Minister Rostowski and Prime Minister Donald Tusk, have an unyielding belief in the free markets, having been trained in Austrian economics as espoused by Mises and Hayek, a school of economic theory barely taught at most US universities and not ever mentioned at the high school level. And, therefore, it is unfortunately a school of thought completely foreign to the current U.S. Administration and so many in its government.

So what was their spot-on prescription to the global economic crisis?

When the financial crisis struck in September 2008, Poland's government immediately held emergency meetings. First, they suspended all new planned regulations. This worked so well that Poland is now in the midst of a multi-year program of deregulation that has been a boon for small businesses and entrepreneurs, somewhat similar to the experience of the US in the 1980s.

Next they cut taxes. The three-tiered income tax rate of 19%, 30%, and 40%, was reduced to two tiers: 18% and 32%. And they continued to privatize industry. In October 2009, an IPO for the state-owned power utility, Polska Grupa Energetyczna, raised over two billion dollars which the government has used to fund its budget and keep taxes in check.

What has the United States done in response to the economic crisis?

We greatly increased regulations and government control over our health care, automobile, mortgage, financial, energy, and insurance industries. We increased government spending to record levels and are planning tax increases to pay for stimulus packages and health reform.

It is not surprising that our results have been different.

QUESTION: Is it possible to learn from the lessons of Poland if the media doesn't report it, our leaders do not inform themselves of it, AND IT IS NOT TAUGHT IN OUR SCHOOLS?

Poland is transforming itself into a laissez-faire paradise. Free markets and the Austrian economic theories of Mises and Hayek have wide support in the government and the general population. They are intimately familiar with the hazards of central economic planning and are understandably reluctant to travel that road again.

SOURCE

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"Obama is a menace to Israel, to Western Europe, . . . and to the whole of the Western World."

An interview at the New English Review with Dr. Richard L. Rubinstein, Yale fellow, "Distinguished Professor of the Year", and Harvard Ph.D.

"Obama is really a revolutionary. That doesn't mean he's looking to stir up violent trouble but I believe he is trying to transform both the American political system and economic system and America's relationship to the world. I also believe that he has decided that America must make its peace with Iran. I believe that he is a man who is highly intelligent, knows what he's doing and in spite of the fact that he has attracted liberal Jewish supporters, some with great wealth. His intention is to correct the historical mistake of the creation of the state of Israel.

Given Obama's background, the fact that his family was, on his father's side was Muslim, that his sister is a Muslim, that his half brother is a Muslim, there is no doubt that he heard a great deal about Islam and Israel from them before he took office and though he was not candid about it at first, he has by his decisions and his symbolic actions made it clear where his sympathies are.

... In addition to that, he has a hostility towards Western Europe, especially to England as characterized by the symbolic action of returning the bust of Winston Churchill to the English, one of his first acts.

And he has made some interesting symbolic moves with, for example, bowing to King Abdullah of Saudi Arabia since King Abdullah is the keeper of the two holiest shrines of Islam, Mecca and Medina, one wonders why he did this.

But when a head of state, which is what Obama is, makes a symbolic statement like that you know he is trying to convey a message, and it’s not one which we in western civilization are willing to accept.

Finally, he has talked of a nuclear-free Middle East and a nuclear-free world, and what he intends to do, of course, if he can, is to disarm Israel’s great equalizer. It has been able to defend itself against the far more numerous Arabs by virtue of the fact that it has nuclear weapons and Obama will, and he’s indicated he will apply every pressure to Israel to take that equalizer away from them.

So the way I see it, is that this man is a menace to Israel, to Western Europe, and I might add that Western Europe is beginning to have sanctions against Iran that are far greater and more effective than anything Obama was willing to tolerate, and to the whole of the Western World. He aims for a radical transformation, he is the most radical president that America has ever had!"

SOURCE

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Six Months to Go Until The Largest Tax Hikes in American History

In just six months, the largest tax hikes in the history of America will take effect. They will hit families and small businesses in three great waves on January 1, 2011:

First Wave: Expiration of 2001 and 2003 Tax Relief

In 2001 and 2003, the GOP Congress enacted several tax cuts for investors, small business owners, and families. These will all expire on January 1, 2011:

Personal income tax rates will rise. The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which two-thirds of small business profits are taxed). The lowest rate will rise from 10 to 15 percent. All the rates in between will also rise. Itemized deductions and personal exemptions will again phase out, which has the same mathematical effect as higher marginal tax rates. The full list of marginal rate hikes is below:

- The 10% bracket rises to an expanded 15%
- The 25% bracket rises to 28%
- The 28% bracket rises to 31%
- The 33% bracket rises to 36%
- The 35% bracket rises to 39.6%

Higher taxes on marriage and family. The “marriage penalty” (narrower tax brackets for married couples) will return from the first dollar of income. The child tax credit will be cut in half from $1000 to $500 per child. The standard deduction will no longer be doubled for married couples relative to the single level. The dependent care and adoption tax credits will be cut.

The return of the Death Tax. This year, there is no death tax. For those dying on or after January 1 2011, there is a 55 percent top death tax rate on estates over $1 million. A person leaving behind two homes and a retirement account could easily pass along a death tax bill to their loved ones.

Higher tax rates on savers and investors. The capital gains tax will rise from 15 percent this year to 20 percent in 2011. The dividends tax will rise from 15 percent this year to 39.6 percent in 2011. These rates will rise another 3.8 percent in 2013.

Second Wave: Obamacare

There are over twenty new or higher taxes in Obamacare. Several will first go into effect on January 1, 2011. They include:

The “Medicine Cabinet Tax” Thanks to Obamacare, Americans will no longer be able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin).

The “Special Needs Kids Tax” This provision of Obamacare imposes a cap on flexible spending accounts (FSAs) of $2500 (Currently, there is no federal government limit). There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children. There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education. Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education.

The HSA Withdrawal Tax Hike. This provision of Obamacare increases the additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.

Third Wave: The Alternative Minimum Tax and Employer Tax Hikes

When Americans prepare to file their tax returns in January of 2011, they’ll be in for a nasty surprise—the AMT won’t be held harmless, and many tax relief provisions will have expired. The major items include:

The AMT will ensnare over 28 million families, up from 4 million last year. According to the left-leaning Tax Policy Center, Congress’ failure to index the AMT will lead to an explosion of AMT taxpaying families—rising from 4 million last year to 28.5 million. These families will have to calculate their tax burdens twice, and pay taxes at the higher level. The AMT was created in 1969 to ensnare a handful of taxpayers.

Small business expensing will be slashed and 50% expensing will disappear. Small businesses can normally expense (rather than slowly-deduct, or “depreciate”) equipment purchases up to $250,000. This will be cut all the way down to $25,000. Larger businesses can expense half of their purchases of equipment. In January of 2011, all of it will have to be “depreciated.”

Taxes will be raised on all types of businesses. There are literally scores of tax hikes on business that will take place. The biggest is the loss of the “research and experimentation tax credit,” but there are many, many others. Combining high marginal tax rates with the loss of this tax relief will cost jobs.

Tax Benefits for Education and Teaching Reduced. The deduction for tuition and fees will not be available. Tax credits for education will be limited. Teachers will no longer be able to deduct classroom expenses. Coverdell Education Savings Accounts will be cut. Employer-provided educational assistance is curtailed. The student loan interest deduction will be disallowed for hundreds of thousands of families.

Charitable Contributions from IRAs no longer allowed. Under current law, a retired person with an IRA can contribute up to $100,000 per year directly to a charity from their IRA. This contribution also counts toward an annual “required minimum distribution.” This ability will no longer be there.

SOURCE

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ELSEWHERE

Sad to see that Wendy McElroy's sites are "down" -- apparently due to a DDOS attack. Both http://www.wendymcelroy.com and http://www.ifeminists.com/ are affected. She is a fierce libertarian so some Leftists must have decided that she is to be silenced. She is a old campaigner, however, so will survive. She appears on other sites at times -- Liberty & Power and Lew Rockwell, for instance -- so her thoughts will still be circulated. I would advise her to set up a blogspot blog. Attacking a blogspot blog means you are attacking Google and they are big boys.

Daily Presidential Tracking Poll, Friday, July 02, 2010: "The Rasmussen Reports daily Presidential Tracking Poll for Friday shows that 24% of the nation's voters Strongly Approve of the way that Barack Obama is performing his role as president. Forty-four percent (44%) Strongly Disapprove, giving Obama a Presidential Approval Index rating of -20. Just 29% believe the president’s economic stimulus package has helped the economy while 43% believe it has hurt. Voters say that decisions made by business owners following their own self-interest will create more jobs than decisions made by government officials."

My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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ObamaCare is Bad for Business

ObamaCare will cost our nation more than $1 trillion. However, as Obama’s health care plan begins to unfold, it is clear it is going to cost our nation more than just red ink. If the mandates and taxes in ObamaCare are left as is, it will cost America growth, innovation and jobs.

Victoria Braden and her team of experts work with small businesses as a human relations/employee benefits consulting firm. She is the CEO and President of Braden Benefit Strategies in Georgia. Braden is well versed in what is to come for her clients as they face benefit changes beginning Jan. 1, 2011 — when new mandates of ObamaCare kick in.

Tucked inside the 2,000-page law are new mandates that will affect business owners. ObamaCare has many of these businesses worried, confused and afraid. Some of her clients have already closed their doors for good. “They are afraid,” Braden says. “They are not sure what’s coming. They hear all these things and they want to know what’s happening.”

Most of Braden’s clients are companies with 300 or fewer employees. Many of the new regulations in ObamaCare affect them. She is taking the changes one year at a time. “I am just taking it one step at a time. My clients are doing all they can to survive now,” she says.

With many of the new taxes and mandates in ObamaCare being rather vague, it will be hard to know what kind of damage they will do to small businesses until they are enforced.

Braden says one big change in 2011 that will hit small businesses hard is employers will be forced to give the same benefits to everyone in the company. She gave this example: If a restaurant owner covers 90 percent of the health care costs for his managers, but only 50 percent of the costs for the rest of his staff, he will be forced to cover everyone at 90 percent or 50 percent. Every employee has to receive the same coverage and their W2 forms next year have to reflect how much their employer contributed to their health care plan.

“I’ve had several companies say that they are just going to drop employee’s insurance altogether because they can’t afford it,” Braden says. The problem is, ObamaCare coverage doesn’t kick in until 2014. Individuals who need health insurance and can’t get covered elsewhere have to be uninsured for at least six months before they can apply to receive the high-risk pool insurance coverage, which provides a buffer for the uninsured until ObamaCare coverage starts. However, even the high-risk pool insurance is underfunded and won’t cover everyone that needs insurance, including people with pre-existing conditions.

Regardless, starting in 2011, employers have to obey this mandate, which includes all full-time employees defined as those who work 30 hours or more.

“As a business owner, when you can’t make payroll, yours is the first to go,” Braden says. “We will see a whole bunch of 29-hour employees — especially in the fast food and retail environments — and an increase in seasonal workers.”

There are many more taxes and mandates that are harmful to the small business environment.
“Small business owners are on the front lines,” says Chief Economist Raymond Keating of the Small Business and Entrepreneurship Council (SBE Council). “They are skeptical and they should be that way.”

Does any part of ObamaCare help small business owners?

ObamaCare does offer a small business tax credit. But don’t be deceived. It is touted as a good and helpful tool for small businesses, but is rendered useless for many of them. There are a series of four tests a business has to go through before they can even qualify for a tax credit. It comes down to the size of your business —t he amount of health care costs you pay per employee and how many employees you have.

Dan Danner, president and CEO of the National Federation of Independent Business (NFIB), comments on this tax credit in a Wall Street Journal article.

“The credit, which is only available for a maximum of six years, puts small business owners through a series of complicated ‘tests’ to determine if they qualify and how much they will receive. Fewer than one-third of small businesses even pass the first three (of four) tests to qualify… More importantly, the credit is temporary, but health-care cost increases are permanent. When the credit ends, small businesses will be left paying full price.”

This doesn’t provide much incentive for a small business who receives a tax credit for only two years to increase its capital and hire new employees when it knows the growth will be short lived.

“ObamaCare is all negative for the small business economy,” says Keating. “Two-thirds of new jobs every year are created by small businesses.”

In this economy, there is nothing needed more than new jobs. The taxes and mandates in ObamaCare are on their way to further damaging our economy and job market.

Many of the mandates in ObamaCare are folded into the health care system over time.
One such mandates is an insurance fee. Overall it is an $8 billion tax — that escalates to $14.3 billion by 2018. This is a tax on insurance companies based on their market share with small businesses paying the bulk of the tax. This law excludes self-insured plans — plans most big businesses and labor unions offer. Therefore this tax will be passed onto plans that a majority of small businesses and individuals buy.

“This is just another tax on small businesses,” Braden says. With so much uncertainty of what 2011 holds for small businesses in regards to ObamaCare, she isn’t even telling her clients about this mandate yet — hoping things will change before it is enforced.

Why is this Administration killing the very engine that drives America?

“I feel like yelling, STOP!” Keating says. “So much damage has been done we need to go back and undo what’s been done. Stop the madness.”

Braden is equally as frustrated. “There are some really good ways to get out of it,” she says about the current situation of the economy and the negative effects of ObamaCare. “There are some great minds out there if we listened. They could figure it out if they’d get out of Washington and listen to the people,” she goes on to say about the leaders of our nation.

“Obama gives lip service to job creation, but his policies are destroying the American dream and the jobs created by small businesses,” says Bill Wilson, president of Americans for Limited Government (ALG).

Entrepreneurs are smart. Those small businesses waiting to see what will happen when more ObamaCare mandates go into effect will adjust to the changes — even if that means less growth and more Americans unemployed and unable to support their families. That would indeed be a new face of America — and not a pretty one.

SOURCE

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An email to Ms. Marlan S. Maralit, Organizing Department, American Federation of State County and Municipal Employees

From economist Don Boudreaux

Thanks for your mass e-mail this morning inviting me to recommend students for AFSCME’s Alternative Union Break: Summer Session. I understand that students who attend this four-day program are taught how to “fight for a better country,” and to promote “social and economic justice,” by becoming union organizers.

Alas, I know no student who’d be interested in your program. The young men and women who study economics at George Mason University learn, above all, to think rather than to emote. So our students are rightly suspicious of vague terms such as “social and economic justice.”

Our students learn also that an economy most beneficial to the poorest amongst us is one that is free and competitive – an economy governed by the laws of property, contract, and tort instead of by the arbitrary government diktats that are the fetish of labor unions.

Our students understand that widespread prosperity comes only from entrepreneurial creativity, market-driven investment, risk-taking, and hard work – all in response to the demands of consumers free to spend their money as they choose. Our students know that granting monopoly privileges to politically boisterous groups such as yours reduces, rather than produces, prosperity.

Our students understand that entrepreneurs and firms in market economies gain, not by taking wealth from others, but only by creating wealth and sharing that creation with others on terms that are mutually and voluntarily agreed to.

Oh, here’s one more important fact that our students understand: labor unions routinely promote injustice by lobbying for regulations (such as minimum-wage legislation and the Davis-Bacon Act) that price low-skilled workers out of jobs; by endorsing protectionist policies that deny consumers opportunities to get the most value for their dollars; and by supporting many bailouts and other forms of corporate welfare.

So I invite you to recommend to the young people who go through your program that they attend some of the many programs we have at GMU Economics (and affiliated organizations such as the Institute for Humane Studies and the Mercatus Center) in order to learn how they can truly best promote a society that is prosperous and peaceful.

SOURCE

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Young smart-ass Leftist journalist takes a tumble

Blatant bias is still sometimes unacceptable to major news outlets

The resignation of Dave Weigel from The Washington Post’s high-profile blog roll sent a shock wave through the ranks of the DC blogworld. But perhaps his downfall, in so short a time, wasn’t that surprising.

Many of us who have followed Mr. Weigel’s reported posts about conservatives and the Tea Party movement found ourselves buffeted by his often blunt, boyish observations on Twitter. In many ways, he crossed the line of what is considered objective journalism but, in many ways, the Post encouraged opinion and attitude from its flock of young bloggers.

The whole episode seems to point out that while established media organizations want to compete in the blogosphere, they still don’t know quite how to deal with the combination of voice and politics that fuels online debate.

Back when he was writing for The Washington Independent, Mr. Weigel was one of the few bloggers covering the first Tea Party convention step-by-step. He followed real people attending the conference, mining their visions and their reasons for showing up long before Sarah Palin took the stage at the end of the convention.

He was, at that point, someone to watch, whose diligent reporting brought him wider attention, including at the Post. And his straight-laced coverage also seemed to fill a huge gap for the mainstream media — a young engaged reporter who could cover the conservative movement, thus helping offset the criticism of the media as a bastion of the old left.

But in the 24/7 online world, every word is mined for bias — from the right, from the left and everything in between. Watchdogs on the right looked to Mr. Weigel’s intemperate bursts on Twitter and elsewhere for clues to his politics. But it was his acerbic comments on Journolist — the off-the-record water cooler for young, mainly left-leaning writers created by Ezra Klein, another Post blogger — that got him in trouble.

SOURCE

In his public writing he did not appear overly biased but on Journolist, the "private" listserv for Leftist journalists, he was scatological. When Rush Limbaugh went to the hospital with chest pain, Weigel said, “I hope he fails.” Matt Drudge is an “amoral shut-in” who should “set himself on fire.” Opponents are referred to as expletives

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ELSEWHERE

Virginia, feds square off over ObamaCare: "The state of Virginia and the [US federal] government were pitched in a legal battle in a federal courtroom on Thursday that could lead to the undoing of the massive healthcare reform [sic] law passed three months ago. Judge Henry Hudson of the U.S. District Court for the Eastern District of Richmond heard the federal government’s arguments to dismiss a lawsuit filed by Virginia that contends the healthcare law’s requirement that all Americans have health insurance is unconstitutional. … While the judge will only decide if the suit can proceed — a decision Hudson said he would render within 30 days — the court heard the first airing of arguments that could make their way to the Supreme Court as some states resist implementing the law.”

Subsidies and bailouts: The Department of Prolonged Childhood: "Adults understand that they must pay a price for the mistakes they make. Children, on the other hand, want constantly to be bailed out … and deserve to be … by their parents. Here’s the mistake you politicians make … We are not a nation of children, and you are not our parents. Turning us all into weak dependent children may be good for the business of politics, but its bad for a culture, and completely unworthy of a country that once referred to itself as the land of the free and the home of the brave."

Prison sentencing reform and the cost of drug prohibition: "A sizeable percentage of those incarcerated in England and Wales are drug offenders; a 2009 report by the International Centre for Prison Studies at King’s College London revealed that 15.5% of those incarcerated are convicted on such charges. At more than £35,000 per inmate year, the cost of simply holding these offenders in prison costs taxpayers nearly £500 million per year. This cost, along with those associated with enforcement of drug laws, should be examined seriously as the government proceeds with its review. The Adam Smith Institute has advocated a more sensible policy, involving the medicalisation of addictive and damaging drugs, and the legalisation of recreational drugs.”

My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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