Monday, June 25, 2012

Should We Hire Even More Teachers, Cops, and Firemen?

Not if we want the economy to recover any time soon. Encouraging business is the only way to increase real, lasting jobs

Do we in fact have our staffing levels for teachers, cops, and firemen right? Could we get by with fewer of these sorts of employees or do we need yet more, to make up for the supposedly draconian cuts that have descended upon schoolhouses, police departments, and firehouses like Herod's minions murdering innocents?

A lot of Obama's stimulus was spent on keeping public-sector payrolls going full-tilt and now that the stimulus has dried up (and clearly failed to "prime the pump" of general economic activity in any serious way), some of those folks are being let go. At least at the state and local level. As Keith Hennessey notes, outside of the Postal Service (which has long been shrinking), Obama has added 1420,000 workers to the federal payroll.

Before we look at teachers, cops, and firemen in turn, consider the overall plight of working America. Here's a chart of private- and public-sector job losses since January 2009. Public-sector employment is indeed down from where it was back then and private-sector jobs are back to about where they were when Obama took office (though still lower than they were in pre-recession times; about 4 million jobs total have vanished since the start of the Great Recession in 2007, and 80 percent of those losses were in the private sector).

Despite recent cuts to the public-sector workforce, fears of teacher-less classrooms, cop-free streets, and empty firehouses are misplaced.

When it comes to teachers, in 2008 (the last year for which the federal government lists actual data), there were 15.3 pupils per teacher in public K-12 schools. That's the lowest recorded number. In 1998, the number was 16.4 and in 1978, it was 19.3. Over this same time period, the amount of money per student has increased tremendously and scores on the National Assessment of Educational Progress (NAEP) have stayed flat at best. Since 1970, the number of public-school students has increased by about 9 percent while the number of public-school employees (teachers plus everyone else) has increased by 96 percent. Something ain't right there. It seems quite plausible that states and local school districts can lose a good chunk of teachers without significantly impairing the quality (that may not be the right word) of K-12 public education.

What about cops? According to Bureau of Justice Statistics, in 1992 there were 332 "full-tme state and local law enforcement employees per 100,000 residents." By 2008, that number had jumped to 373 full-timers. To be fair, crime has been declining over that time frame, so maybe the extra cops have really made a difference. Yet most experts point to factors other than the sheer number of law enforcement employees to explain the decline. The population is aging, which correlates with less crime; the sorts of gadgets and gizmos that get ripped off are more affordable for everyone, leading to less crime; surveillance cameras (both private and public) seem to have chilled thefts and assaults; and more. So there's every reason to believe that we can scrimp on high-cost uniformed cops and not be met with a crime wave that will turn even Smallville, USA into Gotham City any time soon.

Then there's firefighters. Data from the National Fire Protection Association (NFPA) tracks the number of firefighters between 1986 and 2010. In 1986, there was a total of 4.35 volunteer and career firefighters per 1,000 Americans. That number dropped to 3.57 firefighters per 1,000 people in 2010. The number of career firefighters—these are the ones who are compensated by taxpayers—has remained relatively stable though, going from 1.73 per 1,000 people to 1.53 per 1,000 people. That's not much of a drop and it's worth pointing out that firefighting, unlike teaching or police work, doesn't scale the same way relative to population. Having more (or fewer people) doesn't clearly mean more (or fewer) fires. In any case, NFPA data show a decrease in "incidents attended by public fire departments." In 2003 (the oldest year I could find data for), for instance, public fire departments covered 1.6 million fires. In 2010, the numbers was 1.33 million. More people, fewer firemen, and fewer fires. That's great news.

So it seems that the American public can get by with fewer public-sector employees without spiraling down into chaos. Unless you believe that the primary function of the public sector is to be a jobs program, there is no reason to sweat recent cuts to public-sector jobs, whose numbers, as Mickey Kaus has pointed out, have "been bloating since around 1980." Obesity isn't just about food, it turns out.

As it happens, Nobel-winning economist and New York Times columnist Paul Krugman and many others (let's call them stimulatarians), seem to believe that a key function of government is precisely to employ lots of people who otherwise would look for work elsewhere. He argues that growth in public-sector employment is all that stands between recession and recovery:

"Conservatives would have you believe that our disappointing economic performance has somehow been caused by excessive government spending, which crowds out private job creation. But the reality is that private-sector job growth has more or less matched the recoveries from the last two recessions; the big difference this time is an unprecedented fall in public employment, which is now about 1.4 million jobs less than it would be if it had grown as fast as it did under President George W. Bush."

I happen to think that the really big difference between this recession and the last two are the absolutely humongous interventions into the economy by the federal government via the stimulus, TARP, and ObamaCare (whose uncertain legal status and cost estimates can't in any way have helped businessess want to hire more people). I may be forgetting the great Pets.com bailout of 2001, but I don't think so. What's more, argues Krugman in a recent column, the lackluster experience of Ireland's "austerity" program, in which 28,000 public workers were canned over a few years, shows that reducing public payrolls is no way to win the future:

"Recovery never came; Irish unemployment is more than 14 percent. Ireland's experience shows that austerity in the face of a depressed economy is a terrible mistake to be avoided if possible."

Let the record show that George W. Bush, as this site (and me personally) never tires of pointing out, was a big-government disaster, who broke the bank like an impulsive five-year-old smacking a piggy bank with a hammer. If Bush's free-spending ways were so stimulative, the question before us would be how can we restrain such fantastic economic growth and not how can we get anything going.

Like Obama, George Bush inherited a crap economy and a whopping 900,000 public-sector jobs were added in his first term, which was also known as a "jobless recovery." The feds went on a hiring and spending spree, of course, and so did state and local governments once the economy bounced back. Unlike Obama, Bush also inherited a surplus from which to at least pay for some of that spending. To insist that public-sector spending is the way to reduce unemployment really does mean forgetting that these jobs don't pay for themselves. The only way the government at any level makes payroll is by taxing now or borrowing now and taxing later to pay off debt.

A decade-plus after Bush first took office, debt at all levels has metastisized, which is another way of saying that the bill for runaway government spending—we're talking increases of 60 percent or more in inflation-adjusted dollars at the federal level and well over 50 percent at the state level between 2003 and 2007 alone—is coming due. So for Krugman and other stimulatarians to simply keep harping on public-sector employment levels really begs the questions of who's going to pay for those saved-or-created hires and what effect explicit or implicit tax increases have on the larger economy.

Which brings us to the related question of Irish austerity, which to Krugman's mind proves that firing public workers will hurt any economy. Contrary to Krugman, Irish public spending has been relatively flat in recent years, which is really nobody's idea of austerity, if by that term you mean taking a hatchet to a budget to reduce the debt to GDP or spending ratio. By the same token, Ireland has been happy to raise all sorts of taxes in recent years to attempt to close budget and debt gaps. As Reason columnist and Mercatus Center economist Veronique de Rugy has pointed out, an incomplete list of "austerity" tax increases in the Old Sod includes:

* Standard VAT rate increased by two percentage points to 23 percent. (It was cut in December 2009 down to 20 percent from 21.5 percent)

* €100 household charge introduced to fund vital local services.

* Carbon tax increased from €15 to €20 per tonne effective from midnight, Budget Night, on petrol and diesel, and from May 1, 2012, on other fossil fuels, excluding solid fuels. This change equates to 1½c increase in cost of a litre of petrol & diesel.

* Excise tax on cigarettes up by 25 cents.

* Motor-tax rates increased.

* Capital acquisition tax, capital-gains tax and D.I.R.T. raised to 30 percent.

* Property-relief surcharge of 5 percent to apply to large investors.

These levies, she notes, have been laid on top of a whole bunch more as well. Far from Krugman's suggestion that Irish austerity has taken the form of massive cuts in goverment spending and public-sector employment, most of it involves tax increases that are properly understood as "private-sector austerity."

De Rugy has elsewhere pointed out that there are crystal-clear examples of how to shrink public-sector spending (and by extension, public-sector employment) which not only reduce debt-to-GDP ratios but correlate with economic growth. The key is to eschew "balanced approaches" that rely on some spending cuts and some tax hikes and to go whole hog on the spending cuts.

Successful austerity plans—those that see debt-to-GDP decline by at least 4.5 percentage points after three or more years—contain an average of 80 percent of spending cuts and 20 percent tax increases. Rather than grapple with actual examples from the recent past, the stimulatarians either fudge weak arguments about how World War II ended the Depression ("the Great Depression ended largely thanks to a guy named Adolf Hitler") or how stimulative a Watchmen-style fake alien invasion would be.

And to answer Krugman's query about runaway spending causing rotten economic performance: Yes, there appears to be a pretty strong connection, especially when spending keeps the debt ratio from shrinking. According to Carmen Reinhart, Vincent Reinhart, and Ken Rogoff, "debt overhang"—defined as a country posting a debt-to-GDP ratio of 90 percent or more for five consecutive years—causes significant reductions in long-term economic growth.

Economists such as University of California at San Diego's Valerie Ramey and Harvard's Robert Barro—not to mention former Obama adviser Christina Romer—have all made convincing empirical cases that fiscal stimulus doesn't work. Certainly we know this much: The Obama stimulus failed to deliver on its unemployment rate promises (and that would be true even if public-sector employment had not been cut).

The stimulatarians would keep increasing government expenditures and padding public payrolls as the one true route to prosperity. Tax increases are OK in this scenario (or at least not worthy of much serious discussion) because they might help to keep more folks on the public payroll which is, in Krugman's analysis, "the big difference this time."

But we plainly don't need more teachers, more cops, or more firemen to educate our kids, protect our streets, or put out our fires.

And hiring more public-sector employees is no way to reduce government spending, which is the best way to reduce the debt-to-GDP ratio. Which is the best way right now to get the economy moving. If only President Obama or Gov. Romney understood any part of that.

SOURCE (See the original for graphics)

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IPAB, Obamacare's Super-Legislature

The individual mandate isn't Obamacare's only unconstitutional provision, or even its most unconstitutional provision. That distinction belongs to the Independent Payment Advisory Board. A heretofore unreported feature of this super-legislature makes it even more authoritarian and dangerous than anyone knew.

IPAB consists of up to 15 unelected government "experts." Its stated purpose is to restrain Medicare spending. If projected spending exceeds certain targets, Obamacare requires IPAB to issue "legislative proposals" to reduce future spending. Those proposals could include drastic cuts that jeopardize seniors' access to care, leading some critics to label IPAB a "death panel."

But the really dangerous part is that these are not mere "proposals." Obamacare requires the secretary of Health and Human Services to implement them — which means they become law automatically — unless Congress takes certain steps to head them off. Congress may replace the Board's proposal with its own cuts, at least initially. But Obamacare requires a three-fifths vote in the Senate to pass any replacement that spends more than the Board's proposal. In other words, to override IPAB's proposal completely, opponents must assemble a simple majority in the House and a three-fifths majority in the Senate and the president's signature.

That makes IPAB more than an advisory board. It's a super-legislature whose members are more powerful than members of Congress. If eight members of Congress propose a bill, all that's necessary to block it is a majority of either chamber, or one-third of either chamber plus the president.

Worse, Obamacare forbids Congress to repeal IPAB outside of a brief window in the year 2017 — and even then requires a three-fifths supermajority in both chambers plus a presidential signature. Under Obamacare, after 2017 Congress could repeal Medicare, but not the board it created to run Medicare. Congress and the states could repeal the Bill of Rights — but not IPAB.

What kind of laws will these super-legislators impose? Obamacare supposedly prohibits these super-legislators from raising taxes or rationing care. Yet those restrictions are unenforceable and meaningless. For instance, the statute lets IPAB define "rationing" and protects that definition — along with the secretary's implementation of IPAB's edicts — from administrative or judicial review. The prohibition on raising taxes is likewise toothless. IPAB can raise taxes as surely as it can cut Medicare spending.

In effect, Obamacare gives IPAB the power to raise taxes, spend money, place conditions on federal grants to states, and exercise other powers the Constitution reserves solely to Congress. If the Supreme Court upholds Obamacare's mandated Medicaid expansion, states may soon see IPAB imposing similar mandates on states. And if President Obama fails to appoint any IPAB members, all these powers fall to Secretary of Health and Human Services Kathleen Sebelius.

As if all this weren't bad enough, we discovered a heretofore unreported feature of Obamacare. According to the statute, if Congress fails to repeal IPAB during that short window in 2017, then in 2020 Congress loses any and all power to restrain these super-legislators.

The Congressional Research Service and others have reported that Congress will always retain some (limited) power to block IPAB's edicts, but they misread a crucial part of the statute. They thought they saw the word "or" where the statute actually says "and." The difference is dramatic.

As we explain in our new report, under the statute as written, if Congress fails to repeal IPAB in 2017, the secretary must implement IPAB's edicts even if Congress votes to block them. Nancy Pelosi was right: We needed to pass Obamacare to find out what was in it. We're still finding out.

Obamacare is so unconstitutional, it's absurd. It delegates legislative powers that Congress cannot delegate. It creates a permanent super-legislature to supplement — and when conflicts arise, to supplant — Congress. It tries to amend the Constitution via statute rather than the amendment procedure of Article V.

Obamacare proves economist Friedrich Hayek's axiom that government direction of the economy threatens both democracy and freedom. After decades of failing to deliver high-quality, low-cost health care through Medicare, Congress struck upon the "solution" of creating a permanent super-legislature — or worse, an economic dictator — with the power to impose taxes and other laws that the people would reject.

Fortunately, one Congress cannot bind future Congresses by statute. If the Supreme Court fails to strike down Obamacare, Congress should exercise its power to repeal IPAB — and the rest of Obamacare with it.

SOURCE

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My Twitter.com identity: jonjayray. I have deleted my Facebook page as I rarely access it. 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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Sunday, June 24, 2012

Norton/Symantec are bunglers: Do not use them

One of my readers received the following rubbish warning:
Fraudulent Web Page Blocked

You attempted to access:

http://australian-politics.blogspot.com.au/2012/06/another-race-that-stopped-nation.html

This web page is a known fraudulent web page. It is recommended that you do NOT visit this page.

For your protection, this web page has been blocked. Visit Symantec to learn more about phishing and internet security.

Interestingly, the page had been up for only about an hour when Norton had their strange spasm above. I received no warning from Norton and I can find no way of contacting them to ask why.

True Christians desert heretical church

As a baptized Presbyterian and a former member of an Australian Presbyterian church, the news below gives me some sadness. How can the clear docrine of the Bible and our forefathers have been so lightly deserted? But a church whose gospel is Leftism and approval of homosexuality belongs in the Devil's camp and those who read their Bible can see that. Start from Romans chapter 1 if you doubt it

Presbyterian Church (U.S.A.) membership dipped below the 2 million mark in 2011, according to statistics released by the PC(USA) Office of the General Assembly on Thursday.

According to the numbers, during 2011 the denomination experienced a decline of 63,804 members and the loss of 96 congregations due to a mixture of church dissolutions and dismissals.

The Rev. Gradye Parsons, stated clerk of the General Assembly, commented on the loss. "The loss of membership through certificate-of-transfer is the lowest number it has been in at least four years, which is encouraging," said Parsons in a statement. "At least two challenges are before us … The first and primary need is to continue to increase our efforts to live out the Great Commission and share the good news of Jesus Christ. The second is to connect with the growing number of the 'Spiritual But Not Religious.'" [No need for that silly old Bible any more]

The statistics showed a years-old trend continuing. According to the PC(USA) General Assembly Mission Council, in 2000 the denomination had over 2.5 million members. Over the past decade the entire denomination has lost over 20 percent of its membership.

In addition to fewer members, in 2011 the PC(USA) also lost 96 congregations. Of them, 21 of the 96 congregations voted for dismissal from the denomination over theological differences, including the approval of openly gay clergy.

Sorge of the Pittsburgh Presbytery told CP that he believed the trend of departing congregations would likely continue for the foreseeable future.

The Evangelical Covenant Order of Presbyterians, a Reformed body recently created as part of the wave of departures from the PC(USA), declined to comment to The Christian Post for this story.

More HERE

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Another textbook deception about Fascism

When I was in sixth grade, a 1967 copy of The Pageant of World History by Gerald Leinwand came into my possession. While I learned a great deal from it, the book contains shocking omissions. Here's what Leinwand says about the early years of Mussolini:
Mussolini, at one time, had been a socialist, and, as a newspaperman, had written articles favoring the overthrow of capitalism.

All true, but so misleading! Leinwand makes Mussolini sound like a low-level journalist who happened to be a rank-and-file member of the socialist party. I didn't learn the real story for decades, when I discovered the works of A. James Gregor, especially his Young Mussolini and the Intellectual Origins of Fascism. Fortunately for the sixth-graders of today, Wikipedia has the facts that Leinwand leaves out. Mussolini wasn't just another socialist; he was the Lenin of Italy - the leader of the hard-line revolutionary faction. And Mussolini wasn't just a "newspaperman"; he was the editor of Avanti!, the official newspaper of the Socialist Party. By 1910, he...
...was considered to be one of Italy's most prominent Socialists. In September 1911, Mussolini participated in a riot, led by Socialists, against the Italian war in Libya. He bitterly denounced Italy's "imperialist war" to capture the Libyan capital city of Tripoli, an action that earned him a five-month jail term. After his release he helped expel from the ranks of the Socialist party two "revisionists" who had supported the war, Ivanoe Bonomi, and Leonida Bissolati. As a result, he was rewarded the editorship of the Socialist Party newspaper Avanti! Under his leadership, its circulation soon rose from 20,000 to 100,000.

Wikipedia's article on the Italian Socialist Party has more details on Mussolini's purge of "revisionists":
At the start of the 20th century, however, the PSI chose not to strongly oppose the governments led by five-time Prime Minister Giovanni Giolitti. This conciliation with the existing governments and its improving electoral fortunes helped to establish the PSI as a mainstream Italian political party by the 1910s.

Despite the party's improving electoral results, however, the PSI remained divided into two major branches, the Reformists and the Maximalists. The Reformists, led by Filippo Turati, were strong mostly in the unions and the parliamentary group. The Maximalists, led by Costantino Lazzari, were affiliated with the London Bureau of socialist groups, an international association of left-wing socialist parties.

In 1912 the Maximalists led by Benito Mussolini prevailed at the party convention and this led to the split of the Italian Reform Socialist Party.

For socialists, of course, Mussolini's apostasy proves nothing except his supreme evil. For everyone else, though, Mussolini's origin story puts his subsequent career in a whole new light. Outsiders can easily see what insiders deny: The apostate fruit rarely falls far from the orthodox tree.

Yes, Mussolini realized that socialism plus nationalism had more mass appeal than socialism alone. Yes, Mussolini realized that socialism would be stronger if it allied with the Church instead of destroying it. Yes, Mussolini realized that full-fledged mass expropriation of private property would devastate the economy. And yes, Mussolini realized that the word "socialism" alienated millions of Italians who would otherwise be receptive to his message. But this doesn't make Mussolini a radical socialist who betrayed everything he believed in. It makes him a radical socialist who dropped some peripheral socialist dogmas that stood between him and absolute power. If he'd kept the socialist label and avoided alliance with Hitler, Mussolini might now be a left-wing icon as big as Che Guevara.

SOURCE

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Estonia and Austerity: Another Exploding Cigar for Paul Krugman

Daniel J. Mitchell

I have great fondness for Estonia, in part because it was the first post-communist nation to adopt the flat tax, but also because of the country’s remarkable scenery.

Most recently, though, I’ve been bragging about Estonia (along with Latvia and Lithuania, the other two Baltic nations) for implementing genuine spending cuts. I’ve argued that Estonia is showing how a government can reignite growth by reducing the burden of government.

Not surprisingly, some people disagree with my analysis. Paul Krugman of the New York Times criticized Estonia yesterday, writing that the Baltic nation suffered a “Depression-level slump” in 2008 and has only managed an “incomplete recovery” over the past few years.

He blames this supposedly weak performance on “austerity.”

I have a positive and negative reaction to Krugman’s post. My positive reaction is that he’s talking about a nation that actually has cut spending, so there’s real public-sector austerity (see Veronique de Rugy’s L.A. Times column to understand the critical difference between public-sector and private-sector austerity).

This is a sign of progress. In the past, he launched a silly attack on the U.K. for a “government pullback” that never happened, so what he wrote about Estonia at least is based on real events.

My negative reaction is that Krugman is very guilty of cherry-picking data. If you look at the chart that accompanies his post, Estonia’s economic performance isn’t very impressive, but that’s because he’s only showing us the data from 2007-present.

The numbers are accurate, but they’re designed to mislead rather than inform (sort of as if I did a chart showing 2009-present).

But before exposing that bit of trickery, there’s another mistake worth noting. Krugman presumably wants us to think that the downturn coincided with spending cuts. But his own chart shows that the economy hit the skids in 2008 – a year in which government spending in Estonia soared by nearly 18 percent according to EU fiscal data!

It wasn’t until 2009 that Estonian lawmakers began to reduce the burden of spending. So I guess Professor Krugman wants us to believe that the economy tanked in 2008 because of expectations of 2009 austerity. Or something like that.

Returning now to my complaint about cherry picking data, Krugman makes Estonia seem stagnant by looking only at data starting in 2007. But as you can see from this second chart, Estonia’s long-run economic performance is quite exemplary. It has doubled its economic output in just 15 years according to the International Monetary Fund. Over that entire period – including the recent downturn, it has enjoyed one of the fastest growth rates in Europe.



This doesn’t mean Estonia is perfect. It did experience a credit/real estate bubble, and there was a deep recession when the bubble burst. And the politicians let government spending explode during the bubble years, almost doubling the budget between 2004 and 2008.

But Estonia reacted to the overspending and the downturn in a very responsible fashion. Instead of using the weak economy as an excuse to further expand the burden of government spending in hopes that Keynesian economics would magically work (after failing for Hoover and Roosevelt in the 1930s, Japan in the 1990s, Bush in 2008, and Obama in 2009), the Estonians realized that they needed to cut spending.

And now that spending has been curtailed, it’s worth noting that growth has resumed.

What makes Krugman’s rant especially amusing is that he wrote it just as the rest of the world is beginning to notice that Estonia is a role model. Here’s some of what CNBC just posted.
Sixteen months after it joined the struggling currency bloc, Estonia is booming. The economy grew 7.6 percent last year, five times the euro-zone average. Estonia is the only euro-zone country with a budget surplus. National debt is just 6 percent of GDP, compared to 81 percent in virtuous Germany, or 165 percent in Greece. Shoppers throng Nordic design shops and cool new restaurants in Tallinn, the medieval capital, and cutting-edge tech firms complain they can’t find people to fill their job vacancies. It all seems a long way from the gloom elsewhere in Europe. Estonia’s achievement is all the more remarkable when you consider that it was one of the countries hardest hit by the global financial crisis. …How did they bounce back? “I can answer in one word: austerity. Austerity, austerity, austerity,” says Peeter Koppel, investment strategist at the SEB Bank. …that’s not exactly the message that Europeans further south want to hear. …Estonia has also paid close attention to the fundamentals of establishing a favorable business environment: reducing and simplifying taxes, and making it easy and cheap to build companies.

Good policy makes a difference. But it also helps to have rational citizens (unlike France, where people vote for economic illiterates and protest against reality).
While spending cuts have triggered strikes, social unrest and the toppling of governments in countries from Ireland to Greece, Estonians have endured some of the harshest austerity measures with barely a murmur. They even re-elected the politicians that imposed them. “It was very difficult, but we managed it,” explains Economy Minister Juhan Parts. “Everybody had to give a little bit. Salaries paid out of the budget were all cut, but we cut ministers’ salaries by 20 percent and the average civil servants’ by 10 percent,” Parts told GlobalPost. …As well as slashing public sector wages, the government responded to the 2008 crisis by raising the pension age, making it harder to claim health benefits and reducing job protection — all measures that have been met with anger when proposed in Western Europe.

It’s worth noting, by the way, that government is still far too big in Estonia. The public sector consumes about 39 percent of economic output, almost double the burden of government spending in Hong Kong and Singapore.

But, unlike certain American politicians, at least the Estonians understand the problem and are taking steps to move in the right direction. I hope they continue.

P.S. The President of Estonia, a Social Democrat named Toomas Hendrik Ilves, used his twitter account to kick the you-know-what out of Krugman yesterday. For amusement value, check out this HuffingtonPost article.

P.P.S. A few other nations, such as Canada and New Zealand, also imposed genuine spending restraint in recent decades and they also got good results.

SOURCE

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The American tax system explained in beer -- Obama take note

When pondering the question of your income tax please refer to this explanation using the language of Beer !!! (Attributed to David R. Kamerschen, Ph.D., Professor of Economics)

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100.

If they paid their bill the way we pay our taxes, it would go something like this:

The first four men (the poorest) would pay nothing.
The fifth would pay $1
The sixth would pay $3
The seventh would pay $7
The eighth would pay $12
The ninth would pay $18
The tenth man (the richest) would pay $59

So, that's what they decided to do.

The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve ball.

"Since you are all such good customers," he said, "I'm going to reduce the cost of your daily beer by $20". Drinks for the ten men would now cost just $80.

The group still wanted to pay their bill the way we pay our taxes.

So the first four men were unaffected. They would still drink for free. But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his fair share?

They realised that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer.

So, the bar owner suggested that it would be fair to reduce each man's bill by a higher percentage the poorer he was, to follow the principle of the tax system they had been using, and he proceeded to work out the amounts he suggested that each should now pay.

And so the fifth man, like the first four, now paid nothing (100% saving).

The sixth now paid $2 instead of $3 (33% saving).

The seventh now paid $5 instead of $7 (28% saving).

The eighth now paid $9 instead of $12 (25% saving).

The ninth now paid $14 instead of $18 (22% saving).

The tenth now paid $49 instead of $59 (16% saving).

Each of the six was better off than before. And the first four continued to drink for free. But, once outside the bar, the men began to compare their savings.

"I only got a dollar out of the $20 saving," declared the sixth man. He pointed to the tenth man, "but he got $10!"

"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar too. It's unfair that he got ten times more benefit than me!"

"That's true!" shouted the seventh man. "Why should he get $10 back, when I got only $2? The wealthy get all the breaks!"

"Wait a minute," yelled the first four men in unison, "we didn't get anything at all. This new tax system exploits the poor!"

The nine men surrounded the tenth and beat him up.

The next night the tenth man didn't show up for drinks, so the nine sat down and had their beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill!

And that, boys and girls, journalists and government ministers, is how our tax system works.

The people who already pay the highest taxes will naturally get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore.

In fact, they might start drinking overseas, where the atmosphere is somewhat friendlier.

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My Twitter.com identity: jonjayray. I have deleted my Facebook page as I rarely access it. 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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Friday, June 22, 2012

Racial Double Standards

Walter E. Williams

Back in 2009, U.S. Attorney General Eric Holder said we were "a nation of cowards" on matters of race. Permit me to be brave and run a few assertions by you just to see whether we're on the same page. There should be two standards for civilized conduct: one for whites, which is higher, and another for blacks, which is lower. In other words, in the name of justice and fair play, blacks should not be held accountable to the same standards that whites are and should not be criticized for conduct that we'd deem disgusting and racist if said or done by whites.

You say, "Williams, what in the world are you talking about?" Mitt Romney hasn't revealed all of his fall campaign strategy yet, but what if he launched a "White Americans for Romney" movement in an effort to get out the white vote? If the Romney campaign did that, there'd be a media-led outcry across the land, with charges ranging from racial insensitivity to outright racism. When President Barack Obama announced his 2012 launch of "African Americans for Obama", the silence was deafening. Should the same standards be applied to Obama as would be applied to Romney? The answer turns out to be no, because Obama is not held to the same standards as Romney.

Liberals won't actually come out and say that criticism of Obama is in and of itself racist, but they come pretty close. Former President Jimmy Carter said that criticism of Obama shows that there is an "inherent feeling" in America that a black man should not be president. Chris Matthews, host of MSNBC's "Hardball," said that critics of Obama are crackers. Morgan Freeman said that the campaign to see that Obama serves one term is a "racist thing." Former Obama czar Van Jones said that Romney's campaign sign "Obama Isn't Working" implies Obama is a "lazy, incompetent affirmative action baby."

Racial double standards also apply to how crime is reported. I'm betting that if mobs of white youths were going about severely beating and robbing blacks at random and preying on black businesses, it would be major news. News anchors might open, "Tonight we report on the most recent wave of racist whites organizing unprovoked attacks on innocent black people and their businesses." If white thugs were actually doing that, politicians would be demanding answers. Such random attacks do happen, but it's blacks preying on whites.

On St. Patrick's Day in Baltimore, a 19-year-old white man was viciously attacked by a mob of black thugs. He broke loose, but a second mob of black thugs attacked him, taking all of his belongings. Baltimore County Delegate Pat McDonough demanded the governor send in the Maryland State Police to control "roving mobs of black youths" at Baltimore's Inner Harbor. Maryland Gov. Martin O'Malley and other activists demanded that McDonough apologize for talking about "black youth mobs."

Similar episodes of unprovoked violence by black thugs against white people chosen at random on beaches, in shopping malls and at other public places have occurred in Philadelphia, New York, Denver, Chicago, Cleveland, Washington, Los Angeles and other cities. Most of the time, the race of the attackers, euphemistically called flash mobs, is not reported, even though media leftists and their allies are experts in reporting racial disparities in prison sentencing and the alleged injustice of the criminal justice system.

Racial double standards are not restricted to the political arena and crime reporting; we see it on college campuses and in the workplace. Black people ought to be offended by the idea that we are held accountable to lower standards of conduct and achievement. White people ought to be ashamed for permitting and fostering racial double standards that have effects that are in some ways worse than the cruel racism of yesteryear.

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Self-sufficiency not allowed in the new America

A woman from Tulsa, Oklahoma is suing the city’s code enforcement teams after they illegally cut down her entire survival garden. Denise Morrison, who started the garden after becoming unemployed, had over 100 medicinal and edible plants in her front and back yard.

She told local Tulsa reporters that she started her garden, after becoming unemployed, as a way to feed herself and treat a variety of medical issues. Instead of relying on government handouts, this woman took matters into her own hands and decided to become self sufficient. She filled her yard with things like, fruit trees, berries, nut trees, and a wide variety of edible and medicinal herbs. She used these herbs to treat her diabetes, high-blood pressure and arthritis.

Is the Self-Reliant Lifestyle Now a Crime in America?
All her hard work ended when the local code enforcement team showed up to her house and forcibly removed her entire survival garden. Morrison says that she tried to explain how everything in her yard followed the local code enforcement rules. You see, she had problems with these people in the past and this time she was determined to do things by the book.

She obtained the local ordinances and followed every rule to the tee. She made sure that everything in her garden had a purpose, and that her garden looked its best at all times. Local ordinances stated that no plant could be over 12-inches tall unless they were being used for human consumption.

Morrison made sure every plant in her garden could be eaten, but that didn’t matter to the city. They could care less about what the law actually said, they were determined to take out her garden. “Every word out of their mouth was, ‘we don’t care,’” Morrison said.

Over 100 plant varieties were removed by the code enforcement team leaving her with no way to feed or medicate herself. They took almost everything, including a number of her fruit and nut trees. She told local reporters in Tulsa, “I came back three days later, sat in my driveway, cried and left.”

While this case is extremely sad, it’s also becoming more and more common throughout the country. From “nuisance abatement teams” that have been forcing Off-Griders in California to hook back into the grid, to the heartbreaking story of Andrew Wordes who took his life after code enforcement teams seized his home, this country is making it harder and harder for self-reliant people to live on their own land.

While some dismiss these cases as localized issues, I believe they’re part of a larger movement to control anyone who dares to live a self-reliant lifestyle. I think evidence of this can be seen in the federal governments attempts to regulate small farms out of existence, their use of the EPA to seize private land, the formation of the Department of Homeland Security’s Green Police Force, their attempts to seize control of the Great Lakes, oceans, and waterways, and their use of organizations like The National League of Cities to take control of local governments.

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The Washington 1 percent

The Associated Press recently reported that half of all new college graduates are either unemployed or underemployed. These fresh-faced bachelor-degree holders are finding themselves opting for waiting tables and serving coffee just to pay off a trillion dollars in student loans. They are coming to grips with a lie perpetuated by university professors, faculty unions, and politicians that deluded them into thinking college by itself was the golden ticket to success.

Meanwhile, the rest of America is still muddling through years of high unemployment. The jobs connected to Alan Greenspan's housing bubble are gone and will likely never return. Federal Reserve chairman Ben Bernanke met the financial crisis with an unprecedented amount of monetary-base expansion, which has failed to significantly affect the unemployment rate. President Obama and his allies in Congress threw $800 billion at the economy to no avail and have been running federal deficits to the tune of over $1 trillion for three years now. This orgy of money printing and spending has done little for the residents of Main Street but has done wonders for Wall Street and other politically connected interests.

Last fall's Occupy campaign was representative of a growing distrust of the American economic system. Although many occupiers were misled into believing capitalism is the culprit behind the sluggish economy, the protest's focus on income inequality was not wholly inaccurate. Of course the inequality in income that is a byproduct of an unhampered market economy is not something to demonize. As Ludwig von Mises wrote in Economic Freedom and Interventionism,
Inequality of wealth and incomes is an essential feature of the market economy. It is the implement that makes the consumers supreme in giving them the power to force all those engaged in production to comply with their orders. It forces all those engaged in production to the utmost exertion in the service of the consumers. It makes competition work. He who best serves the consumers profits most and accumulates riches.

Today, no Western, industrialized country operates under genuine capitalism. What passes for the free market in the context of mainstream political debate is actually a fascist-like partnership between big government and big business. The dynamic, cost-cutting competition that defines the uninhibited market has been stifled by Washington's endless decrees of regulation.

As Leviathan's grasp over all economic life continues to grow, it only makes sense that greater amounts of wealth funnel into the area that surrounds the various bureaucracies and decision-making bodies that make up the state. This past October Bloomberg News reported that Washington, DC, now tops Silicon Valley as the richest metropolitan area in the country. In a recent Time magazine article entitled "Bubble on the Potomac," author Andrew Ferguson documents the lifestyles of those within or well-connected to the federal-government apparatus:
Even as the nation struggles, the capital has prospered, making it a magnet for young hipsters but leaving its residents with only a tentative understanding of how the rest of the country lives.

Every week brings fresh evidence of continuing prosperity: a new restaurant, a new nightclub, another restored 19th century townhouse in a previously dodgy neighborhood selling for $1 million or more. Start-ups are hiring through Craigslist, and just opened lobbying firms have no trouble collaring clients.

Other big cities, of course, have made it through the recession in one piece. But few eased through the crash as lightly as D.C., much less prospered so widely on the rebound. The local unemployment rate, at 5.5%, stands well below the national figure of 8.2%. The region's foreclosure rates have always been significantly lower than those elsewhere, and now housing prices in D.C. and across the river in the Virginia suburbs of Arlington and Alexandria are close to their precrash peaks.

While Washington's palette of policy prescriptions becomes more diversified, more and more feeders are flooding to the public trough to get a share of the pie. Trillions of tax dollars being spent every year means a better chance to obtain that much-needed earmark or appropriation. The political class's inclination to create a perfect society has resulted in the state having an influence in virtually all aspects of private life. The car you drive, the food you eat, and the pillow you lay your head down on to sleep at night all have to comply within the legislative whims of the federal government. Lobbying has thus become a lucrative profession for those savvy enough, and well financed enough, to pay for that subsidy or competitor-crushing regulation. Just as F.A. Hayek recognized, "the worst rise to the top of government," and centers of power attract all types of opportunists.

Though lobbying for privilege has become a staple industry within the DC area, it isn't the sector experiencing the biggest growth in employment. Ferguson explains:
Why the boom? The size of the nonmilitary, nonpostal federal workforce has stayed relatively stable since the 1960s. What has changed is not the government payroll but the number of government contractors. It's estimated that, thanks to massive outsourcing over the past 20 years by the Clinton and Bush administrations, there are two government contractors for every worker directly employed by the government. Federal contracting is the region's great growth industry. A government contractor can even hire contractors for help in getting more government contracts. You could call those guys government-contract contractors.

Which means government hasn't shrunk; it's just changed clothes (and pretty nice clothes they are).

In order to project the image of a scant increase in the number of federal-government employees, a type of shadow economy of contractors has developed to deceive the public's eye. These contractors are employees of the state whether on the official payroll or not. Their income is derived from stolen funds just as much as the budget analyst at any of the alphabet-soup bureaucracy. The so-called private companies they work for do the bidding of the state at what is often an exorbitant price compared to what may prevail under free-market conditions. Government contractors are merely deceptive when describing themselves as private, for-profit companies. They are de facto agents of the state.

With all the money culminating in the Washington area, the city and its surrounding suburbs are indeed a world apart from the rest of the country. As the Time article shows, while regulatory uncertainty and the threat of increased taxation continue to stifle entrepreneurial capital investment, DC residents often help themselves to $150 meals, a taxpayer-subsidized metro system, and a variety of bars serving overpriced drinks. Armed with "fistfuls of disposable income," they live in paradise compared to recession-wrecked America.

This disconnect in lifestyle is understandable when we consider the anatomy of the state. As Murray Rothbard defines it,
Social power is man's power over nature, his cooperative transformation of nature's resources and insight into nature's laws, for the benefit of all participating individuals. Social power is the power over nature, the living standards achieved by men in mutual exchange. State power, as we have seen, is the coercive and parasitic seizure of this production — a draining of the fruits of society for the benefit of nonproductive (actually antiproductive) rulers. While social power is over nature, State power is power over man.

By being infused with the central state, much of Washington, DC, lives parasitically off of the collective labor of the rest of the country. Their standard of living comes at the expense of those whom they lord over. The ruling class establishes the rules of conduct for millions despite being made up of just a very small portion of the population. In return, it demands and receives compensation that is then funneled to the politically connected. This stream of violently confiscated funds is the lifeblood of the city.

To drive this point home, it must be emphasized that those on the payroll of the state don't actually pay taxes. As Rothbard points out, the notion that they do is "a mere accounting fiction." Claiming a government employee pays taxes is the equivalent of claiming they pay their own salary.

In the end, the people of Washington have little desire to have their lavish way of life fall by the wayside. Their goal is to keep the nation's focus on the government's operations. This guarantees more power, prestige, and authority for a city overrun by men and women who take pride in their lawful ability to wage war abroad and at home. As long as the federal government remains an overarching factor in everyday life, it will attract a great deal of wealthy interests looking to the game the system in their favor.

The DC mindset is fixated on the idea that such a state of affairs can last forever. Much of the younger crowd that resides in the nation's capital still doesn't see the writing on the wall. Ferguson ends the article explaining why:
The optimism of über-Washingtonians so far survives the unspoken worry about a coming age of austerity, in which government spending cuts would end the high life that Washingtonians have come to expect. They are right to be optimistic. The two most plausible deficit-reduction proposals — one by President Obama, the other by the Republican-controlled House Budget Committee — each calls for the government in 2021 to spend a trillion dollars more than it spends today.

Those living off the state are convinced the good times won't come to an end. Trillion-dollar deficits beg to differ however. The day will come when either investors demand higher interest rates for government bonds or prices pick up exponentially due to the extraordinary amount of inflation engineered by the Fed. Either way, Washington will then have no choice but to cut back or risk the complete destruction of the dollar. It will be a period of reckoning like no other. As Tom Woods writes in Rollback: Repealing Big Government Before the Coming Fiscal Collapse, it is estimated that the federal government's unfunded liabilities comes in at around $111 trillion. According to Professor Laurence J. Kotlikoff, the unfunded liability gap actually exceeds $211 trillion. Such staggering numbers mean a great default is coming. It's only a matter of who the losers will be.

For a country that is forced into subsidizing the profligate living habits of the state and its partners in crime, the only justifiable outcome would be for the latter to suffer.

For every government employee or contractor relieved of service in Washington, DC, and elsewhere, one or more taxpayers will be relieved of the burden of paying their salary. When such an event happens en masse, it will truly be a time of celebration for America as a whole.

SOURCE

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My Twitter.com identity: jonjayray. I have deleted my Facebook page as I rarely access it. 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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Thursday, June 21, 2012

Calvin Coolidge and the foundational truths of government

Calvin Coolidge had a penchant for silence but when he spoke, he did so with powerful effect. "The words of a president have an enormous weight and ought not to be used indiscriminately,” he once warned. Underappreciated by historians and often marginalized through story and anecdote, the “throwback” president’s stock is on the rise. While it is true that the 30th president is due for a major reassessment, the ideas he put forward remain timeless because of his focus on foundational truths.

Silent Cal’s words and legacy speak directly to us and our national ills. Often referred to as the last Jeffersonian president, Coolidge praised limiting the state’s powers as he observed and reacted to the progressive era and the looming New Deal centralization. “These socialistic notions of government are not of my day,” he quipped during FDR’s rise.

Instead, Coolidge believed the progressive man bent on centralization was a stale soul. “Their ideas are not more modern, but more ancient, than those of the Revolutionary fathers,” declared Coolidge. He continually harkened back to America’s Founding, believing that there are fundamental truths about man and his relationship to the state.

While early American debates centered on how important it is that federal power be limited, the progressive era saw the rise of breathless boasts about how much good and abundance could flourish out of unlimited federal power.

Seeing into the future, Coolidge warned Americans that if they thought they were speaking of the federal government when they referred to “the government” it would prove costly. A staunch defender of federalism, he believed local government took precedence when federal power is not specifically enumerated by the Constitution.

Seeing himself as civic educator, he explained: “The men and women of this country who toil are the ones who bear the cost of the government. Every dollar that we carelessly waste means that their life will be so much the more meager.” A glance at the federal debt today makes his case.

While Coolidge often spoke in short sentences full of common sense, there was considerable depth to his conservative views. Lampooned in part because of quotes like “The chief business of the American people is business,” Coolidge went on to also say in the same address, “Of course the accumulation of wealth cannot be justified as the chief end of existence.”

Sneered at by intellectual elites for being old fashioned and a defender of free-markets, Coolidge championed capitalism by personalizing it, rooting work within the dignity of man and eschewing materialism and greed. He warned Americans against sinking into a “pagan materialism.”

Coolidge oversaw an era of unyielding prosperity for most and unprecedented technological advances, but he knew the citizens of the republic must be rooted in faith. “If we are too weak to take charge of our own morality, we shall not be strong enough to take charge of our own liberty,” said Coolidge. He declared, “We cannot depend on government to do the work of religion.” He simply proclaimed in his brilliant speech on the 150th anniversary of the Declaration of Independence, “The things of the spirit come first.”

Coolidge’s authenticity stands in contrast to most modern politicians and leaders. When his biographer William Allen White expressed frustration with not being able to see the real Coolidge by telling him, “I need to peek at the man behind the mask,” Coolidge amusingly snapped back, “I don’t know if I can help you, maybe there isn’t any.”

After Ronald Reagan’s inauguration, he hung up a portrait of Coolidge in the White House. The Washington press corps snickered at the act. Coolidge however put forward a serious and deep vision for the country. It is a vision that stands in stark contrast with how our government and many of our leaders operate today.

While America experiences crippling debt, moral decay, and decline of purpose, Coolidge’s words and legacy will appeal even more. Fundamental truths are forever new to a society that has lost its way.

SOURCE

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The Obama Administration’s Genocide Denial

Suppose that there was a country where Muslims were being massacred every month and mosques and imams were being targeted and destroyed. Could anyone imagine the Obama Administration choosing to remain silent in the face of such atrocities?

A mob attack on Muslims in Burma immediately resulted in a condemnation from the State Department and a call for its government to make more concessions to Muslims. But a car bombing and shooting attack on two churches in Nigeria have not been similarly commented on by the State Department, sending the message that Muslim life is precious, but Christian life is cheap. The Muslim dead of Burma are sacred, but the Christian dead of Nigeria are only more dead infidels.

Boko Haram, the Islamic terrorist organization responsible for both attacks, has yet to be declared a terrorist organization by the State Department, despite having carried out religiously motivated bombings and shootings that have killed over a thousand people in the last few years alone. These numbers begin to approach the level of murders carried out by the Taliban in Afghanistan.

The "Boko Haram Terrorist Designation Act of 2012", introduced by Senator Scott Brown, mandates that the State Department produce a detailed report that either designates Boko Haram as a terrorist group or justifies why it should not be listed as a terrorist group. A similar bill was introduced by Congressman Meehan in the House. It is a testament to the obstructionism of the State Department and its whitewashing of Boko Haram that such a bill even had to be introduced. While the State Department has played delaying games, the bodies of murdered Christians have continued piling up.

It is also tragically noteworthy that all eleven sponsors of the "Boko Haram Terrorist Designation Act", in both the Senate and the House, have been Republicans. Not a single Democrat appeared to be willing to stand up for the human rights of Nigerian Christians. If the "Boko Haram Terrorist Designation Act" comes down to a vote, that vote should be seen as nothing less than a test of complicity for individual Democrats in the cover-up of Nigeria's Islamic genocide by the Obama Administration.

Genocide denial pervades not only the Obama Administration and its Congressional allies, but also the media, which continues to promote the destructive myth that Boko Haram is not truly religiously motivated and that it can only be stopped by giving more money and power to the Muslim north.

Had a non-Muslim group carried out numerous attacks on mosques and Muslim worshipers, and then ordered Muslims to leave an area, it is absolutely inconceivable that the Obama Administration and its media allies would deny that these were religiously motivated attacks. It is even more inconceivable that its preferred solution would be to tell the government to stop fighting terrorism. But what is inconceivable when it comes to Muslims is Obama Administration policy for Christians.

At the end of April, Daniel Benjamin, from the State Department's Office of the Coordinator for Counterterrorism, testifying at the House Foreign Affairs Committee, denied that Boko Haram was affiliated with Al-Qaeda, while conceding that its members were probably being trained by Al-Qaeda. Benjamin then stated that the State Department's response to the Islamic genocide of Christians by Jihadists in the Muslim north was "to press for a change to its (Nigeria's) heavy-handed approach to the security threats in the north".

The State Department's approach to the genocide of Christians by Muslims is to press the Nigerian government to scale down its efforts against that genocide. Benjamin's statement is not unique; it is the consistent policy of the State Department, which is the consistent policy of the Obama Administration, to respond to Islamic genocide in Nigeria by pressuring its government to step down its war on terror.Johnnie Carson, the Assistant Secretary at the Bureau of African Affairs, in his remarks on Nigeria, claimed bizarrely, that despite a campaign of violence focused heavily around attacks on churches, "Religion is not driving extremist violence in either Jos or Northern Nigeria" and warned the Nigerian government to "avoid excessive violence".

That same month, Don Yamamoto, the Principal Deputy Assistant Secretary of the Bureau of African Affairs, testifying at the House Foreign Affairs Committee, and reading from the same script, said that, "Religion is not the primary driver of extremist violence in Nigeria", like Carson, claimed that Nigeria's "religious and ethnic diversity is one of its greatest strengths" and demanded that the Nigerian government spend more time teaching its security forces to respect Muslim human rights.

Yet:

Close to 900,000 Arab Jews were expelled from Arab Muslim countries and countless murdered. Today, Christians are suffering the very same fate with the ongoing ethnic cleansing of Christians in Muslim countries.

* In Egypt, 100,000 Christians have left since the "Arab Spring" began.

* Bethlehem and Ramallah are no longer Christian majority cities.

* In Syria, Muslims have gone door-to-door telling Christian homeowners to leave immediately or be shot. 50,000 men, women and children have been forced to flee empty-handed as Muslims appropriated their property and possessions.

* In Sudan,where shariah is being enforced, 600,000 Christians have been told to leave the country or be treated like foreigners.

* In 2003, Iraq's Christian population stood at 1.4 million. Today, there are only 300,000 Christians remaining......(Janet Levy)

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A free market brings down health costs

by Jeff Jacoby

WHAT IS THE BEST WAY to make sure that Americans with chronic medical conditions -- those most likely to need costly or frequent health care -- can afford the insurance they need to meet their bills? The conventional answer, reflected in Mitt Romney's 2006 health-care reform law in Massachusetts and the federal overhaul signed by Barack Obama in 2010, contains these ingredients:

(1) Require everyone to have health insurance, with subsidized plans for low-income citizens. (2) Compel insurers to accept anybody who applies for coverage and to charge roughly the same premium for everyone, regardless of health status. (3) Make all health plans cover a fixed array of medical treatments, providers, and conditions that many customers may not need or want.

The orthodox view, in short, is that to shield people with serious medical needs from undue financial hardship we must suppress the normal workings of a free market -- supply and demand, competition, flexible prices. There's just one problem with this approach: It doesn't work.

Six years after RomneyCare became law, health insurance coverage in Massachusetts is all but universal. Yet a new statewide survey finds that those most in need of medical care are finding it harder than ever to pay for. According to the study, which was directed by researchers at the Harvard School of Public Health and sponsored by WBUR, the Blue Cross Blue Shield of Massachusetts Foundation, and the Robert Wood ­Johnson Foundation, 78 percent of sick adults consider health care costs a serious (50 percent say very serious) problem in Massachusetts. And far from seeing improvement, nearly two-thirds of sick adults say the problem has only gotten worse over the past five years.



This wasn't supposed to happen. Romney was confident his law would ease the pressure of medical costs. "Every uninsured citizen in Massachusetts will soon have affordable health insurance and the costs of health care will be reduced," he optimistically forecast in 2006. Yet today 14 percent of sick adults in Massachusetts report being unable to get medical care they needed at some point over the past 12 months, usually for financial reasons. About half of those who went untreated said they couldn't afford the out-of-pocket costs; another 21 percent said their insurer wouldn't pay for the test or treatment.

To be sure, the survey relies on respondents' own perceptions, which may not always be realistic or consistent. And its definition of "sick" adults is broad: It includes everyone who said they had a serious illness, medical condition, injury, or disability requiring a lot of medical care, as well as anyone who was hospitalized overnight in the past year. By that yardstick, 27 percent of Massachusetts adults are regarded as sick.

But even if that number should be taken with a grain of salt, it is clear that universal health insurance is no panacea for health care's financial pressures -- especially those that affect people with pre-existing or expensive medical conditions.

The way to make medical insurance more affordable and accessible for everyone, above all those whose health problems are greatest, is not by forcing insurers to pretend that the chronically ill or those requiring frequent care don't have above-average costs. If companies that sell homeowners insurance were barred from taking into account the size, location, or age of the houses they wrote policies for, it goes without saying that premiums and deductibles would keep rising and fewer losses would be covered. Making it illegal for health insurers to craft policies and charge premiums that accurately reflect the needs and risks of people with significant medical issues has a similar effect.

Rather than outlawing insurance for pre-existing conditions, health-care economist John C. Goodman argues, we should be encouraging it. In a new book, Priceless: Curing the Healthcare Crisis, Goodman offers an abundance of ways in which an unfettered market could address the problems of people with chronic medical needs. One proposal: employers could buy health insurance that was fully portable -- employees would own their policies and could take them from job to job. Another idea: Health Savings Accounts for the chronically ill that would allow disabled patients to manage their own budgets and choose the goods and services that best meet their needs. Still another: "Health status insurance," which would allow individuals to protect themselves against the risk that a pre-existing condition could emerge down the road and cause their insurance premiums to rise.

What America's health-care landscape needs is more freedom and competition, not less. True reform would end the tax-code distortion that links health insurance to employment. It would tear down the barriers to buying health insurance across state lines. It would roll back the mandatory benefits that make everyone's health coverage too expensive. Massive health-care "reforms" that restrict choice, suppress prices, and block innovation aren't reforms at all. In sickness and in health, they generally make things worse.

SOURCE

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Oregon: Welcome to the jungle

The racist attacks on whites by groups of blacks continue

Portland Police are investigating two “large-scale” fights that happened in Laurelhurst Park in Southeast Portland earlier this week. According to Sgt. Pete Simpson, both fights involved groups of black teenagers randomly attacking people in the park.

Simpson said the first incident happened on June 13 around 10:30 p.m. That’s when officers responded to reports of 150 drunken teenagers in the park.

Officers arrived and found several groups of teens leaving. As they continued through the park a young woman flagged them down and pointed out a 14-year-old boy who had been beaten up, Simpson said. He was lying on a picnic table.

The boy had been hit in the face and paramedics were called to treat his injuries.

According to Simpson, the victim told officers he was with a friend in the park when he was punched from behind. He said his attackers were 5-10 black teenagers who were randomly attacking white teens in the park. He said they also attacked a homeless man.

The victim said the attackers stole his cell phone, iPod, headphones and hat.

The second attack happened the next night, also around 10:30 p.m. In that case, officers got a report of a fight involving more than 20 people in the park.

They didn’t find the fight when they arrived but did find three men who said they were attacked by a group of 20-30 black teenagers, Simpson said.

The three victims, who are all in their 20s, said they were playing “soccer tennis” at the tennis courts when some of the teens started calling out to them and throwing bottles on the court, according to Simpson.

The victims said they were then attacked by people in the group. Two of the men suffered facial injuries but declined medical treatment.
"As they came onto the court, it became clear it was time to get out of there," one of the victims told KATU. "In hindsight, being in a public park at night is not the safest place to begin with."

Portland Police officers plan on stepping up patrols in the park this weekend. The park will also close at 10 p.m. through the weekend instead of the normal midnight closing time.

SOURCE

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My Twitter.com identity: jonjayray. I have deleted my Facebook page as I rarely access it. 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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Wednesday, June 20, 2012

The Nation's Top 'Progressives' - and Socialists and Communists

Paul Kengor

The left-leaning magazine The Nation has published a list of what it deems America’s all-time, most influential progressives. The list, which you can review for yourself , is very revealing.

For starters, it’s fascinating that The Nation leads with Eugene Debs at number 1. Debs was a socialist. It was 100 years ago this year, in 1912, that Debs ran for president on the Socialist Party ticket.

Today’s progressives get annoyed if you call them socialists. Well, why is a pure socialist the no. 1 “progressive” on The Nation 's list?

Of course, progressives really get annoyed if you suggest they bear any sympathies to communism. That being the case, two other “progressives” on The Nation ’s list are quite intriguing: Paul Robeson and I. F. Stone.

Paul Robeson was a proud recipient of the “Stalin Prize.” Even the New York Times concedes Robeson was “an outspoken admirer of the Soviet Union.” When Robeson in 1934 returned from his initial pilgrimage to the Motherland, the Daily Worker thrust a microphone in his face. The Daily Worker rushed its interview into print, running it in the January 15, 1935 issue under the headline, “‘I Am at Home,’ Says Robeson At Reception in Soviet Union.”

The Bolsheviks, explained Robeson, were new men. He was bowled over by the “feeling of safety and abundance and freedom” he found “wherever I turn.” He discovered sheer equality under Joseph Stalin.

When asked about Stalin’s purges, Robeson retorted: “From what I have already seen of the workings of the Soviet Government, I can only say that anybody who lifts his hand against it ought to be shot!”

Yes, Robeson was deadly serious. Robeson told the Daily Worker that he felt a “kinship” with the USSR. So much so that he moved his family there. He also joined Communist Party USA. In May 1998, the centennial of Robeson’s birth, longtime CPUSA head Gus Hall hailed Robeson as a man of communist “conviction,” who “never forgot he was a communist.”

None of this is mentioned in The Nation ’s profile, which blasts anyone who dared consider Robeson a communist. Instead, The Nation insists that Comrade Paul was a “progressive.”

And that brings me to I. F. Stone. Stone is listed at number 26 on The Nation’s list. Stone has been hailed by liberals for decades as the literal “conscience” of journalism—a hero of impeccable honesty. In fact, we now know that Stone, at one time, was a paid Soviet agent.

In their latest Yale University Press work, historians John Earl Haynes, Harvey Klehr, and Alexander Vassiliev conclude that Stone (from 1936-39) was a “Soviet spy.” Also closely studying Stone’s case is Herb Romerstein. In The Venona Secrets , Romerstein likewise concluded that “Stone was indeed a Soviet agent.” One of the stronger confirmations from the Soviet side is retired KGB general Oleg Kalugin, who reported: “He [Stone] was a KGB agent since 1938. His code name was ‘Blin.’ When I resumed relations with him in 1966, it was on Moscow’s instructions. Stone was a devoted communist.” None of this appears at Stone’s “progressive” profile at The Nation .

And speaking of progressives with communist sympathies, also on The Nation ’s list is Margaret Sanger . The Planned Parenthood matron sojourned to Stalin’s Potemkin villages in 1934. “[W]e could well take example from Russia,” Sanger advised Americans upon her return, “where birth control instruction is part of the regular welfare service of the government.”

The Planned Parenthood founder was stunned by the explosion in abortions once legalized by the Bolsheviks. No fear, though. Sanger offered this confident prediction: “All the [Bolshevik] officials with whom I discussed the matter stated that as soon as the economic and social plans of Soviet Russia are realized, neither abortions nor contraception will be necessary or desired. A functioning Communistic society will assure the happiness of every child, and will assume the full responsibility for its welfare and education.”

This was pure progressive utopianism, an absolute faith in central planners.

Overall, the socialists, communists, and Soviet sympathizers on The Nation’s list are dizzying: Upton Sinclair, Henry Wallace, W. E. B. DuBois, Norman Thomas, Lincoln Steffens, Woody Guthrie, Pete Seeger, Tom Hayden, Barbara Ehrenreich, and John Dewey—founding father of American public education.

Thus, I’m compelled to ask: Is this “progressivism?” Is progressivism synonymous with liberalism, or is it much further to left, closer to communism?

I plead with progressives: This is your ideology … Could you better define it, if that’s possible? Or is the definition of progressivism always progressing ? Actually, it is always progressing; that’s precisely the problem with this train-wreck of an ever-elusive ideology. The Nation’s list of leading American “progressives” is truly a teachable moment.

SOURCE

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The GOP’s Emerging Backbone?

It may be too early to tell, but the Republican Party appears to be shedding its draw-no-blood, lose-gracefully approach to campaigns that has kept conservative voters either frustrated or stubbornly at home on election days.

On May 30, former New Hampshire governor and Mitt Romney supporter John Sununu sparred with CNN’s Soledad O’Brien over Romney’s association with Donald Trump, who is continuing to discuss the president’s birth certificate controversy. Sununu wasn’t interested, insisting that he would rather discuss “jobs. . . and the disastrous [economy].” O’Brien continued, snidely stating that, obviously, Republicans consider the birther issue important. Sununu wrote off the topic as “CNN’s fixation” and deftly highlighted the network’s blatant support of the president. Though not exactly a knockdown-dragout, is was certainly rousing, refreshing and long overdue. Way to go!

On the June 1 O’Reilly Factor, Illinois Congressman Joe Walsh (Chicago area, American Conservative Union score of 94 percent) appeared, who recently told his constituents that the Democrats are actively seeking to buy votes and promote dependency. “They’re trying to do it with Hispanics, just like they’ve done it with African Americans. . . Without government dependency, Jesse Jackson wouldn’t have a job.” Walsh stood behind his words in a live interview with O’Reilly, who, though he sided with Walsh’s sentiments, thought the congressman’s rhetoric might be insulting to some. “I was trying to be insulting to the Democratic Party,” Walsh replied.

“What if Jackson were sitting here?” O’Reilly continued. “Would you say that he doesn’t want the best for his community?” Ah, yes, the mantra of liberal good intentions, always used to stifle conservative passions. Didn’t work on Walsh who replied “Baloney. . . Jackson stands in the way of school choice” and other proposals that could strengthen the black community. He further referred to Jackson as a “race hustler.”

Yes! Meanwhile, Mitt Romney recently spoke outside the vacant Solyndra office building in California and has not allowed himself to be distracted by such controversies as Sandra Fluke, Bain Capital, etc.

A recent Democratic ad praised candidate John McCain for, in 2008, steering clear of questioning Barack Obama’s early years and associations. “Why won’t Mitt Romney do the same?” the ad asked in conclusion.

At question is, again, the governor’s relationship with Donald Trump and the birther issue. In truth, Romney has steered clear, preferring to highlight the president’s failed record. But whatever one thinks of Trump, why is he any more politically toxic than any of Obama’s lapdogs in entertainment and the mainstream media, including MSNBC’s Al Sharpton, whose ring (and I’m being nice here) all Democratic presidential candidates have to kiss at some point in the election cycle? Trump has supported Romney thus far, and a true leader does not turn his back on his friends in deference to the school-girl snippiness of a media campaign turning from desperation to panic mode (and rising unemployment numbers will only turn up the bile).

Not to say that Mitt Romney is a great leader. Nothing written here should be construed as an endorsement. Still, the passion of a party fighting for the highest ideals of the American people appears to be emerging — somewhat.

The epic determination of Wisconsin governor Scott Walker merits a volume unto itself, and even the limp leadership of House Speaker John Boehner has shown a few rhetorical signs of life. Republicans may well know that the stakes have never been higher, and after the uninspiring campaigns of Bob Dole and John McCain and the “kinder, gentler, new tone” administrations of both Presidents Bush, the freedom-loving American can only hope that the GOP’s backbone wasn’t found too late.

SOURCE

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Supreme Court reins in an arrogant bureaucracy

Mark Calabria

Having one’s read of the law vindicated by the Supreme Court is always a nice feeling, even if I had to wait about a decade. From 2002 to 2003, I managed the HUD office which administered the Real Estate Settlement Procedures Act (RESPA).

In 2001, prior to my arrival, the legal staff at HUD released a “policy statement” claiming that RESPA’s Section 8(b) prohibited some instances of fees as excessive or unreasonable because said fees would constitute a person “giving or accepting any unearned fees”.

How HUD even knows what is earned or unearned is besides the point, Section 8(b) of RESPA only prohibits fees that are basically split between two or more parties. As far as statutes go, RESPA is actually quite clear. That clarity, however, did not stop HUD from taking the convoluted position that one can split or share a fee with one-self. This was obviously an attempt to create a “reasonable” test for fees where one did not exist.

During my brief tenure at HUD, the RESPA office largely ignored this section of the 2001 policy statement. The staff there related to me that its inclusion was largely “political” anyway, an attempt to the make the remainder of the policy statement more palatable.

I made clear at the time that the policy statement went far beyond any actual authority in RESPA. It seems, however, that the trial bar was not willing to let this statement remain dormant, and assembled a class action based upon this erroneous reading of RESPA, leading to last week’s decision, which rejected 9 to 0 HUD’s reading of RESPA.

Dodd-Frank moved the RESPA office from HUD to the newly created Consumer Financial Protection Bureau (CFPB). It moved much of the HUD enforcement and legal staff as well. What is not clear is whether the willingness to simply make up law where there is no statutory authority was also left behind.

One of the reasons why I, among others, have strong concerns as to the current structure of the CFPB is this trend of regulators constantly going around the letter of the law. How are we to hope for respect for the law when those tasked with enforcing it show so little respect themselves.

SOURCE

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Jihad's Willing Executioners

Quietly, behind the scenes, the Muslim Brotherhood is enforcing censorship of all U.S. government training about Islam and the forces of Islamic jihad. Under the co-opted direction of National Security Council official, Quintan Wiktorowicz, key Cabinet Departments, including Defense, Homeland Security, Justice and State are purging their curriculum materials of any references about Islam that their Muslim Brotherhood advisors find objectionable. In effect, the national security policy of the U.S. government is being brought into compliance with Islamic law on slander.

It's much easier to conquer an adversary who's been anesthetized, cowed, infiltrated and lulled into ignorant passivity than one who's alert and on the defensive. That, in a nutshell, is why there is a campaign called "Islamophobia," designed and promoted by the Muslim Brotherhood to silence those who would speak truth about Islam. And it is why the Brotherhood coup that has just achieved the capitulation of the top levels of the U.S. government is so dangerous to the future of the Republic and America's Constitutional rights.

Farah Pandith is the Special Representative to Muslim Communities for the U.S. Department of State. In that official capacity, she repeatedly has associated with groups and individuals that are known affiliates of the Muslim Brotherhood and its equally jihadist off-shoot, HAMAS. In an interview with the Gulf Times at the conclusion of the May 2012 9th U.S.-Islamic World Forum in Qatar, Pandith confirmed that it has been the policy of the Obama administration since its inception "to put the priority of engaging with one fourth of humanity [Islam] front and centre."

She's right: There's never before been an American president who so unashamedly and deliberately has sought to empower those who've openly and repeatedly declared themselves the sworn enemies of this country. It will be recalled that Muhammad Badi, the Muslim Brotherhood Supreme Guide, effectively declared war on the U.S. in October 2010, about nine months before the Obama administration granted formal diplomatic recognition to the jihadist group.

Much more HERE

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ELSEWHERE

Public-sector growth is bad news: "Every (unsubsidized) job in the private sector exists because it generates more in wealth or value than it consumes in resources — and hence grows the economic pie. That’s not the case with the public sector. For example, between 1970 and 2010, public school enrollment went up by 8.5 percent — while public-school employee rolls swelled a mind-boggling 96.2 percent. This cost the country $210 billion and failed to produce one iota of improvement in student achievement. Was this money well-spent because the teachers who received it could spring for nice houses and vacations? Or was it a waste of precious resources that could have been better deployed elsewhere? Since public-sector jobs don’t pay for themselves, they have to be financed either through taxes or borrowing or inflation (printing money), all of which divert resources from productive private endeavors and hurt overall growth."

Holder Buckling Under Threat of Contempt Charges: "Attorney General Eric Holder on Thursday agreed to make what he called "an extraordinary accommodation" to Republicans investigating the botched "Operation Fast and Furious" by turning over department emails he has long insisted deal with internal deliberations and should be protected. Holder is trying to head off a push by House Republicans to hold him in contempt of Congress for allegedly "stonewalling" their investigation. And he offered to personally brief the chairman of the House Oversight and Government Reform Committee, Rep. Darrell Issa, R-Calif., in the next few days. Issa's office said in an early response that Holder's letter "only seems to indicate a willingness to offer a selective telling" of key events"

Recession: Family net worth down 35% in last 5 years: "The toll of the great housing bust and financial crisis came into clearer focus Monday, as the Census Bureau released numbers showing a 35 percent drop in net worth for the median US household between 2005 and 2010. The numbers give a report card on the financial health of US families before and after the recession. The typical household saw its net worth -- financial assets minus debts -- fall from $102,844 in 2005 to $66,740 five years later, with the census giving those numbers in inflation-adjusted 2010 dollars"

Let them eat healthcare: "An unfortunate aspect of the whole Healthcare Reform debate is that advocates of increased government intervention routinely confuse care and coverage. Even after this obfuscation is pointed out, advocates of increased government intervention continue to make the same error. There seems to be no way to shame an advocate of increased government intervention to accurately describe the debate as over healthcare coverage and not over healthcare itself. And yet, that is the point. Healthcare does become less available the more the government intervenes."

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My Twitter.com identity: jonjayray. I have deleted my Facebook page as I rarely access it. 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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